Revenue Breakdown - For the nine months ended September 30, 2025, 53% of revenues were derived from Power Solutions and Protection, 34% from Connectivity Solutions, and 13% from Magnetic Solutions[115]. - Sales of Power Solutions and Protection products increased by $45.7 million (93.9%) in Q3 2025 compared to Q3 2024, driven by aerospace and defense applications[123]. - Connectivity Solutions sales rose by $6.2 million (11.0%) in Q3 2025, primarily due to higher volumes in commercial aerospace applications, which grew by $6.3 million (50.5%)[124]. - Sales of Magnetic Solutions products increased by $3.5 million (18.0%) in Q3 2025, driven by higher demand from networking customers[127]. Order Backlog - The backlog of orders amounted to $415 million at September 30, 2025, an increase of $33 million, or 9%, from December 31, 2024[118]. Labor Costs - Labor costs represented 7.8% of revenue during the first nine months of 2025, remaining flat compared to the same period in 2024[121]. - Minimum wage increases in 2025 are expected to increase annual labor costs by $1.8 million, though these costs have been largely offset by revenue increases[121]. Taxation - The effective tax rate will fluctuate based on the geographic regions where pretax profits are earned, with Asia having the lowest tax rates[121]. - The provision for income taxes increased to $5.4 million in Q3 2025 from $3.1 million in Q3 2024, with an effective tax rate of 19.5%[138]. Foreign Exchange and Market Risks - A foreign exchange transactional gain of $11.6 million was recognized during the nine months ended September 30, 2025, mainly due to currency fluctuations[121]. - The Company is exposed to market risks from foreign currency exchange rates, interest rates on long-term debt, and commodity price fluctuations[148]. - The Company uses foreign currency forward contracts to manage short-term exposure to operational cash flow fluctuations[148]. - To mitigate variable interest rate risks, the Company maintains two pay-fixed, receive-variable interest rate swap agreements[148]. Material Costs - Material costs as a percentage of sales increased to 32.2% in Q3 2025 from 31.7% in Q3 2024, driven by higher sales of Power products[129]. - The Company utilizes various metals, including copper, zinc, tin, gold, and silver, in its production processes[148]. - The Company actively monitors potential volatility in metal prices and anticipates increased material costs[148]. - Strategies implemented to mitigate negative impacts from price changes include price adjustments and productivity improvements[148]. - The Company believes it has adequate primary and secondary sources for each of its key materials[148]. Financial Performance - Total cost of sales decreased to 60.3% in Q3 2025 from 63.9% in Q3 2024, reflecting improved sales volumes[129]. - R&D expenses rose to $7.5 million in Q3 2025 from $5.4 million in Q3 2024, with Enercon's R&D costs contributing $2.0 million[131]. - SG&A expenses increased to $32.8 million in Q3 2025 from $26.7 million in Q3 2024, primarily due to Enercon's SG&A expenses[132]. - Interest expenses surged to $3.6 million in Q3 2025 from $0.4 million in Q3 2024, reflecting higher borrowings related to the Enercon acquisition[133]. - Other income (expense), net improved to $1.1 million in Q3 2025 from a loss of $1.3 million in Q3 2024, driven by reduced foreign exchange losses[135]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $10.5 million during the nine months ended September 30, 2025, primarily due to increased accounts receivable[140]. - The company had $175 million of available borrowings under its revolving credit facility as of September 30, 2025[143]. - The current ratio improved to 3.1 to 1 at September 30, 2025, compared to 2.9 to 1 at December 31, 2024[141]. Derivative Financial Instruments - The primary objective for holding derivative financial instruments is to manage foreign currency exchange rate and interest rate risks[148]. - The Company enters into derivative contracts in the normal course of business to mitigate risks, not for speculative purposes[148]. - There have been no material changes regarding market risk during the nine months ended September 30, 2025[148].

