The J. M. Smucker Company (NYSE:SJM) Q3 2026 Earnings call February 26, 2026 07:00 AM ET Company ParticipantsCrystal Beiting - VP ofInvestor Relations, Financial Planning and AnalysisMark Smucker - CEO, President, and Chair of the BoardTucker Marshall - CFO, EVP of Frozen Handheld and Spreads, and Sweet Baked SnacksCrystal BeitingGood morning. This is Crystal Beiting, Vice President, Investor Relations and Financial Planning and Analysis for The J.M. Smucker Company. Thank you for listening to our prepared ...

The J. M. Smucker Company (NYSE:SJM) Q3 2026 Earnings call February 26, 2026 07:00 AM ET Speaker0Good morning. This is Crystal Beiting, Vice President, Investor Relations and Financial Planning and Analysis for The J.M. Smucker Company. Thank you for listening to our prepared remarks on our fiscal 2026 third quarter earnings call. After this brief introduction, Mark Smucker, Chief Executive Officer, President, and Chair of the Board, will provide a business and strategy update. Tucker Marshall, Chief Financ ...

CAGNY CONFERENCE 2026 BUSINESS UPDATE FEBRUARY 18, 2026 MARK SMUCKER CHIEF EXECUTIVE OFFICER, PRESIDENT AND CHAIR OF THE BOARD FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, such as projected net sales, operating results, earnings, and cash flows, that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by those forward-looking statements. Us ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.24 per share, while distributable earnings were -$2.07 per share, with distributable earnings prior to charge-offs at -$0.51 per share [4][20] - The distributable earnings prior to charge-offs increased over 20% from Q1, covering the dividend for the second consecutive quarter [5] - The book value ended the year at $20.75 per share, which includes $0.47 per share of accumulated depreciation and amortization [23] Business Line Data and Key Metrics Changes - The loan portfolio is now 99% performing, with $575 million of impaired loans resolved during the quarter, reducing the impaired loan balance to just under $90 million [5][14] - The investment portfolio stands at $20 billion, up from $19.5 billion last quarter, with the loan portfolio at $18 billion and net lease assets now representing 5% of the portfolio [13] - In Q4, the company closed $1.5 billion of investments, including $1.4 billion of new loan originations, all secured by multifamily and industrial assets [11] Market Data and Key Metrics Changes - The real estate credit market is highly liquid, with CMBS issuance accelerating to its highest level since the GFC, up 40% year-over-year [6] - New loan requests in January were up 50% from the prior year, indicating increased enthusiasm from investors [7] - Nearly half of the loans are located in international markets, with almost 40% in Europe, where strong demand is driven by limited new supply [16] Company Strategy and Development Direction - The company has strategically broadened its scope to target complementary investment channels, focusing on multifamily and industrial loans [5] - The strategy remains focused on essential-use retail with attractive credit characteristics, with a net lease portfolio scaling to over $300 million [17] - The company aims to maximize long-term shareholder value while remaining patient and disciplined in capital deployment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong investment and asset management results achieved in 2025, with a positive outlook for the coming year [19] - The company anticipates cash flows from owned real estate to decline in Q1 but expects consistent positive distributable earnings over time [22] - Management noted that the current dividend yield of 9.5% implies a compelling relative value proposition for the stock [10] Other Important Information - The company executed over $5 billion of corporate and securitized debt transactions in the past 12 months, reducing the weighted average borrowing spread by nearly 90 basis points [8] - The total CECL reserve declined nearly 60% quarter-over-quarter due to reserve charge-offs, which had a minimal impact on book value [23][24] - The company has been active in share repurchases, with approximately $140 million since the program's inception in July 2024 [10] Q&A Session Summary Question: Thoughts on supporting the value of loans in the portfolio - Management is exploring all opportunities to maximize shareholder value and feels good about the stock's direction given 2025's performance [29][30] Question: Views on the REO portfolio and specific assets - Management sees improved fundamentals and investor demand in key markets like New York and is strategically considering exits for several assets [33][35] Question: Investment in the Blackstone BREDS Fund - The fund will focus on high-quality core-plus real estate in the U.S. and Canada, with no fees for the fund commitment [39][40] Question: Future portfolio outlook and diversification strategy - The company intends to continue diversifying its portfolio while maintaining its core lending strategy [41][42] Question: Multifamily lending opportunities - The company views multifamily as a structurally undersupplied market and is actively lending in this space [46] Question: Initial general reserve on new loans - The current general reserve is a good proxy for the majority of the portfolio, and as the portfolio grows or shrinks, this will be a reference point [53] Question: Impaired loan resolutions and market conditions - The resolution of impaired loans was aided by the strength of the asset management team and improved market liquidity [56][58] Question: Target allocation for multifamily and industrial properties - The company prioritizes finding the right investments with the best risk-adjusted returns, focusing on diversifying across sectors and geographies [59][60] Question: Cost of capital between CLOs and bank facilities - The company aims for a well-structured, diversified balance sheet and has reduced corporate term loan borrowing spreads significantly [67][68]

