Financial Performance - Total revenue for Q4 2025 was $6,313 million, representing a 7.1% increase year-over-year, while full-year revenue reached $25,204 million, up 14.2% from the previous year[5] - Operating revenues for Q4 2025 reached $6,313 million, a 7.1% increase from $5,893 million in Q4 2024[29] - Consolidated net income for the year ended December 31, 2025, was $2,709 million, slightly down from $2,745 million in 2024[33] - Basic earnings per share for Q4 2025 were $1.84, compared to $1.49 in Q4 2024, reflecting a 23.5% increase[29] - Operating revenues for the year ended December 31, 2025, were reported at $25,204 million, an increase from $22,063 million in 2024, representing a growth of approximately 9.7%[53] - Income from operations for 2025 was reported at $4,308 million, down from $4,063 million in 2024, indicating a decrease of approximately 6.0%[53] - The company reported a net income attributable to Waste Management, Inc. for the year ended December 31, 2025, was reported at $2,708 million, with a diluted earnings per share of $6.70[51] Cash Flow and Capital Expenditures - Free cash flow in 2025 was $2.94 billion, an increase of 26.8% compared to the prior year, with net cash provided by operating activities at $6.04 billion, up 12.1%[11] - Cash flows from operating activities for the year were $6,043 million, up from $5,390 million in 2024, indicating a 12.1% increase[33] - Capital expenditures for the year were $3,227 million, consistent with $3,231 million in 2024[33] - Projected free cash flow for 2026 is estimated to be between $3,750 million and $3,850 million, depending on different scenarios[61] EBITDA and Margins - Operating EBITDA for the total company grew 13.3% in 2025, with an adjusted operating EBITDA margin exceeding 30% for the first time, reaching 30.1% for the full year[4] - Adjusted operating EBITDA for the year ended December 31, 2025, was $7,582 million, with an adjusted operating EBITDA margin of 30.1%[51] - The adjusted operating EBITDA margin for the three months ended December 31, 2025, was 31.3%, up from 28.9% in the same period of 2024[45] - Adjusted operating EBITDA for 2026 is projected to be between $8,150 million and $8,250 million, indicating a growth of 6.2% on a comparable basis[13] Shareholder Returns - The company plans to return approximately $3.5 billion to shareholders in 2026 through dividends and share repurchases[2] Business Segments and Growth - The Healthcare Solutions business achieved an operating EBITDA margin of 13.5% in 2025, up from 1.0% in 2024, with further improvements expected in 2026[8] - The company invested approximately $400 million in acquisitions in 2025, focusing on solid waste and recycling businesses[11] - Acquisitions during the year resulted in gross annualized revenue of $2,622 million, with total consideration net of cash acquired amounting to $6,720 million[40] Sustainability and Future Projects - WM anticipates completing six additional renewable natural gas plants and four recycling projects in 2026 as part of its sustainability growth strategy[15] - The company anticipates capital spending of about $85 million in 2026 for renewable natural gas facilities and a new recycling growth project, expected to contribute to operating EBITDA by 2028[10] Pricing and Market Conditions - The company reported a blended average price for single-stream recycled commodities of approximately $62 per ton in the quarter, down from $87 per ton in the prior year period[7] - The average price for renewable natural gas sold in 2025 was about $31 per MMBtu, with expectations to generate between 21 and 22 million MMBtu of renewable natural gas in 2026[21] - The company has contracted 60% of its renewable natural gas at a blended average price of about $27 per MMBtu for 2026[21] - The 2026 financial outlook includes a blended average single-stream recycled commodity price of approximately $70 per ton, with a $10 per ton change impacting operating EBITDA by approximately $27 million[21] Debt and Liabilities - Long-term debt decreased to $22,196 million in 2025 from $22,541 million in 2024, a reduction of 1.5%[31] - The total liabilities decreased to $35,844 million in 2025 from $36,313 million in 2024, a decline of 1.3%[31] Operational Efficiency - Operating expenses as a percentage of revenue for the Legacy Business improved by 150 basis points in 2025, reflecting effective cost management strategies[7] - Operating expenses as a percentage of revenues for 2025 were 59.6%, a slight decrease from 60.7% in 2024[57] - Adjusted SG&A expenses for 2025 were $14,996 million, compared to $13,382 million in 2024, indicating an increase of approximately 12.1%[57] Conference Call - The company will host a conference call on January 29, 2026, to discuss the fourth quarter and full-year 2025 results[18]

