Revenue Performance - Revenue from services in Q3 2025 decreased by 9.9% year-over-year to $935.0 million, with declines in ETM and SET segments, partially offset by growth in the Education segment [149]. - Year-to-date revenue from services increased by 1.9% to $3,201.7 million, driven mainly by the acquisition of MRP [155]. - The ETM segment experienced a revenue decline of 13.1% in Q3 2025, primarily due to a 16.4% decrease in staffing services [164]. - The SET segment's revenue decreased by 9.0% in Q3 2025, driven by lower demand from U.S. federal government contractors [165]. - Education segment revenue increased by 0.9% in Q3 2025, attributed to improved fill rates [166]. Profitability - Gross profit for Q3 2025 was $194.0 million, a decrease of 12.5%, resulting in a gross profit rate of 20.8%, down 60 basis points from the previous year [151]. - Gross profit for the Enterprise Talent Management (ETM) segment decreased by 15.4% to $96.7 million in Q3 2025, compared to $114.4 million in Q3 2024 [172]. - The Science, Engineering & Technology (SET) segment's gross profit decreased by 11.8% to $77.2 million in Q3 2025, influenced by changes in business mix and higher employee-related costs [174]. - The Education segment's gross profit increased by 2.0% to $20.1 million in Q3 2025, driven by higher revenue volume and lower employee-related costs [175]. - Consolidated total gross profit decreased by 12.5% to $194.0 million in Q3 2025, compared to $221.7 million in Q3 2024 [180]. - ETM reported a profit of $9.1 million in Q3 2025, a decrease of 48.9% from $18.0 million in Q3 2024 [186]. Expenses Management - Total SG&A expenses in Q3 2025 decreased by 11.2% to $194.4 million, reflecting effective expense management and integration efforts [152]. - In the first nine months of 2025, SG&A expenses increased by 4.4% to $627.4 million, largely due to the MRP acquisition [157]. - SG&A expenses for ETM decreased by 9.2% to $87.6 million in Q3 2025, attributed to lower employee-related costs [180]. - The SET segment's SG&A expenses decreased by 15.3% to $57.6 million in Q3 2025, also due to lower employee-related costs [181]. - The corporate expenses decreased by 28.3% to $12.1 million in Q3 2025, driven by lower employee-related costs and transaction costs [182]. Financial Position - Cash, cash equivalents, and restricted cash totaled $35.4 million at the end of Q3 2025, down from $45.6 million at year-end 2024 [196]. - The debt-to-total capital ratio was 9.1% at the end of Q3 2025, a decrease from 16.2% at year-end 2024, indicating improved capital structure [201]. - As of the end of Q3 2025, the company had $150.0 million available on its revolving credit facility and $89.0 million available on its securitization facility [207]. - The securitization facility had $118.4 million in long-term borrowings and $42.6 million in standby letters of credit related to workers' compensation [207]. - The company has additional unsecured, uncommitted short-term local credit facilities totaling $3.1 million, with no borrowings as of Q3 2025 [209]. - The company believes its cash flow from operations and available liquidity will be sufficient to meet anticipated cash requirements while maintaining normal operating liquidity [208]. Risk Management - The company entered into a $50.0 million 12-month interest rate swap and a $50.0 million 18-month interest rate swap, locking in fixed rates of 4.772% and 4.468% respectively [218]. - The company has not identified specific plans to repatriate a majority of its international cash balances as of Q3 2025 [206]. - The company continues to provide MSP, RPO, and Functional Service Provider solutions in the EMEA region following the sale of its EMEA staffing operations [206]. - The company monitors the credit ratings of its banking partners regularly, assessing the risk of banks not honoring commitments as insignificant [210]. - There have been no significant changes to the company's exposure management and procedures regarding market risk, foreign currency risk, and interest rate risk during Q3 2025 [216]. - The company is exposed to foreign currency risk primarily related to its foreign subsidiaries, with natural hedges against currency risks in normal operations [217].