Core Insights - PECO reported strong demand for necessity-based retail, achieving record-high occupancy rates and strong leasing activity in 2025 [1][4] - The company anticipates continued mid-single-digit growth in earnings for 2026, with specific guidance on net income and FFO growth [2][3][7] Leasing and Occupancy - In 2025, PECO executed 1,026 leases totaling approximately 6 million square feet, ending the year with a portfolio occupancy of 97.3%, anchor occupancy at 98.7%, and inline occupancy at a record 95.1% [1][6] - The company reported renewal rent spreads of 20% and new leasing rent spreads of 34.3% for the fourth quarter [7] Financial Guidance - CFO John Caulfield provided 2026 guidance of net income between $0.74 and $0.77 per share, with same-center NOI growth projected at 3% to 4% and Nareit FFO per share growth of 5.5% at the midpoint [2][7] - Management expects core FFO per share to grow by 5.4% year-over-year at the midpoint, without assuming any equity issuance [2][7] Capital Deployment and Strategy - PECO plans to prioritize acquisitions and redevelopment, with 2026 acquisition guidance set at $400 million to $500 million and redevelopment spending of approximately $70 million [5][12] - The company aims for an unlevered IRR of 9% for grocery-anchored acquisitions and above 10% for everyday retail centers [12] Market Conditions and Competitive Landscape - PECO is experiencing increased competition for grocery-anchored assets but also sees a rise in available opportunities, with a 200% increase in new potential opportunities in 2025 compared to 2024 [14] - Management believes there is still potential for occupancy growth, with expectations of inline occupancy rising by 100 to 150 basis points [8] Financial Health and Liquidity - PECO ended 2025 with approximately $925 million in liquidity and a net debt to adjusted EBITDA ratio of 5.2x [18] - The company sold about $145 million in assets in 2025 and plans to sell an additional $100 million to $200 million in 2026 to reinvest in higher-return opportunities [17] Overall Outlook - PECO's grocery-anchored, necessity-based portfolio is expected to provide both growth and stability moving into 2026, with a focus on acquisitions and redevelopment [20]

Financial Data and Key Metrics Changes - For the full year 2025, total revenues were $1.714 billion, up 15% year-over-year, marking a record result for the firm [5] - Q4 total revenues were $535 million, up 12% year-over-year, also reflecting a record revenue quarter [6] - Adjusted pre-tax income for the full year was $357 million, with an adjusted pre-tax margin of 20.8% [8] - Adjusted earnings per share were $6.98 for the full year, compared to $5.02 in 2024, and $2.55 for Q4, compared to $1.90 for Q4 2024 [9] Business Line Data and Key Metrics Changes - Strategic Advisory was the primary driver of revenue growth, with record revenues for both Q4 and the full year [6][14] - Restructuring and PJT Park Hill also delivered record results, with Q4 being the best quarter ever for Restructuring [12][47] - Adjusted compensation expense for the full year was $1.15 billion, with a compensation ratio of 67.1%, down from 69% in 2024 [6][8] Market Data and Key Metrics Changes - Global primary fundraising volumes declined for the fourth consecutive year, while interest in secondary products continued to grow [12][13] - M&A activity increased sharply in 2025, with global announced volumes significantly up, making it the second-best year ever for announced M&A activity [14] Company Strategy and Development Direction - The company remains focused on investing in its firm and people, with a capital priority to return capital to shareholders primarily through repurchases [5][10] - The firm plans to report revenue as a single line item going forward, reflecting its strategic priority of expanding and integrating advisory capabilities [11] - The company is optimistic about its position in the Private Capital Solutions business, expecting it to offset declines in primary fundraising [15][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued demand for Liability Management and Restructuring services, citing a multi-year period of elevated activity [21][22] - The outlook for M&A activity remains positive, with expectations of continued strength in capital markets and CEO confidence [15][33] - Management acknowledged geopolitical risks and market volatility but maintained a constructive view on the overall macroeconomic environment [79][80] Other Important Information - The company ended the year with record cash balances of $586 million and no funded debt outstanding [10] - A quarterly dividend of $0.25 per share was approved by the Board [10] Q&A Session Questions and Answers Question: Outlook for Restructuring activity - Management indicated that the current economic environment suggests continued robust demand for Liability Management and Restructuring services, with no signs of decline [21][22] Question: Operating leverage from platform maturation - Management noted that productivity among strategic advisory partners has been increasing, and while investment pace affects short-term results, long-term growth remains a priority [25][26] Question: Competition for talent in restructuring - Management emphasized the firm's focus on attracting and retaining top talent, asserting confidence in its culture and opportunities for growth [72] Question: Trends in Private Capital Solutions - Management highlighted the growing interest in secondary products and the potential for market share growth in Private Capital Solutions, despite challenges in primary fundraising [66][70]

