Acquisitions and Investments - Sunoco LP completed the acquisition of Parkland, with shareholders receiving 0.295 SunocoCorp units and C$19.80 for each Parkland share[200]. - Sunoco LP agreed to acquire TanQuid for approximately €500 million (approximately $587 million), including €300 million of assumed debt, expected to close in Q4 2025[201]. - In Q1 2025, Sunoco LP acquired fuel equipment and supply agreements for approximately $17 million, including $12 million in cash and newly issued common units valued at approximately $5 million[202]. - In Q2 2025, Sunoco LP acquired 151 fuel distribution consignment sites for approximately $105 million, including $92 million in cash and newly issued common units valued at approximately $13 million[203]. - In Q3 2025, Sunoco LP acquired approximately 70 fuel distribution consignment sites and 100 supply agreements for approximately $85 million in cash[204]. Financial Performance - For the three months ended September 30, 2025, Segment Adjusted EBITDA decreased by $121 million, or 3%, compared to the same period last year, primarily due to lower segment margin and higher operating expenses in multiple reportable segments[225]. - For the nine months ended September 30, 2025, net income decreased by $648 million, or 13%, primarily due to a $598 million gain recognized by Sunoco LP on its sale of West Texas assets in the prior period[224]. - For the nine months ended September 30, 2025, Adjusted EBITDA increased by $203 million, or 2%, primarily due to higher segment margin in the midstream segment and the investment in Sunoco LP segment[226]. - The consolidated Adjusted EBITDA for the three months ended September 30, 2025, was $3,838 million, compared to $3,959 million for the same period in 2024, reflecting a decrease of $121 million[222]. - The Partnership's net income for the three months ended September 30, 2025, was $1,292 million, a decrease of $142 million, or 10%, compared to the same period in 2024[223]. Revenue and Expenses - Revenues for the three months ended September 30, 2025, were $869 million, an increase of $191 million compared to the same period last year[240]. - Segment Adjusted EBITDA decreased by $99 million to $230 million for the three months ended September 30, 2025, compared to the same period last year[240]. - Operating expenses for the NGL and refined products segment increased by $241 million, primarily due to recently acquired assets and adjustments in estimates recorded in the prior period[254]. - The depreciation, depletion, and amortization expenses increased by $400 million for the nine months ended September 30, 2025, compared to the same period last year, primarily due to additional depreciation from recently placed assets[226]. Tax and Regulatory Changes - The One Big Beautiful Bill Act reinstates 100% bonus depreciation on qualified property, expected to defer a significant portion of corporate subsidiaries' U.S. federal income taxes[206]. - The FERC's revised policy on income tax allowances may impact the rates charged for FERC-regulated transportation services, with potential revenue reductions[208]. - The FERC initiated a review of its policies on certification of natural gas pipelines, with new policy statements issued in 2022[212]. Debt and Financing - As of September 30, 2025, total consolidated indebtedness was $63.10 billion, up from $59.76 billion at the end of 2024[288]. - The company issued $1.25 billion of 5.70% senior notes due April 2035 in March 2025 to refinance existing indebtedness[289]. - Sunoco LP issued $1.00 billion of 6.25% senior notes due 2033 in March 2025, using proceeds to repay existing senior notes[293]. - Cash used in financing activities during 2025 was $562 million, significantly lower than $4.34 billion in 2024, with a net increase in debt of $3.41 billion compared to $4.24 billion in 2024[284]. Operational Metrics - Natural gas transported increased to 13,861 BBtu/d for the three months ended September 30, 2025, up by 647 BBtu/d from the previous year[240]. - Gathered volumes in the midstream segment increased by 554 BBtu/d to 21,581 BBtu/d for the three months ended September 30, 2025, primarily due to newly acquired assets[250]. - NGL transportation volumes increased to 2,487 MBbls/d for Q3 2025, up 11.2% from 2,237 MBbls/d in Q3 2024[252]. - Crude oil transportation volumes were 7,023 MBbls/d in Q3 2025, slightly down from 7,025 MBbls/d in Q3 2024, while nine-month volumes increased to 6,932 MBbls/d, up 6.0% from 6,540 MBbls/d[258]. Capital Expenditures - Total capital expenditures for 2025 are expected to be approximately $4,600 million for growth and $1,100 million for maintenance[269]. - Sunoco LP plans to invest approximately $150 million in maintenance capital expenditures and at least $400 million in growth capital for the full year 2025[270]. - USAC plans to invest between $38 million and $42 million in maintenance capital expenditures and between $115 million and $125 million in expansion capital expenditures for the full year 2025[272].