Financial Performance - Net sales for the fiscal year ended October 31, 2025, totaled $96,283,547, an increase of $17,721,249, or 23%, from $78,562,298 for the fiscal year ended October 31, 2024[138]. - Cost of sales for the fiscal year ended October 31, 2025, was $80,868,881, or 84% of net sales, compared to $62,520,529, or 80% of net sales, for the fiscal year ended October 31, 2024[139]. - Gross profit for the fiscal year ended October 31, 2025, was $15,414,666, a decrease of $627,103 from $16,041,769 for the fiscal year ended October 31, 2024, with gross profit as a percentage of net sales decreasing to 16% from 20%[140]. - Operating expenses increased by $184,095 to $13,262,306 for the fiscal year ended October 31, 2025, from $13,078,211 for the fiscal year ended October 31, 2024[141]. - Net income for the fiscal year ended October 31, 2025, was $1,403,439, or $0.25 per share, compared to net income of $2,218,014, or $0.39 per share, for the fiscal year ended October 31, 2024[145]. Cash Flow and Working Capital - Working capital as of October 31, 2025, was $22,633,292, representing a $1,106,309 increase from $21,526,983 as of October 31, 2024[146]. - Operating activities used net cash of $5,018,989 for the fiscal year ended October 31, 2025, compared to net cash provided of $5,431,211 for the fiscal year ended October 31, 2024[152]. - Investing activities used net cash of $1,710,162 for the fiscal year ended October 31, 2025, compared to net cash provided of $2,843,069 for the fiscal year ended October 31, 2024[153]. - Financing activities had net cash used of $6,050,000 for the fiscal year ended October 31, 2025, compared to $9,627,234 for the fiscal year ended October 31, 2024[154]. Hedging and Risk Management - The net result of hedging activities for the fiscal year ended October 31, 2025, resulted in a gain of approximately $1.8 million, compared to a gain of approximately $1.6 million for the fiscal year ended October 31, 2024[139]. - The company utilizes short-term coffee futures and options contracts to hedge against price volatility, but remains exposed to potential losses during significant price declines[44]. Business Strategy and Market Position - The company expects to fund its operations, including liabilities and capital expenditures, through cash provided by operating activities and its credit facility until October 31, 2026[155]. - The company holds trademarks for all eight proprietary coffee brands and an exclusive license for S&W brands in the U.S., emphasizing brand recognition as crucial for success[45]. - The company sells private label and branded coffee to major retail and wholesale customers in the U.S., with contracts that may include minimum and maximum purchase obligations[46][47]. - The company conducts in-store promotions and marketing through trade shows, publications, and its website to capture changing consumer preferences[48][49]. - The company aims to grow by introducing new brand names and products across multiple price points, including specialty blends and peripheral products[50]. - The coffee market is highly competitive, with the company positioning itself as a value-added supplier to small specialty gourmet coffee roasters[51]. - The main competitor in private label sales is Massimo Zanetti Beverage Company, which has greater resources, but the company focuses on quality and customer service to remain competitive[52]. - The branded coffee market is dominated by Kraft Foods and J.M. Smucker Co., but the company's brands have a strong regional presence and cater to specific demographics[53]. Compliance and Regulations - The company is in compliance with all material laws and regulations related to its operations, which include obtaining necessary licenses and permits[54][55].

Credit and Market Risks - The company faces significant credit risk associated with customer and principal securities and derivative transactions, which may lead to counterparty nonperformance [75]. - Market risk is inherent in the company's operations, with fluctuations in interest rates, equity prices, and credit quality potentially impacting revenues and asset values [77]. - A considerable portion of revenues is derived from trading activities, which may incur losses due to market volatility and adverse price movements in securities [81]. - Investment banking revenues are directly related to economic conditions, with reduced expectations of U.S. economic growth potentially leading to decreased financial market activity [94]. - Revenues from asset management businesses may be negatively impacted by declining and fluctuating securities prices, affecting overall profitability [96]. - Geopolitical tensions, such as the conflict between Russia and Ukraine, could create economic disruptions and volatility in financial markets, adversely affecting the company's operations [87]. - Climate change and natural disasters may disrupt business operations and negatively impact the profitability of certain investments [90]. - Abrupt changes in market conditions could lead to decreased revenues and operational volatility, impacting overall business strategies [100]. - Unfavorable economic conditions could adversely affect demand for loans and the servicing of loans, impacting profitability [112]. Operational and Compliance Risks - The company is dependent on liquidity from subsidiaries, which may face regulatory restrictions limiting dividend payments and fund availability [84]. - The company’s risk management processes are designed to limit exposure, but there is no assurance that these measures will prevent losses [101]. - Operational risks, including failures in data processing systems, could impair liquidity and result in financial losses or regulatory intervention [107]. - Cybersecurity incidents are on the rise, posing risks to the secure processing and storage of sensitive information, which could lead