Financial Performance - Net income for the second quarter of fiscal 2026 was $1.44 million, down 15% from the previous quarter but up 65% year-over-year[2]. - Net income for the quarter was $1,436,000, representing a significant increase of 64.8% from $872,000 in the same quarter last year[40]. - Basic earnings per share rose to $0.22, compared to $0.13 in the same quarter last year, marking a year-over-year increase of 69.2%[44]. Interest Income and Expenses - Total interest income for the quarter ended December 31, 2025, was $13,950,000, a decrease of 0.5% from $14,021,000 in the previous quarter[40]. - Total interest expense decreased to $5,026,000, down from $5,262,000 in the previous quarter, reflecting effective interest rate management[40]. - Net interest margin increased to 3.03%, up 12 basis points from the same quarter last year[7]. Loans and Deposits - Loans held for investment totaled $1.04 billion, a decrease of 1% from $1.05 billion at the end of the previous quarter[1]. - Total deposits were $872.4 million, down 2% from $888.8 million at the end of the previous quarter[1]. - Total loans originated for investment reached $42,122,000, an increase of 15.5% from $36,443,000 in the previous quarter[44]. Asset Quality - Non-performing assets decreased to $990,000, representing 0.08% of total assets, down from 0.11% at the end of the previous quarter[19]. - The allowance for credit losses on loans held for investment was $5.6 million, or 0.55% of gross loans, down from 0.62% at the end of the previous quarter[21]. - Non-performing loans totaled $990 thousand as of December 31, 2025, compared to $2,530 thousand a year earlier[59]. Efficiency and Ratios - The efficiency ratio improved to 80.77%, compared to 81.15% in the same quarter last year[24]. - Return on average assets increased to 0.47% for the quarter, compared to 0.28% in the same quarter last year[44]. - The Tier 1 leverage ratio improved to 9.79% in Q4 2025 from 9.55% in Q3 2025[48]. Stockholder Information - Stockholders' equity totaled $127,491 as of December 31, 2025, down from $128,370 on September 30, 2025[37]. - The book value per share increased to $19.87 in Q4 2025 from $19.72 in Q3 2025[46]. - The Company repurchased 96,260 shares of common stock at an average cost of $15.80 per share during the quarter ended December 31, 2025, with 54,061 shares remaining available for future purchase[27]. Taxation - The Company's provision for income taxes was $614,000 for Q2 fiscal 2026, a 74% increase from $352,000 in the same quarter last year, and a 42% decrease from $1.05 million in Q1 fiscal 2026[25]. - The effective tax rate for the current quarter was 30.0%, compared to 28.8% in the same quarter last year[25]. Future Outlook - The Company has identified various risks that could materially affect future performance, including economic conditions, interest rate changes, and regulatory challenges[32]. - The Company plans to host a conference call on January 28, 2026, to discuss its financial results[28].

Financial Performance - Fourth quarter 2025 net sales were $4.4 billion, with net income of $266 million, or $1.82 per diluted share, compared to $404 million, or $2.74 per diluted share in the third quarter 2025[3]. - Annual 2025 net sales increased by 3.6% to $18.2 billion, while operating income declined by 24% to $1.5 billion compared to 2024, primarily due to lower realized pricing in steel operations[14]. - Net sales for Q4 2025 reached $4.41 billion, a 14% increase from $3.87 billion in Q4 2024[27]. - Gross profit for Q4 2025 was $529.3 million, up from $441.7 million in Q4 2024, reflecting a gross margin improvement[27]. - Operating income for the year ended December 31, 2025, was $1.48 billion, a decrease of 24% compared to $1.94 billion in 2024[27]. - Net income attributable to Steel Dynamics, Inc. for Q4 2025 was $266.0 million, compared to $207.3 million in Q4 2024, representing a 28% increase[27]. - Basic earnings per share for Q4 2025 were $1.83, up from $1.36 in Q4 2024, indicating a 35% increase[27]. - Consolidated net sales for Q4 2025 reached $4,414,048, a 14% increase from $3,872,138 in Q4 2024[33]. - The company reported a consolidated operating income of $310,230 for Q4 2025, up from $237,502 in Q4 2024, a 30% increase[33]. Operational Highlights - The company achieved record steel shipments of 13.7 million tons in 2025, supported by improved domestic trade actions and manufacturing onshoring[6]. - Fourth quarter 2025 operating income from steel operations was $322 million, a 35% decrease from the third quarter due to lower average realized selling values and seasonal demand[8]. - Total shipments for Q4 2025 were 3,304,134 tons, up from 3,020,316 tons in Q4 2024, representing a 9% increase[33]. - Steel mill production for Q4 2025 was 2,838,233 tons, compared to 2,663,444 tons in Q4 2024, an increase of 7%[33]. - Steel segment operating income improved to $322,337 in Q4 2025, compared to $164,989 in Q4 2024, reflecting a 95% increase[33]. - Steel fabrication segment shipments totaled 138,375 tons in Q4 2025, down from 145,901 tons in Q4 2024, a decrease of 5%[33]. - Nonferrous shipments in metals recycling were 195,003 thousand pounds in Q4 2025, down from 226,434 thousand pounds in Q4 2024, a decrease of 14%[33]. Cash Flow and Investments - Cash flow