Financial Data and Key Metrics Changes - Total revenues increased by 5.7% year-over-year in Q4 2025, reflecting improved trends in Proximity Americas and continued growth outside of Mexico, particularly in Coca-Cola FEMSA and Valora [26] - Operating income rose by 8.5%, driven by cost containment initiatives that offset gross margin pressure [26] - Net consolidated income for the quarter reached MXN 12.7 billion, a 33.6% increase compared to the same quarter last year, primarily due to an 8.5% increase in income from operations and a 62.7% reduction in non-operating expenses [27] Business Line Data and Key Metrics Changes - Proximity Americas saw total revenues increase by 5.3%, or 6.3% on a comparable basis, mainly due to same-store sales growth in Mexico and top-line growth in OXXO Colombia and Peru [28] - OXXO Mexico's same-store sales for Proximity Americas grew by 4.4%, while traffic was down 0.6%, showing improvement compared to earlier in the year [5] - OXXO Colombia generated positive EBITDA for the first time for the full year, with nearly break-even EBIT in Q4 [12] Market Data and Key Metrics Changes - OXXO USA ended the year with 50 converted stores under the OXXO banner, focusing on expanding food service offerings [30] - Valora in Europe delivered revenue growth of 2.5% in pesos in Q4, with operating income increasing by 10.8% [31] - The Health Division's revenues increased by 4.6%, driven by strong growth in Colombia and Ecuador, while Mexico remained under pressure due to a lower store base [32] Company Strategy and Development Direction - The company aims to regain OXXO Mexico's growth and relevance by focusing on recovering traffic and same-store sales through a sharper value proposition and improved customer experience [9] - A leaner organizational structure has been implemented to increase efficiency and effectiveness, consolidating leadership teams across divisions [22] - The company plans to increase its store base by more than one-third over the next decade, capturing a broader share of consumer spending [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in traffic and same-store sales, emphasizing the importance of gaining market share in core consumer locations [45] - The company acknowledged challenges in the macroeconomic environment but noted that initiatives implemented in the second half of 2025 have begun to show results [5] - Management highlighted the need to adapt to changing consumer demands and the importance of integrating digital capabilities with physical stores [63] Other Important Information - The company deployed over $1 billion in CapEx for organic growth in Mexico for the third consecutive year, despite a reduction compared to 2024 [12] - The restructuring efforts are expected to generate approximately MXN 1 billion in annualized savings, with full benefits anticipated by 2027 [25] - The company recorded provisions related to restructuring, which will temporarily offset some savings before full benefits are realized [36] Q&A Session Summary Question: Balance between growth and profitability in OXXO Mexico - Management acknowledged the need for profitable traffic growth and emphasized ongoing initiatives to improve the value proposition and assortment in Mexico [43][45] Question: Magnitude of restructuring initiatives - Management indicated that efficiency opportunities are being explored, with a focus on reducing unnecessary expenses and optimizing operations [44][48] Question: Financial services strategy and remittances - Management highlighted the growth potential in financial services and remittances, emphasizing the integration of Spin within the OXXO ecosystem to enhance customer engagement [60][62] Question: Coca-Cola FEMSA's fit within the new structure - Management clarified that Coca-Cola FEMSA and Proximity are seen as distinct businesses, with no current plans for separation, focusing instead on their individual growth potential [79][81] Question: Security incidents affecting stores - Management addressed recent security incidents, commending employees for their bravery and confirming that no customers were harmed, although some stores had to close temporarily [82]