Goodwill and Intangible Assets - The Company reported goodwill of $5.4 million as of September 30, 2025, related to the acquisition of 12 branches in the St. Louis market[149]. - The Company has total amortizable intangible assets of $4.4 million for arena naming rights, which are fully amortized over a period not to exceed 15 years[150][151]. Economic Indicators - The Federal Reserve raised the federal funds interest rates to more than 5.50%, the highest level in 22 years, to combat inflation[158]. - The personal consumption expenditures (PCE) price index eased from a peak of 7.1% in June 2022 to 2.9% in December 2023[159]. - Real GDP in 2025 is projected to rise 1.8% on an annual average basis, an increase from prior forecasts of 1.1%[160]. - The federal government deficit was $2.8 trillion in fiscal 2021, close to $1.4 trillion in fiscal 2022, and $1.7 trillion in fiscal 2023[158]. - The national unemployment rate increased to 4.3% in August 2025, up from 4.1% in June 2025, with 7.4 million unemployed individuals[161]. Housing Market - Existing-home sales rose by 1.5% in September 2025 compared to August 2025, reaching an annual rate of 4.06 million, with a year-over-year increase of 4.1%[163]. - The median existing-home sales price increased by 2.1% year-over-year to $415,200 in September 2025, with the Midwest median price at $320,800, up 4.7%[164]. - Total housing inventory at the end of September 2025 was 1.55 million units, a 1.3% increase from August 2025 and a 14.0% increase from one year ago[165]. - New single-family housing starts in August 2025 were at a rate of 890,000, which is 7% below July 2025 and 11.7% below August 2024[166]. - Sales of new single-family houses in August 2025 were at a seasonally adjusted annual rate of 800,000, a 20.5% increase from July 2025[167]. Company Financials - Great Southern's total assets decreased by $243.8 million, or 4.1%, from $5.98 billion at December 31, 2024, to $5.74 billion at September 30, 2025[191]. - Net outstanding loans decreased by $222.7 million to $4.47 billion at September 30, 2025, primarily in construction and commercial real estate loans[191]. - Total deposit balances decreased by $77.5 million, or 1.7%, with transaction account balances increasing by $66.7 million, or 2.2%, to $3.12 billion[197]. - Available-for-sale securities decreased by $2.0 million, or 0.4%, to $531.3 million at September 30, 2025[195]. - Held-to-maturity securities decreased by $6.1 million, or 3.3%, to $181.3 million at September 30, 2025[196]. - Short-term borrowings and other interest-bearing liabilities decreased by $88.3 million to $425.9 million at September 30, 2025[201]. - Total liabilities decreased by $277.1 million to $5.10 billion, mainly due to the repayment of BTFP borrowings and subordinated notes[228]. - Total stockholders' equity increased by $33.3 million, or 5.6%, to $632.9 million, driven by net income of $54.7 million for the nine months ended September 30, 2025[234]. - Net income for the three months ended September 30, 2025, was $17.8 million, a 7.7% increase from $16.5 million in the same period of 2024, attributed to a $2.8 million increase in net interest income[235]. - Cash and cash equivalents were $196.2 million at September 30, 2025, reflecting a slight increase of $479,000, or 0.2%, from December 31, 2024[224]. Interest Income and Expense - Total interest income decreased by $4.7 million or 5.6% during the three months ended September 30, 2025, primarily due to a $4.4 million or 5.8% decrease in interest income on loans[237]. - Interest income on loans decreased by $2.9 million during the nine months ended September 30, 2025, attributed to a decrease in average interest rates from 6.31% to 6.23%[240]. - Total interest expense decreased by $7.5 million or 21.0% during the three months ended September 30, 2025, with interest expense on deposits decreasing by $4.5 million or 15.8%[249]. - Interest expense on demand and savings deposits decreased by $5.4 million during the nine months ended September 30, 2025, due to a decrease in average rates from 1.76% to 1.43%[253]. - Interest income on investments increased by $1.8 million in the nine months ended September 30, 2025, driven by higher average interest rates from 3.10% to 3.35%[246]. Credit Losses and Non-Performing Assets - The Company expects to maintain an allowance for credit losses sufficient to absorb estimated credit losses, calculated using an average historical loss model[145]. - The Company’s allowance for credit losses is measured on a collective basis, aggregating loans into pools based on similar risk characteristics[146]. - The allowance for credit losses as a percentage of total loans was 1.43% at September 30, 2025, compared to 1.36% at December 31, 2024[276]. - The Company did not record a provision expense for outstanding loans in Q3 2025, compared to $1.2 million in Q3 2024[275]. - Net charge-offs for Q3 2025 were $66,000, significantly lower than $1.5 million in Q3 2024[275]. - As of September 30, 2025, non-performing assets decreased by $1.8 million to $7.8 million, representing 0.14% of total assets compared to 0.16% at December 31, 2024[277]. - Non-performing loans decreased by $1.8 million to $1.7 million, while foreclosed assets increased by $90,000 to $6.1 million at September 30, 2025[278]. - Potential problem loans decreased by $5.7 million to $1.4 million at September 30, 2025, from $7.1 million at December 31, 2024[280]. Non-Interest Income and Expenses - Non-interest income for the three months ended September 30, 2025, increased by $70,000 to $7.1 million compared to the same period in 2024[286]. - Non-interest income for the nine months ended September 30, 2025, decreased by $1.8 million to $21.9 million, primarily due to a $1.7 million decrease in other income[287]. - Non-interest expense for the three months ended September 30, 2025, increased by $2.4 million to $36.1 million, primarily due to a $735,000 increase in net occupancy and equipment expenses[290]. - Salaries and employee benefits increased by $636,000, or 3.3%, from the prior-year period, mainly due to annual merit increases[291]. - Non-interest expense for the nine months ended September 30, 2025, increased by $1.4 million to $105.9 million, driven by a $2.0 million increase in net occupancy and equipment expenses, primarily due to computer license and support expenses[294]. Stockholder Equity and Dividends - The Company declared a common stock cash dividend of $0.43 per share for the three months ended September 30, 2025, which is 28% of net income per diluted common share for that period[326]. - The Company's common equity Tier 1 capital ratio was 13.3% as of September 30, 2025, indicating it was well capitalized[323]. - The Company reported a decrease in net interest income of $4.71 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to changes in rates and volumes[307]. Stock Repurchase Program - During the three months ended September 30, 2025, the Company repurchased 165,116 shares at an average price of $60.33 per share, compared to 2,971 shares repurchased at an average price of $53.04 per share in the same period of 2024[327]. - For the nine months ended September 30, 2025, the Company repurchased 514,458 shares at an average price of $57.89 per share, up from 239,933 shares at an average price of $51.69 per share in the same period of 2024[328]. - As of September 30, 2025, approximately 929,000 shares remained available under the new stock repurchase program authorized in April 2025, which allows for the purchase of up to one million additional shares[329].

