Last month’s announcement that Devon Energy and Coterra Energy are merging to create a $58-billion giant is the latest mega-deal in the U.S. shale patch, signaling smaller public companies are seeking multi-basin, multi-year increases in drilling opportunities. In early February, Devon Energy and Coterra Energy announced a definitive agreement to merge and create a premier shale operator in an all-stock transaction, implying a combined enterprise value of about $58 billion. The deal creates a company w ...

Financial Data and Key Metrics Changes - Contract sales grew by 10% in 2025, marking the highest growth since 2022, with Adjusted EBITDA of $1.15 billion, a 4% increase year-over-year [16][18] - Total revenue before cost reimbursements for the quarter increased by 1% to $1.3 billion, while Adjusted EBITDA to shareholders grew by 12% to $324 million, with margins of 26%, up 250 basis points from the prior year [18][19] - Adjusted free cash flow for the year was $756 million, or over $8.25 per share, with $600 million returned to shareholders through share repurchases [17][26] Business Line Data and Key Metrics Changes - In the real estate business, contract sales for the quarter increased by 2% to $852 million, with tours up 9% year-over-year to 225,000 [18][19] - The financing business reported revenues of $134 million and profit of $81 million, with margins of 60% [20] - The resort and club business saw revenue growth of 6% to $219 million for the quarter, with segment profit of $160 million and margins of 73% [24] Market Data and Key Metrics Changes - The company surpassed pro forma consolidated 2019 tour flow levels for the first time, indicating strong recovery and growth in market demand [18][11] - The annualized default rate for consolidated portfolios improved to 9.86%, reflecting a 24 basis points improvement from the previous quarter [21] Company Strategy and Development Direction - The company is focused on four strategic priorities: attracting new customers cost-effectively, enhancing member lifetime value, product evolution and innovation, and driving operational excellence [10][12] - The introduction of HGV Max has driven a 35% increase in memberships, with a greater than 20% increase in lifetime value for Max members compared to non-Max members [8][12] - The company aims to maintain a robust pace of share repurchases while avoiding increased leverage, targeting $150 million per quarter [27][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a stable consumer environment where travel remains a priority, carrying significant momentum into 2026 [9] - The guidance for 2026 anticipates Adjusted EBITDA between $1.185 billion and $1.225 billion, with low single-digit contract sales growth expected [28][29] - Management highlighted the importance of operational excellence and cost management as key focuses for future growth [14][15] Other Important Information - The company achieved $100 million in cost synergies from the Bluegreen acquisition ahead of schedule [16][14] - The weighted average interest rate for originated loans was reported at 14.6% [20] Q&A Session Summary Question: Can you provide expectations for quarterly cadence, specifically for tour growth and VPG? - Management indicated high single-digit growth for tour flow in Q1, with a high single-digit decline in VPG due to tough comparisons from the previous year [34][39] Question: Can you clarify the uptick in loan loss provision related to upgrades to legacy Bluegreen owners? - Management explained that the increase was due to changes in underwriting processes, requiring more capital from consumers during upgrades, which has improved loan performance [42][43] Question: Is there a plan to streamline assets and locations due to excess inventory? - Management confirmed ongoing analysis of the portfolio to optimize for both members and shareholders, with potential updates to be provided in the future [50][51] Question: What is the philosophy around share buybacks and the decision to maintain a $150 million quarterly repurchase? - Management emphasized the importance of maintaining current leverage levels while executing a robust share repurchase program, viewing the stock as a compelling value [55][56]

Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsBrandon Cheatham - Vice President of Equity ResearchChester Ward - President, Sales, Marketing and DistributionChris Li - Managing Director of Equity ResearchGlenn Chamandy - President and CEOIan Liu - Equity Research AssociateJessy Hayem - Senior Vice President, Head of Investor Relations and Global CommunicationsLuca Barile - EVP and CFOStephen MacLeod - Managing Director of Equity ResearchConference Call ...