from operations for 2025 was $1.4 billion, with $948 million invested in organic growth and $901 million in share repurchases, representing over 4% of outstanding shares[15]. - Net cash provided by operating activities for the year was $1.45 billion, down from $1.84 billion in 2024[31]. - Dividends declared per share increased to $0.50 in Q4 2025 from $0.46 in Q4 2024, reflecting a commitment to returning value to shareholders[27]. Market Conditions and Future Outlook - Future outlook indicates improving market conditions and strong demand for steel and aluminum products, driven by customer optimism and lower-carbon production[16]. - The aluminum team is advancing with the commissioning of the Columbus, Mississippi aluminum flat-rolled products mill, enhancing production capabilities for automotive and industrial applications[17]. Cost and Pricing - The average external selling price for steel operations decreased by $15 to $1,089 per ton in 2025, while the average ferrous scrap cost per ton increased by $1 to $387 per ton[14]. - Average external sales price for steel per ton was $1,107 in Q4 2025, compared to $1,011 in Q4 2024, indicating a 9.5% increase[33]. Balance Sheet Highlights - Total assets increased to $16.41 billion in 2025 from $14.94 billion in 2024, marking an 9.8% growth[29]. - Current liabilities decreased slightly to $2.12 billion in 2025 from $2.15 billion in 2024[29]. - Long-term debt rose significantly to $4.18 billion in 2025, up from $2.80 billion in 2024, indicating increased leverage[29].

Exhibit 99.1 Net interest margin (tax-equivalent) was 3.32% in the fourth quarter of 2025, compared to 3.30% in the third quarter of 2025, and 3.09% in the fourth quarter of 2024. The increase in net interest margin was primarily due to improved yields on interest-earning assets, and a decrease in our cost of interest-bearing deposits. Nonperforming assets were $0.5 million, or 0.05% of total assets, at December 31, 2025, compared to $0.1 million, or 0.01% of total assets at September 30, 2025, and $0.5 mil ...

Company Overview - Carnival Corporation & plc operates as the largest global cruise company with a combined passenger capacity of 263,300 as of December 31, 2023, representing approximately 37.5% of the global cruise industry capacity of 701,110[33]. - Carnival Corporation's North America segment accounts for 64% of its total passenger capacity, with Carnival Cruise Line being the largest brand at 35%[35]. - In 2025, Carnival Corporation & plc carried a total of 13,627 thousand passengers, an increase from 13,509 thousand in 2024 and 12,460 thousand in 2023[53]. - The United States and Canada remained the largest source market, contributing 8,092 thousand passengers in 2025, up from 7,938 thousand in 2024[53]. - Carnival Corporation's cruise brands cater to diverse consumer segments, including contemporary, premium, and luxury experiences, allowing for a broad market penetration[32]. Corporate Structure and Governance - The company plans to unify its corporate structure under Carnival Corporation, with a proposed shift of legal incorporation from Panama to Bermuda, expected to be completed in Q2 2026, subject to shareholder and regulatory approvals[22][23]. - Carnival Corporation announced a proposed unification of its dual-listed company (DLC) structure under a single entity, Carnival Corporation, with a migration from Panama to Bermuda, which is expected to provide various benefits, although the realization of these benefits is uncertain[174]. - The company plans to unify its dual listed structure under a single corporate entity to streamline governance and increase liquidity[219]. Financial Performance and Strategy - Carnival Corporation aims to enhance its financial position by reducing debt and achieving double-digit return on invested capital (ROIC), while reinstating dividends and maintaining disciplined cost control[30]. - The company did not pay or declare dividends for the year ended November 30, 2025, but reinstated a quarterly dividend of $0.15 per share, with a record date of February 13, 2026[198]. - Carnival Corporation's common stock price performance showed a value of $129 at the end of 2025, compared to $100 at the beginning of the period, indicating a recovery from previous lows[207]. - In 2025, Carnival plc completed a $19 billion refinancing plan, reducing total debt by over $10 billion since January 2023[214]. - The company reinstated its dividend, reflecting confidence in cash generation and balance sheet improvements[214]. Operational Developments - The company welcomed 7.4 million guests to its port destinations and exclusive islands in 2025, an increase from 6.5 million in 2024, indicating strong demand for its cruise offerings[48]. - Carnival Corporation has seven cruise ships under contract for construction, with expected deliveries ranging from 2027 to 2033, including new builds for Carnival Cruise Line and AIDA[38][39]. - The company introduced the Paradise Collection in 2025, featuring Celebration Key, a new exclusive cruise port destination, which will enhance its operational capacity with a pier extension expected to accommodate four ships simultaneously by 2026[50]. - Carnival plc opened the exclusive destination Celebration Key in July 2025, hosting over one million guests since its