to reputational damage and financial losses [113]. - The reliance on third-party service providers introduces risks related to information security and operational continuity [111]. - Employee misconduct or fraud poses risks that could lead to significant legal liability and reputational harm, impacting client retention [126]. - Compliance with the Dodd-Frank Act has resulted in significant operational costs, with ongoing expenditures expected due to complex regulatory requirements [129]. - The evolving legal and regulatory environment regarding AI may require changes in the company's operations and increase compliance risks [121]. - Regulatory changes, such as the transition to a T+1 settlement cycle, may require significant investments and could affect revenue and profitability [139]. - Compliance with financial capital holding requirements may restrict broker-dealers' ability to engage in capital-intensive activities, impacting operations [150]. - Legal liabilities from lawsuits could have a material adverse financial effect and harm the company's reputation [152]. - Changes in tax laws could significantly increase effective tax rates, adversely affecting cash flow and financial condition [153]. Financial Performance and Shareholder Returns - Net revenues for the year ended November 30, 2025, were $7.34 billion, representing a 4.4% increase from $7.03 billion in 2024 [187]. - Net earnings attributable to common shareholders decreased to $630.8 million in 2025 from $669.3 million in 2024, a decline of 5.7% [188]. - Investment banking net revenues reached $3.79 billion, up 10.0% from $3.44 billion in the previous year, with advisory revenues increasing by 18.4% to $2.15 billion [199]. - Total underwriting net revenues were $1.64 billion, reflecting a 10.3% increase compared to $1.49 billion in 2024, driven by higher debt underwriting activity [200]. - Equities net revenues were a record $1.91 billion, up 19.8% from $1.59 billion in 2024, attributed to strong client activity and market share gains [203]. - Fixed income net revenues decreased by 22.0% to $909.9 million from $1.17 billion in the prior year, impacted by lower global activity levels [205]. - The effective tax rate improved to 21.2% in 2025 from 29.2% in 2024 [188]. - The company returned an aggregate of $432.6 million to shareholders during the year ended November 30, 2025, including $374.1 million in cash dividends and $58.5 million for share repurchases [263]. Employee and Operational Changes - The financial services industry experiences high turnover, leading to increased costs for retaining skilled professionals, including guaranteed contracts and higher compensation [103]. - Competition for qualified personnel is intense, which may require significant resources to attract and retain employees, impacting financial condition and operational results [104]. - The company had 7,787 employees globally as of November 30, 2025, a slight decrease from 7,822 in 2024 [190]. - Total non-interest expenses rose to $6.47 billion, an increase of 7.4% from $6.03 billion in the prior year [224]. - Compensation and benefits expense was $3.86 billion, compared to $3.66 billion in the prior year, with a percentage of net revenues at 52.6% for 2025 [227]. Strategic Initiatives and Investments - Future acquisitions and dispositions may significantly alter the company's asset composition and business mix, affecting financial condition and securities value [124]. - The company entered into an agreement to acquire a 50% interest in Hildene Holding Company, LLC, contributing $340.0 million in cash and existing revenue share [230]. - The planned formation of a joint venture in Japan with SMBC Group is expected to launch in January 2027, integrating global equities platforms [236]. - The company completed the sale of Foursight in April 2024 as part of its strategy to liquidate legacy investments [262]. Asset and Financial Position - Total assets increased by 18.1% from $64.36 billion in 2024 to $76.01 billion in 2025 [267]. - Cash and cash equivalents rose by 15.6% from $12.15 billion in 2024 to $14.04 billion in 2025 [267]. - Financial instruments owned increased by 14.8% from $24.14 billion in 2024 to $27.72 billion in 2025, driven by client facilitation trades in corporate equity securities [268]. - Financial instruments sold, not yet purchased, grew by 21.0% from $11.01 billion in 2024 to $13.32 billion in 2025 [268]. - Total securities borrowed and purchased under agreements to resell increased by 25.0% from $13.39 billion in 2024 to $16.74 billion in 2025 [267]. - The average month-end balance of total reverse repos and stock borrows was 23.4% higher than the balance at November 30, 2025 [272]. - The company maintains a robust capital plan to support its operating model through stressed conditions, ensuring adequate financial resources [264]. - The company issued $1.5 billion aggregate principal amount of 5.500% Senior Notes due 2036 in January 2026 [265]. - The overall net inventory position increased from $13.13 billion in 2024 to $14.40 billion in 2025, primarily due to increases in derivative contracts and corporate debt [268]. - The company actively monitors its financial condition and the composition of its assets and liabilities, ensuring liquidity through daily valuation of a significant portion of its financial instruments [271].