Revenue Performance - Revenue for the three months ended September 30, 2025, was $195.5 million, an increase of $12.9 million, or 7.0%, compared to the same period in 2024[149]. - North America segment revenue increased by 7.2% in Q3 2025, driven by strong demand in the Oil and Gas and Power Generation markets[151]. - International segment revenue rose by 5.5% in Q3 2025, primarily due to favorable foreign exchange rates[151]. - Products and Systems segment revenue increased by 23.2% in Q3 2025, attributed to higher sales volume and shipments[151]. - For the nine months ended September 30, 2025, total revenue decreased by 2.6% compared to the same period in 2024, mainly due to a low single-digit organic decrease[153]. - Oil and gas customer revenue accounted for approximately 54% of total revenue in Q3 2025, consistent with the prior year[152]. - The Company’s top ten customers represented approximately 36% of total revenue for both Q3 2025 and Q3 2024, with no single customer exceeding 10% of total revenue[152]. - Total revenue for the three months ended September 30, 2025, was $195,549,000, an increase of 7.0% compared to $182,694,000 for the same period in 2024[155]. Profitability and Operating Income - The gross profit margin for Q3 2025 was 29.8%, up from 26.8% in Q3 2024[148]. - Income from operations for Q3 2025 was $20.4 million, representing 10.4% of revenue, compared to 6.5% in Q3 2024[148]. - Gross profit increased by $9.3 million, or 19.0%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to improved business mix and operating efficiencies[160]. - Income from operations for the three months ended September 30, 2025, was $20,381,000, compared to $11,858,000 for the same period in 2024[167]. - Income from operations before special items (non-GAAP) for the total company was $22,344,000 for the three months ended September 30, 2025, compared to $13,133,000 for the same period in 2024[167]. - For the three months ended September 30, 2025, income from operations (GAAP) increased by $8.5 million or 71.9% compared to the same period in 2024, while non-GAAP income from operations increased by $9.2 million or 70.1%[168]. - For the nine months ended September 30, 2025, income from operations (GAAP) decreased by $1.6 million or 5.3%, while non-GAAP income from operations increased by $4.1 million or 12.4%[169]. Cash Flow and Liquidity - As of September 30, 2025, the Company had a cash balance of approximately $27.8 million, indicating strong liquidity[142]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $0.8 million, representing a year-over-year decrease of $23.6 million or 97%[177]. - Cash used in investing activities during the nine months ended September 30, 2025, was $19.0 million, an increase of $1.8 million compared to the prior year[178]. - Net cash provided by financing activities was $26.2 million for the nine months ended September 30, 2025, compared to a net cash used of $6.2 million in the same period of 2024[179]. - As of September 30, 2025, the company had cash and cash equivalents totaling $27.8 million and $86.4 million of unused commitments under its Credit Agreement[181]. - The company believes its existing cash balances and financing sources are sufficient to fund operations for the foreseeable future[181]. Expenses and Interest - Operating expenses increased by $0.8 million, or 2.1%, for the three months ended September 30, 2025, compared to the same period in 2024[165]. - Interest expense for the three months ended September 30, 2025, was approximately $3.4 million, a decrease of $0.9 million from $4.3 million in the same period of 2024[170]. Tax and Exchange Rates - The effective income tax rate for the three months ended September 30, 2025, was approximately 22.3%, down from 29.0% in the same period of 2024[171]. - The company experienced an increase of $1.4 million in cash due to exchange rate changes for the nine months ended September 30, 2025, compared to an increase of $1.6 million in the same period of 2024[180].

Financial Performance - Net sales for Q3 2025 reached $1,659 million, a 21.1% increase from $1,370 million in Q3 2024[10] - Gross margin improved to $632 million in Q3 2025, up 42.5% from $444 million in Q3 2024[10] - Net earnings attributable to common stockholders increased to $353 million in Q3 2025, compared to $276 million in Q3 2024, representing a 27.9% growth[10] - Basic earnings per share rose to $2.19 in Q3 2025, up from $1.55 in Q3 2024, reflecting a 41.3% increase[10] - Net earnings for the nine months ended September 30, 2025, were $1,303 million, compared to $1,085 million for the same period in 2024, representing a 20% increase[20] - Total revenue for the three months ended September 30, 2025, was $1,659 million, a 21.1% increase from $1,370 million in the same period of 2024[29] - For the nine months ended September 30, 2025, total revenue reached $5,212 million, up 18.1% from $4,412 million in the prior year[29] - Diluted net earnings per share attributable to common stockholders increased by $0.64 per share, or 41%, to $2.19 per share in the third quarter of 2025 compared to $1.55 per share in the third quarter of 2024[130] - The company reported net earnings attributable to common stockholders of $1.05 billion for the nine months ended September 30, 2025, compared to $890 million for the same period in 2024[131] Assets and Equity - Total assets as of September 30, 2025, were $14,203 million, an increase from $13,466 million at the end of 2024[14] - Cash and cash equivalents increased to $1,838 million as of September 30, 2025, compared to $1,614 million at the end of 2024[14] - Total stockholders' equity decreased slightly to $4,849 million as of September 30, 2025, from $4,985 million at the end of 2024[14] Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended September 30, 2025, was $2,213 million, up from $1,851 million in 2024, indicating a 20% growth[20] - The company paid dividends of $248 million on common stock during the nine months ended September 30, 2025, compared to $278 million in 2024, a decrease of about 11%[20] - Dividends declared per common share remained stable at $0.50 for both Q3 2025 and Q3 2024[10] Costs and Expenses - The company reported a depreciation and amortization expense of $670 million for the nine months ended September 30, 2025, compared to $704 million in 2024, reflecting a decrease of approximately 5%[20] - Selling, general and administrative expenses rose by $10 million to $88 million in Q3 2025, attributed to higher incentive compensation[148] - Total other operating costs and expenses for the three months ended September 30, 2025, were $58 million, down from $82 million in 2024, a decrease of 29.3%[91] Segment Performance - The ammonia segment reported net sales of $457 million for the three months ended September 30, 2025, a 29.5% increase from $353 million in 2024[87] - Net sales in the Granular Urea segment increased by $35 