Financial Performance - The Health, Wealth & Career segment generated 55% of total revenue in 2025, down from 60% in 2023, while the Risk & Broking segment increased to 45% from 40% in the same period[32] - The company aims to grow revenue, improve margins, and increase free cash flow, EBITDA, and earnings through a focused investment framework and capital allocation strategy[29] - The company anticipates growth in free cash flow generation, adjusted net income, adjusted operating margin, and adjusted earnings per share[14] Client Base and Market Presence - The company serves approximately 93% of the FTSE 100, 89% of the Fortune 1000, and 92% of the Fortune Global 500 companies, indicating a strong client base[20] - No individual client represented more than 10% of the company's consolidated revenue for the years ended December 31, 2025, 2024, and 2023[20] - The company places insurance with approximately 2,500 insurance carriers, with no significant concentration of total premiums from any single carrier in 2025, 2024, or 2023[20] Business Segments and Services - The Health & Benefits business provides services across more than 160 countries, addressing clients' needs in health, wellbeing, and other group benefit programs[36] - A significant portion of revenue in the Health & Benefits business comes from recurring work, with contracts being annual or multi-year[38] - The Retirement business provides actuarial support and administrative services for pension plans, with high client retention rates due to multi-year contracts driven by regulatory needs[42] - The Investments business manages over $34 billion in premiums annually, offering tailored solutions to clients including pension plans and private wealth investors[56] - A significant portion of revenue in Benefits Delivery & Outsourcing is recurring, driven by long-term service contracts typically ranging from three to five years[54] - The Corporate Risk & Broking segment delivers integrated global solutions, leveraging data and analytics across various geographical areas[56] Strategic Initiatives and Growth - The company is focused on strategic investments in corporate risk and broking, health and benefits, and wealth, while divesting non-strategic businesses[34] - The company has recently acquired Newfront Insurance Holdings, Inc. and plans to acquire Cushon, indicating a strategy of growth through acquisitions[14] - The company’s strategy includes optimizing its portfolio through both inorganic and organic investments in high-growth areas[34] - The company emphasizes a unified approach to advisory, broking, and solutions as a path to growth in attractive markets[28] Workforce and Employee Engagement - The company employs approximately 46,900 colleagues as of December 31, 2025, with a voluntary turnover rate of 9.8%[72] - Hiring campaigns focused on mid-senior level positions resulted in over 6,700 hires, a 4% decrease from 2024[73] - The company expanded total rewards programs in 2025, including the employee share purchase plan, to enhance colleague experience[76] - The flexible work approach includes office-based, hybrid, and remote solutions, aimed at attracting and retaining top talent[77] - The company emphasizes a strong colleague experience, fostering an inclusive environment and supporting professional development[69] Competitive Landscape - The company faces competition from major firms such as Aon plc, Marsh & McLennan, and Cognizant Technology Solutions, as well as numerous regional and local firms[79] - Competitive pressures have increased due to a reduction in demand for certain insurance products, with clients opting for self-insurance mechanisms rather than purchasing additional insurance[80] - The company identifies Mercer HR Consulting and Aon plc as its largest competitors in the pension consulting industry, highlighting the competitive landscape in HR consulting[84] - The insurance consulting and software industry is highly competitive, with major competitors including Milliman and the big four accounting firms[85] Regulatory Compliance - Regulatory compliance is critical, with the company subject to various laws including the E.U. General Data Protection Regulations and the U.S. Health Insurance Portability and Accountability Act[90] - The company’s ability to provide services is contingent upon compliance with state-specific regulations in the U.S., which can vary significantly[91] - The Financial Conduct Authority in the U.K. oversees the company's operations, emphasizing the importance of regulatory compliance in maintaining market integrity[96] - The company is adapting to new regulations post-Brexit, which have implications for its operations in the U.K. and E.U.[99] - The evolving market landscape necessitates continuous adaptation to regulatory changes, particularly in data privacy and cybersecurity[105] - Regulatory compliance failures can result in disciplinary action, fines, reputational damage, and financial harm to the company[104] - Changes in legislation and regulation, including data privacy and cybersecurity laws, may adversely affect the company's business[105] - The company is subject to regulatory requirements in multiple jurisdictions, including the U.S. and U.K., but does not view these as adversely affecting its competitive position[103] Leadership and Management - The company’s executive team includes experienced leaders such as Kristy D. Banas, Chief Human Resources Officer, and Lucy Clarke, President of Risk & Broking, indicating strong leadership in navigating competitive challenges[106][107] - The company has a strong leadership team with extensive experience in the industry, including the CEO and CFO[13]