Financial Reporting - Concentra Group Holdings Parent, Inc. will present preliminary, unaudited operational metrics for Q4 2025 on January 14, 2026[4] - The presentation will be available on the Company's investor relations website after the event[4] - The Company is not classified as an emerging growth company under the Securities Act[3] Forward-Looking Statements - Forward-looking statements regarding future expectations and plans are included, with actual results potentially differing due to various factors[6] - The Company disclaims any obligation to update forward-looking statements except as required by law[6]

Homebuilding Operations - Homebuilding operations generated $32 billion in revenues, accounting for approximately 94% of consolidated revenues in fiscal 2025[11] - New home deliveries reached 82,583 in fiscal 2025, an increase from 80,210 in fiscal 2024 and 73,087 in fiscal 2023[14] - The average sales price of a Lennar home in fiscal 2025 was $391,000, down from $423,000 in fiscal 2024 and $445,000 in fiscal 2023[15] - As of November 30, 2025, 98% of total homesites were controlled through options, up from 82% in the previous year[17] - The backlog dollar value, including unconsolidated entities, was $5.2 billion at November 30, 2025, compared to $5.4 billion at the same date in 2024[29] - The company experienced a cancellation rate of 14% in both 2025 and 2024[28] - The company operates in 1,708 communities as of November 30, 2025, up from 1,447 communities in 2024[20] Financial Services - In fiscal year 2025, the company originated approximately 55,900 residential mortgage loans totaling $20.0 billion, an increase from 54,600 loans totaling $19.8 billion in fiscal year 2024[34] - The financial services subsidiaries provided loans to 84% of homebuyers who obtained mortgage financing in areas where services were offered[33] - As of November 30, 2025, the company had a total maximum borrowing capacity of $3.3 billion under six warehouse residential facilities[35] - The company locked interest rates on approximately 56,900 residential mortgage loans totaling $19.9 billion in fiscal year 2025[34] - The company’s Financial Services operations employ mortgage-backed securities forward commitments and option contracts to protect against interest rate fluctuations[314] - Financial services fixed rate notes and other debts payable are valued at $123.1 million with an average interest rate of 3.4%[320] - Financial services variable rate debts total $1,667.2 million, with an average interest rate of 5.3%[320] Multifamily Business - The Multifamily business has capitalized and developed 128 multifamily residential communities with approximately 39,300 rental units across 20 states[42] - As of November 30, 2025, Upward America had purchased 4,697 homes in 103 communities for a total purchase price of $1.2 billion, averaging $258,000 per home[49] - The company has a pipeline of 32 potential future developments in the Multifamily segment, totaling approximately $2.8 billion in anticipated development costs[43] Technology and Innovation - The company aims to enhance efficiencies and reduce costs through technology and innovative strategies[13] - The book value of strategic technology investments was $581.8 million as of November 30, 2025[39] Land and Operating Model - In February 2025, the company completed the spin-off of Millrose Properties, contributing $5.6 billion in land assets and $1.0 billion in cash[31] - The company is focused on a land-light operating model, increasing flexibility and reducing capital intensity[13] Environmental Commitment - The company is focused on creating environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[67][74] - The company believes in the value of clean energy and consistently seeks opportunities to integrate solar power into its home designs[68] Workforce and Culture - The company employed 12,532 individuals as of November 30, 2025, a decrease from 13,265 individuals in the previous year, with 10,182 in Homebuilding operations[73] - The company’s overall relations with its workforce are considered healthy, despite subcontracting many phases of homebuilding operations[73] - The company is focused on attracting and retaining talent, emphasizing a culture of inclusion and providing a comprehensive benefits package[69][70] Risk Management - The company utilizes derivative financial instruments to hedge interest rate exposure, particularly for loans held-for-sale, to mitigate risks associated with fluctuations in mortgage-related interest rates[315] - The company’s primary market risk exposure relates to fluctuations in interest rates on investments, loans held-for-sale, and outstanding variable rate debt[312] - The company is subject to various local, state, and federal regulations that can increase construction costs and impact homebuilding activities, including environmental laws and zoning regulations[60][61] Health and Safety - The company is committed to health and safety, having hired a Chief Medical Officer to oversee safety protocols during the COVID-19 pandemic[71] Debt and Investments - Fixed rate investments held-to-maturity are valued at $132.9 million with an average interest rate of 3.6%[320] - Homebuilding fixed rate senior notes and other debts payable total $2,380.5 million, with an average interest rate of 5.0%[320] - Variable rate debts in homebuilding amount to $1,710.0 million, with an average interest rate of 5.2%[320]