Industry Overview - The Zacks Foreign Banks Industry includes overseas banks operating in the U.S., supervised by the Federal Reserve, providing a range of financial services to both individual and corporate clients [3] - The industry has been undergoing restructuring to improve efficiency, focusing on higher-growth segments like wealth management and digital platforms [4][5] Key Themes Influencing the Industry - Continued restructuring efforts are enhancing revenue quality and improving net interest margins, leading to more stable fee-based income streams [4][5] - Lower interest rates from central banks are expected to stimulate borrowing and reduce funding costs, supporting banks' top-line growth [6] - The uneven global economic recovery post-COVID is limiting growth potential, with weak economic performance in some regions affecting profitability [7] Performance Metrics - The Zacks Foreign Banks Industry ranks 23, placing it in the top 9% of over 250 Zacks industries, indicating strong near-term outperformance potential [8][9] - The industry has collectively surged 93% over the past two years, outperforming the S&P 500 and the Zacks Finance Sector [11] Valuation Insights - The industry has a trailing 12-month price-to-tangible book ratio (P/TBV) of 3.45X, significantly lower than the S&P 500's 11.91X, indicating a discount compared to the broader market [15][18] Company Highlights HSBC - HSBC has $3.23 trillion in assets and is focusing on expanding operations in Asia, particularly in wealth management [21] - The bank is winding down non-core operations in various regions while enhancing its presence in Asia and the Middle East [23] - HSBC's shares have risen 35.2% in the past six months, with a Zacks Rank of 2 (Buy) [25] Itau Unibanco - Itau Unibanco is expanding its operations through strategic acquisitions and has a strong presence in Brazil and other Southern Cone countries [28][30] - The bank's shares have gained 42.6% in the past six months, with a Zacks Rank of 2 (Buy) [33] Barclays - Barclays has £1,544.2 billion ($2,106.3 billion) in total assets and is focusing on core businesses through targeted acquisitions and partnerships [36] - The bank's shares have increased by 27.4% in the past six months, with a Zacks Rank of 1 (Strong Buy) [40]

Initiated a fundamental rebranding to A H Realty Trust to signal a shift from a complex 'octopus' structure to a streamlined, predictable operating model. Executing a total exit from the multifamily sector to harvest the arbitrage between high private market valuations and lower public market REIT valuations. Divesting non-core fee income businesses, including construction management and real estate financing, to eliminate inconsistent revenue streams and focus on contractual cash flows. Prioritizin ...

This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: Werner Enterprises is restructuring its one-way truckload business to prioritize expedited routes and specialized verticals, aiming to increase long-term profitability, according to its Q4 earnings report. The move, which began in Q4, included a reduction of 230 trucks in its one-way fleet and resulted in a $44.2 million charge during the quarter. B ...

Core Viewpoint - British pub operator Greene King is planning a restructuring of its operations in response to higher taxes and rising costs affecting the UK pub sector, which may lead to job losses [1][2] Group 1: Restructuring Plans - The restructuring could impact around 100 roles in the head office and central teams [1] - Discussions are ongoing, and no final decision has been made regarding the restructuring [2] - This review follows a significant restructuring less than two years ago, which involved cutting head office and field-based positions to help the business thrive [2] Group 2: Financial Performance - Greene King reported a 3.2% increase in sales to £2.45 billion ($3.1 billion) in 2024 [3] - Despite the revenue increase, the group posted a pre-tax loss of £147.1 million, with an adjusted operating profit of £198 million [3] Group 3: Operational Expansion - The company continues to expand its estate, with plans to introduce its Hive Pubs and Nest Pubs franchised formats into Wales this year [4]

Core Viewpoint - Ford Motor is expected to report a decline in revenue and adjusted earnings per share for the fourth quarter and year-end results, reflecting challenges in its business operations [2][3]. Financial Performance - The anticipated results indicate a 6.8% decline in revenue compared to the previous year, with adjusted earnings per share expected to fall by more than 50% [2]. - For the fourth quarter of 2024, Ford's automotive revenue is projected to be $44.9 billion, with a net income of $1.8 billion, translating to 45 cents per share, and adjusted earnings before interest and taxes of $2.1 billion, or 39 cents per share adjusted EPS [2]. Special Items and Charges - Ford's fourth-quarter results will include significant one-time charges, such as $600 million related to adjustments in postretirement benefits and a majority of $19.5 billion associated with restructuring its business priorities and reducing investments in all-electric vehicles [3]. - Automakers typically exclude these "special items" from adjusted financial results to provide a clearer view of ongoing business operations [3]. Business Outlook - Investors are keenly awaiting updates on Ford's business plans and forecasts for 2026, as well as production updates for its F-Series pickup trucks, particularly following a supplier fire that has affected operations [4].