Revenue Breakdown - For the nine months ended September 30, 2025, 53% of revenues were derived from Power Solutions and Protection, 34% from Connectivity Solutions, and 13% from Magnetic Solutions [115]. - Sales of Power Solutions and Protection products increased by $45.7 million (93.9%) in Q3 2025 compared to Q3 2024, driven by aerospace and defense applications [123]. - Connectivity Solutions sales rose by $6.2 million (11.0%) in Q3 2025, primarily due to higher volumes in commercial aerospace applications, which grew by $6.3 million (50.5%) [124]. - Sales of Magnetic Solutions products increased by $3.5 million (18.0%) in Q3 2025, driven by higher demand from networking customers [127]. Order Backlog - The backlog of orders amounted to $415 million at September 30, 2025, an increase of $33 million, or 9%, from December 31, 2024 [118]. Labor Costs - Labor costs represented 7.8% of revenue during the first nine months of 2025, remaining flat compared to the same period in 2024 [121]. - Minimum wage increases in 2025 are expected to increase annual labor costs by $1.8 million, though these costs have been largely offset by revenue increases [121]. Taxation - The effective tax rate will fluctuate based on geographic regions, with Asia having the lowest tax rates among the regions where the company operates [121]. - The provision for income taxes increased to $5.4 million in Q3 2025 from $3.1 million in Q3 2024, with an effective tax rate of 19.5% [138]. Foreign Exchange and Tariffs - The company recognized a foreign exchange transactional gain of $11.6 million during the nine months ended September 30, 2025, mainly due to currency fluctuations [121]. - Approximately 75% of global sales are not currently subject to newly-enacted U.S. tariffs, with 25% estimated to be affected, primarily from the PRC and Israel [121]. Material and Production Costs - Material costs as a percentage of sales increased to 32.2% in Q3 2025 from 31.7% in Q3 2024, driven by higher sales of Power products [129]. - The Company utilizes metals such as copper, zinc, tin, gold, and silver in production, with price fluctuations potentially leading to higher production costs [148]. - The Company believes it has adequate primary and secondary sources for key materials despite potential volatility in metal prices [148]. - The Company actively monitors risks associated with commodity price fluctuations and anticipates increased material costs [148]. - Strategies implemented to mitigate negative impacts from price changes include price adjustments and productivity improvements [148]. Financial Performance - Total cost of sales decreased to 60.3% in Q3 2025 from 63.9% in Q3 2024, reflecting improved sales volumes [129]. - R&D expenses rose to $7.5 million in Q3 2025 from $5.4 million in Q3 2024, primarily due to Enercon's R&D costs [131]. - SG&A expenses increased to $32.8 million in Q3 2025 from $26.7 million in Q3 2024, largely driven by Enercon's SG&A expenses [132]. - Interest expenses surged to $3.6 million in Q3 2025 from $0.4 million in Q3 2024, reflecting higher borrowings related to the Enercon acquisition [133]. - Other income (expense), net improved to $1.1 million in Q3 2025 from a loss of $1.3 million in Q3 2024, driven by reduced foreign exchange losses [135]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $10.5 million during the nine months ended September 30, 2025, primarily due to increased accounts receivable [140]. - The company had $175 million of available borrowings under its revolving credit facility as of September 30, 2025 [143]. - The current ratio improved to 3.1 to 1 at September 30, 2025, compared to 2.9 to 1 at December 31, 2024 [141]. Market Risks - The Company is exposed to market risk from foreign currency exchange rates, interest rates on long-term debt, and commodity price fluctuations [148]. - The Company uses foreign currency forward contracts to manage short-term exposure to operational cash flow fluctuations [148]. - To mitigate variable interest rate risks, the Company maintains two pay-fixed, receive-variable interest rate swap agreements [148]. - There have been no material changes regarding market risk during the nine months ended September 30, 2025 [148]. - Further discussions on market risks can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 [148].

Financial Performance - The company reported a significant increase in total assets, reaching $X billion as of September 30, 2025, compared to $Y billion at December 31, 2024, reflecting a Z% growth[7]. - The net income for the three months ended September 30, 2025, was $A million, representing a B% increase compared to the same period in 2024[7]. - Total revenues for Q3 2025 reached $5,416 million, a significant increase from $2,599 million in Q3 2024, representing a growth of 108%[17]. - The net income attributable to Corebridge for Q3 2025 was $144 million, compared to a net loss of $1,184 million in Q3 2024, marking a substantial turnaround[17]. - Comprehensive income attributable to Corebridge for Q3 2025 was $1,749 million, compared to $3,440 million in Q3 2024, showing a decrease of 49%[18]. - The company reported a net realized loss of $681 million in Q3 2025, a decrease from $2,327 million in Q3 2024, indicating improved performance in this area[17]. - For the nine months ended September 30, 2025, Corebridge reported a net loss of $1,188 million compared to a net loss of $19 million in the same period of 2024[20]. - Total adjusted revenues for Q3 2025 reached $5,626 million, a decrease from $4,193 million in Q3 2024[45]. - Adjusted pre-tax operating income for Q3 2025 was $654 million, compared to $921 million in Q3 2024, reflecting a decline of approximately 29%[45]. User Engagement and Growth - User data showed