Homebuilding Operations - Homebuilding operations generated $32 billion in revenues, accounting for approximately 94% of consolidated revenues in fiscal 2025[11]. - New home deliveries reached 82,583 in fiscal 2025, an increase from 80,210 in fiscal 2024 and 73,087 in fiscal 2023[14]. - The average sales price of a Lennar home in fiscal 2025 was $391,000, down from $423,000 in fiscal 2024 and $445,000 in fiscal 2023[15]. - As of November 30, 2025, 98% of total homesites were controlled through options, up from 82% in the previous year[17]. - The backlog dollar value, including unconsolidated entities, was $5.2 billion at November 30, 2025, compared to $5.4 billion at the same time in 2024[29]. - The company experienced a cancellation rate of 14% in both 2025 and 2024 for homes under sales contracts[28]. - The company was actively building and marketing homes in 1,708 communities as of November 30, 2025, an increase from 1,447 communities in 2024[20]. - The company aims to maintain operating margins by deferring home sale price commitments until construction costs are finalized[13]. - The company is focused on a land-light operating model, enhancing flexibility and reducing capital intensity in its homebuilding operations[13]. Financial Services - In fiscal year 2025, the company originated approximately 55,900 residential mortgage loans totaling $20.0 billion, an increase from 54,600 loans totaling $19.8 billion in fiscal year 2024[34]. - The financial services subsidiaries provided loans to 84% of homebuyers who obtained mortgage financing in areas where the company offered services[33]. - As of November 30, 2025, the company had a total maximum borrowing capacity of $3.3 billion under its financial services warehouse facilities[35]. - The company utilizes derivative financial instruments to hedge interest rate exposure, particularly for loans held-for-sale, to mitigate risks associated with fluctuations in mortgage-related interest rates[315]. - The company’s Financial Services operations employ mortgage-backed securities forward commitments and option contracts to protect against interest rate fluctuations[314]. - Financial services fixed rate notes and other debts payable are valued at $123.1 million, with an average interest rate of 3.4%[320]. - Financial services variable rate debts total $1,667.2 million, with an average interest rate of 5.3%[320]. Multifamily Business - The Multifamily business has capitalized and developed 128 multifamily residential communities with approximately 39,300 rental units across 20 states[42]. - As of November 30, 2025, the Multifamily segment had a pipeline of 32 potential future developments totaling approximately $2.8 billion in anticipated development costs[43]. Strategic Investments - In February 2025, the company completed the spin-off of Millrose Properties, contributing $5.6 billion in land assets and $1.0 billion in cash[31]. - The company retained a minority interest after selling a majority interest in Quarterra Group, Inc for a strategic commitment of $1.0 billion[46]. - The book value of the company's investment in strategic technology investments was $581.8 million as of November 30, 2025[39]. Technology and Innovation - The company has been using new technology to automate portions of the mortgage loan origination process, improving customer experience and increasing digital closings[36]. Environmental Sustainability - The company is focused on creating environmentally sustainable products, incorporating features like Low-VOC paint, WaterSense® faucets, Low-E windows, and Energy Star® appliances in new homes[67][74]. - The company believes in the value of clean energy and actively seeks to integrate solar power into its home designs[68]. Regulatory and Market Risks - The company is subject to various local, state, and federal regulations that can increase construction costs and impact homebuilding activities, including requirements for energy-efficient materials and infrastructure commitments[60][61]. - The company’s primary market risk exposure relates to fluctuations in interest rates on investments, loans held-for-sale, and outstanding variable rate debt[312]. - The company’s compliance with the Dodd-Frank Act includes minimum standards for lender practices and limitations on certain fees in mortgage lending[64]. - The company’s operations are impacted by potential "slow growth" initiatives in various cities that could affect land availability for residential development[62]. Employment and Workforce - The company employed 12,532 individuals as of November 30, 2025, a decrease from 13,265 individuals in the previous year, with 10,182 in Homebuilding operations[73]. Health and Safety - The company is committed to health and safety, having hired a Chief Medical Officer to oversee safety protocols during the COVID-19 pandemic[71]. Financial Performance - Fixed rate investments held-to-maturity are valued at $132.9 million with an average interest rate of 3.6%[320]. - Homebuilding fixed rate senior notes and other debts payable total $2,380.5 million, with an average interest rate of 5.0%[320]. - Variable rate debts in homebuilding amount to $1,710.0 million, with an average interest rate of 5.2%[320].