Financial Performance - Linde's sales for 2025 reached $33,986 million, showing an increase from $33,005 million in 2024 and $32,854 million in 2023[18]. - Reported operating profit for 2025 was $8,923 million, up 3% from $8,635 million in 2024, while adjusted operating profit increased 4% to $10,137 million from $9,720 million[130]. - Net income for Linde plc in 2025 was $6,898 million, a 5% increase from $6,565 million in 2024, with diluted earnings per share rising to $14.61 from $13.62[130]. - Cash flow from operations reached $10,350 million, an increase of $927 million compared to 2024, primarily due to higher net income and lower working capital requirements[130]. - Total sales increased by $981 million, or 3%, to $33,986 million in 2025 compared to 2024[181]. - Operating profit rose by $288 million, or 3.3%, to $8,923 million in 2025, driven by higher pricing and productivity initiatives[181]. - Adjusted EBITDA for 2025 was $13,351 million, a 4% increase from $12,819 million in 2024, with an adjusted EBITDA margin of 39.3%[133]. - Reported net income for Linde plc rose by $333 million, or 5%, while adjusted net income increased by $297 million, or 4%[153]. Sales and Market Presence - Approximately 64% of Linde's 2025 sales were generated outside the United States, indicating a strong international presence[30]. - Linde's industrial gas operations generated 90% of sales from the Americas, EMEA, and APAC segments, highlighting the company's strong market presence in these regions[122]. - Sales in the Americas segment increased by $766 million, or 5%, with higher pricing contributing 3% and volumes contributing 1%[183]. - EMEA segment sales grew by $197 million, or 2%, with currency translation increasing sales by 3%[187]. - APAC segment sales remained flat at $6,661 million, with acquisitions contributing 2% and volumes decreasing by 1%[190]. - Engineering segment sales decreased by $72 million, or 3%, primarily due to project timing, despite a 3% increase from currency translation[194]. Operational Efficiency and Costs - Energy costs represent the largest expense in Linde's production and distribution processes, with strategies in place to mitigate price fluctuations[34]. - Cost of sales, excluding depreciation and amortization, was $17,389 million, representing 51.2% of sales, a decrease from 51.9% in 2024 due to higher pricing and productivity gains[133]. - Selling, general and administrative expenses increased by 3% to $3,433 million, maintaining 10.1% of sales, influenced by acquisitions and cost inflation[138]. - The company is actively involved in developing proprietary technologies for gas production and distribution, enhancing operational efficiencies for customers[19]. Research and Development - Linde's research and development efforts are directed towards gas processing, clean energy technologies, and new industrial gas applications[32]. - The company is a leader in low-carbon hydrogen production, utilizing technologies such as steam methane reformation and electrolysis[21]. - Linde's research and development efforts focus on new technologies for industrial gases, which are crucial for maintaining competitive advantage[69]. Workforce and Employment - Linde's workforce consisted of 65,177 employees as of December 31, 2025, with approximately 28% being women[43]. - The number of employees decreased by 112 to 65,177 in 2025, mainly due to ongoing cost reduction programs[155]. Financial Position and Debt - Total net debt outstanding at December 31, 2025, was $21,933 million, an increase of $5,160 million from $16,773 million at the end of 2024[215]. - Linde's global effective borrowing rate was approximately 2.3% for 2025[215]. - The company maintains a $5 billion and a $1.5 billion unsecured and undrawn revolving credit agreement with no associated financial covenants[216]. Risks and Challenges - Linde's international operations are subject to risks including currency exchange rate fluctuations, which could adversely affect financial results[63]. - The company faces legal and compliance risks due to anti-corruption, trade, and economic sanctions laws, which could lead to significant penalties and affect its reputation[80]. - Catastrophic events, such as natural disasters and health epidemics, could disrupt Linde's operations and adversely affect financial results[66]. - Linde is exposed to risks from changes in regulations related to environmental protection and climate change, which may adversely impact its market behavior and operations[79]. - Integration challenges from acquisitions may divert management focus and lead to difficulties in achieving targeted synergies and retaining key employees[81]. - The company has significant pension obligations that may impact future results of operations and required pension contributions[70]. Capital Expenditures and Investments - Capital expenditures totaled $5,261 million, up from $4,497 million in 2024[203]. - Approximately 60% of capital expenditures were allocated to the Americas segment, with 21% in the APAC segment[208]. - Acquisitions in 2025 totaled $412 million, an increase of $95 million from 2024, mainly in the EMEA and APAC segments[209].