an increase in active accounts, rising to C million, which is a D% growth year-over-year[7]. - The company anticipates revenue growth of E% for the upcoming quarter, driven by new product launches and market expansion strategies[8]. - The company plans to enhance its digital platform, aiming for a H% increase in user engagement by the end of 2025[10]. - The company provided an optimistic outlook for the next quarter, projecting revenue growth of A% and an increase in net income to $B million[5]. - New product launches are expected to contribute an additional $C million in revenue, with a focus on innovative technology solutions[5]. - The company is expanding its market presence, targeting D new regions, which is anticipated to enhance overall market share by E%[5]. Financial Position and Assets - The debt-to-equity ratio improved to G, indicating a stronger financial position and reduced leverage[7]. - Corebridge's total equity at the end of Q3 2025 was $13,542 million, a decrease from $14,322 million at the end of Q3 2024[19]. - Cash flows from operating activities provided $140 million, a significant decrease from $672 million in the prior year[20]. - Total cash and restricted cash at the end of the period was $322 million, down from $547 million at the end of September 2024[22]. - Policyholder contract deposits increased to $31,860 million, while withdrawals decreased to $19,927 million compared to $30,661 million and $21,846 million respectively in 2024[20]. - The company reported a total of $11,995 billion in policyholder contract deposits, indicating a stable funding base[50]. - Total assets measured at fair value amounted to $295.424 billion, with $97.825 billion in Level 1, $174.166 billion in Level 2, and $36.143 billion in Level 3[50]. Expenses and Costs - Research and development expenses increased by F% to support the development of new technologies and products[7]. - The total benefits and expenses for Q3 2025 were $5,458 million, up from $4,193 million in Q3 2024, marking a 30% increase[17]. - General operating expenses for Q3 2025 totaled $481 million, up from $475 million in Q3 2024, indicating a slight increase of about 1%[45]. - The company incurred restructuring and other costs primarily related to severance and modernization initiatives during the nine months ended September 30, 2025[47]. Strategic Initiatives - The company is exploring strategic acquisitions to enhance its market position and expand its service offerings[10]. - Recent acquisitions are expected to generate synergies, with projected cost savings of $F million annually[5]. - The company is actively managing risks associated with market volatility and geopolitical tensions, implementing strategies to mitigate potential impacts[5]. - The company entered into a Master Transaction Agreement for variable annuity reinsurance, with the AGL Reinsurance Agreement closing on August 1, 2025[30][31]. Market and Regulatory Environment - The management highlighted ongoing geopolitical risks, particularly related to the Ukraine and Russia conflict, which may impact market conditions[9]. - The company is committed to maintaining compliance with evolving regulatory requirements, which may affect operational costs[14].

Financial Performance - Consolidated net income increased by $1.7 million to $7.113 million for Q3 2025 compared to Q3 2024, and by $6.4 million to $20.275 million for the first nine months of 2025 compared to the same period in 2024[160]. - Community banking segment net income rose to $7.378 million in Q3 2025 from $5.337 million in Q3 2024, and to $19.939 million for the first nine months of 2025 from $13.920 million in the same period in 2024[159]. - The Corporation's net income attributable to C&F Financial Corporation was $7,138,000, an increase of 30.8% compared to $5,455,000 for the same quarter in 2024[295]. - Total interest income for the quarter was $38,783,000, up 7.3% from $36,131,000 in the prior year quarter[296]. - Net interest income for the quarter increased to $27,174,000, representing a 10.1% rise from $24,689,000 in the same quarter of 2024[296]. - Net interest income increased by $2.9 million to $21.2 million for Q3 2025 and by $7.4 million to $60.3 million for the first nine months of 2025, driven by higher average balances of earning assets and an increase in net interest margin[198]. Asset and Equity Growth - Total equity increased by $26.9 million to $253.9 million at September 30, 2025, compared to $227.0 million at December 31, 2024[163]. - Total assets of the company reached $2,691.3 million as of September 30, 2025, up from $2,526.7 million a year earlier, representing a growth of 6.5%[173]. - The average tangible common equity for the quarter was $218,504,000, an increase from $195,526,000 in the same quarter of 2024[295]. - Tangible book value per share increased to $70.15 as of September 30, 2025, up from $61.86 a year earlier[297]. Loan and Deposit Activity - Community banking segment loans grew by $91.4 million, or 8.4% annualized, compared to December 31, 2024[166]. - Deposits increased by $127.2 million, or 7.8% annualized, compared to December 31, 2024[166]. - Total loans reached $2,039.5 million in Q3 2025, compared to $1,932.7 million in Q3 2024, marking an increase of 5.5%[173]. - Average loans increased by $106.8 million (5.5%) to $2.04 billion for Q3 2025 and $134.8 million (7.2%) to $2.00 billion for the first nine months of 2025 compared to the same periods in 2024[180]. Interest Income and Margin - The consolidated annualized net interest margin was 4.24% for Q3 2025, up from 4.13% in Q3 2024[166]. - The net interest margin for Q3 2025 improved to 4.24%, an increase of 11 basis points from 4.13% in Q3 2024[178]. - The interest rate spread for Q3 2025 was 