Restaurant Operations - As of December 24, 2025, the company owned, operated, or franchised a total of 1,627 restaurants, including 1,160 company-owned and 467 franchised locations[63]. - The company plans to open 32 to 38 new restaurants in fiscal 2026, with 6 openings projected for the full year as of December 24, 2025[69]. - The company has strategically pursued international expansion, with 10 new franchise restaurant openings and one new development agreement during the twenty-six-week period ended December 24, 2025[68]. Financial Performance - Total revenues for the thirteen-week period ended December 24, 2025, increased to $1,452.2 million, up from $1,358.2 million for the same period in 2024, reflecting a change of 6.9%[71]. - Total revenues for the Chili's segment increased by 9.0% to $1,317.3 million, driven by favorable comparable restaurant sales and higher traffic[86]. - Chili's total revenues increased by 14.6% to $2,567.0 million for the twenty-six week period ended December 24, 2025, compared to $2,239.2 million for the same period in 2024[90]. - Maggiano's total revenues decreased by 9.7% to $134.9 million for the thirteen week period ended December 24, 2025, compared to $149.4 million for the same period in 2024, primarily due to restaurant closures[95]. Comparable Sales and Traffic - Comparable restaurant sales for company-owned locations increased by 7.5% in the thirteen-week period ended December 24, 2025, driven by a price impact of 4.6% and a traffic impact of 1.4%[73]. - Franchise revenues increased due to higher royalties, with Chili's franchisee sales reaching $271.9 million in the thirteen-week period ended December 24, 2025, compared to $232.3 million in the same period in 2024[73]. Cost Management - Food and beverage costs increased to $370.5 million, representing 25.7% of company sales, with a 0.2% unfavorable variance due to higher commodity costs and unfavorable menu item mix[76]. - Restaurant labor costs rose to $446.4 million, accounting for 31.0% of company sales, with a favorable variance of 0.3% attributed to sales leverage[76]. - Food and beverage costs for the twenty-six week period ended December 24, 2025, were $715.1 million, with a 0.4% unfavorable variance due to commodity costs[81]. - Chili's food and beverage costs were unfavorable by 0.1%, primarily due to a 0.9% unfavorable menu item mix and 0.2% unfavorable commodity costs, partially offset by 1.2% favorable menu pricing[89]. - Maggiano's food and beverage costs were unfavorable by 2.6%, driven by a 3.0% unfavorable menu item mix and 0.7% unfavorable commodity costs, partially offset by 1.1% favorable menu pricing[99]. - Maggiano's food and beverage costs were unfavorable by 2.3%, driven by a 2.8% unfavorable menu item mix and 0.6% higher commodity costs, partially offset by 1.1% favorable menu pricing[104]. Expenses - General and administrative expenses increased by $6.6 million to $59.7 million, primarily due to higher payroll expenses and stock-based compensation[78]. - Chili's general and administrative expenses increased by $3.3 million to $27.3 million for the twenty-six week period ended December 24, 2025, compared to $24.0 million for the same period in 2024[94]. - Depreciation and amortization rose to $54.6 million, reflecting an increase of $6.9 million from the previous year[78]. - Chili's depreciation and amortization increased by $11.9 million to $94.2 million for the twenty-six week period ended December 24, 2025, compared to $82.3 million for the same period in 2024[92]. Cash Flow and Financing - Net cash provided by operating activities increased by $58.7 million to $339.7 million for the twenty-six week period ended December 24, 2025, compared to $281.0 million for the same period in 2024[100]. - Net cash used in investing activities increased by $15.8 million to $121.6 million for the twenty-six week period ended December 24, 2025, primarily due to increased spending on new restaurant construction[101]. - Net cash used in financing activities decreased slightly to $(222.0) million for the twenty-six week period ended December 24, 2025, compared to $(225.0) million in the prior year, primarily due to a decrease in net repayments of long-term debt[102]. - As of December 24, 2025, net borrowings of $20.0 million were drawn on the revolving credit facility, with $949.9 million of credit available[103]. - The company repurchased 1.8 million shares for $235.0 million during the twenty-six week period ended December 24, 2025, with approximately $315.0 million remaining under the current share repurchase program[108]. Tax and Interest - Effective income tax rate for the thirteen-week period ended December 24, 2025, was 18.7%, up from 16.4% in the prior year[83]. - Interest expenses decreased by $4.0 million to $10.7 million, primarily due to a lower average revolver balance[80]. - The company's interest rate on the revolving credit facility was 4.98% as of December 24, 2025, consisting of SOFR of 3.73% plus an applicable margin of 1.25%[105]. - A hypothetical 100 basis point increase in the current interest rate on the outstanding balance of the revolving credit facility would result in an additional $0.2 million of annual interest expense[114]. Risk Factors - Commodity price risks remain a concern, with potential fluctuations in food and other commodity prices impacting financial results due to supply and demand factors[115]. - Other (gains) and charges for the twenty-six week period ended December 24, 2025, were $1.4 million, a decrease of $19.6 million from the previous year[82]. - Other (gains) and charges for Chili's resulted in a net unfavorable variance of $10.8 million, with losses from natural disasters and litigation impacting the results[91]. Operational Improvements - The company has focused on enhancing the digital experience, including a seamless To-Go menu available through various platforms, which has improved customer convenience[65]. - The company has simplified its menu to focus on core items, which has helped improve consistency and quality in food preparation[65]. - The company has invested in technology to enhance operational efficiency, including the use of handheld tablets for order placement and tabletop devices for guest interaction[66].