launch[217]. - Carnival plc is expanding its Paradise Collection properties, including RelaxAway and Isla Tropicale, in 2026[217]. Sustainability and Environmental Commitment - The company is committed to sustainability, focusing on reducing fuel consumption and carbon footprint while advancing a circular economy[29]. - The company aspires to achieve net zero emissions from ship operations by 2050, contingent on the development of scalable energy sources and technologies[144]. - In 2021, the company established sustainability goals for 2030, focusing on areas such as Climate Action, Circular Economy, and Biodiversity and Conservation[143]. - Carnival Corporation achieved a 20% reduction in greenhouse gas emissions intensity ahead of its 2030 goal, compared to the 2019 baseline[218]. - Carnival plc's "Less Left Over" strategy reduced food waste by over 47%, moving closer to its 50% target for 2030[218]. Marketing and Customer Engagement - The company increased its marketing and advertising programs in 2025, aiming to drive greater demand across its cruise lines and port destinations[62]. - The company has invested in new marketing technologies to enhance guest engagement and improve the effectiveness of its communications[62]. - Carnival Corporation is enhancing commercial strategies by leveraging AI to improve marketing effectiveness and drive efficiency gains[216]. Workforce and Labor Relations - The company is focused on becoming the employer of choice in the travel and leisure sector, with a workforce of over 160,000 individuals from approximately 150 countries[27]. - In 2025, Carnival Corporation & plc had an average of 101,000 employees onboard its ships, with an additional 16,000 shoreside employees[70]. - Approximately 48% of shipboard employees and 21% of shoreside employees were represented by collective bargaining agreements in 2025[71]. - The International Labor Organization oversees labor standards that include minimum age, medical certificates, and training for seafarers[136]. Regulatory and Compliance Issues - The company is committed to complying with various international, national, and local maritime regulations, including those related to health, environmental, safety, and security matters[102]. - The company is subject to various governmental regulations, including those addressing antitrust, anti-money laundering, and data privacy[141]. - The state of California has environmental requirements for water discharges and air emissions that are significantly more stringent than federal regulations[128]. - The state of Alaska requires permitting for certain discharges from cruise ships, with stricter compliance standards than federal law[128]. Risks and Challenges - Adverse weather conditions and natural disasters may significantly impact the company's operations and profitability, potentially leading to itinerary changes or cruise cancellations[153]. - The company faces risks related to its sustainability objectives, which may not be achieved due to factors such as the availability of low-emission energy sources and evolving regulatory requirements[154]. - Cybersecurity incidents and data privacy breaches could disrupt operations and lead to financial losses, regulatory penalties, and reputational damage[155]. - The company's ability to service its debt is contingent on future operating performance and cash generation, which may be affected by various uncontrollable factors[156]. - Increases in fuel costs and volatility in fuel supply could adversely affect operational costs and profitability, impacting guest demand for cruises[158]. - The company relies on suppliers for critical operations, and disruptions in the supply chain could lead to increased costs and operational challenges[161]. - Fluctuations in foreign currency exchange rates may negatively impact financial results, particularly as revenues and expenses are incurred in multiple currencies[162]. - Investments in port destinations and exclusive islands expose the company to risks such as weather events and local political developments[163]. - Overcapacity in the cruise industry may lead to reduced pricing power and profitability, as competition increases for cruise sales and destination options[164]. - Compliance with evolving laws and regulations related to health, environment, and sustainability may incur significant costs and impact operational flexibility[167]. Cybersecurity Measures - The company has implemented a comprehensive cybersecurity risk management program, leveraging frameworks such as NIST and ISO/IEC 27001, to proactively identify and mitigate potential threats[179]. - Carnival Corporation has not experienced any material cybersecurity incidents in the last three fiscal years, and expenses related to cybersecurity incidents were not material[184]. - The company maintains an incident response plan that is regularly updated and tested through crisis simulation exercises to address new cybersecurity threats[180]. - The Global Chief Information Security Officer (CISO) leads cybersecurity efforts and oversees risk management across information technology operations, with over 20 years of experience in the field[185]. - Carnival Corporation's Cybersecurity Advisory Council meets quarterly to oversee cybersecurity strategic direction and risk management[186].