Core Insights - Werner Enterprises is restructuring its one-way truckload business to enhance fleet utilization and profitability, with changes expected to be completed in Q1, but financial impacts may not be evident until Q2 [1] Financial Performance - The company reported a net loss of $27.8 million, or 46 cents per share, for the quarter, which included $44.2 million in restructuring and impairment charges, primarily noncash [2] - Adjusted net income, excluding these charges, was $3.3 million, or 5 cents per share, which was below consensus estimates by 5 cents and down 3 cents year-over-year [2] - Consolidated revenue for the quarter was $738 million, a 2% decrease year-over-year and below the consensus estimate of $761 million [5] Business Strategy - Werner is transitioning its one-way business to more profitable services such as expedited, cross-border, and long-haul delivery using driver teams, while exiting unprofitable regional and short-haul operations [3] - The company is also integrating past fleet acquisitions to improve operational efficiency [3] - A significant move into dedicated trucking is underway, characterized by multiyear contracts with shippers, following the acquisition of dedicated carrier FirstFleet for $283 million, which added over 2,400 tractors and $615 million in revenue [4] Operational Metrics - Total truckload (TL) revenue decreased by 3% year-over-year to $513 million, with an adjusted operating ratio of 97.2%, which is 30 basis points worse than the previous year [5] - One-way revenue fell by 8% year-over-year, with average trucks in service declining by 10%, although revenue per truck per week increased by 2% [6] - The one-way fleet decreased from nearly 3,300 tractors in 2022 to less than 2,400 units, a 28% decline, yet the company anticipates participation in an improving spot market [7] - Dedicated revenue increased by 1% year-over-year, supported by a 2% rise in average truck count, despite a 1% decline in revenue per truck per week [7]

Financial Data and Key Metrics Changes - Fourth quarter revenues totaled $738 million, down 2% year-over-year, with full-year revenues also declining by 2% [26] - Adjusted operating income was $11.3 million, and adjusted operating margin was 1.5% [26] - Adjusted EPS was $0.05, with consolidated gains on sale of property and equipment totaling $2.4 million, down from $6.5 million in the prior year [27] Business Line Data and Key Metrics Changes - Truckload transportation services revenue for the quarter was $513 million, down 3%, with revenues net of fuel surcharges also declining by 3% year-over-year [27] - Dedicated fleet revenue net of fuel was $292 million, up 1%, representing 65% of TTS trucking revenue, up from 63% a year ago [28] - One-way trucking revenue net of fuel was $156 million, a decrease of 8%, with average trucks decreasing by 10% year-over-year [30] Market Data and Key Metrics Changes - Logistics revenue was $208 million, representing 28% of total fourth quarter revenues, with revenues decreasing 3% year-over-year [34] - Intermodal revenues increased 24% almost entirely from higher volume, while final mile revenues increased 4% year-over-year [35] - The overall portfolio is increasingly more durable and resilient, improving revenue stability and enhancing the ability to produce steady revenue and earnings growth [21] Company Strategy and Development Direction - The company is focused on executing its strategy to position the business for revenue and earnings growth as demand returns, including restructuring its one-way trucking business [6][9] - The acquisition of FirstFleet is expected to enhance the company's dedicated business and provide a more scalable platform for sustainable growth [7][18] - The company aims to drive growth in core business, operational excellence, and capital efficiency as part of its strategic priorities [12][15] Management's Comments on Operating Environment and Future Outlook - Management sees signs of encouragement for the industry and expects a more positive outlook for 2026 due to ongoing capacity attrition and early signs of demand improvement [6][21] - The company acknowledges challenges in the first quarter due to significant storms and ongoing restructuring but anticipates a material inflection in earnings by Q2 [55][103] - Management remains confident in the company's strategy and execution, focusing on controlling what can be controlled to create long-term value [46] Other Important Information - The company has reduced costs by approximately $150 million over the last three years, with a focus on structural and sustainable savings [14] - The acquisition of FirstFleet was completed for a total purchase price of $282.8 million, expected to be cash flow accretive [39] - The average age of the truck and trailer fleet at the end of the fourth quarter was 2.7 and 5.6 years, respectively [44] Q&A Session Summary Question: What is the normalized earnings power expected for the company? - Management acknowledges the complexity of the current situation but sees opportunities for earnings growth in 2026, particularly from the restructuring and the acquisition of FirstFleet [50][52] Question: Can you elaborate on the one-way restructuring and its impact on rates? - Management explains that contract rate renewals have a lag effect, and the guidance reflects this. The focus is on yield and optimizing the fleet for better service outcomes [60][62] Question: What are the expected benefits from the FirstFleet acquisition? - Management anticipates $18 million in cost synergies, with a significant portion expected to be realized within 2026, leading to margin improvements [78][80] Question: How does the company view the industrial markets in 2026? - Management expresses optimism about the industrial markets, particularly in relation to the Mexico cross-border business, which is expected to perform well [95] Question: What are the expectations for Q1 margins and operating income? - Management acknowledges challenges in Q1 due to weather and restructuring but views these as temporary and expects improvements as the year progresses [102][103]