Financial Data and Key Metrics Changes - Gildan reported record revenues from continuing operations of approximately $3.6 billion for 2025, with adjusted operating margins of 21.5% and adjusted diluted EPS growth of 17%, reaching $3.51 [5][20] - For Q4 2025, sales from continuing operations were $1.078 billion, a 31.3% increase year-over-year, with organic growth of 4.9% excluding Hanes' contribution [13][14] - Adjusted diluted EPS for Q4 was $0.96, up 16% from $0.83 in the prior year, while GAAP diluted EPS from continuing operations was $0.32 compared to $0.86 the previous year [20] Business Line Data and Key Metrics Changes - Activewear sales grew 10.3% to $788 million, driven by the Hanes acquisition and higher net selling prices [14] - Innerwear sales, which now include hosiery, underwear, and intimates, surged 171% year-over-year, primarily due to HanesBrands' contribution [14] - International market sales reached $68 million, up 5.1% year-over-year, reflecting the acquisition but offset by demand softness in certain regions [15] Market Data and Key Metrics Changes - The company anticipates approximately $250 million in run rate cost synergies over the next three years, an increase from the original target of $200 million [9] - The outlook for 2026 includes expected revenue of $6 billion to $6.2 billion, with adjusted diluted EPS projected between $4.20 and $4.40 [23][24] Company Strategy and Development Direction - The acquisition of HanesBrands is expected to double Gildan's scale and enhance its competitive position through a low-cost, vertically integrated platform [6][12] - The company is focusing on optimizing its manufacturing footprint and has initiated a formal process for the sale of the HanesBrands Australia business [10][11] - Gildan plans to expand its Bangladesh operations with a second textile facility, expected to support growth plans for 2028 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing synergies and achieving targeted sales growth despite a dynamic macroeconomic environment [22][28] - The company is proactively managing inventory levels to address short-term capacity tightness while preparing for future growth [37][42] - Management highlighted the importance of innovation and investment in product quality to drive future sales growth [55][61] Other Important Information - Operating cash flow for 2025 totaled $606 million, with free cash flow of approximately $493 million after accounting for capital expenditures [21] - The company ended the year with net debt of $4.417 billion and a leverage ratio of 3 times net debt to trailing 12 months pro forma adjusted EBITDA [21] Q&A Session Summary Question: Can you elaborate on the destocking plans for the year? - Management indicated that the destocking is driven by capacity changes due to the closure of two Hanes facilities, and they are working closely with customers to manage inventory levels [35][36] Question: What sales capacity can be achieved after closing the Hanes facilities? - Management confirmed that current manufacturing capacity is sufficient to support the projected sales growth, with additional capacity expected from the second phase of the Bangladesh facility [44][45] Question: How will the integration of HanesBrands be managed? - The integration will be internalized within Gildan's facilities, leveraging existing capacity and optimizing production processes [79][80] Question: Why is there no change to the 2028 EPS CAGR guidance despite increased synergies? - Management maintained the three-year guidance while acknowledging the increased synergies, indicating a cautious approach to ensure performance targets are met [65][66] Question: What is the status of the sale process for HanesBrands Australia? - The sale process is underway, with management engaging bankers and proceeding only if terms are attractive and in the best interest of stakeholders [69]

Financial Data and Key Metrics Changes - Full year revenue decreased by 7% year-over-year, with adjusted EBITDA margin increasing by 140 basis points to 37.5% [12][14] - Net income for Q4 was $99 million, down from $175 million in the same period in 2024, primarily due to a $29 million impairment and $26 million in acquisition-related expenses [21][22] - Adjusted net income for Q4 was $141 million, with diluted earnings per share of $1.68 [21] Business Line Data and Key Metrics Changes - North American on-highway end market saw a sequential improvement of 10% from Q3 to Q4, despite year-over-year declines [20] - Defense end market revenue increased by 26% to $267 million for the full year, achieving the $100 million incremental annual revenue objective [13] - Record revenue of $507 million was achieved in the outside North American on-highway end market for the full year [20] Market Data and Key Metrics Changes - The defense end market showed strong growth, while the North American on-highway market remained soft, particularly in medium-duty trucks [20][72] - The company noted sluggish economic growth and uncertainties in global trade policies affecting performance [12] Company Strategy and Development Direction - The acquisition of Dana's