Company Overview - Carnival Corporation & plc operates as the largest global cruise company with a portfolio of eight cruise lines, including Carnival Cruise Line and Princess Cruises, and serves over 13.5 million guests annually[21]. - As of December 31, 2023, Carnival Corporation & plc has a passenger capacity of 263,300, which is projected to increase to 272,460 by 2025[33]. - The North America segment accounts for 64% of total passenger capacity, with Carnival Cruise Line alone representing 35%[35]. - In 2025, Carnival Corporation & plc carried a total of 13,627 thousand passengers, an increase from 13,509 thousand in 2024 and 12,460 thousand in 2023[53]. - The United States and Canada accounted for 8,092 thousand passengers in 2025, up from 7,938 thousand in 2024, while Continental Europe saw an increase to 2,754 thousand from 2,702 thousand[53]. - Carnival plc delivered extraordinary cruise vacations to over 13.5 million guests in 2025[220]. Corporate Structure and Governance - The company plans to unify its dual listed structure under Carnival Corporation, listed solely on the New York Stock Exchange, with a proposed legal incorporation shift to Bermuda, expected to be completed in Q2 2026[22][23]. - Carnival Corporation announced a proposed unification of its dual-listed company (DLC) structure under a single entity, Carnival Corporation, with a migration from Panama to Bermuda, which is expected to provide various benefits, although the realization of these benefits is uncertain[174]. - As of January 13, 2026, there were 2,164 holders of record of Carnival Corporation common stock and 27,361 holders of record of Carnival plc ordinary shares[197]. Financial Performance - The company aims to strengthen its balance sheet while delivering outsized shareholder returns, achieving strong profitability and a double-digit return on invested capital (ROIC)[30]. - The company did not pay or declare dividends for the year ended November 30, 2025, but reinstated a quarterly dividend of $0.15 per share, with a record date of February 13, 2026[198]. - Carnival Corporation's common stock price performance showed a value of $129 at the end of 2025, compared to $100 at the beginning of the period, indicating a 29% increase[207]. - In 2025, Carnival plc completed a $19 billion refinancing plan and reduced total debt by over $10 billion since January 2023[214]. - The company reinstated its dividend, reflecting confidence in cash generation and balance sheet improvements[214]. Operational Developments - Carnival Corporation & plc operates a portfolio of seven owned or operated ports and destinations, welcoming 7.4 million guests in 2025, up from 6.5 million in 2024[48]. - The newly launched Celebration Key, an exclusive cruise port destination, opened in July 2025 and will accommodate up to four cruise ships simultaneously after a pier extension in 2026[50]. - The company intends to enhance its exclusive destination RelaxAway, Half Moon Cay, with a new pier expected to open in summer 2026, allowing two cruise ships to dock[51]. - The company has seven cruise ships under contract for construction, with expected deliveries ranging from 2027 to 2033, including new builds for Carnival Cruise Line with capacities up to 6,160[39]. - Carnival plc is expanding return-generating ship enhancement initiatives and exclusive destination development programs[215]. Sustainability and Environmental Initiatives - Carnival Corporation & plc is committed to executing its sustainability roadmap, focusing on reducing fuel consumption and carbon footprint while enhancing community partnerships[29]. - The company aims for net zero emissions from ship operations by 2050, contingent on the development of alternative low GHG emission fuels and technologies that are not yet available at scale[144]. - In 2021, the company established sustainability goals for 2030, focusing on themes of People and Planet, with specific areas including Well-Being, Inclusion, Climate Action, and Biodiversity[143]. - The company achieved a 20% reduction in greenhouse gas emissions intensity ahead of its 2030 goal, compared to the 2019 baseline[218]. - Carnival plc's "Less Left Over" strategy reduced food waste by over 47%, nearing its 50% target for 2030[218]. Marketing and Demand Generation - Marketing and advertising programs were increased in 2025, aimed at driving demand and enhancing brand differentiation, with a focus on digital performance marketing[62]. - The company is focused on strengthening demand generation efforts to position itself for success in 2026 and beyond[216]. - The company is enhancing commercial strategies by leveraging AI to improve marketing effectiveness and drive efficiency gains[216]. Workforce and Labor Relations - The average number of employees in 2025 was 101,000 onboard ships, with an additional 16,000 shoreside employees, reflecting a robust workforce to support operations[70]. - Approximately 48% of shipboard employees and 21% of shoreside employees were represented by collective bargaining agreements, indicating