Core Viewpoint - Westlake Corporation reported disappointing earnings for Q4 2025, with a significant GAAP EPS loss, but adjusted EPS exceeded market expectations, indicating some resilience despite revenue declines [1][5]. Financial Performance - The company reported a GAAP EPS of -$4.22 for Q4 2025, while the adjusted EPS was -$0.25, surpassing the consensus estimate of -$1.44 [1][5]. - Revenue for the period was $2.53 billion, falling short of the estimated $2.57 billion, and represents a decrease from $2.8 billion in both the previous quarter and the same quarter of the previous year [2][5]. - For the full year 2025, net sales totaled $11.2 billion, down from $12.5 billion in 2024, indicating a consistent decline in sales performance [2]. Valuation Metrics - Westlake's trailing twelve-month (TTM) P/E ratio stands at 69.52, reflecting the market's valuation of its positive full-year earnings of $1.22 per share [3]. - The price-to-sales ratio is 1.04, indicating that investors are willing to pay $1.04 for every dollar of sales [3]. - The enterprise value to sales ratio is 1.32, and the enterprise value to EBITDA ratio is 31.41, reflecting the company's valuation relative to its sales and cash flow generation [3]. Financial Ratios - The TTM earnings yield is approximately 1.44%, highlighting the company's positive full-year earnings situation [4]. - The debt-to-equity ratio is 0.54, indicating a moderate approach to leveraging equity [4][5]. - The current ratio is 1.99, suggesting adequate liquidity and the ability to cover short-term liabilities with current assets [4].

Core Viewpoint - Clariant, a specialty chemical company focused on sustainability, has proposed the election of Regula Wallimann and Albert Manifold as independent, non-executive members of its Board of Directors at the upcoming AGM on April 1, 2026 [1]. Group 1: Proposed Board Members - Regula Wallimann is a Swiss national with extensive experience in finance, corporate governance, and risk management, having served as a non-executive board member and chairwoman of the Audit Committee at Straumann Group and Adecco Group, among others [2]. - Albert Manifold is an Irish national and the current Chairman of BP p.l.c., with a strong background in strategic leadership and operational delivery from his tenure as CEO of CRH plc, where he focused on cost efficiency and capital allocation [3]. Group 2: Board Composition Changes - The Board proposes to re-elect Ben van Beurden as Chairman and several other members, reducing the total number of board members from eleven to eight [4]. - Ben van Beurden expressed confidence in the nominations of Wallimann and Manifold, highlighting their reputations and experience as valuable assets for Clariant's growth strategy [5]. Group 3: Company Overview - Clariant is a focused specialty chemical company with a mission centered on sustainability, employing 10,465 staff and recording sales of CHF 4.152 billion in the fiscal year ending December 31, 2024 [9].

Market Performance - The Russell 2000 is the only major index showing gains, up by 0.70%, indicating small caps may be catching up amid recent economic reports [2] - The S&P 500 has experienced its first back-to-back decline of 2026, with declines of 0.53% [2] - The Nasdaq has also faced significant declines, down 1.00%, primarily due to the downturn in tech and financial sectors [2][12] Sector Performance - Health care, certain industrials, energy stocks, and utilities are among the bright spots in the market [1] - The financial sector has been under pressure, with the SPDR Financials ETF declining by 2.33% over the last five sessions [3] - Software stocks are leading decliners, with notable drops from companies like neobank Dave (-10.6%) and Unity Software (-8.99%) [9] Company Earnings - Major banks, including JPMorgan, Bank of America, Wells Fargo, and Citigroup, reported earnings that met expectations but received a lukewarm market response [4][24] - The SPDR Financial Select ETF is down about 1% for the second consecutive day, reflecting market sentiment towards bank earnings [25] Notable Movers - Critical Metals Corp saw a significant increase of 33.84% after announcing high-grade results from its Greenland mining project [6] - InfoSys rose by 9.16% after raising its revenue expectations, indicating positive sentiment in India's IT sector [7] - Biotech stocks are performing well, with Viking Therapeutics up 14.8% due to speculation around a weight loss drug [8]