million, or 9%, to $423 million in Q3 2025 from $388 million in Q3 2024, driven by a 36% increase in average selling prices[194] - Net sales in the UAN segment increased by $111 million, or 27%, to $517 million in Q3 2025 from $406 million in Q3 2024, primarily due to a 46% increase in average selling prices[202] Natural Gas Costs - The cost of natural gas used for production increased by 41% to $2.96 per MMBtu in the third quarter of 2025 from $2.10 per MMBtu in the third quarter of 2024, resulting in a decrease in gross margin of $73 million[126] - The average daily market price of natural gas at Henry Hub was $3.03 per MMBtu in the third quarter of 2025, a 46% increase from $2.08 per MMBtu in the same quarter of 2024[126] Carbon Capture and Sustainability Initiatives - The company is focused on decarbonizing its ammonia production network to enable low-carbon hydrogen and nitrogen products, supporting its mission for sustainable energy[22] - The Donaldsonville complex's carbon capture and sequestration (CCS) project is expected to produce up to approximately 1.9 million tons of low-carbon ammonia annually, with a total project cost of approximately $200 million[98] - The Yazoo City CCS project is expected to commence in 2028, with an estimated cost of approximately $100 million, enabling the sequestration of up to 500,000 metric tons of CO2 annually[103] Debt and Financing - The company has a Revolving Credit Agreement with commitments of up to $750 million, maturing on September 4, 2030, with no outstanding borrowings as of September 30, 2025[59] - As of September 30, 2025, the company had unused borrowing capacity of $750 million under the Revolving Credit Agreement[61] - The fair value of long-term debt as of September 30, 2025, was $2.923 billion, slightly lower than the carrying amount of $2.974 billion[50] Share Repurchase Program - The company repurchased approximately 12.5 million shares for $1 billion in the nine months ended September 30, 2025[82] - The 2022 Share Repurchase Program authorized up to $3 billion, completed in October 2025, with a new program of $2 billion commencing thereafter[80]

Financial Performance - Total Company net income for Q3 2025 was $29.7 million, an increase of $3.2 million, or 12%, compared to Q3 2024 [298]. - Diluted EPS increased 11% to $1.52 for Q3 2025 compared to $1.37 for the same period in 2024 [298]. - Total Company net income for the first nine months of 2025 was $108.5 million, a $26.1 million, or 32%, increase from the same period in 2024 [357]. - Diluted EPS increased 32% to $5.55 for the first nine months of 2025 compared to $4.24 for the same period in 2024 [357]. - Net income increased by $4.2 million, or 24%, for the first nine months of 2025 compared to the same period in 2024 [364]. Net Interest Income - Total Company net interest income increased by $5.7 million, or 8%, to $77.0 million in Q3 2025 compared to $71.3 million in Q3 2024 [308]. - Traditional Bank net interest income rose by $6.4 million, or 13%, to $57.4 million in Q3 2025 from $51.0 million in Q3 2024, driven by growth in average interest-earning assets and NIM expansion [309]. - Net interest income for the third quarter of 2025 was $76,970 thousand, up from $71,305 thousand in the third quarter of 2024, representing an increase of 8.73% [325]. - Total Company net interest income was $255.9 million during the first nine months of 2025, an increase of $19.1 million, or 8%, from the first nine months of 2024 [368]. - Traditional Bank net interest income increased by $17.9 million, or 12%, to $167.1 million for the first nine months of 2025 [369]. Loan Performance and Provisions - The Bank maintains an Allowance for Credit Losses on Loans (ACLL) for expected credit losses, which is evaluated monthly and discussed quarterly with the Audit Committee and Board of Directors [227]. - Provision for loan losses was a net charge of $4.0 million in Q3 2025, down from a net charge of $6.4 million in Q3 2024 [311]. - The total provision for credit losses was a net charge of $2.0 million in Q3 2025, significantly lower than the $5.7 million charge in Q3 2024, marking a decrease of 64.91% [329]. - The Traditional Banking segment recorded a net credit to the provision of $325,000 in Q3 2025, compared to a net charge of $1.5 million in Q3 2024, reflecting improved asset quality [330]. - The provision for credit losses decreased to $21.5 million in 2025 from $41.4 million in 2024, indicating a reduction of 48.00% [388]. Segment Performance - The Traditional Banking segment's performance is primarily driven by net interest income, which is the difference between interest income and fees on interest-earning assets and interest expense on interest-bearing liabilities [238]. - Traditional Banking segment net income increased $2.3 million, or 15%, from Q3 2024 to Q3 2025 [303]. - Republic Payment Solutions segment reported a decrease in noninterest income of $576,000, or 5%, from Q3 2024 to Q3 2025 [303]. - Republic Credit Solutions segment net income increased $72,000 from Q3 2024 to Q3 2025 [304]. - Tax Refund Solutions segment's net interest income decreased by $2.0 million, or 6%, from the first nine months of 2024 to the first nine months of 2025 [376]. Asset and Deposit Growth - Total assets increased to $6,991,878 thousand as of September 30, 2025, compared to $6,711,818 thousand in the same period of 2024, reflecting a growth of 4.16% [325]. - Total Traditional Bank deposits increased $337 million, or 7%, from December 31, 2024, to $4.91 billion as of September 30, 2025 [360]. - Average interest-bearing deposit balances grew by $260 million, or 7%, while the weighted-average cost of these deposits decreased from 2.77% in Q3 2024 to 2.32% in Q3 2025 [315]. Credit Quality - The RCS allowance for credit losses (ACLL) was 17.59% as of September 30, 2025, up from 15.70% a year earlier, reflecting a shift towards higher risk loan categories [341]. - Nonperforming loans to total loans for the RCS segment was 0.12% as of September 30, 2025, compared to 0.11% as of December 31, 2024 [364]. - Delinquent loans to total loans for the RCS segment decreased to 7.69% as of September 30, 2025, from 8.00% as of December 31, 2024 [364]. Tax Refund Solutions - The Bank's Tax Refund Solutions segment generates most of its revenue during the first half of the year, with RT revenue recognized immediately after the taxpayer's refund is disbursed [269][272]. - The ERA loan product allows taxpayers to borrow funds as an advance of their tax refund, with a maximum advance amount of $6,500 for the 2024 Tax Season [273]. - Total ERA/RA origination volume for the 2025 tax filing season totaled $802 million, representing a $72 million, or 8%, decline from $874 million originated for the 2024 tax filing season [361]. - RA origination volume totaled $663 million during the first nine months of 2025, a decrease from $771 million in the same period of 2024 [364].