Acquisitions - The Partnership completed the acquisition of Parkland on October 31, 2025, with Parkland shareholders receiving 0.295 SunocoCorp units and C$19.80 for each Parkland share[108]. - The Partnership entered into an agreement to acquire TanQuid for approximately €500 million (approximately $587 million), expected to close in Q4 2025[112]. - In Q1 2025, the Partnership acquired fuel equipment and supply agreements for approximately $17 million, including $12 million in cash[113]. - In Q2 2025, the Partnership acquired 151 fuel distribution consignment sites for approximately $105 million, including $92 million in cash[114]. - In Q3 2025, the Partnership acquired approximately 70 fuel distribution consignment sites for total cash consideration of approximately $85 million[115]. Financial Performance - For the three months ended September 30, 2025, consolidated Adjusted EBITDA increased to $489 million, up $33 million from $456 million in the same period last year[125]. - For the nine months ended September 30, 2025, consolidated Adjusted EBITDA rose to $1.401 billion, an increase of $383 million compared to $1.018 billion in the prior year[125]. - Net income for the three months ended September 30, 2025, was $137 million, a significant increase from $2 million in the same period last year[125]. - Net income for the nine months ended September 30, 2025, decreased to $430 million from $733 million, primarily due to a $598 million gain on the West Texas Sale in April 2024[125]. - Revenues for the nine months ended September 30, 2025 were $16.071 billion, with a net income of $200 million[171]. Segment Performance - Segment Adjusted EBITDA for Fuel Distribution decreased by $21 million to $232 million for the three months ended September 30, 2025, and by $58 million to $658 million for the nine months[125]. - Segment Adjusted EBITDA for Pipeline Systems increased by $46 million to $182 million for the three months ended September 30, 2025, and by $342 million to $531 million for the nine months[125]. - Fuel Distribution segment profit for Q3 2025 was $329 million, up 101% from $164 million in Q3 2024[140]. - Pipeline Systems segment profit increased by 19% to $189 million in Q3 2025 from $159 million in Q3 2024[141]. - Terminals segment profit rose by 27% to $128 million in Q3 2025 compared to $101 million in Q3 2024[141]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025 was $800 million, compared to $426 million for the same period in 2024[150]. - As of September 30, 2025, the company had $3.24 billion in cash and cash equivalents and $1.45 billion in borrowing capacity on its Credit Facility[147]. - The company expects to utilize cash from operations and Credit Facility capacity to fund growth capital expenditures for 2025[147]. - The unused availability on the Credit Facility as of September 30, 2025 was $1.45 billion, with a weighted average interest rate of 6.42%[166]. Debt and Financing - As of September 30, 2025, total consolidated indebtedness was $9.478 billion, an increase from $7.486 billion as of December 31, 2024[161]. - The Partnership issued $1.00 billion aggregate principal amount of 6.250% senior notes due 2033 in March 2025 to repay $600 million of senior notes due 2025[162]. - In September 2025, the Partnership issued $1.00 billion of 5.625% senior notes due 2031 and $900 million of 5.875% senior notes due 2034 to fund the Parkland Acquisition[163]. - Net cash provided by financing activities during 2025 was $2.94 billion, compared to net cash used in financing activities of $948 million in 2024[158]. Capital Expenditures - Capital expenditures for 2025 were $418 million, which included $310 million for growth capital and $108 million for maintenance capital[159]. - The company expects to spend approximately $150 million in maintenance capital expenditures and at least $400 million in growth capital for the full year 2025[160]. Accounting and Compliance - The Partnership's critical accounting estimates remain unchanged since the filing of the Annual Report on Form 10-K for the year ended December 31, 2024[174]. - The company was in compliance with all financial covenants as of September 30, 2025[166].