Off-Highway Drive & Motion Systems business is expected to create a global leader with expanded market reach and product portfolio [6][7] - The company aims to leverage synergies from the acquisition, focusing on cost reduction and operational efficiencies [8][9] - Strategic investments in India are being made to support local production and partnerships, aligning with the Make in India framework [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainties and highlighted early signs of demand improvements in North America [13] - The company is focused on maintaining disciplined execution and seamless integration of the acquired business [10][60] - Management acknowledged the challenges posed by macroeconomic factors but remains optimistic about long-term growth opportunities [12][14] Other Important Information - The company repurchased $328 million of common stock, representing 4% of outstanding shares, and increased its quarterly dividend to $0.27 per share [14] - For 2026, the company provided guidance of consolidated net sales between $5.575 billion and $5.925 billion, with net income expected to range from $600 million to $750 million [25][26] Q&A Session Summary Question: Pricing expectations for 2026 and inflation impact - Management expects meaningful year-over-year pricing increases between 250 and 400 basis points, despite inflationary pressures [32][33] Question: EBITDA margin expectations for the acquired Off-Highway business - Management indicated that the Off-Highway business is expected to have an EBITDA margin of 11%-12% on $2.6 billion in revenues, with no one-time items assumed in guidance [38][39] Question: Synergies from the acquisition - Management confirmed that no synergies are embedded in the 2026 guidance, but they are confident in achieving the $120 million annual run rate of synergies over the next few years [48][88] Question: Margin profile for the legacy Allison business - Management believes that returning to peak EBITDA margins of 40% is feasible, depending on top-line growth and cost management [57][59] Question: End market guidance and recovery assumptions - Management remains cautious about recovery in Class 8 trucks and expects continued softness in the North American on-highway market [70][72]

Financial Data and Key Metrics Changes - Full year revenue decreased by 7% year-over-year, with adjusted EBITDA margin increasing by 140 basis points to 37.5% [11][12] - Fourth quarter net sales were $737 million, down 7% from the same period in 2024, with net income for the quarter at $99 million, a decrease of $76 million from $175 million for the same period in 2024 [18][19] - Adjusted EBITDA margin for the fourth quarter increased over 200 basis points to 36% despite a net sales decrease [19] Business Line Data and Key Metrics Changes - The defense end market saw a revenue increase of 26% to $267 million for the year, achieving the $100 million incremental annual revenue objective [12] - In the outside North American on-highway end market, record fourth quarter revenue was achieved, leading to record full-year revenue of $507 million [18] - Fourth quarter net sales in the defense end market were $73 million, up 7% year-over-year [18] Market Data and Key Metrics Changes - North America on-highway end market showed early signs of demand improvements, with a sequential improvement of 10% from the trough in the third quarter of 2025 [12][18] - The company reported strong performance in defense and international markets, with record revenue outside North America in 2025 [12][71] Company Strategy and Development Direction - The acquisition of Dana's off-highway business is expected to create a global leader in the end markets served, with a focus on sustainable growth and long-term value creation [5][10] - The combined company will leverage an expanded global footprint for local production and increased proximity to customers, enhancing product innovation and engineering capabilities [6][8] - The company aims to capture approximately $120 million of annual run rate synergies over the next few years [25][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainty and highlighted the importance of cost control and execution amid macroeconomic challenges [11][12] - The company anticipates continued softness in the North America on-highway end market, particularly for medium-duty trucks, with no meaningful recovery expected for Class 8 vocational trucks [25][66] - Management remains focused on meeting customer commitments and seamless integration of the acquired business [60] Other Important Information - The company repurchased $328 million of common stock, representing 4% of outstanding shares, and increased its quarterly dividend to $0.27 per share [13][14] - The company plans to provide segment reporting starting with Q1 2026, reflecting the historical Allison Transmission business and the newly acquired Off-Highway Drive & Motion Systems business [22][23] Q&A Session Summary Question: Pricing expectations for 2026 and inflation impact - Management expects meaningful year-over-year pricing between 250 and 400 basis points, while facing substantial inflationary