Financial Performance - For the three months ended September 30, 2025, net revenues were $475.6 million, a 1.6% increase from $468.0 million in the prior year period[124] - Casino revenues increased by 1.7% to $319.5 million for the three months ended September 30, 2025, compared to $314.2 million in the same period of 2024[124] - Operating income for the three months ended September 30, 2025, was $131.5 million, a slight increase of 0.6% from $130.6 million in the prior year[127] - Net income attributable to Red Rock for the three months ended September 30, 2025, was $42.3 million, a 45.9% increase from $29.0 million in the prior year[124] - Adjusted EBITDA for the three and nine months ended September 30, 2025 was $190.9 million and $635.3 million, respectively, reflecting year-over-year increases[142] - Net income for the three and nine months ended September 30, 2025 was $76.9 million and $271.1 million, respectively, compared to $55.4 million and $203.6 million for the same periods in 2024[142] Revenue Breakdown - Room revenues decreased by 8.0% to $41.6 million for the three months ended September 30, 2025, compared to $45.2 million in the same quarter of 2024[126] - Food and beverage revenues increased by 2.6% to $85.5 million for the three months ended September 30, 2025, compared to $83.3 million in the prior year[126] - The average guest check for food and beverage decreased by 5.7% for the three months ended September 30, 2025, compared to the prior year[129] - Development fee revenues recognized during the three months ended September 30, 2025, were $3.9 million from the North Fork Project[126] - Development fee revenue for the three and nine months ended September 30, 2025 was $3.9 million and $13.9 million, respectively, including a $10.0 million cumulative revenue catch-up[131] Expenses and Costs - Casino expenses decreased by 5.5% to $83.3 million for the three months ended September 30, 2025, primarily due to bad debt recoveries[128] - SG&A expenses increased by 3.5% to $112.9 million and 1.4% to $329.6 million for the three and nine months ended September 30, 2025[133] - Depreciation and amortization expense increased by 3.4% and 4.6% for the three and nine months ended September 30, 2025, primarily due to new assets placed in service[134] - Interest expense, net decreased to $50.5 million and $152.2 million for the three and nine months ended September 30, 2025, compared to $58.0 million and $172.6 million for the same periods in 2024[136] Cash Flow and Capital Expenditures - For the nine months ended September 30, 2025, net cash provided by operating activities was $453.0 million, an increase from $400.0 million in the prior year[159] - Cash paid for capital expenditures for the nine months ended September 30, 2025, totaled $240.1 million, compared to $257.0 million for the same period in 2024[160] - Anticipated cash uses for the remainder of 2025 include approximately $85 million to $110 million for capital expenditures, $40.1 million in principal payments, and $49.1 million in interest payments[151] - Cash flows from investing activities included $110.5 million received from the repayment of Native American development costs for the nine months ended September 30, 2025[160] Debt and Financial Position - At September 30, 2025, the company had $129.8 million in cash and cash equivalents, with borrowing availability under the Revolving Credit Facility at $933.2 million[150] - The company reduced its outstanding indebtedness by $46.8 million during the nine months ended September 30, 2025[161] - The company is subject to significant operating and financial restrictions due to covenants in its credit agreements, including a maximum Consolidated Senior Secured Net Leverage Ratio of 5.00 to 1.00[163] - The company expects cash on hand and cash generated from operations to be sufficient to fund operations and capital requirements for the next twelve months[155] Market Conditions - The unemployment rate in the Las Vegas metropolitan area was 5.6% in August 2025, down from 5.9% in September 2024[119] - Room revenues decreased by 8.0% and 3.6% for the three and nine months ended September 30, 2025, primarily due to hotel renovations at Green Valley Ranch[130] - Average daily rate (ADR) decreased by 4.0% and 3.5% for the three and nine months ended September 30, 2025, while revenue per available room decreased by 1.3% and 1.0% respectively[130] Shareholder Returns - During the nine months ended September 30, 2025, the company paid $105.4 million in dividends to Class A common stockholders and $106.4 million in cash distributions to noncontrolling interest holders[161] - The company has authorized $600 million for repurchases of Class A common stock, with an additional $300 million authorized on October 27, 2025, increasing the total remaining amount to $573 million[153] Other Income - The company recognized a gain on Native American development of $8.5 million for the nine months ended September 30, 2025[138]

Financial Performance - Net sales decreased by 4.5% to $398.6 million in Q3 2025 compared to $417.6 million in Q3 2024, primarily due to lower demand across all business segments[86]. - Operating income fell by 26.7% to $17.3 million in Q3 2025 from $23.6 million in Q3 2024, reflecting the decline in net sales[85]. - For the first nine months of 2025, net sales decreased by 5.0% to $1,204.1 million compared to $1,267.8 million in the same period in 2024[98]. - Income from continuing operations attributable to common shareholders was $5.5 million in Q3 2025, a decrease of 59.9% from $13.7 million in Q3 2024[85]. - Segment operating income for the Supply Technologies Segment fell to $51.5 million in 2025 from $59.0 million in 2024, with an operating income margin of 9.2% compared to 9.9%[115]. - Assembly Components Segment net sales decreased by 6.5% to $289.0 million in the nine months ended September 30, 2025, from $309.0 million in 2024[119]. - Engineered Products Segment net sales were $354.7 million in the nine months ended September 30, 2025, down from $364.8 million in 2024[124]. Expenses and Margins - SG&A expenses were $46.5 million in Q3 2025, a decrease of 2.7% from $47.8 million in Q3 2024, with SG&A as a percentage of net sales increasing to 11.7%[88]. - The gross margin for Q3 2025 was 16.7%, down from 17.3% in Q3 2024, driven by the decrease in net sales[87]. - The cost of sales for the first nine months of 2025 was $1,001.2 million, down from $1,050.9 million in 2024, contributing to a gross margin of 16.9%[99]. - Restructuring and other special charges amounted to $5.1 