Financial Performance - Consolidated net revenues for Q3 2025 were $261.4 million, a decrease of 12.4% compared to $298.4 million in Q3 2024[114] - Gross profit for Q3 2025 was a loss of $49.9 million, down 155.3% from a profit of $90.4 million in Q3 2024, resulting in a gross profit margin of -19.1%[114] - Operating income for Q3 2025 was a loss of $116.5 million, a decline of 562.9% compared to an income of $25.2 million in Q3 2024[114] - Net income for Q3 2025 was a loss of $97.6 million, a decrease of 635.9% from a profit of $18.2 million in Q3 2024[114] - For the nine months ended September 30, 2025, net revenues decreased by 8.7% to $861.6 million from $943.7 million in the prior year, attributed to reduced demand in Asia and unplanned equipment downtime[116] - Gross profit for the three months ended September 30, 2025, decreased by $140.3 million, resulting in a gross profit margin of -19.1% compared to 30.3% in the same period last year[131] Segment Performance - The Albany Engineered Composites segment recognized a $147.3 million change in estimated profitability for the CH-53K contracts, including a loss reserve adjustment of $98.0 million due to increased labor and material costs[111] - The Machine Clothing segment expects continued revenue decline for publication grade paper, but growth in demand for packaging in Europe[108] - The Albany Engineered Composites (AEC) segment reported a gross profit decrease of $133.5 million for the three months ended September 30, 2025, primarily due to increased cost assumptions related to the CH-53K program[138] - AEC segment net revenues decreased by $50.8 million or 13.3% for the nine months ended September 30, 2025, primarily due to $54.3 million of revenue adjustments to the CH-53K program[139] - For the three months ended September 30, 2025, segment operating income for Machine Clothing decreased by $4.5 million or 9.5% compared to the same period in 2024[144] - For the nine months ended September 30, 2025, segment operating income for Machine Clothing decreased by $22.5 million, impacted by lower gross profit and inflationary pressures[145] - For the three months ended September 30, 2025, Albany Engineered Composites segment operating income decreased by $133.7 million due to contract loss reserve charges associated with the CH-53K program[147] - For the nine months ended September 30, 2025, Albany Engineered Composites segment operating income/(loss) decreased by $145.4 million, primarily due to reduced segment gross profit[148] Expenses and Costs - Total operating expenses for Q3 2025 were $66.6 million, representing 25.5% of net revenues, an increase of 361 basis points from 21.9% in Q3 2024[114] - Interest expense for Q3 2025 increased by 144.6% to $5.9 million compared to $2.4 million in Q3 2024[114] - SG&A expenses for the nine months ended September 30, 2025, increased by $1.8 million or 1.1% to $164.8 million, mainly due to higher global information services costs[120] - Restructuring expenses for the nine months ended September 30, 2025, increased by $3.3 million to $9.9 million, driven by workforce reductions and reorganizational costs[123] - Technical and research expenses increased by $0.6 million for both the three and nine months ended September 30, 2025, due to new business ventures initiatives[121] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025 was $78.8 million, down from $140.0 million in the same period of 2024[150] - Net cash used in investing activities for the nine months ended September 30, 2025 was $45.6 million, compared to $61.1 million in 2024, focusing on aerospace program support and operational efficiencies[151] - As of September 30, 2025, the company had cash and cash equivalents of $108.3 million and total liquidity of approximately $427.7 million[154] - During the nine months ended September 30, 2025, the company paid $24.7 million in dividends and repurchased shares for a total cost of $171.0 million[157] - The company had $480.6 million of borrowings outstanding under its $800 million unsecured committed Amended Credit Agreement as of September 30, 2025[153] Strategic Considerations - The company is exploring strategic alternatives for its structures assembly business, including potential sale or contract modifications[112] - The AEC segment may continue to face challenges with raw material and supplier costs impacting program gross margins in upcoming quarters[113] Taxation - The effective income tax rate for the three months ended September 30, 2025, was 20.0%, significantly higher than 6.6% for the same period in 2024, influenced by jurisdictional earnings mix[126] Foreign Exchange Risk - A hypothetical 10% adverse change in foreign currency exchange rates could result in a potential loss in fair value of approximately $59.9 million[161]

Assets Under Management (AUM) - As of September 30, 2025, the company managed approximately $137.2 billion in assets under management (AUM) across various ETP strategies[173]. - The AUM of U.S. listed ETFs rose from $85.2 billion to $88.3 billion from June 30, 2025, due to market appreciation[190]. - The AUM of European listed ETPs increased from $40.5 billion to $48.3 billion during the same period, attributed to market appreciation and net inflows[192]. - Average assets under management (AUM) increased by 18.5% from $110,369 million in Q3 2024 to $130,760 million in Q3 2025[214]. - U.S. listed ETFs ended the period with assets of $88,293 million, up from $85,179 million in the previous quarter[210]. - European listed ETPs saw an increase in assets to $48,290 million from $40,541 million in the previous quarter[210]. - Digital assets grew to $592 million by the end of the period, up from $350 million at the beginning[210]. - Market appreciation contributed $8,868 million to global ETPs during the quarter[210]. - The company reported inflows of $2,237 million for the quarter, compared to outflows of $2,395 million in the same quarter last year[210]. Revenue and Income - Total revenues increased by 11.0% year-over-year to $125.6 million for the three months ended September 30, 2025, driven by higher average AUM[199]. - The company reported net income of $19.7 million for the three months ended September 30, 2025, compared to a net loss of $4.5 million in the same period of 2024[199]. - Advisory fee revenues rose by 12.6% from $101.7 million in Q3 2024 to $114.5 million in Q3 2025, driven by higher average AUM[215]. - Total operating revenues increased by 11.0% from $113,168 thousand in Q3 2024 to $125,616 thousand in Q3 2025[214]. - Total revenues for the first nine months of 2025 were $346.3 million, up 9.2% from $317.0 million in 2024[235]. - Adjusted net income for the nine months ended September 30, 2025, was $83.3 million, compared to $69.9 million for the same period in 2024[257]. Expenses - Total operating expenses increased by 10.5% from $72.4 