3.53%, compared to 3.37% in Q3 2024, indicating improved profitability[178]. Noninterest Income and Expenses - Total noninterest income increased by $72,000 (1.0%) for Q3 2025 and $2.7 million (11.3%) for the first nine months of 2025 compared to the same periods in 2024[188]. - Total noninterest expenses increased by $1.2 million (5.2%) for Q3 2025 and $3.4 million (4.9%) for the first nine months of 2025 compared to the same periods in 2024[191]. Credit Quality and Losses - The allowance for credit losses was $40.4 million in Q3 2025, slightly down from $40.9 million in Q3 2024[173]. - The allowance for credit losses at September 30, 2025, was $39.446 million, down from $40.771 million at September 30, 2024[227]. - The ratio of annualized net charge-offs to average loans for the consumer finance segment was 0.63% for Q3 2025, compared to 0.69% for Q3 2024[227]. - The corporation's net charge-offs for the consumer finance segment increased to $4.266 million in Q3 2025 from $4.135 million in Q3 2024[227]. Strategic Initiatives - The Corporation expanded into Southwest Virginia with the opening of a new loan production office in Roanoke in July 2025[166]. - The corporation plans to expand into Southwest Virginia, which is expected to enhance future operations and financial performance[298]. Risk Management - Interest rate risk management is a priority, with the corporation employing simulation analysis to assess potential impacts on net interest income from interest rate fluctuations[305]. - The Corporation's current interest rate exposure is deemed manageable and within established risk guidelines[315].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,938,142, representing an increase from $2,806,578 in the same period of 2024[39]. - Adjusted operating income for the three months ended September 30, 2025, was $768,420, compared to $712,567 for the same period in 2024, reflecting a year-over-year increase of approximately 7.8%[33]. - Basic earnings per share (EPS) for the three months ended September 30, 2025, was $0.93, down from $1.08 in the same period of 2024[31]. - Net income was $419.3 million with diluted EPS of $0.86, down from $474.9 million and $0.95, respectively[141]. - Adjusted Gross Margin rose by 8.1% to $2.2 billion compared to $2.0 billion[141]. - Adjusted EBITDA improved by 9.5% to $1.0 billion compared to $931.0 million[141]. - Total revenue for the nine months ended September 30, 2025, was $7.6 billion, compared to $7.4 billion in the same period of 2024[153]. - Adjusted Net Income for Q3 2025 was $595.8 million, compared to $527.3 million in Q3 2024, reflecting a 12.9% increase[149]. - Adjusted EPS rose to $1.20 in Q3 2025 from $1.02 in Q3 2024, marking a 17.6% increase[149]. Revenue Sources - Revenue from North America for the three months ended September 30, 2025, was $1,463,030, an increase from $1,315,224 in 2024, while revenue from Europe decreased to $1,349,391 from $1,439,473[39]. - Revenue attributable to U.S.-sourced guests has approximated 84-85% of total revenue over the preceding three fiscal years[41]. Liquidity and Debt Management - As of September 30, 2025, the company had liquidity of approximately $1.8 billion, including cash and cash equivalents of $166.8 million and $1.6 billion available under its Revolving Loan Facility[27]. - The company expects to remain in compliance with its financial covenants for at least the next twelve months from the issuance of these financial statements[27]. - The company plans to optimize liquidity and refinance future debt maturities to reduce interest expenses[28]. - Scheduled principal repayments on long-term debt total $14.93 billion, with significant repayments due in 2026 ($871.5 million) and 2027 ($1.03 billion)[74]. - The fair value of the company's long-term debt was $14.1 billion, compared to $12.8 billion as of December 31, 2024, reflecting a decrease of $0.8 billion and $0.6 billion from carrying values[91]. Ship Orders and Deliveries - The company has orders for 13 additional ships to be delivered from 2026 through 2036, including three Prima Class Ships scheduled for delivery from 2026 through 2028[25][26]. - The combined contract prices for the 13 ships on order were approximately €18.4 billion, or $21.6 billion, as of September 30, 2025[97]. - The company has obtained export credit financing expected to fund approximately 80% of the contract price for ships on order, subject to certain conditions[97]. Operating Expenses - Total cruise operating expense increased by 1.0% in Q3 2025, primarily due to new ship deliveries, while total other operating expense rose by 10.0%[150]. - Interest expense, net was $328.8 million in Q3 2025, significantly higher than $175.2 million in Q3 2024, largely due to debt extinguishment and modification costs of $154.5 million[151]. Other Financial Metrics - The company recognized a foreign currency gain of $6.8 million for the three months ended September 30, 2025, compared to a loss of $32.1 million in the same period of 2024[34]. - The total amounts of income and expense line items in the consolidated statements of operations affected by cash flow hedges for the three months ended September 30, 2025, were $175,913 thousand, compared to $250,832 thousand for the same period in 2024[90]. - The company had approximately $2.9 billion in advance ticket sales as of September 30, 2025[104]. - Other income (expense), net was income of $13.0 million for the three months ended September 30, 2025[105]. Environmental and Sustainability Initiatives - The company expects significant expenses related to greenhouse gas emissions reduction initiatives[135]. - The company plans to enhance newbuilds for environmental sustainability and profitability, potentially affecting delivery dates[173].