Financial Data and Key Metrics Changes - Fourth quarter revenues totaled $738 million, down 2% year-over-year, with full-year revenues also declining by 2% [26] - Adjusted operating income was $11.3 million, and adjusted operating margin was 1.5% [26] - Adjusted EPS was $0.05, with consolidated gains on sale of property and equipment totaling $2.4 million, down from $6.5 million in the prior year [27] Business Line Data and Key Metrics Changes - Truckload transportation services revenue for the quarter was $513 million, down 3%, with revenues net of fuel surcharges also declining by 3% year-over-year [27] - Dedicated fleet revenue net of fuel was $292 million, up 1%, representing 65% of TTS trucking revenue, up from 63% a year ago [28] - One-Way trucking revenue net of fuel was $156 million, a decrease of 8%, with average trucks decreasing by 10% year-over-year [29] Market Data and Key Metrics Changes - The Dedicated business is expected to grow significantly with the acquisition of FirstFleet, which will increase Dedicated's share of TTS revenue from approximately 43% to over half [20] - Intermodal revenues increased by 24%, while Final Mile revenues increased by 4% year-over-year [35] - Spot rates performed consistent with seasonal trends, with expectations for an upward trend throughout the year as capacity exits and demand improves [24] Company Strategy and Development Direction - The company is focusing on restructuring its One-Way trucking business to enhance profitability and fleet utilization [33] - The acquisition of FirstFleet is aimed at accelerating the shift towards higher-margin, more resilient Dedicated business [18] - The company plans to drive growth in core business, operational excellence, and capital efficiency as part of its strategy for 2026 [12][15] Management's Comments on Operating Environment and Future Outlook - Management sees signs of encouragement for the industry and expects a more positive outlook for Werner in 2026 due to ongoing capacity attrition and early signs of demand improvement [6] - The restructuring actions taken in Q4 are expected to yield noticeable profitability enhancements by Q2 2026 [53] - Management acknowledges the challenges posed by recent storms but remains optimistic about the company's ability to generate operating leverage and improved earnings performance as demand normalizes [44] Other Important Information - The company has reduced costs by approximately $150 million over the last three years, with a focus on structural and sustainable savings [14] - The total purchase price for FirstFleet was $282.8 million, funded through a combination of cash and debt [39] - The average age of the truck and trailer fleet at the end of the fourth quarter was 2.7 and 5.6 years, respectively [43] Q&A Session Summary Question: What is the normalized earnings power expected for the company? - Management sees opportunities for earnings growth in 2026, emphasizing that the restructuring of One-Way will not hinder participation in market inflections [50][52] Question: Can you elaborate on the One-Way restructuring and its impact on rates? - The restructuring is aimed at improving profitability and fleet utilization, with a focus on specialized freight [57][60] Question: What is the expected impact of FirstFleet on profitability? - FirstFleet's margins are lower than Werner's Dedicated margins, but identified cost synergies of $18 million are expected to improve margins significantly over time [76][78] Question: How does the company view the industrial markets in 2026? - Management expresses optimism about the industrial markets, particularly in relation to the Mexico cross-border business, which is performing well [93] Question: What are the expectations for Q1 margins and operating income? - Management acknowledges challenges from severe weather but anticipates some degree of margin improvement compared to the previous year [100]