strong labor relations[71]. - The company has invested in leadership development programs to foster career growth and retain top talent, ensuring a strong pipeline of experienced leaders[74]. Regulatory and Compliance Issues - The company is subject to various governmental regulations, including those addressing antitrust, data privacy, and sustainability reporting[141]. - The IMO has established a global 0.5% sulfur cap for marine fuel, with compliance options including Advanced Air Quality Systems[117]. - The IMO's 2023 Strategy aims for a 40% reduction in CO2 emissions intensity by 2030 compared to 2008 levels[121]. - The EU's Emissions Trading System (ETS) will require ships to procure emission allowances covering 40% of their 2024 emissions to be surrendered in 2025, increasing to 100% of annual emissions thereafter, with costs expected to rise from $91 million in 2025 to approximately $170 million in 2026[132]. - The FuelEU Maritime regulation, effective January 2025, mandates compliance with maximum limits of GHG intensity of energy used on board, with increasing stringency over time and financial penalties for non-compliance[133]. Risk Factors - Adverse weather conditions and natural disasters may significantly impact the company's operations, including potential itinerary changes and cancellations, affecting profitability[153]. - The company faces risks related to its sustainability objectives, which may not be achieved due to factors beyond its control, including the availability of low-emission energy sources and evolving regulatory requirements[154]. - Cybersecurity incidents and data privacy breaches pose risks to the company's operations, potentially leading to financial losses and reputational damage[155]. - The company's ability to service its debt is contingent on future operating performance and cash generation, which may be affected by various uncontrollable factors[156]. - Increases in fuel costs and volatility in fuel supply could adversely affect the company's operational costs and profitability, impacting guest demand[158]. - The company relies on suppliers for critical operations, and disruptions in the supply chain could lead to increased costs and operational challenges[161]. - Fluctuations in foreign currency exchange rates may negatively impact the company's financial results, as revenues and expenses are incurred in multiple currencies[162]. - Investments in port destinations and exclusive islands expose the company to risks such as weather events and local political developments[163]. - Overcapacity in the cruise industry may lead to reduced pricing power and profitability, as competition increases from other cruise brands and land-based vacation alternatives[164]. - Regulatory changes related to sustainability and emissions may require significant capital investments and could impact operational costs and access to certain destinations[172]. Cybersecurity Measures - The company has implemented a comprehensive cybersecurity risk management program, leveraging frameworks such as NIST and ISO/IEC 27001, to proactively identify and mitigate potential threats[179]. - Carnival Corporation has not experienced any material cybersecurity incidents in the last three fiscal years, and expenses related to cybersecurity incidents were not material[184]. - The company maintains an incident response plan that is regularly updated and tested through crisis simulation exercises[180]. - The Global Chief Information Security Officer (CISO) leads cybersecurity efforts and reports to executive management, ensuring alignment with industry developments[185]. - The company has a focus on data privacy and security standards to comply with regulations such as GDPR and CCPA, employing encryption and access controls[181]. Headquarters and Operations - Carnival Corporation's headquarters and principal shoreside operations are located in Miami, Florida, and Southampton, England, with plans to relocate its Miami headquarters[189].

Financial Performance - Net income for Q4 2025 was $4.7 million, or $0.60 per diluted share, representing a 30.3% increase from the previous quarter and a 37.8% increase year-over-year[1] - Revenues for Q4 2025 increased by 3.8% to $24.3 million compared to the previous quarter and increased by 13.7% year-over-year[15] - Noninterest income for Q4 2025 increased by 8.8% to $5.1 million compared to the previous quarter and increased by 12.2% year-over-year[16] - Net income for the quarter was $4,729 million, an increase of 30.3% from $3,630 million year-over-year[30] - Basic earnings per share increased to $0.61 from $0.47, reflecting a growth of 29.8%[30] Asset and Loan Management - Total loans were $1.52 billion at December 31, 2025, unchanged from a year earlier, but decreased by $38.8 million, or 2.5%, from the previous quarter[6] - Total loans amounted to $1,519,019,000, down from $1,557,771,000 as of September 30, 2025, reflecting a decrease of approximately 2.5%[28] - Net loans stood at $1,501,649,000, compared to $1,540,031,000 in the previous