pressures [32][33] Question: EBITDA margin implications for the Off-Highway business - Management indicated that the Off-Highway business is expected to have a different mix than in 2025, impacting margin outlook [39][40] Question: Synergies from the acquisition - Management confirmed that the $120 million annual run rate of synergies is still targeted, with no synergies assumed in the 2026 guidance [50][87] Question: Margin profile for the legacy Allison business - Management believes that returning to peak margins of 40% is achievable, depending on top-line growth and cost management [56][58] Question: Off-Highway Drive & Motion segment guidance - Management indicated a mid-plus single-digit growth rate year-over-year for the Off-Highway segment [63] Question: End market guidance and recovery expectations - Management expressed cautiousness regarding recovery in Class 8 trucks and noted soft conditions in the vocational market [70][71]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $959 million, up 51% or $325 million from Q3 2025, driven by $388 million from MRC Global contributions during the stub period [22] - Full year 2025 revenue totaled $2.8 billion, an increase of $447 million or 19% from 2024, marking the fifth consecutive year of growth for DNOW [22] - Adjusted EBITDA for Q4 was $61 million, or 6.4% of revenue, while full year EBITDA was $209 million, or 7.4% of revenue [22][23] - Legacy DNOW achieved a record full-year EBITDA of $199 million in 2025, with EBITDA as a percentage of revenue reaching 8.2% [8][9] Business Line Data and Key Metrics Changes - U.S. revenue for Q4 2025 was $765 million, with MRC Global contributing $298 million; legacy DNOW's revenue was $467 million, down approximately 10% sequentially [23] - Canadian revenue for Q4 was $51 million, down 4% sequentially, while full year Canadian revenue was $214 million [23] - International revenue for Q4 was $143 million, with legacy DNOW International revenue at $53 million, down 7.5% year-over-year [24] Market Data and Key Metrics Changes - Upstream market activity is expected to remain flat to down, focusing on maintenance and efficiency rather than growth [16] - Midstream sector benefits from structural growth drivers, including natural gas infrastructure expansion and LNG development [16] - Gas utility market is expected to grow in 2026, supported by modernization efforts [16] Company Strategy and Development Direction - The merger with MRC Global enhances scale, diversifies sector reach, and expands the addressable market, solidifying DNOW's competitive position [10] - The company aims to achieve $70 million in cost synergies within three years, with $23 million expected by the end of the first year [11] - Focus on integrating operations, optimizing supply chains, and capturing identified cost synergies while maintaining customer service [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ERP challenges impacting U.S. MRC Global operations but is optimistic about resolving these issues [12][14] - The company plans to reinstate guidance once operational stability is achieved, emphasizing the importance of integration and customer service [40][41] - Long-term growth is expected through improved competitiveness, better product availability, and enhanced relationships with suppliers [70] Other Important Information - The company changed its inventory valuation method to LIFO, which better reflects current costs due to commodity price fluctuations [26] - Transaction-related costs and foreign currency translation adjustments negatively impacted net loss in Q4, totaling $147 million [31] - The balance sheet remains healthy with $588 million in liquidity and a leverage ratio of 1.2x [32][33] Q&A Session Summary Question: Impact of MRC's ERP transition on Q4 and resolution timeline - Management indicated that ERP issues are limited to U.S. MRC only and have caused notable revenue declines in Q3 and Q4; efforts are underway to resolve these issues [47][48] Question: Growth expectations for 2026 - Management expects upstream markets to remain flat to down, while midstream and gas utilities are anticipated to grow; overall revenue is expected to be flattish [52][54] Question: Cost synergy targets and drivers - Improved cost synergy targets are driven by urgency to resolve ERP issues, with potential for exceeding initial savings projections [55][59] Question: Long-term vision for revenue growth and profit margins - Management envisions long-term growth through better competitiveness and improved supplier relationships, aiming for EBITDA margins in the 8% range [66][70] Question: Retaining key employees during ERP challenges - The company is focused on rewarding top talent and ensuring they are involved in decision-making to retain key employees during the transition [71][73]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported an Adjusted EBITDA of $385 million and free cash flow of $321 million, with a year-on-year increase in Adjusted EBITDA of nearly 20% to $1.37 billion and free cash flow rising to $626 million [4][5] - The company retired approximately $1.3 billion in debt during the year, reducing annual