Financial Performance - Total revenues for the first quarter of fiscal 2026 were $632.0 million, down from $673.6 million in the same quarter last year[3]. - Net income for the first quarter was $20.9 million, or $2.62 per diluted share, compared to $28.2 million, or $3.58 per diluted share, in the prior year[3]. - Total revenues for the three months ended January 31, 2026, were $631.952 million, a decrease of 6.2% from $673.623 million in the same period of 2025[23]. - Net income available to common stockholders for the three months ended January 31, 2026, was $18.190 million, down 28.8% from $25.522 million in the prior year[23]. - Adjusted EBITDA for the first quarter was $63.1 million, exceeding the high end of the guidance range provided[3]. - Adjusted EBITDA for the three months ended January 31, 2026, was $63.081 million, a decrease of 12.4% from $72.074 million in the prior year[27]. - The company incurred interest expense of $28.749 million for the three months ended January 31, 2026, compared to $28.873 million in the same period of 2025[30]. - Income before income taxes excluding land-related charges for the three months ended January 31, 2026, was $31.061 million, down from $40.903 million in the prior year[24]. Homebuilding Operations - Domestic consolidated contracts increased by 3.1% to 1,242 homes, valued at $664.8 million, compared to 1,205 homes valued at $643.3 million in the prior year[4]. - Homebuilding gross margin percentage was 10.1% for the first quarter of fiscal 2026, down from 15.2% in the same quarter last year[3]. - Home deliveries decreased by 12.4% to 1,099 homes in the three months ended January 31, 2026, compared to 1,254 homes in the same period of 2025[40]. - Contracts signed during the three months ended January 31, 2026, totaled 1,365 homes, a decrease of 2.5% from 1,400 homes in the same period of 2025[40]. - The backlog of homes as of January 31, 2026, was valued at $964.122 million, an increase of 3.5% from $931.921 million in the prior year[40]. - The dollar value of consolidated domestic contract backlog decreased by 16.0% to $782.7 million compared to $931.9 million a year ago[4]. - The gross domestic contract cancellation rate for consolidated contracts improved to 14% from 16% in the prior year[4]. Liquidity and Assets - Total liquidity as of January 31, 2026, was $471.4 million, significantly above the target range of $170 million to $245 million[10]. - Total assets reached $2,734,676,000 as of January 31, 2026, up from $2,633,913,000 as of October 31, 2025[37]. - Total inventories as of January 31, 2026, amounted to $1,647,970,000, showing a slight increase from $1,637,470,000 as of October 31, 2025[37]. - Cash and cash equivalents increased to $339,910,000 as of January 31, 2026, compared to $272,772,000 as of October 31, 2025[37]. - Total liabilities decreased slightly to $1,897,042,000 as of January 31, 2026, from $1,802,978,000 as of October 31, 2025[37]. - The company’s retained earnings increased to $145,516,000 as of January 31, 2026, from $127,326,000 as of October 31, 2025[37]. - The total stockholders' equity for Hovnanian Enterprises, Inc. was $835,739,000 as of January 31, 2026, compared to $830,935,000 as of October 31, 2025[37]. Segment Performance - In the Northeast segment, home contracts decreased by 38.5% to 72 homes, while deliveries fell by 34.9% to 71 homes, with a backlog of 232 homes valued at $170.4 million, down 17.7%[46]. - The Southeast segment saw a 50.7% drop in home contracts to 33 homes and a 64.6% decline in deliveries to 28 homes, with a backlog of 83 homes valued at $61.4 million, down 21.7%[46]. - In the West segment, home contracts increased by 63.6% to 18 homes, and deliveries surged by 111.1% to 19 homes, with a backlog of 15 homes valued at $7.6 million, down 6.0%[46]. - Overall, unconsolidated joint ventures reported a 36.9% decrease in home contracts to 123 homes and a 40.1% decline in deliveries to 118 homes, with a backlog of 330 homes valued at $239.4 million, down 18.1%[46]. - The KSA joint venture experienced an 88.4% drop in home contracts to 23 homes and an 88.7% decline in revenue to $5.7 million, with no backlog reported[46]. Cost and Expenses - The cost of sales for homebuilding, excluding interest, was $509.631 million for the three months ended January 31, 2026, down from $533.290 million in the same period of 2025[39]. - Selling, general and administrative expenses decreased to $50.281 million in the three months ended January 31, 2026, from $54.253 million in the prior year[39]. - The company reported a homebuilding gross margin of $58.420 million for the three months ended January 31, 2026, down from $98.391 million in the same period of 2025[25]. - Land and lot sales gross margin for the three months ended January 31, 2026, was $23.470 million, significantly up from $1.663 million in the prior year[25]. - The company’s interest incurred to adjusted EBITDA ratio for the three months ended January 31, 2026, was 2.18, compared to 2.41 in the same period of 2025[27].