Financial Data and Key Metrics Changes - For Q4 2025, the company generated adjusted net trading income (NT) of $9.7 million per day, totaling $613 million, marking the highest quarterly total since Q1 2021 [7] - The full year 2025 adjusted NT was $8.6 million per day, or $2.1 billion in total [7] - Adjusted EBITDA for Q4 was $442 million, representing a 72% margin, while for the full year, it was $1.4 billion with a 65% margin [8] - Adjusted EPS for Q4 was $1.85, and for the full year, it was $5.73, both representing highs since 2021 [8] Business Line Data and Key Metrics Changes - Market Making reported NT of $7.8 million per day for Q4 and $6.7 million per day for the full year 2025 [7] - Virtu Execution Services (VES) reached $2 million per day for Q4 and $1.9 million per day for the full year [7] - VES experienced its seventh consecutive quarter of increased NT, indicating substantial progress and strong client engagement [8] Market Data and Key Metrics Changes - The favorable operating environment contributed to elevated volumes and strong execution across both operating segments [8] - The company noted increased volatility and higher equity share volumes as underlying drivers for performance [11] Company Strategy and Development Direction - The company plans to grow trading by investing in infrastructure, acquiring talent, and expanding its capital base, with a broad effort across the firm [5][32] - The focus is on increasing the total trading capital and dynamically responding to market opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable operating environment and the potential for continued growth due to favorable market conditions [11][25] - The company aims to maintain a quarterly dividend of $0.24 per share while expanding its capital base [9] Other Important Information - The company increased its invested capital by $625 million in 2025, with an average return of 100% over the year [9] - The cash compensation ratio for the full year 2025 was at 19%, reflecting the focus on retaining and acquiring top talent [9] Q&A Session Summary Question: Did the strong performance come from areas outside of equities? - Management indicated that the favorable operating environment, including increased volatility and equity share volumes, contributed to performance across various asset classes, not just equities [11][12] Question: What is Virtu's exposure to the ETF market? - Management stated that Virtu is a large player in the ETF market, but quantifying the specific impact is challenging [15][16] Question: What are the top strategic priorities for 2026? - The focus is on broad growth initiatives across the firm, increasing trading capital, and investing in infrastructure and talent [32] Question: How much incremental capital was deployed during the quarter? - The company deployed over $600 million in incremental capital, with $450 million in the second half of the year [34] Question: Will innovations around clearing and settlement impact Virtu's PNL? - Management believes that while the exact economic impact is uncertain, increased complexity in the market can provide a competitive advantage [39]

Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for the fourth quarter, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][10] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78% [3][10] - Revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [10] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4] - Average non-interest-bearing deposits grew by 2% annualized, contributing to the overall growth in core deposits, which increased by $260 million or 6.6% annualized [5] - Non-interest income increased to $28.3 million, with significant contributions from the insurance agency and SBA loan sales [7][8][15] Market Data and Key Metrics Changes - The company experienced a favorable improvement in non-performing assets, which declined to 0.32% of total assets [6][14] - The average cost of total deposits decreased to 2.1%, while the total cost of funds decreased to 2.34% [13] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, SBA, wealth management, and insurance [8][9] - A core system conversion is scheduled for the fall of 2026 to enhance scalability and digital capabilities [9][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum and improving profitability, with expectations for loans and deposits to grow in the 4%-6% range for 2026 [18] - The competitive landscape for deposits remains challenging, but the company is focused on maintaining its core model and capturing market share [36] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [8] - The tangible book value per share increased by 3.8% to $15.70, and the tangible common equity ratio rose to 8.48% [17] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the effective tax rate is projected to be approximately 29% for 2026, with benefits from tax credit investments realized throughout the year [23][25] Question: Discussion on capital deployment priorities - Management indicated that organic growth remains the primary focus, with potential considerations for dividends and investments in insurance and wealth platforms [26][27] Question: Insights on deposit competition and its impact - Management acknowledged heightened competition for deposits but emphasized their strong performance in core deposits and the ability to capture market share [36] Question: Trends in the commercial real estate (CRE) market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on organic growth [40] Question: Potential for loan yields to increase - Management indicated that there is potential for yields to improve as the pipeline yield increases and backflow repricing occurs [45] Question: Plans for geographic expansion - Management expressed interest in expanding into adjacent geographies, including Long Island and the Philadelphia suburbs, while already having teams in those areas [50]