quarter, indicating a decline of about 2.5%[28] - Average loans for the quarter were $1,548,740 million, slightly down from $1,581,510 million, a decrease of 2.1%[34] Deposits and Equity - Total deposits increased by $100.4 million, or 6.0%, to $1.78 billion compared to the previous year, and increased by $29.4 million, or 1.7%, from the previous quarter[8] - Shareholders' equity increased to $191.8 million at December 31, 2025, compared to $174.8 million a year earlier[10] - Shareholders' equity increased to $191,814,000 from $186,486,000, marking a growth of approximately 2.1%[29] - Common shareholders' equity per share increased to $24.10 from $23.45, reflecting a growth of 2.77%[34] Interest and Expenses - Net interest margin (NIM) expanded to 4.08% in Q4 2025, a 14-basis point increase from the previous quarter and a 49-basis point increase year-over-year[12] - Total interest expense increased to $40,773 million from $35,514 million year-over-year, reflecting a rise of 15.9%[30] - Net interest income after provision for credit losses rose to $71,716 million, up from $62,920 million, representing a year-over-year increase of 14%[30] - Total interest and dividend income for the year ended December 31, 2025, was $108,411,000, up from $104,211,000 in 2024, reflecting an increase of approximately 4.2%[29] Credit Quality - The allowance for credit losses was $17.4 million, or 1.14% of total loans, at December 31, 2025, compared to 1.11% a year ago[19] - Nonperforming loans increased to $5,632 million from $4,122 million, a rise of 36.6%[33] - The allowance for credit losses to nonperforming loans ratio was 308.42%, down from 430.37% in the previous quarter, indicating a decrease in coverage[34] Operational Efficiency - The core efficiency ratio is calculated by excluding acquisition costs and intangible asset amortization from noninterest expense, providing insight into operational performance[26] - The core efficiency ratio (non-GAAP) improved to 73.63% in December 2025 from 77.33% in September 2025, indicating enhanced operational efficiency[36] - The efficiency ratio (GAAP) was reported at 74.82% in December 2025, an improvement from 78.56% in September 2025[36] Other Financial Metrics - The effective tax rate for Q4 2025 was 22.2%, compared to 26.8% in the previous quarter and 7.3% in Q4 2024[18] - Tangible common shareholders' equity (non-GAAP) increased to $153,760,000 in December 2025, up from $148,147,000 in September 2025[36] - Tangible assets (non-GAAP) totaled $2,068,313,000 in December 2025, slightly down from $2,081,467,000 in September 2025[36] - The tangible common shareholders' equity to tangible assets (non-GAAP) ratio increased to 7.43% in December 2025 from 7.12% in September 2025[36]

Financial Performance - Net sales for Q2 2026 reached $1.2 billion, an increase of 8.4% year-over-year, with organic sales growth of 2.2%[3] - Net income for the quarter was $95.3 million, or $2.51 per diluted share, reflecting a 4.6% increase compared to the prior year[5] - EBITDA for the quarter was reported at $140.4 million, a 3.9% increase year-over-year[5] - Net income for the six months ended December 31, 2025, was $196,156, compared to $185,353 for the same period in 2024, representing a growth of 4.3%[21] - EBITDA for the six months ended December 31, 2025, was $286,697, an increase from $264,095 in 2024, reflecting a growth of 8.6%[23] Cash Flow and Investments - Operating cash flow for the quarter was $99.7 million, with free cash flow of $93.4 million[5] - Free Cash Flow for the six months ended December 31, 2025, was $205,398, slightly down from $212,138 in 2024, indicating a decrease of 3.9%[24] - Net Cash provided by Operating Activities for the six months ended December 31, 2025, was $218,976, compared to $222,884 in 2024, a decrease of 1.8%[21] - Net Cash used in Investing Activities for the six months ended December 31, 2025, was $(15,361), significantly lower than $(282,966) in 2024, indicating a reduction in cash outflow[21] - Cash and Cash Equivalents at the end of the period increased to $405,986 from $303,441 in the previous year, marking a growth of 33.8%[21] Capital Management - The company announced an 11% increase in its quarterly dividend to $0.51 per share, marking the 17th dividend increase since 2010[9] - The company remains focused on capital deployment, including ongoing share repurchases and strategic acquisitions[4] - Capital expenditures for the six months ended December 31, 2025, totaled $13,578, up from $10,746 in 2024, representing an increase of 26.5%[21] - Long-term debt repayments were not specified for the current period but were $(25,106) in the previous year, indicating a potential reduction in debt obligations[21] Economic Outlook - Updated fiscal 2026 EPS guidance is now set at $10.45 to $10.75, with sales growth projected between 5.5% to 7.0%[5] - The company anticipates LIFO expense in the range of $24 million to $26 million, reflecting ongoing macroeconomic uncertainties[6] - The company is experiencing positive sales trends in January, with organic sales trending up by a mid single-digit percent year-over-year[4] Working Capital Management - The company reported a decrease in changes in operating assets and liabilities, net of acquisitions, from $1,451 in 2024 to $(26,230) in 2025, indicating a significant shift in working capital management[21] - The effect of exchange rate changes on cash resulted in an increase of $1,008, contrasting with a decrease of $(5,985) in the previous year, showing improved currency impact[21] Acquisitions - The acquisition of Thompson Industrial Supply Inc. is expected to generate annual sales of approximately $20 million in the first year[7]