Exhibit 99.1 HOVNANIAN ENTERPRISES, INC. News Release Contact: Brad G. O'Connor Jeffrey T. O'Keefe Chief Financial Officer Vice President, Investor Relations 732-747-7800 732-747-7800 HOVNANIAN ENTERPRISES REPORTS FISCAL 2026 FIRST QUARTER RESULTS Met or Exceeded All Guidance Metrics Provided 5% Year-Over-Year Increase in Domestic Consolidated Communities $471 Million of Total Liquidity Domestic Contracts, Including Unconsolidated Joint Ventures, Increased 11% Year-Over-Year for January and 13% for February ...

For Immediate Release Exhibit 99.1 Contact: Dennis Craven (Company) Chris Daly (Media) Chief Operating Officer DG Public Relations (561) 227-1386 (703) 864-5553 Chatham Lodging Announces Fourth Quarter 2025 Results WEST PALM BEACH, Fla., February 25, 2026—Chatham Lodging Trust (NYSE: CLDT), a lodging real estate investment trust (REIT) that invests in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced results for the fourth quarter ended December 31, 2025. Fourth Quart ...

Research and Development - The company focuses significant resources on R&D programs aimed at developing novel therapeutics in areas of high unmet medical need[95]. - The company has a proprietary portfolio of patent rights and exclusive licenses, with plans to file additional patent applications for new or improved products and processes[115]. - The company relies on trade secrets and know-how, which are not patent-protected, to maintain its competitive position[130]. Sales and Distribution - The sales force for VIVITROL in the U.S. consisted of approximately 105 individuals as of December 31, 2025, with major sales to McKesson Corporation (38%), Cardinal Health (15%), and Cencora (18%)[99]. - The sales force for ARISTADA, ARISTADA INITIO, and LYBALVI in the U.S. consisted of approximately 435 individuals as of December 31, 2025, with sales distribution to McKesson Corporation (48%), Cardinal Health (22%), and Cencora (24%) for ARISTADA and ARISTADA INITIO[100]. - The sales force for LUMRYZ became part of the company in February 2026, consisting of approximately 60 individuals, distributed through a closed network of three commercial specialty pharmacies[101]. Competition - The company faces intense competition from various biopharmaceutical companies and research institutions, which may have greater financial and operational resources[104]. - VIVITROL competes with generic acamprosate calcium and disulfiram, as well as other marketed drugs for alcohol dependence[110]. - In the treatment of schizophrenia, ARISTADA competes with several other injectable products, including INVEGA and RISPERDAL CONSTA[106]. Intellectual Property - ARISTADA and ARISTADA INITIO have multiple U.S. patents expiring between 2030 and 2039, ensuring a strong intellectual property position for these products[117]. - VIVITROL has one unexpired U.S. patent that will expire in 2029, with a settlement allowing Teva to market a generic version starting January 15, 2027[118][119]. - INVEGA SUSTENNA/XEPLION and related products have patents expiring as late as 2041, indicating a long-term competitive advantage in the market[120]. - VUMERITY is protected by U.S. patents expiring in 2033, covering both compositions and treatment methods[121]. - LYBALVI has a robust patent portfolio with multiple patents expiring between 2030 and 2041, enhancing its market position[122]. - LUMRYZ has numerous patents with expiration dates from 2037 to 2042, along with FDA ODE for narcolepsy indications through 2030 and 2031[124]. - Alixorexton is protected by U.S. patents extending to 2041, providing a competitive edge in its therapeutic area[125]. - The company has exclusive rights through licensing agreements for various patents, which may involve annual royalties and minimum fees[126]. - The company faces potential patent infringement risks from third parties, which could lead to costly legal defenses[127][128]. Regulatory Compliance - The regulatory process for new pharmaceutical products in the U.S. requires preclinical studies and clinical trials, which must be submitted to the FDA for approval[133]. - Clinical trials are conducted in three phases, with Phase 1 focusing on safety and tolerability, Phase 2 assessing efficacy, and Phase 3 providing definitive evidence of safety and efficacy[139]. - The FDA has a standard review process of 10 months for New Drug Applications (NDA) and may grant priority review for significant improvements in treatment[138]. - The company must comply with Good Manufacturing Practices (GMP) and Good Clinical Practices (GCP) to ensure product quality and trial integrity[150][151]. - The Hatch-Waxman Act allows for an abbreviated FDA review process for generic drugs and provides marketing exclusivity for new chemical entities[152]. - The FDA may require a Risk Evaluation and Mitigation Strategy (REMS) to ensure that the benefits of a new product outweigh its risks[140]. - Non-compliance with FDA regulations can lead to civil or criminal penalties, impacting the company's ability to market its products[142]. - The company’s products are also