million in Q3 2024 to $80.0 million in Q3 2025[217]. - Compensation and benefits expense increased 14.9% from $29.4 million in Q3 2024 to $33.8 million in Q3 2025 due to higher incentive compensation and increased headcount[218]. - Fund management and administration expense rose 6.4% from $21.0 million in Q3 2024 to $22.4 million in Q3 2025, primarily driven by higher average AUM[219]. - Third-party distribution fees surged 33.3% from $3.0 million in Q3 2024 to $4.0 million in Q3 2025, reflecting strong organic growth and AUM expansion[225]. - Interest expense increased 68.4% from $5.0 million in Q3 2024 to $8.5 million in Q3 2025 due to a higher level of debt outstanding[229]. - Total operating expenses for the first nine months of 2025 were $231.9 million, an increase of 8.0% from $214.8 million in 2024[238]. Tax and Interest - Effective income tax rate for Q3 2025 was 33.3%, resulting in an income tax expense of $9.8 million[233]. - The effective income tax rate for the nine months ended September 30, 2025, was 24.7%, resulting in an income tax expense of $22.6 million[253]. - Interest expense for the year ending December 31, 2025, is estimated to be $31.0 million, reflecting the issuance of $475.0 million in convertible senior notes[203]. - Interest income rose 123.7% from $1.8 million in Q3 2024 to $4.0 million in Q3 2025, attributed to a higher level of interest-earning assets[230]. - Interest income increased by 72.8% from $4.6 million in the nine months ended September 30, 2024, to $8.0 million in the comparable period in 2025[251]. Acquisitions and Capital Management - The company completed the acquisition of Ceres Partners, LLC for $275.0 million in cash and potential earnout consideration of up to $225.0 million based on future revenue growth[178]. - Acquisition-related costs of $4.4 million were recorded in connection with the Ceres Acquisition during the nine months ended September 30, 2025[247]. - The earnout consideration for the acquisition of Ceres Partners, LLC could reach up to $225.0 million, contingent upon achieving a revenue CAGR of 12% to 22% from January 1, 2025, to December 31, 2029[275]. - The company maintains a capital return program that includes a quarterly cash dividend of $0.03 per share and authority to repurchase common stock through April 27, 2028[270]. - The company repurchased 8,096,862 shares of common stock for an aggregate cost of $102.7 million during the nine months ended September 30, 2025, with approximately $60.0 million remaining under the repurchase program[272]. Liquidity and Financial Position - Total available liquidity decreased to $126.5 million as of September 30, 2025, from $142.0 million as of December 31, 2024[258]. - Cash, cash equivalents, and restricted cash increased by $374.7 million during the nine months ended September 30, 2025, primarily due to $475.0 million from the issuance of the 2030 Notes[261]. - The company expects that current cash flows from operating activities and existing cash balances will be sufficient to fund operations for the foreseeable future[269]. - The company has no off-balance sheet financing or arrangements and does not participate in special-purpose entities for capital raising[277]. Other Financial Information - The gross margin was 81.4% for the nine months ended September 30, 2025, with an estimated gross margin of approximately 82.0% for the full year[201]. - The estimated compensation to revenue ratio for the year ending December 31, 2025, is projected to be between 28% and 30%[198]. - Goodwill impairment testing indicated no impairment based on the most recent quantitative assessment[281]. - Other revenues from swap providers related to European listed ETPs are based on a percentage of the ETPs' average daily net assets[286]. - As of September 30, 2025, corporate cash investments totaled $303.9 million, with gains of $1.1 million recognized during the three months ended September 30, 2025[290]. - Convertible Notes bear fixed interest rates of 3.25% for 2026 and 2029 Notes, 5.75% for 2028 Notes, and 4.625% for 2030 Notes, with no direct financial statement risk from interest rate changes[291]. - A substantial portion of advisory fees from European listed ETPs is paid in U.S. dollars, while corporate overhead expenses are generally incurred in British pounds and euros[292]. - Fluctuations in commodity and cryptocurrency prices linked to certain ETPs could materially affect AUM and revenues, with advisory fees for some ETPs paid in the underlying assets[294].

Financial Performance - Consolidated revenues increased by $157 million, or 9.7%, for the quarter ended September 30, 2025, compared to the same quarter in 2024[229]. - The company reported a net loss of $49 million for the quarter ended September 30, 2025, a decrease of $520 million compared to the same quarter in 2024[232]. - Consolidated Adjusted EBITDA for the quarter was $291 million, an increase of $16 million compared to the same quarter in 2024[232]. - Adjusted EBITDA for the three months ended September 30, 2025, was $291 million, representing a 5.6% increase from $275 million in the same period of 2024[332]. - For the nine months ended September 30, 2025, Adjusted EBITDA was $867 million, a 3.1% increase from $841 million in the same period of 2024[333]. - Net income attributable to Hyatt Hotels Corporation for the three months ended September 30, 2025, was a loss of $49 million, compared to a profit of $471 million in the same period of 2024, reflecting a decrease of 110.4%[332]. Revenue Sources - Owned and leased revenues increased by $142 million due to the Playa Hotels acquisition, partially offset by net disposition activity[229]. - Owned and leased revenues for the three months ended September 30, 2025, increased by 49.8% to $429 million, primarily due to strong group and business transient travel[258]. - Comparable system-wide hotels Revenue per Available Room (RevPAR) was $146.24, a 0.3% improvement in constant dollars compared to the same quarter in 2024[230]. - Comparable system-wide all-inclusive resorts Net Package RevPAR was $194.56, representing a 7.6% increase compared to the same quarter in 2024[230]. - RevPAR at comparable system-wide hotels increased by 7.6% to $194.56 for the three months ended September 30, 2025, compared to the same period in 2024, driven by strong leisure transient travel outside the United States[239]. - For the nine months ended September 30, 2025, Net Package RevPAR at comparable all-inclusive resorts increased by 7.9% to $225.33, with occupancy rising by 3.7 percentage points to 77.2%[242]. Expenses and Costs - General and administrative expenses rose by 9.6% to $138 million for the three months ended September 30, 2025, compared to $126 million in 2024[266]. - Owned and leased expenses increased by 51.9% to $346 million for the three months ended September 30, 2025, compared to $228 million