Core Viewpoint - UPS is facing challenges but is committed to maintaining its dividend, which currently yields 6.9%, as it works on improving operational efficiency and profitability [5][14]. Financial Performance - UPS has seen a decline of approximately 25% year-to-date and is only up 15% from its 12-year low, with revenue and margins decreasing over the past three years [4]. - Despite the stock's poor performance, UPS has increased its dividend significantly in recent years, although its earnings and free cash flow (FCF) have been declining [6][8]. - The current dividend is slightly larger than UPS's earnings and FCF, raising concerns about sustainability, yet management believes it can support and potentially increase the dividend [8][14]. Market Position and Strategy - UPS is adjusting its operations after overexpanding during the pandemic, focusing on more profitable delivery segments while reducing low-margin, high-volume deliveries [9][11]. - The company plans to cut delivery volumes for Amazon by 50% by June 2026, which may lead to a revenue decrease but is seen as a strategic move to enhance margins [11]. Valuation and Future Outlook - Analysts project UPS to achieve earnings per share (EPS) of $6.87 in 2025 and $7.16 in 2026, suggesting a price-to-earnings (P/E) ratio of 13.2 based on current stock prices [12]. - UPS's 10-year median P/E is 19.7, indicating that the stock is currently undervalued [13]. - The company’s management is optimistic about improving FCF, which could justify future dividend increases, making it an attractive option for income investors [14][15].

Investment Rating - The report maintains a positive outlook for diversified companies and specific sectors such as aerospace, defense technology, and data centers, indicating strong growth potential for 2026 [1][3][7]. Core Insights - Diversified companies are optimistic about 2026, with Endvent expecting significant order fulfillment and Mirion anticipating a record order quarter of $175 million [1][4]. - The aerospace sector shows robust fundamentals, with demand for new aircraft models exceeding supply, and strong pricing power observed [5]. - Defense technology companies like AeroVironment and Andro are highlighted for their growth potential, with Andro projecting revenues of approximately $5 billion in 2026 [6]. - The data center and AI sectors are expected to see substantial capital expenditure growth, with predictions of 79% and 36% increases in 2025 and 2026, respectively [7]. Summary by Sections Diversified Companies - 18 diversified companies participated in the conference, with 13 expressing optimism for 2026, despite challenges in the chemicals sector [3]. - LyondellBasell Industries has seen a downgrade in performance expectations, with most basic industry companies anticipating a 1% to 5% decline in EBITDA [3][11]. Aerospace and Defense - The aerospace industry is experiencing strong demand, with a notable performance from Embraer in the business jet market [5]. - Defense technology firms are focusing on growth opportunities, with AeroVironment identifying 12 potential billion-dollar projects [6]. Data Centers and AI - The report indicates a strong outlook for data centers, with significant capital investments anticipated [7]. - Companies like Flex are investing in capacity to meet the growing demand driven by AI applications [8]. Industrial Technology - Belden's core industrial business is showing positive trends, with a recovery in discrete manufacturing and growth in Europe and China [9][10]. - The waste management sector is facing challenges but shows signs of optimism regarding pricing, particularly in landfill operations [18][19]. Transportation - The transportation sector is recovering, with signs of stabilization in truck transportation and improved pricing discipline [12]. Public Infrastructure - There is a positive sentiment regarding public construction spending, with expectations for continued growth in related projects [21].

Group 1 - Moretus Research provides high-quality equity research focused on U.S. public markets, aiming to deliver clarity, conviction, and alpha for serious investors [1] - The research framework emphasizes identifying companies with durable business models, mispriced cash flow potential, and intelligent capital allocation [1] - Valuation methods are based on sector-relevant multiples tailored to each company's business model and capital structure, prioritizing comparability and simplicity [1] Group 2 - Research coverage targets underappreciated companies experiencing structural changes or temporary dislocations, where disciplined analysis can yield asymmetric returns [1] - Moretus Research aims to elevate the standard for independent investment research by providing actionable insights and a strong filter for relevant information in equity analysis [1]