subject to regulatory processes in jurisdictions outside the U.S., such as the European Medicines Agency (EMA) approval[148]. - The DEA regulates controlled substances, which may delay the commercial launch of products even after FDA approval[145]. Financial and Pricing Regulations - The Medicaid rebate program mandates a rebate of at least 23.1% of the average manufacturer price (AMP) for each unit reimbursed by state Medicaid programs[161]. - Under the Inflation Reduction Act, drug manufacturers must provide a 10% discount during the initial coverage phase and a 20% discount during the catastrophic coverage phase for Medicare Part D beneficiaries starting in 2025[164]. - The Orphan Drug Act allows for seven years of exclusivity for drugs approved for rare diseases affecting fewer than 200,000 individuals in the U.S.[156]. - The average sales price (ASP) methodology is used for Medicare Part B reimbursement, with manufacturers required to report ASP quarterly to the Centers for Medicare & Medicaid Services (CMS)[162]. - The 340B program requires manufacturers to charge covered entities no more than the 340B ceiling price, which is calculated based on AMP and rebate amounts[165]. - The Inflation Reduction Act, effective in 2022, imposes new financial liabilities on drugs in Medicare Part D starting in 2025 and allows price negotiations beginning in 2026[170]. - The U.S. federal government is pursuing initiatives to tie drug prices to those in other developed countries through a "Most-Favored-Nation" pricing framework, with proposed models set to begin in 2026 and 2027[171]. Employee and Corporate Governance - As of February 20, 2026, the company had approximately 2,050 full-time employees, with a voluntary attrition rate of 7.0% in 2025, below industry benchmarks[181]. - The company is committed to equitable pay and offers comprehensive total rewards packages, including bonuses tied to performance and equity opportunities for certain employees[183]. - The company has established five employee resource groups (ERGs) to promote diversity and inclusion within the workplace[184]. - The company conducts annual employee engagement surveys to assess satisfaction and inform human capital management strategies[185]. - The company maintains extensive corporate environmental, health, safety, and security policies, focusing on employee health and safety in 2025[188]. Data Protection and Compliance - The General Data Protection Regulation (GDPR) imposes significant obligations on the company regarding the processing of personal data, including health data, applicable to its operations in the EU[177]. - The company is subject to various financial disclosures and regulations as a publicly-listed entity in the U.S., including oversight by the SEC and compliance with the Irish Companies Act 2014[178]. - The company may face penalties of up to €20,000,000 or 4% of total worldwide annual turnover for non-compliance with GDPR and other data protection laws[329]. - The company is subject to various privacy and security laws, which could increase compliance costs and potential liabilities[326]. Market and Economic Factors - The market price of the company's ordinary shares fluctuated between $26.13 and $36.00 per share during the year ended December 31, 2025, indicating significant volatility[317]. - The company derives all revenues from XEPLION, TREVICTA, and BYANNLI sales in non-U.S. dollar currencies, exposing it to currency exchange rate risks[315]. - The company has experienced significant volatility in its stock price based on business performance, including commercial sales and financial guidance[318]. - The company has engaged in extensive dialogue with activist shareholders, resulting in contested elections and potential disruptions to operations[321]. - Changes in global trade policies, including tariffs, could adversely affect the company's business and financial condition[331]. - The company continues to monitor the long-term impacts of the COVID-19 pandemic on its operations and financial condition[333]. Internal Controls and Reporting - A material weakness in internal control over financial reporting could lead to significant errors in financial statements and negatively impact the trading price of ordinary shares[334]. - The company is required to report annually on its internal control over financial reporting under the Sarbanes-Oxley Act, and any deficiencies could lead to sanctions or investigations[336]. Social Media and Technology Risks - The increasing use of social media platforms and AI tools presents new risks and challenges for the company[338]. - Social media is utilized for corporate communications, employee engagement, and product information dissemination[338]. - The company faces potential regulatory actions or legal claims due to possible violations related to social media and AI usage[338]. - Misuse of social media or AI could lead to liability, loss of trade secrets, and reputational harm[338]. - Negative posts or comments on social media could damage the company's reputation and brand image[338].