million in the first nine months of 2025, compared to $2.4 million in the same period in 2024[102]. Interest and Debt - Interest expense increased to $12.5 million in Q3 2025 from $12.1 million in Q3 2024, primarily due to higher interest rates on newly issued notes[92]. - The company recorded a loss of $2.0 million on extinguishment of debt during Q3 2025[93]. - The Company recorded a $2.0 million loss on extinguishment of debt after issuing 2030 notes and redeeming all outstanding 2027 Notes[106]. - Net interest expense decreased to $34.7 million in the first nine months of 2025 from $36.0 million in 2024, primarily due to lower interest rates and average outstanding debt balances[105]. Taxation - Income tax expense for the nine months ended September 30, 2025, was $3.3 million on pre-tax income of $24.9 million, resulting in an effective tax rate of 13%[107]. Liquidity and Financial Position - Total liquidity as of September 30, 2025, was $187.4 million, including $50.8 million in cash and cash equivalents and $136.6 million in unused borrowing availability[135]. - The company had calculated availability under the Credit Agreement of $93.2 million as of September 30, 2025, exceeding the $50.625 million threshold[141]. - The company declared and paid dividends of $5.4 million during the nine months ended September 30, 2025, with a quarterly dividend of $0.125 per common share declared on October 31, 2025[144]. - A 100-basis-point increase in interest rates would result in an increase in interest expense of approximately $2.2 million for the nine-month period ended September 30, 2025[151]. - The company has a revolving credit facility amounting to $405.0 million, including a $40.0 million Canadian subcommitment and a $30.0 million European subcommitment[139]. - The company must maintain a debt service coverage ratio greater than 1.0 if calculated availability falls below $50.625 million[142]. Market Risks - The company faces translation risks related to foreign currency exchange rates, which may affect net sales and expenses from foreign operations[152]. - The company is exposed to market risks, including fluctuations in commodity prices, particularly for metal and rubber compounds[153]. - The company expects to remain in compliance with financial covenants throughout 2025, although future sales volume declines could impact this[143]. - The company has the option to increase availability under the revolving credit facility as per the Credit Agreement[139].

Revenue Performance - For the three months ended September 30, 2025, total net revenues were $988 million, a 1.5% increase from $973 million in the prior quarter[130]. - For the nine months ended September 30, 2025, total net revenues increased to $2,898 million, up $246 million (9.3%) from $2,652 million in the same period last year[148]. - Net product revenues for the nine months ended September 30, 2025, increased by $227 million (10.1%) compared to the prior year, driven by higher sales in the semiconductor and electronics markets[149]. - For the three months ended September 30, 2025, total net revenues were $988 million, with product revenues at $860 million (87.0%) and service revenues at $128 million (13.0%)[148]. Market Segment Performance - Semiconductor market revenues decreased by $17 million, or 4%, to $415 million compared to the prior quarter, primarily due to reduced demand from NAND upgrades[133]. - For the nine months ended September 30, 2025, semiconductor market revenues increased by $163 million, or 15%, to $1,261 million compared to $1,098 million in the same period last year[134]. - Electronics and packaging market revenues increased by $23 million, or 9%, to $289 million for the three months ended September 30, 2025, driven by higher chemistry and equipment sales[136]. - For the nine months ended September 30, 2025, electronics and packaging market revenues rose by $140 million, or 21%, to $809 million compared to $669 million in the same period last year[137]. - Specialty industrial market revenues increased by $9 million, or 3%, to $284 million for the three months ended September 30, 2025, mainly due to higher chemistry sales[142]. - For the nine months ended September 30, 2025, specialty industrial market revenues decreased by $57 million, or 6%, to $828 million compared to $885 million in the same period last year[143]. International Operations - International net revenues accounted for approximately 81% of total net revenues for the nine months ended September 30, 2025, up from 77% in the same period last year[144]. - Long-lived assets located outside the United States accounted for approximately 68% of total long-lived assets as of September 30, 2025, compared to 59% as of December 31, 2024[145]. Expenses and Profitability - Gross profit as a percentage of total net revenues for the three months ended September 30, 2025, was 46.6%, unchanged from the prior quarter, but down from 47.8% in the same period last year[155]. - Research and development expenses for the nine months ended September 30, 2025, increased by $16 million (7.8%) to $222 million compared to $206 million in the same period last year[163]. - Selling, general and administrative expenses increased by $5 million for the three months ended September 30, 2025, primarily due to a $3 million increase in compensation-related costs[167]. - For the nine months ended September 30, 2025, selling, general and administrative expenses rose by $41 million compared to the same period in the prior year, mainly driven by a $46 million increase in compensation-related costs[168]. Cash Flow and Investments - Net cash provided by operating activities was $503 million for the nine months ended September 30, 2025, resulting from net income of $188 million and non-cash charges of $240 million[188]. - Net cash used in investing activities was $96 million for the nine months ended September 30, 2025, primarily related to capital expenditures of $98 million[189]. - Cash and cash equivalents totaled $697 million at September 30, 2025, with $166 million held in the United States and $531 million held by foreign subsidiaries[186]. Debt and Financing - As of September 30, 2025, the company had a principal outstanding of $3.0 billion on its Term Loan Facility, with a weighted average interest rate of 5.8%[196]. - The company made additional voluntary prepayments of $100 million on the USD Tranche B loan in January, June, August, and October 2025[193]. - The company completed a private offering of $1.4 billion in convertible senior notes due 2030 on May 16, 2024[203]. - The effective interest