Financial Data and Key Metrics Changes - Fourth quarter revenues totaled $738 million, down 2% year-over-year, with full-year revenues also declining by 2% [19] - Adjusted operating income was $11.3 million, and adjusted operating margin was 1.5% [19] - Adjusted EPS was $0.05, with consolidated gains on sale of property and equipment totaling $2.4 million, down from $6.5 million in the prior year [19] Business Line Data and Key Metrics Changes - Truckload transportation services revenue for the quarter was $513 million, down 3%, with revenues net of fuel surcharges also declining by 3% year-over-year [19] - Dedicated fleet revenue net of fuel was $292 million, up 1%, representing 65% of TTS trucking revenue, an increase from 63% a year ago [21] - One-way trucking revenue net of fuel was $156 million, a decrease of 8%, with average trucks decreasing by 10% year-over-year [22] Market Data and Key Metrics Changes - The dedicated business continues to perform well, with a strong pipeline of opportunities and early realization of rate increases [6] - Logistics revenue was $208 million, representing 28% of total fourth quarter revenues, with intermodal revenues increasing by 24% [25] - Spot rates performed consistent with seasonal trends, with expectations for an upward trend throughout the year as capacity exits and demand improves [17] Company Strategy and Development Direction - The company is focusing on restructuring its one-way trucking business to enhance profitability and fleet utilization [24] - The acquisition of FirstFleet is expected to accelerate the shift towards higher-margin, more resilient dedicated business [14] - The company aims to drive growth in core business, operational excellence, and capital efficiency as part of its strategic priorities [10] Management's Comments on Operating Environment and Future Outlook - Management sees a more positive outlook for 2026, with signs of demand improvement and ongoing capacity attrition [4] - The restructuring actions taken are expected to result in noticeable profitability enhancements by the second quarter of 2026 [6] - Management acknowledges the challenges posed by recent storms but remains optimistic about the company's ability to adapt and grow [63] Other Important Information - The company has reduced costs by approximately $150 million over the last three years, with a focus on structural and sustainable savings [10] - The total purchase price for FirstFleet was $282.8 million, funded through a combination of cash and debt [29] - The average age of the truck and trailer fleet at the end of the fourth quarter was 2.7 and 5.6 years, respectively [32] Q&A Session Summary Question: What is the normalized earnings power expected for 2026? - Management sees opportunities for earnings growth and believes the restructuring will lead to a more agile operation, complemented by the acquisition of FirstFleet [37] Question: Can you explain the one-way restructuring and its impact on rates? - The restructuring is aimed at improving profitability and fleet utilization, with a focus on specialized services [40] Question: What is the expected impact of FirstFleet on profitability? - FirstFleet's margins are lower than the company's dedicated margins, but identified cost synergies of $18 million are expected to improve margins significantly over time [50] Question: How does the company view the industrial markets in 2026? - Management expresses optimism about the industrial markets, particularly in relation to packaging and e-commerce, which are expected to drive demand [60]