Gerdau (NYSE:GGB) Q4 2025 Earnings call February 24, 2026 10:00 AM ET Speaker0Good morning, and welcome to Gerdau's fourth quarter 2025 results presentation. I am Ariana Pereira, specialist with investor relations, and it's a pleasure for me to be joined by CEO Gustavo Werneck and CFO Rafael Japur. Please note that this call is being simultaneously translated into English, and you can choose your preferred language by clicking on the globe icon at the bottom of the screen. During the presentation, all parti ...

Performance overperformance in Q4 was driven by the simultaneous maturation of investments in sales personnel, CRM technology, and refined go-to-market processes. The sales force reached a strategic 1:1 ratio of account managers to product specialists, optimizing the balance between clinical selling and complex order support. Lymphedema growth was bolstered by the new National Coverage Determination (NCD), allowing eligible Medicare patients to access advanced Flexitouch pumps without first failing ba ...

Core Viewpoint - Baker Hughes Co is a leading player in the oilfield services industry, showing strong financial performance and growth potential, which has led to an increased price target from Barclays [1][2]. Financial Performance - For Q4 2025, Baker Hughes reported an adjusted EBITDA of $1.34 billion, exceeding guidance [2]. - The company achieved a record high adjusted EBITDA of $4.83 billion for the full year [2][6]. - Baker Hughes generated $1.3 billion in free cash flow for Q4 and a record annual free cash flow of $2.7 billion [3][6]. Market Position and Demand - The company has a record backlog of $32.4 billion and a book-to-bill ratio exceeding 1, indicating strong demand for its services [3]. - The stock price increased by 4.40%, reaching $56.29, with a market capitalization of approximately $55.55 billion [5]. Segment Performance - The Power Systems segment saw orders rise to $2.5 billion in 2025, including $1 billion for data center applications [4]. - The Industrial and Energy Technology (IET) segment achieved a record $14.9 billion in orders for the full year, reflecting strong order momentum [4].

Core Insights - Costco Wholesale Corporation's strong balance sheet and liquidity position provide resilience against challenging retail conditions [1][5] - The company's disciplined debt management and low leverage enhance its defensive profile [2] - Membership fee income growth and a loyal customer base contribute to stable cash flow [4] Financial Position - As of Q1 FY26, Costco reported $17.2 billion in liquid assets, including $16.2 billion in cash and cash equivalents and $966 million in short-term investments [1][8] - Current liabilities stood at $41.8 billion, while current assets were $43.4 billion, indicating a balanced working capital position [2] - Long-term debt was $5.7 billion, with shareholders' equity at $30.3 billion, reflecting limited leverage [2] Cash Flow and Capital Expenditures - In the latest quarter, Costco generated $4.7 billion in cash from operations, covering $1.5 billion in capital expenditures [3] - Projected full-year capital spending is around $6.5 billion, supporting growth initiatives including 28 new warehouse openings planned for FY26 [3] Membership and Revenue Growth - Membership fee income increased by 14% year-over-year to $1.3 billion, driven by a 5.2% rise in total paid memberships to 81.4 million [4][8] - The company maintains a high renewal rate of 89.7%, ensuring predictable cash flow [4] Market Performance and Valuation - Costco's shares have increased by 1.3% over the past year, compared to the industry's growth of 9.9% [6] - The forward price-to-earnings (P/E) ratio is 46.90, higher than the industry average of 31.82, indicating a premium valuation [9] - Consensus estimates suggest year-over-year sales growth of 7.6% and earnings growth of 11.7% for the current financial year [10]

Core Insights - Disney's strengthening cash flow generation is establishing a solid foundation for increased and more consistent shareholder payouts over time [1] Group 1: Cash Flow Performance - In fiscal 2025, Disney reported a 30% year-over-year increase in cash from operations and an 18% growth in free cash flow, leading to a 50% increase in the annual dividend to $1.50 per share and a doubling of share repurchase authorization to $7 billion for fiscal 2026 [2][9] - The Direct-to-Consumer segment saw a significant turnaround, generating $1.3 billion in operating income in fiscal 2025, reversing previous multibillion-dollar losses, which reduced cash burn and enhanced free cash flow durability [3][9] - The Experiences segment achieved a record $10 billion in operating income, contributing to shareholder returns and reinvestment [3][9] Group 2: Future Outlook - Management indicated that the capital-intensive investment phase is easing, with improvements in free cash flow visibility becoming more apparent, projecting approximately $19 billion in cash flow for fiscal 2026 [4] - Underlying operating cash flow growth is expected to be in the high-20% range, positioning the company to sustain higher dividends and accelerated buybacks [4] Group 3: Competitive Comparison - Warner Bros. Discovery (WBD) generated $701 million in free cash flow in Q3 2025, benefiting from tighter cost control and improved streaming profits, but Disney offers broader diversification and longer-term cash flow stability [5] - Netflix (NFLX) generated $2.7 billion in free cash flow in Q3 2025, with expectations of about $9 billion for the full year, showcasing cash flow superiority through its pure-play streaming model [6] Group 4: Valuation and Earnings Estimates - Disney shares have decreased by 2.5% over the past three months, compared to declines of 5.4% in the Zacks Consumer Discretionary sector and 7.3% in the Zacks Media Conglomerates industry [7] - Disney's stock is trading at a forward 12-month price/earnings ratio of 16.19X, lower than the industry's 17.76X, with a Value Score of B [11] - Earnings projections for fiscal 2026 are at $6.58 per share, with a slight decrease over the past 30 days, while fiscal 2027 estimates are at $7.33 per share, down by 4 cents [14]