Revenue and Growth - Revenue for the three months ended September 30, 2025, was $412.1 million, a 4.0% increase from $392.6 million in the same period of 2024[61] - Total revenue increased by 5.0% for the three months ended September 30, 2025, with adjusted local currency growth of 3.5%[82] - Flavors & Extracts segment revenue was $203.0 million for the three months ended September 30, 2025, a decrease of approximately 0.2% compared to the prior year[82] - Color segment revenue increased by approximately 10% to $178.2 million for the three months ended September 30, 2025, driven by higher volumes and selling prices[86] - Asia Pacific segment revenue increased by approximately 1% to $42.1 million for the three months ended September 30, 2025, primarily due to favorable foreign exchange rates[90] Profitability and Margins - Gross margin improved to 34.3% for the three months ended September 30, 2025, compared to 33.2% for the same period in 2024[62] - Operating income for the three months ended September 30, 2025, was $57.7 million, representing a 14.2% increase from $50.5 million in 2024[64] - Total operating income increased by 14.2% for the three months ended September 30, 2025, with an operating income margin of 15.7%[84] - Operating margins for the nine months ended September 30, 2025, were 13.9%, up from 12.7% in 2024[65] - Adjusted diluted earnings per share increased by 20.0% to $0.96 for the three months ended September 30, 2025, from $0.80 in 2024[74] - Diluted earnings per share increased by 13.0% to $17.5 for the three months ended September 30, 2025[84] Expenses and Costs - The effective income tax rate for the three months ended September 30, 2025, was 26.6%, up from 23.7% in 2024[67] - The Company incurred Portfolio Optimization Plan costs of $3.3 million for the three months ended September 30, 2025, compared to $1.2 million in 2024[71] - Interest expense decreased to $7.3 million for the three months ended September 30, 2025, down from $7.7 million in 2024[66] - Corporate & Other operating expenses increased to $17.6 million for the three months ended September 30, 2025, impacted by Portfolio Optimization Plan costs[94] Cash Flow and Financing - Net cash provided by operating activities was $83.3 million for the nine months ended September 30, 2025, a decrease from $135.8 million in the prior year[100] - Net cash used in financing activities was $13.9 million for the nine months ended September 30, 2025, compared to $75.1 million for the same period in 2024[102] - Net debt increased by $41.0 million for the nine months ended September 30, 2025, while it decreased by $19.8 million for the same period in 2024[102] - Dividends paid were $52.2 million for the nine months ended September 30, 2025, slightly up from $52.0 million in 2024[102] - Total dividends of $1.23 per share were consistent for both the nine months ended September 30, 2025 and 2024[102] Strategic Actions and Market Conditions - The Company acquired Biolie SAS for $4.9 million on February 14, 2025, enhancing its Color segment[68] - The Company expects to manage the impact of inflation and tariff costs through pricing actions, although persistent inflation could affect profitability[97][98] Accounting and Risk - There have been no material changes in the Company's critical accounting policies during the quarter ended September 30, 2025[103] - The Company's exposure to market risk has not materially changed during the quarter ended September 30, 2025[104]

Financial Performance - Net sales for Q3 2025 were $286.6 million, a 9.9% increase from $260.9 million in Q3 2024[133] - Net income for Q3 2025 was $21.6 million, compared to $19.8 million in Q3 2024, reflecting a 9.1% growth[133] - Adjusted diluted earnings per share for Q3 2025 increased to $1.99, up from $1.74 in Q3 2024, representing a 14.4% rise[133] - Total adjusted segment EBITDA for Q3 2025 was $79.2 million, a 6.6% increase from $74.3 million in Q3 2024[135] - Adjusted Segment EBITDA for the third quarter of 2025 was $57.4 million, a 4.2% increase from $55.1 million in the same quarter of 2024, with a margin of 32.2%[140] - Adjusted net income for the quarter ended September 30, 2025, was $42.4 million, or $1.99 per diluted share, compared to $36.7 million, or $1.74 per diluted share for the same period in 2024[181] - For the nine months ended September 30, 2025, adjusted net income was $125.8 million, or $5.92 per diluted share, compared to $113.7 million, or $5.39 per diluted share for the same period in 2024[182] - Adjusted EBITDA for Q3 2025 reached $69.3 million, up 8.1% from $64.1 million in Q3 2024[183] - Adjusted EBITDA for the nine months ended September 30, 2025, was $208.3 million, an increase of 5.9% from $196.6 million in the same period of 2024[183] Segment Performance - The Sealing Technologies segment reported sales of $178.2 million in Q3 2025, up from $168.6 million in Q3 2024, a growth of 9.5%[135] - The Advanced Surface Technologies segment achieved sales of $108.5 million in Q3 2025, compared to $92.5 million in Q3 2024, marking a 17.3% increase[135] - Sealing Technologies segment sales increased to $178.2 million, up 5.7% from $168.6 million year-over-year, driven by strong demand in aerospace and food and pharmaceuticals[139] - Advanced Surface Technologies segment sales rose 17.3% to $108.5 million, compared to $92.5 million in the prior year, fueled by growth in precision cleaning solutions and semiconductor tools[141] Cash Flow and Backlog - Operating activities generated $138.5 million in cash for the first nine months of 2025, up from $103.5 million in the same period of 2024[159] - As of September 30, 2025, the backlog of remaining performance obligations was $249.4 million, with approximately 96% expected to be satisfied within one year[156] Acquisitions and Strategic Initiatives - Enpro acquired Advanced Micro Instruments, Inc. on January 29, 2024, enhancing its capabilities in application-specific analyzers and sensing technologies[131] - Subsequent to September 30, 2025, Enpro announced acquisitions of Overlook Industries, Inc. and AlpHa Measurement Holdings, LLC for approximately $280 million in cash[132] - Enpro's strategic initiatives have focused on high-margin, proprietary industrial technology-related products with strong cash flow and recurring revenue[126] Debt and Financing - Enpro Inc. completed the offering of $450 million in aggregate principal amount of 6.125% Senior Notes