rate of the convertible notes was 1.56% as of September 30, 2025[211]. - The company is required to prepay outstanding term loans with portions of its annual excess cash flow and net cash proceeds from certain asset sales[198]. Shareholder Returns - The company approved a share repurchase program for up to $200 million of its common stock, with repurchases depending on various factors including market conditions[190]. - Approximately 546,000 shares were repurchased for a total of $45 million during the nine months ended September 30, 2025, with a total of 3.1 million shares repurchased for approximately $172 million since the program's adoption[191]. - The Board declared a cash dividend of $0.22 per share for each of the first three quarters of 2025 and 2024, totaling $44 million for the nine months ended September 30, 2025 and 2024[192]. Tax and Regulatory Matters - The effective tax rate for the nine months ended September 30, 2025 was 12.7%, significantly lower than the U.S. statutory tax rate, mainly due to deductions for foreign derived intangible income and research and development tax credits[180]. - The company plans to apply ASU 2023-09 prospectively starting with the period ending December 31, 2025, with no impact on consolidated balance sheets, cash flows, or income statements[219]. - ASU No. 2024-03 requires public companies to disclose additional disaggregated information about certain income statement expense line items, effective for annual reporting periods beginning after December 15, 2026[219]. - As of September 30, 2025, there were no material changes in the company's exposure to market risk from December 31, 2024[221]. Restructuring and Charges - Restructuring and other charges for the three months ended September 30, 2025 amounted to $4 million, primarily related to severance costs from a global cost-saving initiative[170]. - Amortization of intangible assets for the three months ended September 30, 2025 increased by $1 million compared to the prior quarter, totaling $63 million[172]. - Loss on extinguishment of debt for the nine months ended September 30, 2025 was $8 million, associated with voluntary prepayments and the Fifth Amendment[177]. Strategic Initiatives - The company continues to implement strategies to strengthen supplier diversification and optimize logistics routes in response to evolving global trade conditions[125]. - The company continues to invest significantly in research and development to address evolving customer needs and market trends, particularly in semiconductor and electronics sectors[166].

Financial Performance - The company recognized net product sales of $7.1 million for the nine months ended September 30, 2025, from its lead drug product FYARRO, which was launched in the U.S. for the treatment of advanced malignant PEComa[164]. - Total revenue for the nine months ended September 30, 2025, was $7.1 million, down from $18.7 million in 2024, primarily due to the cessation of FYARRO sales[188]. - The company reported a net income of $2.7 million for the nine months ended September 30, 2025, compared to a net loss of $45.4 million for the same period in 2024[199]. - Other income for the nine months ended September 30, 2025, was $92.2 million, significantly up from $3.1 million in 2024, primarily due to a gain on the sale of a business[197]. Research and Development - The company plans to submit three investigational new drug (IND) applications to the FDA by mid-2026, targeting solid tumors, cancers of female origin, and neuroendocrine cancers[161][162]. - The company plans to increase investment in research and development related to ADC Therapies, continuing to incur significant expenses in this area[182]. - Research and development expenses for the three months ended September 30, 2025, increased to $14.3 million from $10.0 million in 2024, driven by higher clinical drug product manufacturing costs[192]. - Research and development expenses for the nine months ended September 30, 2025, were $71.9 million, up from $36.7 million in 2024, reflecting a $38.0 million upfront license fee paid to WuXi Biologics[193]. Cash and Investments - The company has $162.6 million in cash, cash equivalents, and short-term investments as of September 30, 2025, which is expected to support operations into 2028[175]. - Cash used in operating activities for the nine months ended September 30, 2025, was $80.2 million, compared to $44.5 million for the same period in 2024[207][210]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $94.4 million, primarily from the 2024 PIPE Financing[213]. - Cash used in investing activities for the nine months ended September 30, 2025, included $125.8 million for short-term investments[211]. Business Transactions - The company completed the divestiture of the FYARRO Business for a cash payment of $102.4 million on March 25, 2025, resulting in a significant gain on sale contributing to net income for the nine months ended September 30, 2025[165]. - The company entered into a License Agreement with WuXi Biologics for the development and commercialization of three next-generation antibody drug conjugates (ADCs), with potential milestone payments totaling $805 million[166]. - The company entered into a Sales Agreement with Cowen for an "at the market offering" of common stock with gross proceeds of up to $75.0 million, with no shares sold as of September 30, 2025[201]. - The Shelf Registration Statement allows the company to sell up to $150.0 million of various securities, providing flexibility for future capital needs[203]. Management and Strategy - The company has a strong management team with extensive experience in oncology therapeutics, positioning it well to execute its strategy for ADC Therapies and future pipeline assets[163]. - The company has incurred an accumulated deficit of $330.0 million as of September 30, 2025, primarily due to research and development costs and operational expenses[175]. - The accumulated deficit as of September 30, 2025, was $330.0 million, with net losses incurred in each year since inception except for the nine months ended September 30, 2025[199]. - The company expects to continue incurring significant expenses and operating losses in the foreseeable future due to ongoing research and development activities[175]. Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $5.2 million, down from $7.2 million in 2024, a decrease of $2.0 million[189]. - Rent expense for the Pacific Palisades and Morristown leases was $34.0 thousand and $0.1 million for the three months ended September 30, 2025, respectively[217].