Global Communications Wednesday, February 25, 2026 Exhibit 99.1 CONTACT: (508) 390-2323 Debra McConnell FOR IMMEDIATE RELEASE THE TJX COMPANIES, INC. REPORTS Q4 AND FULL YEAR FY26 RESULTS; Q4 COMP SALES GROWTH, PRETAX PROFIT MARGIN, AND DILUTED EPS ALL WELL ABOVE PLAN; EXPECTS TO INCREASE DIVIDEND BY 13% AND BUY BACK $2.50 TO $2.75 BILLION OF STOCK IN FY27 Q4 and full year FY26 adjusted results throughout this press release exclude a net benefit from a litigation settlement related to credit card interchang ...

Assets Under Management (AUM) - The company reported a significant increase in assets under management (AUM), reaching $X billion, representing a Y% growth compared to the previous year[19]. - Fee paying AUM (FPAUM) increased to $X billion, which is a Y% rise year-over-year, indicating strong demand for the company's investment products[20]. - The company anticipates a continued upward trend in AUM, projecting an increase of Y% for the upcoming fiscal year[19]. - Assets under management (AUM) grew to $622.5 billion as of December 31, 2025, from $94.0 billion a decade earlier, achieving a compound annual growth rate (CAGR) of 26% over the past five years and 21% over the past ten years[26]. - As of December 31, 2025, $470.1 billion, or 76%, of Ares' total AUM of $622.5 billion is attributed to direct institutional relationships[110]. - 30% of direct institutional AUM, amounting to $139.6 billion, is managed through separately managed accounts (SMAs) as of December 31, 2025[115]. - Publicly-traded funds and perpetual wealth vehicles account for $108.4 billion, or 17%, of Ares' total AUM as of December 31, 2025[118]. Investment Strategies and Performance - The effective management fee rate was reported at X%, reflecting a stable revenue generation from management fees[20]. - The management team expressed confidence in achieving a net income growth of Y% in the next fiscal year, driven by operational improvements and market expansion[19]. - The company emphasizes a rigorous, credit-oriented investment approach across its investment groups, contributing to strong investment performance and product expansion[31]. - The investment process leverages extensive market knowledge and proprietary research to identify attractive risk-adjusted return opportunities while emphasizing capital preservation[30]. - The company recognizes the importance of environmental, social, and governance (ESG) factors in its investment process to generate attractive risk-adjusted returns[35]. - The Real Assets Group manages equity and debt strategies across real estate and infrastructure investments, differentiating through cycle-tested leadership and demonstrated performance[32]. - The company has a robust sourcing model that generates a pipeline of high-quality investment opportunities across its platform[31]. Capital Deployment and Fundraising - In 2025, Ares raised $113.2 billion in gross new capital commitments across more than 190 investment vehicles, with $77.4 billion from over 540 institutional investors, including 235 new investors[53]. - 79% of fundraising from direct institutional investors in 2025 came from existing investors committing to new products or subsequent fund vintages, indicating strong investor satisfaction[58]. - Ares invested $145.8 billion across its global platform in 2025, with $69.1 billion coming from drawdown funds[62][66]. - In 2025, Ares' capital deployment included $111.1 billion in Credit and $23.5 billion in Real Assets[60]. Organizational Initiatives and Culture - The company is actively pursuing strategic acquisitions to expand its market presence, with a target of $X billion in potential deals over the next year[17]. - New product offerings are expected to contribute an additional $X million in revenue, enhancing the company's market position[17]. - Research and development investments in new technologies are projected to increase by Y%, aimed at improving operational efficiency[17]. - The company has identified $X million in available capital for future investments, positioning itself for growth opportunities[20]. - The firm has a commitment to donate a minimum of 10% of carried interest from specific funds to global health and educational charities[52]. - Ares Foundation, launched in 2021, focuses on providing career preparation and reskilling initiatives to improve economic mobility[46]. - Ares offers a comprehensive set of employee programs, including education sponsorship and internal training, to foster professional development[44]. - The firm emphasizes diversity, equity, and inclusion as integral to its talent processes and business practices[43]. Regulatory and Compliance Environment - The company is subject to extensive regulations, including compliance with the SEC, FINRA, and various state and federal laws, which may increase operational costs and liabilities[135]. - The SEC requires investment advisers managing over $150 million in private fund assets to file quarterly reports on Form PF, leading to increased administrative costs[137]. - The company’s funds are advised by SEC-registered investment advisers, which face more stringent regulatory requirements compared to unregistered advisers[137]. - The company operates under the EU's General Data Protection Regulation (GDPR) and other privacy laws, which are evolving and may impact financial performance if compliance fails[134]. - The company’s wealth distribution platform, AWMS, is regulated as a broker-dealer and must comply with the SEC's net capital rule, ensuring liquidity[140]. - The company is preparing for compliance with the EU Digital Operational Resilience Act (DORA) and the EU Artificial Intelligence Act, which will require enhancements in technology and risk management[146][147]. - The company’s operations in the U.K. and EU are affected by Brexit, with ongoing regulatory complexities that may impact business operations[142]. Market Competition and Challenges - The company faces competition in the investment management industry, competing for fund investors based on performance, service quality, and fees[150]. - Competition in direct lending and investment activities is intensifying, with larger competitors having greater financial and marketing resources, potentially leading to reduced pricing inefficiencies[152]. - The company is advancing its capabilities in artificial intelligence and data science to remain competitive, but risks falling behind if unable to keep pace with industry developments[153]. Financial Risks and Sensitivities - Management fees from funds impacted by market value changes were approximately 4% for the year ended December 31, 2025, indicating a potential resilience to short-term market fluctuations[835]. - A hypothetical 10% decrease in the fair value of managed funds' investments would result in declines of $180.7 million in principal investment income and $107.5 million in unrealized gains[840]. - The company has a $1.840 billion revolving line of credit with an accordion feature of $660 million, maturing on April 22, 2030, with $1.380 billion borrowings outstanding as of December 31, 2025[844]. - A 100 basis point increase in interest rates could lead to increased interest expenses and negatively affect the fair value of fixed-rate securities held by the company[846]. - The company is exposed to credit risk through agreements with counterparties, which may impact financial performance if counterparties fail to meet obligations[847]. - Investments include lower-rated and unrated distressed instruments, which are more sensitive to adverse market conditions, necessitating a rigorous credit-oriented investment approach[849].

Financial Performance - In 2025, the company raised net proceeds of $88.8 million through an at-the-market offering program[37] - The company received net proceeds of $122.2 million from a registered direct offering in January 2026[45] - The company plans to deliver electrolyte to SK On under the supply agreement in 2026, with expected sales of at least $8.3 million from these electrolyte sales[54] Production Capacity and Partnerships - The company expects to expand its annual electrolyte production capacity to up to 75 metric tons by the end of 2026[41] - A potential partnership for commercial-scale electrolyte production in Korea aims to produce up to 500 metric tons of electrolyte annually[42] - The Joint Evaluation Agreement with Samsung SDI includes provisions for the company to provide electrolyte for cell fabrication, contingent on meeting technical requirements[52] - The company aims to continue providing Samsung SDI with electrolyte under the Joint Evaluation Agreement in 2026[40] - The company intends to negotiate a non-exclusive electrolyte supply agreement with BMW following the commissioning of BMW's prototype cell manufacturing line[49] Research and Development - The company has a long-standing partnership with BMW, which includes a $20 million payment for R&D milestones from December 2022 to June 2024[49] - The company has 24 issued United States patents and 100 pending United States patent applications as of February 1, 2026[56] - The company is focused on becoming a world leader in solid-state electrolyte production and battery development[68] Employee Relations and Culture - As of February 1, 2026, the company employed approximately 230 employees, primarily in Colorado[66] - The company is committed to competitive employee compensation, including salaries, benefits, and a robust equity compensation plan[67] - The company has not experienced any work stoppages and maintains a good relationship with its employees, none of whom are represented by a labor union[70] - The company has a commitment to building an inclusive and equitable workplace culture[66] Management and Compliance - The executive team includes John Van Scoter as CEO, Linda Heller as CFO, and Joshua Buettner-Garrett as CTO, with extensive backgrounds in technology and finance[74][75][76] - The company is subject to U.S. Foreign Corrupt Practices Act and other regulations, which could incur significant costs if not complied with[65] Investor Relations - The company utilizes its website and social media for investor relations and product information dissemination[72] - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[279] - Changes in judgments or estimates could materially affect reported revenue or deferred revenue[280]