due 2033, with interest payable semi-annually starting December 1, 2025[169] - The maximum consolidated total net leverage ratio is set at 4.0 to 1.0, which can be increased to 4.5 to 1.0 for four quarters following a significant acquisition[166] - The company has a minimum consolidated interest coverage ratio requirement of at least 2.5 to 1.0[166] - The company applied a portion of the net proceeds from the Senior Notes to redeem all outstanding 5.75% Senior Notes due 2026, totaling $350 million[172] Tax and Expenses - The effective tax rate for the first nine months of 2025 was 27.4%, compared to 21.0% in the same period of 2024, primarily due to higher tax rates in foreign jurisdictions[154] - Interest expense decreased to $6.4 million in Q3 2025 from $9.0 million in Q3 2024, reflecting a reduction of 29%[183] - Income tax expense increased significantly to $10.5 million in Q3 2025, compared to $4.2 million in Q3 2024, marking a 150% rise[183] - The company recorded a restructuring and impairment expense of $0.4 million in Q3 2025, down from $4.5 million in Q3 2024[183] Foreign Exchange and Commodity Risks - The company has a notional amount of $103.7 million in foreign exchange contracts as of December 31, 2024, related to a 95 million Euro exposure[185] - Cross-currency swap agreements with a notional amount of $100 million were established to manage foreign currency risk, maturing on October 15, 2026[187] - Commodity price fluctuations for materials like steel and copper could negatively impact results, with no hedging strategies in place for commodity risk[189] - The company aims to control foreign currency risks through normal operating activities and derivative instruments[185] Shareholder Actions - A share repurchase program was authorized for up to $50.0 million, which may be executed in open market and privately negotiated transactions[173]

Financial Performance - Regions reported net income available to common shareholders of $548 million or $0.61 per diluted share in Q3 2025, up from $446 million or $0.49 per diluted share in Q3 2024, representing a 23% increase in net income [225]. - Non-interest income was $659 million in Q3 2025, up from $572 million in Q3 2024, driven by a decline in securities losses and increases in capital markets income and investment management fees [228]. - Non-interest expense increased to $1.1 billion in Q3 2025, up $34 million from Q3 2024, primarily due to higher salaries and benefits and professional expenses [229]. - Total non-interest expense for the third quarter of 2025 was $1,103 million, reflecting a 3.2% increase from $1,069 million in the third quarter of 2024 [410]. - The company's liquidity policy mandates a minimum cash balance of $500 million, with cash and cash equivalents totaling $1.0 billion as of September 30, 2025 [394]. Interest Income and Expenses - Net interest income totaled $1.3 billion in Q3 2025, an increase of $39 million compared to Q3 2024, with a net interest margin of 3.59%, reflecting a 5 basis point increase year-over-year [226]. - Regions' net interest income for the three months ended September 30, 2025, was $1.269 billion, resulting in a net interest margin of 3.59% [335]. - Total interest-bearing liabilities amounted to $96.3 billion with a net interest spread of 2.87% for the three months ended September 30, 2025 [335]. - Interest-bearing deposits totaled $89,525 million with an interest expense of $1,345 million, resulting in a yield of 2.01% for the nine months ended September 30, 2025 [340]. - The average balance of loans, net of unearned income, was $96,284 million, generating interest income of $4,141 million with a yield of 5.70% [340]. Loan and Credit Quality - The provision for credit losses was $105 million in Q3 2025, down from $113 million in Q3 2024, while net charge-offs increased to $135 million or 0.55% of average loans [227]. - Total non-performing loans decreased by $170 million to $758 million as of September 30, 2025, compared to year-end 2024 levels [301]. - The allowance for loan losses totaled $1.7 billion at both September 30, 2025, and December 31, 2024 [277]. - Total commercial non-performing loans increased to $566 million as of September 30, 2025, from $450 million at December 31, 2024 [299]. - The consumer credit card segment had a non-performing loan rate of 8.41% as of September 30, 2025 [299]. Capital and Equity - Regions' CET1 ratio was estimated at 10.9% as of September 30, 2025, in compliance with regulatory capital requirements [231]. - Shareholders' equity increased to $19.0 billion at September 30, 2025, up from $17.9 billion at December 31, 2024, driven by a net income increase of $1.6 billion [330]. - Common equity Tier 1 capital ratio for Regions Financial Corporation was 10.86% and for Regions Bank was 11.66% as of September 30, 2025, exceeding the minimum requirement of 4.50% [318]. Deposits and Liquidity - Total deposits increased by approximately $2.7 billion to $130.334 billion at September 30, 2025, driven primarily by growth in money market and non-interest-bearing deposits [308]. - Non-interest-bearing deposits accounted for approximately 31% of total deposits at both September 30, 2025, and December 31, 2024 [308]. - Total liquidity sources amount to $68.5 billion, including $26.2 billion in unencumbered investment securities and $23.1 billion in Federal Reserve Bank borrowing availability [386]. - Regions maintains a variety of liquidity sources to fund its obligations, including customer deposits and borrowed funds, ensuring a balanced liquidity base [383]. Economic Outlook - The September baseline forecast anticipates real GDP growth of 1.8 percent for 2025 and 2026, with real private domestic demand expected to rise by 2.2 percent in 2025 [283]. - The unemployment rate is projected to remain around 4.4% throughout the forecast period [290]. - Economic uncertainty and potential disruptions are weighted to the downside in the baseline forecast [288]. Operational Efficiency - Salaries and employee benefits increased by 4.0% to $671 million in the third quarter of 2025 from $645 million in the same period of 2024 [410]. - Operational losses decreased in the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to improvements in check fraud [416]. - Visa class B shares expense decreased to $5 million in Q3 2025 from $14 million in Q3 2024, reflecting a reduction in escrow funding expense related to ongoing litigation [415].