Financial Performance - Community Financial System, Inc. reported net income of $54.4 million, or $1.03 per share, for Q4 2025, and $210.5 million, or $3.97 per share, for the full year 2025[4]. - The company achieved operating net income of $59.5 million, or $1.12 per share, for Q4 2025, and $225.1 million, or $4.24 per share, for the full year 2025[5]. - The operating return on assets for the full year 2025 was 1.34%, with a 16% growth in operating diluted earnings per share[7]. - Net income for the year ended December 31, 2025, was $210.455 million, an increase of 15.3% from $182.481 million in 2024[33]. - Net income for Q4 2025 was $54,422,000, compared to $49,793,000 in Q4 2024, representing a year-over-year increase of 9.3%[34]. - Basic earnings per share for Q4 2025 were $1.03, up from $0.94 in Q4 2024, showing a growth of 9.6%[34]. - The return on assets (GAAP) for Q4 2025 was 1.26%, slightly up from 1.21% in Q4 2024[34]. - Return on equity (GAAP) for Q4 2025 was 11.04%, slightly down from 11.27% in Q4 2024[39]. Revenue and Income Sources - Total revenues for Q4 2025 were $215.5 million, representing a 4.1% quarter-over-quarter increase and a 9.8% year-over-year increase[8]. - Noninterest revenues accounted for 38% of total revenues in Q4 2025, setting a new quarterly record[15]. - Total interest income for the year ended December 31, 2025, was $699.275 million, compared to $643.528 million for the previous year, reflecting an increase of 8.7%[33]. - Total noninterest revenues for the year increased to $311.457 million from $297.186 million, a growth of 4.4%[33]. - Total noninterest revenues for Q4 2025 amounted to $82,026,000, an increase from $76,314,000 in Q4 2024, indicating a growth of 7.5%[34]. Assets and Deposits - Total assets increased by $917.3 million, or 5.6%, year-over-year to $17.30 billion as of December 31, 2025, primarily due to organic loan growth and the Santander branch acquisition[19]. - The company reported a total ending loan balance of $10.95 billion, a 1.9% increase quarter-over-quarter and a 5.0% increase year-over-year[8]. - The total ending deposits reached $14.39 billion, reflecting a 2.3% increase from Q3 2025 and a 7.0% increase from Q4 2024[8]. - Ending deposits at December 31, 2025 were $14.39 billion, up $945.4 million, or 7.0%, year-over-year, driven by deposits from the Santander acquisition[22]. Expenses and Provisions - The Company’s total noninterest expenses in Q4 2025 were $138.5 million, a 10.4% increase from the prior year, driven by higher salaries and acquisition-related expenses[19]. - The Company recorded a $5.0 million provision for credit losses in Q4 2025, reflecting organic loan growth and stable credit quality metrics[22]. - Provision for credit losses was $4,979,000 in Q4 2025, down from $6,208,000 in Q4 2024, indicating a decrease of 19.8%[38]. Acquisitions and Branch Expansion - The company opened 15 new branches and completed two strategic transactions, including the acquisition of 7 branch locations from Santander Bank, N.A.[7]. - An agreement was announced to acquire ClearPoint Federal Bank & Trust, which will significantly expand the revenue and offerings of the wealth management services business[7]. - Community Bank, N.A. acquired seven branch locations from Santander Bank, adding $543.7 million in customer deposits[25]. - The Company announced an agreement to acquire ClearPoint Federal Bank & Trust for approximately $40 million, expected to close in Q2 2026, enhancing its wealth management services[26]. Shareholder Information - Shareholders' equity increased to $2.01 billion at December 31, 2025, up $243.2 million, or 13.8%, from the previous year[27]. - A quarterly cash dividend of $0.47 per share was declared, representing a 2.2% increase from the $0.46 dividend in Q4 2024[27]. - The company approved a stock repurchase program for up to 2.63 million shares, or 5.0% of outstanding common stock, starting January 1, 2026[27]. Ratios and Metrics - The adjusted return on equity for the banking segment was 14.35%, an increase of 0.21% year-over-year[9]. - The company's tangible equity to tangible assets ratio improved to 6.75% at December 31, 2025, up from 5.83% a year earlier[27]. - The company's tier 1 leverage ratio was 9.21% at December 31, 2025, remaining above the regulatory standard of 5.0%[27]. - The efficiency ratio (GAAP) improved to 64.3% in Q4 2025, compared to 62.0% in Q3 2025[41].