Financial Performance - Total revenue for Q4 2025 was $4.208 billion, with rental revenue of $3.581 billion, marking a 4.6% year-over-year increase[6] - Net income for Q4 2025 was $653 million, representing a net income margin of 15.5%, a decrease of 130 basis points year-over-year[12] - Adjusted EBITDA for Q4 2025 was $1.901 billion, with an adjusted EBITDA margin of 45.2%, down 120 basis points from the previous year[12] - Net income for the year ended December 31, 2025, was $2,494 million, compared to $2,575 million in 2024, indicating a decrease of 3.1%[25] - Diluted earnings per share for 2025 were $38.61, slightly down from $38.69 in 2024[25] - The gross profit for the year was $6,144 million, nearly unchanged from $6,150 million in 2024[25] - Net income for the three months ended December 31, 2025, was $653 million, a decrease of 5.2% from $689 million in the same period of 2024[29] - The company reported a diluted earnings per share of $10.27 for the three months ended December 31, 2025, down from $10.47 in 2024[37] Cash Flow and Liquidity - Full-year 2025 net cash provided by operating activities was $5.190 billion, with free cash flow of $2.181 billion[12] - Cash flow from operating activities increased 14.2% year-over-year, while free cash flow increased 6.0% from $2.058 billion to $2.181 billion[17] - Cash provided by operating activities for the year ended December 31, 2025, was $5,190 million, an increase from $4,546 million in 2024[29] - The forecast for net cash provided by operating activities in 2026 is estimated to be between $5,300 million and $6,100 million[52] - Projected free cash flow for 2026, excluding merger and restructuring related payments, is expected to be between $2,150 million and $2,450 million[52] Shareholder Returns - The company returned $2.364 billion to shareholders in 2025, including $1.9 billion in share repurchases and $464 million in dividends[12] - The company plans to repurchase $1.5 billion of common stock in 2026, supported by a new $5 billion share repurchase program[1] - The company declared dividends of $1.79 per share in Q4 2025, up from $1.63 in Q4 2024, marking a 9.8% increase[25] - The company repurchased common stock totaling $631 million during the three months ended December 31, 2025[30] Revenue Segments - Specialty rentals segment rental revenue increased 9.2% year-over-year to $1.183 billion, despite a decrease in rental gross margin[17] - Equipment rentals contributed $3,581 million to total revenues, up from $3,422 million year-over-year, reflecting a 4.6% growth[25] - Total equipment rentals revenue increased by 4.6% to $3,581 million for the three months ended December 31, 2025, compared to $3,422 million in 2024[35] - Specialty equipment rentals revenue grew by 9.2% to $1,183 million for the three months ended December 31, 2025, up from $1,083 million in 2024[35] Assets and Liabilities - Total assets increased to $29,866 million in 2025, up from $28,163 million in 2024, representing a growth of 6.0%[27] - Long-term debt rose to $12,652 million in 2025, compared to $12,228 million in 2024, reflecting an increase of 3.5%[27] - The net leverage ratio at year-end 2025 was 1.9x, with total liquidity of $3.322 billion[12] Restructuring and Charges - The company reported a restructuring charge of $1 million for the year ended December 31, 2025, compared to $3 million in 2024[25] - The company initiated a restructuring program in Q4 2025, with total restructuring charges incurred since 2008 amounting to $384 million[45] - The impact of the merger termination benefit associated with the terminated H&E acquisition was a net $52 million benefit for adjusted EBITDA in 2025[47] Depreciation and Equipment Costs - Total depreciation of rental equipment for 2025 was $2,670 million, an increase from $2,466 million in 2024[45] - The year-over-year change in average owned equipment cost (OEC) was 4.5% for the three months ended December 31, 2025[33]

Financial Performance - Net income for the three months ended December 31, 2025, was $1.675 million, a 64.3% increase from $1.020 million in the same period of 2024[2] - Basic and diluted earnings per share for the three months ended December 31, 2025, were $0.55 and $0.54, respectively, compared to $0.33 for the same period in 2024[2] - Net income for the six months ended December 31, 2025, was $3.274 million, compared to $1.961 million for the same period in 2024, reflecting a year-over-year increase of 67.0%[21] - Basic earnings per share for the six months ended December 31, 2025, was $1.09, compared to $0.64 for the same period in 2024, representing an increase of 70.3%[21] Income and Interest - Net interest income increased by $777,000, or 16.9%, for the three months ended December 31, 2025, driven by a $405,000 increase in total interest income[3] - Non-interest income for the three months ended December 