interest expenses by nearly $90 million and enhancing financial flexibility [5][6] - Total liquidity at the end of Q4 was approximately $1.5 billion, including $620 million in unrestricted cash and cash equivalents [16] Business Line Data and Key Metrics Changes - The company achieved record uptime performance just shy of 98% across its fleet, with zero operational integrity events and zero lost time incidents [6] - The company executed five major planned out-of-service projects on time and on budget, while also recycling six rigs in 2025 [6] Market Data and Key Metrics Changes - Tendering activity is increasing, with expectations for deepwater utilization to exceed 90% through 2027, indicating a strengthening market environment [10] - In the U.S. Gulf, long-term demand remains robust, driven by new lease awards and improved fiscal terms, while Brazil's rig activity is expected to remain stable [10][11] - Africa is projected to see an increase in rig count from approximately 15 to at least 20 over the next couple of years, with significant multi-year program awards anticipated [11] Company Strategy and Development Direction - The company aims to optimize the value of its differentiated assets and generate industry-leading free cash flow, with a backlog of roughly $6 billion expected to convert efficiently into cash [7][8] - The recent acquisition of Valaris is seen as a transformational move that will enhance the company's capabilities and market position, with identified cost synergies exceeding $200 million [8][9] - The company is focused on establishing a stronger capital structure to weather business cycles and improve operational efficiencies [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming inflection point for offshore drilling, supported by customer conversations and increasing tender activity [33][34] - The company anticipates that the market will transition towards development of previously discovered assets, with a marked increase in exploration budgets [35] - Management highlighted the importance of continuity in operations with customers like Petrobras, aiming for cost reductions and extended contracts [56][58] Other Important Information - The company has made significant strides in cost reduction, with plans to decrease costs by an additional $150 million in 2026 [5][6] - The company is positioned to capitalize on improving demand and has a strong operational performance record, which is expected to enhance shareholder returns [9] Q&A Session Summary Question: Impact of Valaris acquisition on chartering strategy - Management indicated that the acquisition allows for cost efficiencies and improved service provision, enhancing reliability and predictability for customers [22][23] Question: Confidence in offshore drilling inflection timing - Management cited customer conversations and data from tender releases as indicators of a strengthening market, with expectations for over 90% utilization by late 2026 [33][34] Question: Guidance related to Petrobras negotiations - Management stated that the guidance reflects their best estimates and does not include significant upside from the Petrobras negotiations [38] Question: Fleet placement and regional opportunities - Management noted that the company can move rigs globally to meet demand, with high-spec rigs being preferred by customers [42][44] Question: Customer feedback on Valaris acquisition - Management reported overwhelmingly positive feedback from customers regarding the acquisition and its potential benefits [52][55] Question: Recent trends in producer M&A activity - Management observed a pivot back towards traditional hydrocarbon sources among producers, indicating a potential for increased offshore activity [74][76]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $959 million, up 51% or $325 million from Q3 2025, driven by $388 million from MRC Global contributions during the stub period [22] - Full year 2025 revenue totaled $2.8 billion, an increase of $447 million or 19% from 2024, marking the fifth consecutive year of growth for DNOW [22] - Adjusted EBITDA for Q4 was $61 million, or 6.4% of revenue, while full year EBITDA was $209 million, or 7.4% of revenue [22][23] - Net loss for Q4 was $147 million, impacted by merger-related costs, including $135 million in inventory step-up charges [31] Business Line Data and Key Metrics Changes - U.S. revenue for Q4 2025 was $765 million, with MRC Global contributing $298 million; legacy DNOW revenue was $467 million, down approximately 10% sequentially [23] - Canadian revenue for Q4 was $51 million, down 4% sequentially, while full year revenue was $214 million [23] - International revenue for Q4 was $143 million, with legacy DNOW International revenue at $53 million, down 7.5% year-over-year [24] Market Data and Key Metrics Changes - Upstream market activity is expected to remain flat to down, focusing on maintenance and reliability initiatives [16] - Midstream sector is benefiting from structural growth drivers, including natural gas infrastructure expansion and LNG development [16] - Gas utility market is expected to grow in 2026, with new solutions like M-Tech