Financial Performance - Net sales for the year ended December 31, 2025, were $1,174,267, representing a 2.0% increase from $1,151,449 in 2024[172]. - Gross profit decreased by 8.4% to $459,964 in 2025 from $501,898 in 2024[172]. - Net income fell by 20.1% to $190,415 in 2025 compared to $238,446 in 2024[172]. - EBITDA decreased by 14.8% to $320,918 in 2025 from $376,573 in 2024[172]. - Total net sales for 2025 increased by $22.8 million, or 2.0%, to $1,174.3 million, primarily driven by a mid-single digit price increase on decking products[191]. - Gross profit decreased by $41.9 million, or 8.4%, to $460.0 million, with a gross margin of 39.2% compared to 43.6% in 2024, mainly due to higher raw material costs and inefficiencies at the Arkansas facility[192]. - Selling, general and administrative expenses rose by $22.0 million, or 12.2%, to $202.0 million, accounting for 17.2% of net sales, driven by increased personnel costs and branding expenses[193]. - EBITDA decreased by $55.7 million, or 14.8%, to $320.9 million, attributed to lower gross profit and higher operating expenses[195]. - Cash provided by operating activities increased significantly to $358.1 million in 2025, up from $143.9 million in 2024, due to decreased inventories and accounts receivable[199]. Capital Expenditures and Investments - Capital expenditures totaled $233.6 million in 2025, including $167.8 million for the construction of a new facility in Arkansas[172]. - Cash used in investing activities totaled $233.6 million, including $167.8 million for the construction of the Arkansas facility[200]. - Capital expenditure guidance for 2026 is set between $100 million and $120 million, focusing on internal growth, manufacturing cost reductions, and acquisitions[227]. Stock and Shareholder Activities - The company repurchased 1,526,927 shares of its common stock in 2025 under its stock repurchase programs[173]. - The company repurchased 1,526,927 shares under the 2023 Stock Repurchase Program, which allows for up to 10.8 million shares to be repurchased[202]. Tax and Financial Obligations - The effective tax rate for 2025 was 26.2%, slightly up from 25.9% in 2024, primarily due to excess tax expenses from stock-based awards[194]. - The Company has $133.5 million in outstanding borrowings under the revolving credit facility as of December 31, 2025, with total availability of $413.4 million[217]. - The Second Amendment to the Credit Agreement provides Revolving A Loans of up to $400 million and Revolving B Loans of up to $150 million, extending the maturity date of the Revolving B Loans to December 22, 2026[214]. - The applicable interest rate for Revolving B Loans ranges from 1.20% to 2.15% for Base Rate Loans and from 0.20% to 1.15% for Term SOFR Loans[211]. - The Company has purchase obligations under material supply contracts totaling $25.9 million for 2026, $24.6 million for 2027, and $9.7 million for 2028[223]. - The Company has operating lease liabilities of $12.4 million for 2026 and $32.2 million for the years 2027 through 2030[224]. - As of December 31, 2025, the gross asset and liability associated with the industrial revenue bonds was $450 million[221]. - The Company was in compliance with all debt covenants as of December 31, 2025[218]. - An increase of 1% in interest rates would not have a material adverse effect on the Company's overall financial position or liquidity[233]. - The Company does not have off-balance sheet financing arrangements[226]. Product Development and Market Position - Trex expanded its mid-tier composite decking options with new Performance Engineered™ boards, enhancing its product offerings[171]. - The company launched the Trex® Deck Railing Designer, an interactive tool to simplify the railing selection process for customers[176]. - Trex expanded its distribution reach through partnerships with International Wood Products, LLC and Weekes Forest Products, enhancing product accessibility[176]. - Trex was ranked among Barron's 100 Most Sustainable Companies for 2025, moving up 20 spots from the previous year[171]. Market Risks - Tariffs accounted for less than 5% of the cost of sales, mainly related to aluminum and steel purchases[188]. - The company has over 50 distributors worldwide, and significant increases in inventory levels without corresponding demand could adversely affect future sales[203].