31, 2025, increased by $150,000, or 30.7%, compared to the prior year[3] - Net interest income after provision for credit losses was $10.486 million for the six months ended December 31, 2025, compared to $9.204 million for the same period in 2024, an increase of 13.9%[21] Assets and Liabilities - Total assets increased by $11.957 million, or 2.0%, from $609.492 million at June 30, 2025, to $621.449 million at December 31, 2025[10] - Total liabilities rose by $9.413 million, or 1.7%, from $554.287 million at June 30, 2025, to $563.700 million at December 31, 2025[11] - Total assets rose to $621.449 million at December 31, 2025, up from $609.492 million at June 30, 2025, indicating a growth of approximately 1.6%[19] - Total deposits increased to $554.877 million at December 31, 2025, from $546.290 million at June 30, 2025, a rise of approximately 1.0%[19] Equity and Book Value - Book value per share increased to $18.76 at December 31, 2025, from $17.90 at June 30, 2025[5] - Stockholders' equity increased by $2.544 million, or 4.6%, from $55.205 million at June 30, 2025, to $57.749 million at December 31, 2025[14] Credit Quality - The provision for credit losses increased by $64,000, or 142.2%, for the three months ended December 31, 2025[3] - The allowance for credit losses as a percentage of total loans receivable was 0.93% at December 31, 2025, compared to 1.02% at June 30, 2025[22] - Non-performing assets decreased to $2.533 million at December 31, 2025, from $3.305 million at June 30, 2025, representing a reduction of approximately 23.3%[13] Interest Rate and Returns - The average interest rate spread improved to 3.03% for the three months ended December 31, 2025, compared to 2.40% for the same period in 2024[3] - The return on average assets was 1.07% for the three months ended December 31, 2025, up from 0.65% for the same period in 2024[22] Funding Sources - The Company reported zero dependency on wholesale funding, with no brokered deposits or FHLB advances at December 31, 2025[5]

Financial Performance - Fourth quarter 2025 net income was $6.2 million, or $0.90 per diluted share, an increase from $6.1 million, or $0.88 per diluted share in the prior quarter[6] - For the year ended December 31, 2025, net income was $23.8 million, or $3.43 per diluted share, representing a 30.4% increase from $18.3 million, or $2.61 per diluted share in 2024[8] - Diluted earnings per share for the year ended December 31, 2025, rose to $3.43, a 31.5% increase compared to $2.61 in 2024[35] Income and Expenses - Net interest income for the year ended December 31, 2025, increased to $65,880, up 12.0% from $58,593 in 2024[35] - Non-interest income for Q4 2025 was $3.6 million, a decrease of 3.5% from the prior quarter but an increase of 1.8% from the prior year quarter[16] - Non-interest income for the year ended December 31, 2025, was $14,309, slightly down from $14,320 in 2024[35] - Non-interest expense for Q4 2025 was $13.3 million, an increase of 3.4% from the prior quarter, primarily due to higher other non-interest expenses[18] Asset and Liability Management - Total deposits increased by $28.2 million, or 1.9%, to $1.55 billion from $1.53 billion at September 30, 2025[29] - Loans decreased by $27.2 million, or 1.8%, to $1.49 billion from $1.51 billion at September 30, 2025, but increased by $20.6 million, or 1.4%, from $1.47 billion at the end of 2024[23] - Total assets as of December 31, 2025, were $1,894,850, a decrease of 1.4% from $1,932,105 as of September 30, 2025[34] Credit Quality - The allowance for credit losses at December 31, 2025 was $21.1 million, or 1.42% of outstanding loans, and 307.52% of non-performing loans[28] - The provision for credit losses for the year ended December 31, 2025, decreased to $360 from $1,027 in 2024[35] - Non-performing loans increased to $6,865 as of December 31, 2025, compared to $4,911 as of September 30, 2025[35] Efficiency and Capital Ratios - The efficiency ratio for the year improved to 63.41%, a decrease of 451 basis points from 67.92% in the prior year[22] - The efficiency ratio for the three months ended December 31, 2025, improved to 62.64% from 62.30% in the previous quarter[35] - Total risk-based capital ratio as of December 31, 2025, was 15.49%, an increase from 14.90% as of September 30, 2025[35] Shareholder Actions - The Company repurchased 100,358 common shares under its Repurchase Plan during 2025, with $8.4 million remaining available for future repurchases[31] Interest Income - Total interest income for the three months ended December 31, 2025, was $25,286, up from $25,003 in the previous quarter[34] - Net interest margin improved to 4.03% in Q4 2025 from 3.97% in the prior quarter and 3.55% in the prior year quarter[10] Return Metrics - Return on average assets for the three months ended December 31, 2025, was 1.33%, consistent with the previous quarter[35]