gas meters being introduced [17] Company Strategy and Development Direction - The merger with MRC Global aims to increase scale, diversify sector reach, and solidify DNOW's position as a premier distributor [10] - The company is focused on generating cost synergies, targeting $70 million in savings within three years, with an accelerated target of $23 million in the first year [11] - Strategic investments will continue in growing sectors like water management, midstream, gas utilities, and data centers [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ERP challenges impacting U.S. MRC Global operations but is optimistic about resolving these issues [12][40] - The company plans to delay guidance until operational stability is achieved, emphasizing the importance of integration and customer service [40] - Management expresses confidence in overcoming current challenges and highlights the potential for long-term growth through the merger [41] Other Important Information - The company changed its inventory valuation method to LIFO, which better reflects current costs due to commodity price fluctuations [25] - Cash flow from operating activities for the full year was $155 million, with $25 million in capital expenditures [36] - The balance sheet remains healthy with $588 million in liquidity and a leverage ratio of 1.2x [32] Q&A Session Summary Question: Impact of MRC's ERP transition on Q4 and resolution timeline - ERP issues are limited to U.S. MRC Global, with notable revenue loss in Q3 and Q4 due to implementation challenges; resolution timeline is uncertain but efforts are underway to mitigate impacts [47][48] Question: Growth expectations for 2026 - Upstream is expected to remain flat to down, while midstream and gas utilities are anticipated to grow; management is confident in recovering lost revenue momentum [53][55] Question: Cost synergy targets and drivers - Improved cost synergy targets are driven by urgency to resolve ERP issues, with potential for exceeding initial savings projections [56][58] Question: Long-term vision for revenue growth and profit margins - The long-term strategy focuses on leveraging combined strengths for better competitiveness and improved margins, aiming for an EBITDA range of 8% [66][70] Question: Retaining key employees during ERP challenges - The company is focused on incentivizing top talent through financial rewards and leadership opportunities to ensure retention during the transition [71][73]

Herc Rentals FY Conference Summary Company Overview - **Company**: Herc Rentals (NYSE:HRI) - **Industry**: Equipment Rental - **Market Position**: Leading full-line equipment supplier in North America with a market size approaching $90 billion [4][5] - **Workforce**: Approximately 9,600 employees across over 600 locations in 46 states and five Western Canadian provinces [4] Core Insights - **Growth Strategy**: Herc Rentals has been generating above-market growth through investments in fleet, new greenfields, and mergers & acquisitions (M&A) [5] - **Recent Acquisition**: Closed the largest transaction in the industry by acquiring H&E Equipment Services, enhancing branch network and customer reach [6][7] - **Integration Success**: IT integration completed in 90 days, with branch and fleet optimization exercises underway to prepare for peak season [8][13] Financial Performance - **Cost Synergies**: Expected to achieve $125 million in cost synergies impacting EBITDA for 2026, with $35 million already realized in 2025 [21] - **Revenue Synergies**: Projected gross revenue synergies of $390 million over three years, with $40 million achieved in the latter half of 2025 and an expected $100-$120 million in 2026 [21][24] - **CapEx Guidance**: Projected gross CapEx of approximately $1 billion for 2026, with a focus on fleet optimization [31] Market Dynamics - **Rental Market Conditions**: Supply is readily available, with a disciplined market and no significant oversupply. Demand remains stable but challenging, particularly in regions without mega projects [35][36] - **Mega Projects**: $1 trillion worth of work in the pipeline, with Herc Rentals increasing its share in mega projects since 2023 [40][41] Competitive Landscape - **Market Discipline**: The competitive environment remains stable, with major players maintaining discipline in fleet management and market entry [56] - **Future Outlook**: Anticipated improvements in utilization rates and potential for rate increases in the latter half of 2026 [50] Strategic Focus - **Diversification Strategy**: Focus on top 100 metropolitan statistical areas (MSAs) to ensure resilience during uncertain times [6] - **Technology Leadership**: Continued investment in technology to enhance operational efficiency and customer interaction [5] Additional Considerations - **Debt Management**: Plans to utilize free cash flow, projected at $400 million-$600 million for 2026, to pay down debt and return to a 2-3 times leverage ratio by the end of 2027 [67] - **Market Sentiment**: Audience sentiment during the conference indicated a preference for debt paydown and a balanced view on stock valuation multiples for 2026 earnings [60][68]