Financial Performance - First BanCorp reported a net income of $87.1 million, or $0.55 per diluted share, for Q4 2025, down from $100.5 million, or $0.63 per diluted share, in Q3 2025, but up from $75.7 million, or $0.46 per diluted share, in Q4 2024[1][7] - For the full year 2025, net income reached $344.9 million, or $2.15 per diluted share, compared to $298.7 million, or $1.81 per diluted share, in 2024, marking a 15.4% year-over-year increase[1][3] - Total revenues exceeded $1.0 billion in 2025, with a 19% growth in earnings per share and a return on average assets of 1.8%[3][4] Loan and Deposit Growth - Total loans increased by $80.8 million to $13.1 billion, primarily due to growth in the commercial and industrial loan portfolio[7][9] - Core customer deposits remained stable at $13.1 billion, with a notable increase of $266.5 million in non-interest-bearing deposits[7][9] - Total loans as of December 31, 2025, amounted to $13,142,053, an increase from $13,061,230 as of September 30, 2025, representing a growth of 0.62%[76] Interest Income and Margin - Net interest income for Q4 2025 was $222.8 million, an increase of $4.9 million from Q3 2025, driven by a net interest margin of 4.68%, up from 4.57%[5][8] - Interest income from loans increased by $0.8 million, with residential mortgage loans contributing a $0.8 million increase due to a $31.2 million rise in average balance[12] - The average yield on loans and leases decreased to 7.55% in Q4 2025 from 7.71% in Q4 2024[68] Asset Quality and Credit Losses - Non-performing assets decreased by $5.3 million to $114.1 million, reflecting effective asset quality management[7][9] - The allowance for credit losses coverage ratio was 1.90%, slightly up from 1.89%, indicating a stable risk management approach[7][9] - The provision for credit losses for the fourth quarter of 2025 was $22.4 million, compared to $18.3 million in Q3 2025, driven by loan growth and macroeconomic factors[27] Expenses and Efficiency - Total non-interest expenses for Q4 2025 amounted to $126.9 million, an increase of $2.0 million from Q3 2025, influenced by a $3.4 million rise in employee compensation and benefits[14] - The efficiency ratio improved to 49.33% in Q4 2025, down from 50.22% in Q3 2025, indicating better cost management[5][7] - Total non-interest expenses for the year ended December 31, 2025, were $498,123, an increase from $487,073 for the year ended December 31, 2024[67] Capital and Liquidity - First BanCorp repurchased $50.0 million in common stock and declared $28.3 million in common stock dividends, maintaining strong capital ratios above regulatory requirements[7][9] - Total stockholders' equity increased by $48.8 million to $2.0 billion as of December 31, 2025, driven by net income and changes in the fair value of available-for-sale debt securities[37] - Total core liquidity amounted to $2.6 billion as of December 31, 2025, representing 13.54% of total assets, an increase from 12.64% as of September 30, 2025[40] Tax and Regulatory Matters - The corporation recorded an income tax expense of $20.2 million for Q4 2025, compared to $5.7 million in Q3 2025, with an effective tax rate of 21.6%[17][18] - The corporation emphasizes the importance of forward-looking statements and the associated risks, including changes in interest rates and economic conditions[62] Market and Operational Overview - First BanCorp. operates in Puerto Rico, the U.S., and the British Virgin Islands, with shares trading on the New York Stock Exchange under the symbol FBP[64] - The corporation's earnings conference call is scheduled for January 27, 2026, at 10:00 a.m. Eastern Time, accessible via the investor relations website[61]

Financial Performance - The company reported a net loss of $37,638 for the period from July 3, 2025, through September 30, 2025, primarily due to general and administrative costs [88]. - The company incurred net cash used in operating activities of $0 for the period from July 3, 2025, through September 30, 2025 [92]. - The company has no operating revenues to date and does not expect to generate any until after completing a Business Combination [87]. Initial Public Offering (IPO) - The company completed its Initial Public Offering on December 15, 2025, raising gross proceeds of $230,000,000 from the sale of 23,000,000 Units, including an over-allotment of 3,000,000 Units [90]. - Transaction costs associated with the Initial Public Offering amounted to $14,211,396, which included a cash underwriting fee of $4,000,000 and a deferred underwriting fee of $9,800,000 [91]. - A total of $230,000,000 was placed in the Trust Account following the Initial Public Offering, which will be used to complete the Business Combination [91]. - The underwriters were paid an underwriting discount of $4,000,000 upon closing the Initial Public Offering, with an additional deferred underwriting discount of $9,800,000 due upon the completion of the initial Business Combination [100]. Future Plans and Financial Position - The company intends to use substantially all funds in the Trust Account to complete its Business Combination and for working capital of the target business [93]. - The company does not anticipate needing to raise additional funds to meet operating expenditures prior to the Business Combination [96]. - The company has no off-balance sheet arrangements or long-term liabilities as of September 30, 2025 [97][98].