in 2024[272]. - Transaction and integration costs increased by $17 million for the three months ended September 30, 2025, compared to the same period in 2024, mainly due to costs related to the Playa Hotels Acquisition[278]. - Interest expense increased by $40 million for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to the issuance of senior notes[289]. - Stock-based compensation expense for the three months ended September 30, 2025, was $14 million, reflecting a 42.9% increase from $9 million in the same period of 2024[332]. Shareholder Returns - The company returned $45 million to stockholders through $30 million in share repurchases and $15 million in dividends during the quarter[233]. - The company sold a property in the Playa Hotels Portfolio for $22 million during the three months ended September 30, 2025, using the proceeds to repay $22 million of the DDTL Loans[335]. Acquisitions and Dispositions - The company completed the acquisition of Playa Hotels on June 17, 2025, and plans to close the disposition of the remaining 14 properties by the end of 2025[225]. - The company removed 11 properties from its hotel portfolio during the nine months ended September 30, 2025, including eight franchised properties acquired[244]. - The company acquired Playa Hotels for $1,274 million, net of cash acquired, during the nine months ended September 30, 2025[340]. Debt and Financing - Total debt increased to $6,014 million as of September 30, 2025, resulting in a total debt-to-total capital ratio of 63.3%[341]. - Net consolidated debt rose to $5,265 million, with a net debt-to-total capital ratio of 55.4% as of September 30, 2025[341]. - The company entered into a credit agreement providing for a $1.5 billion senior unsecured revolving credit facility, maturing in October 2030, to support its long-term business strategy[335]. Market Performance - Group booking pace for October through December 2025 is up 2.5% compared to the same period in 2024[231]. - The company experienced a 15.4% increase in Net Package RevPAR in Europe for the three months ended September 30, 2025, reaching $208.68[240]. Other Financial Metrics - Distribution revenues decreased by $29 million and $49 million for the three and nine months ended September 30, 2025, respectively, due to lower booking volumes[260]. - Other income (loss), net decreased by $74 million and $84 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[292]. - Income (loss) before income taxes for the three months ended September 30, 2025, was $(17) million, a decrease of $625 million or (102.8)% compared to $608 million in 2024[293].

Sales Performance - Consolidated sales for Q3 2025 increased to $14,785,000, up 3.7% from $14,251,000 in Q3 2024, driven by a $476,000 increase in the Building Supply segment and a $58,000 increase in the Disposable Protective Apparel segment [81]. - Consolidated sales for the nine months ended September 30, 2025, rose to $45,279,000, a 2.9% increase from $44,023,000 in the same period of 2024 [92]. - Building Supply segment sales rose by $476,000, or 5.4%, to $9,274,000 in Q3 2025, with a 12.7% increase in housewrap sales [82]. - Building Supply segment sales increased by $1,750,000, or 6.5%, to $28,729,000 for the nine months ended September 30, 2025, driven by a 6.7% increase in synthetic roof underlayment sales [93]. - Disposable Protective Apparel segment sales increased by $58,000, or 1.1%, to $5,511,000 in Q3 2025, attributed to a 10.4% rise in disposable protective garments [88]. - Disposable Protective Apparel segment sales decreased by $494,000, or 2.9%, to $16,550,000 for the nine months ended September 30, 2025, primarily due to a 43.1% decrease in face mask sales [97]. - Sales of disposable protective garments increased by 10.4% in Q3 2025 compared to Q3 2024, contributing to a positive year-to-date performance [90]. Profitability - Gross profit margin for Q3 2025 was 39.7%, compared to 38.5% in Q3 2024, while net income margin improved to 6.6% from 6.0% year-over-year [80]. - Gross profit for Q3 2025 increased by $384,000, or 7.0%, to $5,868,000, with a gross profit margin of 39.7% compared to 38.5% in Q3 2024 [99]. - Income from operations for Q3 2025 rose by $360,000, or 48.8%, to $1,097,000, with an operating margin of 7.4% [111]. - Net income for Q3 2025 was $976,000, an increase of 13.2% from $862,000 in Q3 2024, with net income as a percentage of net sales at 6.6% [121]. - Management anticipates that tariffs will negatively impact gross profit in Q4 2025, following multiple tariff increases on products [102]. Market Conditions - The housing market showed weakness with single-family housing starts down 2.6% in Q3 2025 compared to the same quarter in 2024, yet the company outperformed the market with a 3.5% increase in core building products [85]. - Increased tariffs have led to pricing and supply volatility, impacting operational efficiency and cost structure [76]. - The Disposable Protective Apparel segment experienced a significant decline in face mask sales, down 46.5%, reflecting changing market dynamics [88]. Strategic Initiatives - Management anticipates new product introductions in 2026 to expand self-adhered roofing and flashing categories, despite current market challenges [87]. - The company is implementing strategies such as commercial pricing adjustments and holding extra inventory to mitigate the impact of higher commodity costs [76]. Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $17,658,000, a decrease of 5.2% from $18,636,000 as of December 31, 2024 [123]. - Working capital increased by $562,000 to $48,078,000 as of September 30, 2025, compared to $47,516,000 as of December 31, 2024 [123]. - Accounts receivable increased by $2,235,000, or 45.7%, to $7,129,000 as of September 30, 2025, from $4,894,000 as of December 31, 2024 [125]. - Inventory increased by $746,000, or 3.3%, to $23,479,000 as of September 30, 2025, from $22,733,000 as of December 31, 2024 [126]. - Net cash provided by operating activities was $2,052,000 for the nine months ended September 30, 2025, due to net income of $2,833,000 [124]. - Net cash used in investing activities was $372,000 for the nine months ended September 30, 2025, compared to $2,333,000 for the same period of 2024 [130]. - Net cash used in financing activities was $2,658,000 for the nine months ended September 30, 2025, compared to $2,936,000 for the same period of 2024 [131]. - As of September 30, 2025, the company had $2,111,000 available for stock purchases under its stock repurchase program [132]. - The company repurchased 532,313 shares of common stock at a cost of $2,632,000 during the nine months ended September 30, 2025 [132]. - The company believes its current cash balance and expected cash flow from operations will be sufficient to satisfy projected working capital and planned capital expenditures for the foreseeable future [133].