Financial Performance - Eversource Energy reported earnings of $367.5 million, or $0.99 per share, in Q3 2025, compared to a loss of $118.1 million, or $0.33 per share, in Q3 2024[209]. - For the first nine months of 2025, Eversource earned $1.27 billion, or $3.44 per share, up from $739.1 million, or $2.08 per share, in the same period of 2024[209]. - Eversource's operating revenues for Q3 2025 were $3,220.6 million, an increase of 5.1% from $3,063.2 million in Q3 2024[319]. - For the nine months ended September 30, 2025, operating revenues reached $10,177.0 million, up 14.0% from $8,929.3 million in the same period of 2024[319]. - Net income attributable to common shareholders for Q3 2025 was $367.5 million, compared to a net loss of $118.1 million in Q3 2024, marking a significant turnaround[319]. Cash Flow and Debt Management - Cash flows from operating activities totaled $3.20 billion in the first nine months of 2025, compared to $1.52 billion in the same period of 2024[209]. - As of September 30, 2025, cash and cash equivalents stood at $259.3 million, significantly up from $26.7 million as of December 31, 2024[209]. - Eversource issued $2.04 billion in new long-term debt and repaid $750 million of long-term debt in the first nine months of 2025[209]. - Eversource paid cash dividends totaling $816.4 million in the first nine months of 2025, compared to $745.2 million in the same period of 2024[247]. - Eversource's interest expense for Q3 2025 was $318.1 million, an increase of 5.8% from $300.6 million in Q3 2024[319]. Segment Performance - Electric distribution segment earnings increased by $18.1 million (8.9%) in Q3 2025 and $50.3 million (9.6%) in the first nine months of 2025 compared to the same periods in 2024, driven by higher revenues from base distribution rate increases[213]. - Electric transmission segment earnings rose by $10.6 million (5.7%) in Q3 2025 and $52.4 million (9.7%) in the first nine months of 2025, primarily due to a higher transmission rate base from ongoing infrastructure investments[216]. - Natural gas distribution segment losses decreased by $13.4 million (44.4%) in Q3 2025 and earnings increased by $49.5 million (26.4%) in the first nine months of 2025, attributed to higher revenues from base distribution rate increases[217]. - Water distribution segment earnings decreased by $4.8 million (20.2%) in Q3 2025 and $0.3 million (0.8%) in the first nine months of 2025, mainly due to higher operations and maintenance expenses[218]. Regulatory and Rate Changes - The authorized net regulatory ROE for Yankee Gas was established at 9.32% with a 53% common equity ratio, while PSNH's regulatory ROE was set at 9.5% with a 50% common equity ratio[214]. - PURA approved a distribution rate increase of $82.2 million for Yankee Gas, effective November 1, 2025, resulting in a total distribution revenue requirement of $802.2 million[290]. - NSTAR Electric submitted a PBR Adjustment filing for a $55.1 million increase to base distribution rates, with a total revenue requirement of $1.34 billion effective January 1, 2026[295]. - PSNH's permanent rate increase was approved at $100.7 million, effective August 1, 2025, with a total revenue requirement of $519 million[300]. Capital Expenditures and Investments - Investments in property, plant, and equipment were $3.18 billion in the first nine months of 2025, slightly down from $3.29 billion in the same period of 2024[209]. - Capital expenditures for Eversource, CL&P, NSTAR Electric, and PSNH totaled $3.18 billion in the first nine months of 2025, with a focus on infrastructure improvements[250]. - Eversource's distribution capital expenditures totaled $2.36 billion in the first nine months of 2025, compared to $2.19 billion in the same period of 2024[258]. Business Transactions and Future Outlook - Eversource entered into a definitive agreement to sell the Aquarion water distribution business for an aggregate enterprise value of approximately $2.4 billion, including $1.6 billion for equity and $800 million of net debt to be extinguished at closing[261]. - The sale of the Aquarion business is expected to close in late 2025, with net proceeds planned to be used to pay down Eversource parent debt[261]. - Eversource expects future operating cash flows and access to debt and equity markets to be sufficient for working capital and capital investment opportunities[232]. Risks and Regulatory Matters - Eversource cannot predict the ultimate outcome of pending matters before FERC, which could materially impact its results of operations and financial condition[278]. - Eversource has recorded a reserve of $39.1 million for the second complaint period related to FERC ROE complaints, representing the difference between billed rates and a 10.57 percent base ROE[265]. - A change of 10 basis points to the base ROE would impact Eversource's after-tax earnings by approximately $3 million for each of the four 15-month complaint periods[276].