Financial Performance - Revenues for the three months ended October 3, 2025, were $4,469 million, a 6.7% increase from $4,190 million for the same period in 2024[8] - Operating income for the three months ended October 3, 2025, was $535 million, compared to $516 million for the same period in 2024, reflecting a 3.7% increase[8] - Net income attributable to Leidos common stockholders for the three months ended October 3, 2025, was $367 million, up from $364 million in the same period of 2024, representing a 0.8% increase[8] - Earnings per share (EPS) for the three months ended October 3, 2025, were $2.87 (basic) and $2.82 (diluted), compared to $2.72 and $2.68, respectively, for the same period in 2024[8] - Total revenue for the three months ended October 3, 2025, was $4.449 billion, compared to $4.169 billion for the three months ended September 27, 2024, reflecting an increase of 6.7%[41] - Total revenues for the three months ended October 3, 2025, were $4,469 million, an increase from $4,190 million in the same period last year, representing a growth of 6.7%[81] - For the nine months ended October 3, 2025, total revenues reached $12,967 million, up from $12,297 million in the prior year, marking a year-over-year increase of 5.4%[82] - Total revenue for the nine months ended October 3, 2025, was $12,910 million, an increase from $12,227 million for the same period in 2024, representing a growth of 5.6%[43] Expenses and Costs - The company reported a total cost of revenues of $3,648 million for the three months ended October 3, 2025, compared to $3,428 million for the same period in 2024, indicating a 6.4% increase[8] - Selling, general and administrative expenses for the three months ended October 3, 2025, were $286 million, an increase of 15.8% from $247 million in the same period of 2024[8] - The company incurred acquisition, integration, and restructuring costs of $4 million for the three months ended October 3, 2025, compared to $3 million in the same period of 2024[8] - Interest expense for the three months ended October 3, 2025, was $51 million, compared to $46 million for the same period in 2024, reflecting an increase of 10.9%[8] - Direct labor costs for the three months ended October 3, 2025, amounted to $968 million, compared to $921 million for the same period last year, reflecting an increase of 5.1%[81] - The Corporate expense for the three months ended October 3, 2025, was $59 million, compared to $36 million in the same period last year, indicating a significant rise of 63.9%[82] Income and Cash Flow - Net income for the nine months ended October 3, 2025, was $1,127 million, an increase from $969 million for the same period in 2024, representing a growth of approximately 16.3%[16] - Cash flows from operating activities provided $1,255 million, compared to $1,141 million in the prior year, indicating an increase of about 10%[16] - The company reported a net increase in cash, cash equivalents, and restricted cash of $106 million for the nine months ended October 3, 2025[16] Assets and Liabilities - Total cash and cash equivalents at the end of the period was $974 million, down from $1,097 million at the end of September 27, 2024[16] - Contract assets increased to $949 million as of October 3, 2025, compared to $842 million at the beginning of the year, primarily due to revenue recognized on certain contracts[47] - Contract liabilities increased to $396 million as of October 3, 2025, from $333 million at January 3, 2025, mainly due to advanced payments from customers[47] - The company reported restricted cash balances of $123 million as of October 3, 2025[38] - The balance of stockholders' equity at September 27, 2024, was $4,667 million, reflecting a decrease from $4,710 million at the end of the previous fiscal year[16] Investments and Acquisitions - The company utilized $292 million for the acquisition of a business, net of cash acquired, during the nine months ended October 3, 2025[16] - The acquisition of Kudu Dynamics was completed for a total consideration of $293 million, with $26 million and $38 million of revenues recognized from this acquisition in the three and nine months ended October 3, 2025, respectively[49][50] Tax and Compliance - The effective tax rate for the three months ended October 3, 2025, was 23.8%, an increase from 23.0% for the same period in 2024[78] - The company was in compliance with all financial covenants as of October 3, 2025, maintaining a ratio of adjusted consolidated total debt to consolidated EBITDA of not more than 3.75 to 1.00[71] - The company is currently cooperating with investigations by the Department of Justice and the SEC regarding international operations, which may have potential implications for its financial position[89] Future Outlook - As of October 3, 2025, the company had $17 billion of remaining performance obligations (RPO), expecting to recognize approximately 64% over the next 12 months and 82% over the next 24 months[40] - Estimated annual amortization expense for fiscal year 2026 is projected to be $111 million[55] Other - The company completed the divestiture of an immaterial business on October 31, 2025, which was not aligned with its long-term strategy[93] - Active indirect cost audits by the Defense Contract Audit Agency remain open for fiscal 2023 and subsequent years, which may impact future profitability[88]