Financial Performance - Net income for Q3 2025 decreased to $884,000, down 53.7% from $1,910,000 in Q3 2024[107] - Nine-month net income for 2025 was $5,989,000, a decrease of 5.9% compared to $6,363,000 in 2024[107] - Funds From Operations (FFO) for Q3 2025 was $3,660,000, down 24.1% from $4,827,000 in Q3 2024[120] Revenue Growth - Multifamily segment revenue for Q3 2025 was $8,528,000, a 3.2% increase from $8,266,000 in Q3 2024[107] - Commercial segment revenue for Q3 2025 was $4,307,000, a 28.9% increase from $3,341,000 in Q3 2024[107] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025, was $(2,175,000), a decrease of $19,232,000 from $17,057,000 in 2024[112] - Cash used in investing activities increased by $22,121,000 to $(49,203,000) in 2025, primarily due to a $37.2 million increase in development and renovation of real estate[113] - Cash provided by financing activities increased by $40,546,000 in 2025, driven by a $44.2 million increase in borrowings on construction loans[114] Development Projects - The company has four ongoing development projects with a total projected cost of $206.8 million, of which $151.9 million has been incurred as of September 30, 2025[94] - During the nine months ended September 30, 2025, the company incurred $59.2 million in development costs, funded in part by $54.9 million in construction loans[95] - The company has entered into a $27.5 million construction loan for the development of Mountain Creek, maturing on June 17, 2027[93] Asset Transactions - The company sold 30 single-family lots for $1.4 million on December 13, 2024, resulting in a gain of $1.1 million[93] - The company sold Villas at Bon Secour, a 200-unit multifamily property, for $28.0 million on October 10, 2025[93] - The company acquired 21,678 shares of IOR for $0.5 million during the Tender Offer completed on January 29, 2025[96] - The company purchased an additional 32,845 common shares of IOR for $0.6 million during the nine months ended September 30, 2025[97] Legal and Settlement Gains - The company received $3.5 million from a condemnation settlement, resulting in a gain of $3.1 million on March 25, 2025[93] Liquidity and Financial Strategy - The company anticipates that cash and cash equivalents as of September 30, 2025, will be sufficient to meet all cash requirements[111] - The company plans to selectively sell land and income-producing assets to meet liquidity requirements[111] Debt Management - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50%[93] - As of September 30, 2025, the company has $55.7 million in District Receivables related to the Windmill Farms project[91]

Financial Performance - Net income for the three months ended September 30, 2025, was $71,720 thousand, a significant increase of 54.5% compared to $46,405 thousand in the prior year[10]. - Basic earnings per share increased to $0.55 for the three months ended September 30, 2025, compared to $0.36 for the same period in 2024, marking a growth of 52.8%[10]. - Net income for the nine months ended September 30, 2025, was $207,729,000, a significant increase from $67,001,000 in 2024, representing a growth of approximately 209%[21]. - Net income for the three months ended September 30, 2025, was $71.72 million, compared to $46.41 million in 2024, marking a 54.4% increase[167]. - Non-interest income for the three months ended September 30, 2025, totaled $27,419,000, an increase from $26,855,000 in the same period of 2024[157]. - Non-interest income for the nine months ended September 30, 2025, was $81.52 million, up from $69.94 million in 2024, indicating a 16.5% increase[167]. Asset and Loan Growth - Total assets increased to $24,832,763 thousand as of September 30, 2025, up from $24,051,825 thousand as of December 31, 2024, representing a growth of 3.2%[9]. - Net loans rose to $19,113,427 thousand, an increase of 2.6% from $18,628,391 thousand at the end of 2024[9]. - Total gross loans held for investment reached $19,295,970,000, showing a growth from $18,711,909,000 in 2024[79]. - Total mortgage loans as of September 30, 2025, amounted to $13,550.92 million, slightly up from $13,445.15 million as of December 31, 2024[54]. - The total commercial mortgage loans classified as pass/watch were $7,318,725,000, compared to $2,901,059,000 in 2021, indicating a substantial increase[76]. Deposits and Borrowings - Total deposits grew to $19,096,244 thousand, reflecting an increase of 2.5% compared to $18,623,813 thousand as of December 31, 2024[9]. - Total deposits increased to $19.10 billion as of September 30, 2025, up from $18.62 billion as of December 31, 2024, representing a growth of 2.53%[84]. - Total borrowed funds amounted to $2.21 billion as of September 30, 2025, compared to $2.02 billion as of December 31, 2024, indicating an increase of 9.36%[85]. Credit Quality and Losses - The provision charge for credit losses was $7,044 thousand for the three months ended September 30, 2025, down from $9,299 thousand in the same period of 2024, indicating improved credit quality[10]. - The allowance for credit losses at the end of September 30, 2025, was $186.97 million, a decrease from $191.18 million at the end of September 30, 2024[58]. - The company recorded net charge-offs of $5.4 