Financial Performance - The Company reported net income of $1.9 million, or $0.32 per diluted share, for the three months ended September 30, 2025, down from $2.2 million, or $0.36 per diluted share, for the same period in 2024[166]. - For the nine months ended September 30, 2025, net income totaled $3.9 million, or $0.64 per diluted share, compared to $6.5 million, or $1.04 per diluted share, for the same period in 2024[166]. - Cash dividends declared totaled $0.21 per share for the nine months ended September 30, 2025, compared to $0.15 per share for the same period in 2024[182]. - The provision for income taxes decreased to $1.1 million for the nine months ended September 30, 2025, from $2.0 million in 2024, with an effective tax rate of 22.9% compared to 23.5%[205]. Asset and Loan Growth - Total assets increased by 4.2% to $1,147.2 million as of September 30, 2025, compared to $1,101.1 million as of December 31, 2024[175]. - Total loans increased by $44.5 million, or 5.4%, as of September 30, 2025, primarily driven by a $75.9 million growth in consumer indirect loans[176]. - The total loan portfolio increased by $44.5 million, or 5.4%, as of September 30, 2025, compared to December 31, 2024[214]. - As of September 30, 2025, total loans amounted to $867.52 million, with real estate loans comprising $606.44 million, representing 69.9% of total loans[215]. Credit Quality - The provision for credit losses for the nine months ended September 30, 2025, was $3.8 million, significantly higher than $0.2 million for the same period in 2024[170]. - Nonperforming assets decreased to $2.2 million, or 0.19% of total assets, as of September 30, 2025, down from $5.5 million, or 0.50%, as of December 31, 2024[177]. - Net charge-offs totaled $3.3 million for the nine months ended September 30, 2025, up from $0.6 million in the prior year[200]. - The Company's allowance for credit losses (ACL) as a percentage of total loans and leases was 1.23% as of September 30, 2025, slightly down from 1.24% at the end of 2024[201]. Deposits and Equity - Total deposits increased by $29.9 million, or 3.1%, during the nine months ended September 30, 2025, with core deposits totaling $838.4 million, or 83.6% of total deposits[178]. - Shareholders' equity increased by $5.6 million, or 5.7%, as of September 30, 2025, primarily due to earnings net of dividends and share repurchases[181]. - Total deposits increased to $1,002.5 million as of September 30, 2025, from $972.6 million as of December 31, 2024, representing a 3.1% increase[221]. - Core deposits totaled $838.4 million, or 83.6% of total deposits, as of September 30, 2025, compared to $837.7 million, or 86.1% of total deposits, as of December 31, 2024[221]. Interest Income and Expense - Net interest income increased by $0.6 million, or 2.3%, for the nine months ended September 30, 2025, compared to the same period in 2024[169]. - The net interest margin decreased to 3.57% for the nine months ended September 30, 2025, down from 3.65% for the same period in 2024[169]. - Interest expense decreased by $0.3 million for the nine months ended September 30, 2025, compared to the same period in 2024[197]. - Net interest income for the three months ended September 30, 2025, was $9.662 million, compared to $9.185 million for the same period in 2024[189]. Liquidity and Funding - Total readily available liquidity was $423.9 million as of September 30, 2025, compared to $397.7 million as of December 31, 2024[236]. - The Company had $200.9 million in unused borrowing capacity with the FRB's discount window as of September 30, 2025[232]. - The Company maintained a strong core deposit base and sufficient funding capacity for loan growth and operations as of September 30, 2025[185]. - The Company had approximately 28 thousand deposit accounts with an average balance of approximately $32.2 thousand per account as of September 30, 2025[239]. Investment Portfolio - The yield on investment securities increased to 3.52% for the nine months ended September 30, 2025, compared to 2.93% for the same period in 2024[180]. - As of September 30, 2025, available-for-sale securities totaled $164.0 million, representing 99.7% of the total investment portfolio, down from $167.9 million as of December 31, 2024[209]. - The average life of securities in the investment portfolio increased to 4.2 years as of September 30, 2025, from 3.6 years as of December 31, 2024[208]. - The investment securities portfolio had an estimated average life of 4.2 years as of September 30, 2025, compared to 3.6 years as of December 31, 2024[229]. Operational Developments - The Company is renovating a banking center in Daphne, Alabama, expected to open in the first half of 2026, and opened a new automated banking facility in Mountain Brook, Alabama in October 2025[186]. - Significant increases in non-interest expenses were noted in collection and other real estate/foreclosure expenses, while salaries and benefits decreased[204]. - Non-interest income for the nine months ended September 30, 2025, was $2,584 million, a slight decrease from $2,601 million in 2024[202]. - Total non-interest expense increased by 6.4% to $7.4 million for the three months ended September 30, 2025, and by 1.8% to $21.8 million for the nine months ended September 30, 2025, compared to the same periods in 2024[204]. Interest Rate Risk Management - The Company uses financial simulation models to measure interest rate exposure and assess the potential impact on net interest income[242]. - Under various interest rate scenarios, the pre-tax net interest margin is forecasted to change, with a +1% rate scenario resulting in a 5 basis points increase in net interest margin over one year[244]. - In a +2% interest rate scenario, the cumulative change in net interest income is projected to be $930 thousand over one year[244]. - A -1% interest rate scenario is expected to result in a decrease of $1,166 thousand in net interest income over one year[244].