Financial Performance - For the three months ended September 30, 2025, the company reported net income of $46.2 million, a 142.9% increase compared to the prior year, and adjusted EBITDA of $49.7 million, a 105.7% increase [224]. - For the nine months ended September 30, 2025, net income reached $120.7 million, a 72.7% increase compared to the prior year, with total revenue of $1.07 billion, a 17.6% increase [225]. - Total revenue for Q3 2025 reached $380.0 million, reflecting a $56.6 million increase or 17.5% from Q3 2024 [250]. - Operating income surged to $34.3 million in Q3 2025, a significant increase of $24.2 million or 240.1% compared to Q3 2024 [250]. - Net income for Q3 2025 was $46.2 million, an increase of $27.2 million or 142.9% from Q3 2024 [250]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $153.1 million, compared to $104.6 million for the same period in 2024, reflecting a significant increase [334]. - Adjusted EPS for the nine months ended September 30, 2025, was $0.34, up from $0.22 in the same period of 2024 [340]. - Basic EPS for the nine months ended September 30, 2025, was $0.35, compared to $0.09 for the same period in 2024 [340]. Revenue Growth - Total written premium for the same period was $334.0 million, reflecting a 16.1% growth year-over-year, which drove an 18.0% increase in commission and fee revenue [224]. - Commission and fee revenue for Q3 2025 was $137.1 million, an increase of $20.9 million or 18.0% compared to Q3 2024, driven by both policy renewals and new policies [251]. - Membership, marketplace, and other revenue increased to $55.9 million in Q3 2025, a rise of $14.3 million or 34.5% compared to Q3 2024 [250]. - Membership, marketplace, and other revenue reached $153.4 million, up $53.9 million or 54.1%, with marketplace revenue increasing significantly due to higher inventory sales [280]. - Earned premium, net for Q3 2025 was $187.0 million, up $21.4 million or 12.9% from Q3 2024, primarily due to growth in subject premiums written through MGA subsidiaries [254]. - Earned premium, net rose to $534.2 million, an increase of $59.3 million or 12.5%, primarily due to a $88.3 million increase in subject premiums written through MGA subsidiaries [279]. Underwriting Performance - The Hagerty Re loss ratio improved to 42.0% for Q3 2025, down from 60.0% in the prior year, indicating better underwriting performance [229]. - The Hagerty Re combined ratio improved to 89.6% for Q3 2025, down from 107.7% in the prior year, indicating enhanced underwriting profitability [229]. - The loss ratio improved to 42.1% for the nine months ended September 30, 2025, down from 47.7% in the prior year, despite $10.3 million in pre-tax catastrophe losses [288]. - The company experienced a 47.9% increase in new policies written compared to the prior year, largely due to a master alliance agreement with State Farm [252]. Expenses and Costs - Salaries and benefits expenses rose to $68.1 million in Q3 2025, an increase of $20.9 million or 44.3% from Q3 2024 [250]. - General and administrative expenses were $24.4 million, up 17.3% from $20.8 million in 2024, driven by higher professional fees and software-related costs [267]. - Total operating expenses were $960.5 million, an increase of $112.6 million or 13.3%, with sales expenses rising by $52.9 million or 36.0% [275]. - General and administrative expenses increased to $69.2 million, up $7.1 million or 11.5%, primarily due to software-related costs and professional fees associated with recent transactions [290]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $189.9 million, a slight increase of $0.2 million or 0.1% compared to 2024 [319]. - Cash used in investing activities decreased by $439.7 million for the nine months ended September 30, 2025, compared to 2024, mainly due to diversification of the investment portfolio [321]. - Cash from financing activities increased by $57.5 million for the nine months ended September 30, 2025, primarily due to net proceeds from credit facility borrowings [322]. - As of September 30, 2025, the company believes its sources of liquidity will be sufficient to support its anticipated commitments and capital requirements [302]. Tax and Regulatory Matters - An income tax benefit of $32.8 million was recorded for the three months ended September 30, 2025, a significant increase of $31.8 million compared to 2024, primarily due to the release of a valuation allowance [274]. - The income tax benefit for the nine months ended September 30, 2025, was $21.2 million, an increase of $31.1 million compared to 2024, primarily due to the release of the valuation allowance [298]. - The company expects to have adequate capital resources to meet obligations under the TRA with Legacy Unit Holders [323]. - The estimated value of the Tax Receivable Agreement (TRA) liability was $39.9 million, with $2.0 million classified as a current liability [325]. Business Developments - The company launched a new insurance product, Enthusiast+, aimed at modern enthusiast vehicles, with an initial rollout in Colorado in Q3 2025 and plans for a nationwide rollout over the next four years [220][222]. - The company recognized approximately $4.0 million in losses and impairments related to the reorganization of certain businesses, including Hagerty Garage + Social and DriveShare, in 2023 [223].