million for the three months ended September 30, 2025, compared to $7.32 million for the same period in 2024[59]. - Total non-performing loans increased to $100.4 million, or 0.52% of total loans, as of September 30, 2025, up from $72.1 million, or 0.39% of total loans, as of December 31, 2024[205]. - The allowance for credit losses related to the loan portfolio was 0.97% of total loans as of September 30, 2025, down from 1.04% as of December 31, 2024[206]. Merger and Acquisitions - The merger with Lakeland Bancorp, Inc. was completed on May 16, 2024, with a total consideration of $876.8 million, converting 54,356,954 shares[34]. - The total assets acquired in the merger were valued at $10.59 billion, while total liabilities assumed were $9.72 billion, resulting in net assets acquired of $876.8 million[37]. - The total consideration paid for the acquisition of Lakeland was $876.8 million, with $190.9 million recorded as goodwill[172][173]. Comprehensive Income - Total comprehensive income for the three months ended September 30, 2025, was $88,247 thousand, compared to $93,320 thousand in the same period of 2024[14]. - For the three months ended September 30, 2025, total other comprehensive income was $16,527, compared to $46,915 for the same period in 2024, reflecting a decrease of 64.8%[12]. - For the nine months ended September 30, 2025, total other comprehensive income was $48,112, slightly up from $48,066 in 2024, indicating a marginal increase of 0.1%[139]. Securities and Investments - The fair value of available for sale debt securities was $3.14 billion as of September 30, 2025, with gross unrealized losses of $147.7 million[39]. - The amortized cost of held to maturity debt securities as of September 30, 2025, was $292.1 million, with a fair value of $284.6 million[45]. - The company holds equity securities valued at $19.7 million as of September 30, 2025, which are considered Level 1 inputs[116]. Operational Metrics - Total interest income for the nine months ended September 30, 2025, was $947.94 million, up from $734.19 million in 2024, reflecting a 29.1% increase[167]. - The company reported a total of $584,061,000 in criticized and classified loans across various sectors as of September 30, 2025[79]. - The total amount of brokered deposits increased to $805.9 million as of September 30, 2025, from $255.0 million as of December 31, 2024[84].

Financial Performance - Net income for the three months ended September 30, 2025, was $320,000, a significant increase of $17,336,000 compared to a net loss of $17,016,000 in 2024[112]. - Funds From Operations (FFO) for the three months ended September 30, 2025, was $3,155,000, compared to $9,128,000 in 2024[124]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(2,351,000), a decrease of $19,210,000 compared to $16,859,000 in 2024[117]. Revenue Generation - Multifamily segment revenue increased by $262,000 (3.2%) to $8,528,000 for the three months ended September 30, 2025, compared to $8,266,000 in 2024[112]. - Commercial segment revenue rose by $966,000 (28.9%) to $4,307,000 for the three months ended September 30, 2025, compared to $3,341,000 in 2024[112]. Development and Projects - The company has a total of 906 units under development across four projects, with total projected costs of $206.8 million[98]. - During the nine months ended September 30, 2025, the company incurred $59.2 million in development costs, funded in part by $54.9 million in borrowing from construction loans[99]. - The company sold Villas at Bon Secour, a 200-unit multifamily property, for $28.0 million on October 10, 2025[97]. Asset Management - The company sold 30 single-family lots for $1.4 million on December 13, 2024, resulting in a gain of $1.1 million[97]. - The company received $3.5 million from a condemnation settlement on March 25, 2025, resulting in a gain of $3.1 million[97]. - The company plans to selectively sell land and income-producing assets to meet liquidity requirements[115]. Financing and Cash Flow - Cash used in investing activities increased by $22.1 million, primarily due to a $37.2 million increase in development and renovation of real estate[118]. - Cash provided by financing activities increased by $40.5 million, attributed to a $44.2 million increase in borrowings on construction loans[119]. - The company anticipates that cash and cash equivalents as of September 30, 2025, will be sufficient to meet all cash requirements[115]. Legal and Settlement Matters - The company executed a Settlement Agreement on October 31, 2024, paying $23.4 million related to litigation[100]. - The company experienced a $24.2 million decrease in loss on real estate transactions, primarily due to a $23.4 million settlement in 2024[116]. Shareholder Activities - TCI acquired 21,678 shares of IOR for a total cost of $0.5 million during the Tender Offer completed on January 29, 2025[101]. - TCI purchased an additional 32,845 common shares of IOR for a total cost of $0.6 million during the nine months ended September 30, 2025[102]. Loan and Interest Management - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50%[97]. - As of September 30, 2025, the company has $55.7 million in District Receivables related to the Windmill Farms project[95].