Financial Data and Key Metrics Changes - Renasant Corporation's adjusted earnings per share for 2025 were $3.06, an 11% increase year-over-year [5] - Adjusted return on average assets (ROA) grew from 94 basis points in 2024 to 110 basis points in 2025 [5] - Adjusted efficiency ratio improved by approximately 900 basis points year-over-year to 57.46% [5] - Adjusted return on tangible equity increased from 11.5% in 2024 to 13.79% in 2025 [5] - For Q4, net income was $78.9 million or $0.83 per diluted share, with adjusted earnings of $86.9 million or $0.91 per diluted share [7] - Adjusted return on average assets for Q4 was 1.29%, up 20 basis points from Q3 [7] Business Line Data and Key Metrics Changes - Loans increased by $21.5 million on a linked quarter basis, representing a 0.4% annualized growth [7] - Deposits rose by $48.5 million from the third quarter, or 0.9% annualized [9] - Non-interest income for Q4 was $51.1 million, a linked quarter increase of $5.1 million [11] - Non-interest expense for Q4 was $170.8 million, with a linked quarter decrease of $6.2 million when excluding merger and conversion expenses [11] Market Data and Key Metrics Changes - The company sold approximately $117 million of loans acquired from The First, which were not considered core to Renasant's business [8] - The allowance for credit losses (ACL) as a percentage of total loans declined by 2 basis points quarter-over-quarter to 1.54% [9] Company Strategy and Development Direction - Renasant aims to create a high-performing company leveraging opportunities in strong economic regions [4] - The company is focused on maintaining momentum and improving efficiency post-merger with The First [4] - Management emphasized the importance of balancing cost savings from the merger with investments in talent for future growth [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the banking industry's changes and Renasant's ability to capitalize on opportunities [13] - The company anticipates mid-single-digit loan growth for 2026, despite potential lumpiness in quarterly performance [30] - Management noted that while there are challenges, the overall outlook for profitability and growth remains positive [86] Other Important Information - The company recorded a credit loss provision on loans of $10.9 million, with net charge-offs of $9.1 million [9] - Management indicated that they are not expecting any merger-related expenses in Q1 2026 [78] Q&A Session Summary Question: Can you walk us through the expense outlook for the year? - Management indicated a core expense reduction of $2-$3 million expected in Q1, similar to Q4 [20][22] Question: What is the outlook for loan growth? - Management reiterated a target of mid-single-digit growth for 2026, with production remaining strong despite elevated payoffs [30][86] Question: How do you view capital usage and buybacks? - Management stated that organic growth remains the priority, but buybacks are currently the most attractive capital use [43][45] Question: What is the outlook for net interest margin (NIM)? - Management expects a stable margin outlook for 2026, with modest growth in net interest income [52] Question: Can you provide insights on loan competition? - Management noted that competition remains unchanged, with increased pressure on the deposit side [61]

Financial Performance - Adjusted diluted EPS for Q4 was reported at $3.33, with a full-year EPS of $30.29, benefiting from greater tax favorability and non-recurring items contributing $3.75 per share [1] - Q4 operating revenue reached $49.3 billion, reflecting a 10% year-over-year increase, driven by premium rate adjustments and acquisitions [4][7] - Operating cash flow for 2025 was $4.3 billion, with a target of at least $5.5 billion for 2026, and the company returned $4.1 billion to shareholders in 2025 [4][9] Guidance and Future Outlook - Elevance Health set a 2026 adjusted diluted EPS guidance of at least $25.50, with expectations to return to at least 12% adjusted EPS growth in 2027 [2][6][23] - The company anticipates 2026 to be a trough year for Medicaid, expecting an operating margin of approximately -1.75% and a decline of about 750,000 Medicaid members [5][10][12] - Medicare Advantage membership is expected to decline in the high teens percentage range, while targeting at least a 2% margin [5][13] Membership and Market Positioning - The company ended 2025 with 45.2 million members, a decrease of about 500,000 year-over-year, primarily due to lower Medicaid membership [8] - For the individual ACA business, Elevance expects at least 900,000 members by year-end 2026, with a 10% increase in membership coming out of open enrollment [14] - In commercial segments, employer group risk membership is projected to decline in the high single-digit percentage range due to deliberate pricing decisions [15] Operational Strategies - Executives emphasized "execution and repositioning" as key themes for 2026, focusing on portfolio actions across Medicaid, Medicare Advantage, and the individual ACA market [3] - Carelon is expected to see strong demand, particularly in high-cost areas, but near-term growth may be moderated by lower health plan membership [16] - The company updated its long-term enterprise margin target to 5%–6%, with mid-single-digit margins targeted for health benefits and Carelon segments [19][20]