Core Viewpoint - The Janus Henderson Mortgage-Backed Securities ETF (JMBS) offers a 5.04% yield, making it an attractive option for retirees seeking stable income without the volatility associated with equity-based strategies [2][6]. Income Generation - JMBS generates income from homeowners' monthly mortgage payments, distributing these as monthly dividends to shareholders, ensuring predictable cash flow for retirees [3]. - The fund has maintained an unbroken payment history since its inception in 2018, reflecting its reliability [3]. Dividend Sustainability - JMBS has shown strong dividend resilience across different interest rate environments, with recent monthly payments around $0.20 per share [4]. - The fund's safety is bolstered by its predominantly agency-backed securities, which are guaranteed by the U.S. government, thus minimizing credit risk [5]. - The current interest rate environment supports income generation, with low prepayment risk due to elevated mortgage rates, leading to stable cash flows [5]. Management and Performance - JMBS has a 0.22% expense ratio, which is higher than passive alternatives but justified by its active management strategy that has resulted in a 5.04% yield, significantly above comparable passive MBS funds [6]. - The fund has delivered strong total returns, combining price appreciation with distribution payments, and has outperformed the broad bond market over a five-year period [7].

Core Insights - The wealthy invest in real estate as a strategy to build wealth, leveraging appreciation and tax benefits [1] Group 1: Cash Flow Generation - Wealthy investors prioritize properties that generate monthly rental income, which covers expenses and creates positive cash flow for reinvestment [2] Group 2: Leverage Utilization - The rich typically use loans to acquire properties, allowing them to control more real estate with less personal capital, benefiting from appreciation and rental income [3] - Smart investors secure low fixed-rate loans, using the debt as a wealth accelerator and refinancing to access equity for further investments [4] Group 3: Appreciation - Real estate appreciates historically at a rate of 3% to 5% annually, allowing wealthy investors to benefit from both market and forced appreciation [5][6] Group 4: Tax Reduction Strategies - The tax code rewards property owners, enabling the wealthy to maximize benefits such as market appreciation, forced appreciation, depreciation, 1031 exchanges, cost-segregation studies, and deductible expenses [6][7]

Core Insights - Gold Resource Corporation (GRC) reported strong production results from the Don David Gold Mine in Oaxaca, Mexico, particularly from the high-grade Three Sisters area, indicating significant potential for cash flow generation [1][1][1] Production Statistics - From November 8 to 14, 2025, the mine produced 4,357 tonnes and processed 6,769 tonnes with an average Net Smelter Return (NSR) of $1,512 per tonne, which is 129% higher than modeled [1][1] - From November 15 to 21, 2025, the mine produced 6,580 tonnes and processed 6,095 tonnes with an average NSR of $723 per tonne, with tonnes mined being 40% higher and NSR 91% higher than planned [1][1] Back Forty Project Update - The company has decided to resume work on the Back Forty Project in Michigan, engaging consulting firms for a feasibility study and planning to start the permitting process [1][1] - A technical report summary filed in October 2023 indicated that a 50% increase in gold prices to $2,700 could raise the project's net present value by over 100% to approximately $430 million [1][1] Company Overview - Gold Resource Corporation is focused on gold and silver production, development, and exploration, primarily at the Don David Gold Mine in Oaxaca, Mexico, and the Back Forty Project in Michigan, USA [1][1][1]

Core Viewpoint - Constellation Brands is facing short-term challenges but possesses a strong business model with high-quality brands that may present an attractive investment opportunity despite recent stock declines [1][3][12]. Financial Performance - The company has experienced a 40% decline in stock price year-to-date, with a 15% year-over-year revenue drop to $2.5 billion in the most recent quarter [2][4]. - Operating margins in the beer segment remain robust at around 40%, with consolidated operating margins at 34%, significantly higher than competitors like Anheuser-Busch InBev and Molson Coors [3][5]. Market Position - Constellation Brands holds the 1 beer brand in the U.S. with Modelo Especial and a top-five brand, Corona Extra, maintaining a commanding 10% market share [1][4]. - The company has reported increased consumer loyalty for its core brands, particularly among Gen Z consumers, indicating resilience in brand relevance [4][5]. Consumer Trends - Hispanic consumers, who represent about half of the company's beer sales, have shown volatility in demand, but management believes conditions may stabilize, leading to a potential recovery in sales [6][9]. - The overall trend shows a decline in beer consumption among Americans, with only 34% of consumers preferring beer, which poses a risk to the industry [8]. Cash Flow and Debt Management - Constellation Brands generated nearly $2 billion in free cash flow in fiscal 2025, providing flexibility to navigate downturns [7]. - The company has a manageable net debt of $10.5 billion, with leverage comfortably within its target range, allowing for potential adjustments in capital allocation if necessary [7]. Valuation and Investment Considerations - The stock is currently trading at 12 times free cash flow and offers a 3% dividend yield, which is below its typical valuation range, suggesting potential upside if consumer trends stabilize [13].

Ranger Energy Services Conference Call Summary Company Overview - Ranger Energy Services is the largest well service provider in the United States, focusing on maintenance and production rather than drilling new wells [2][4] - The company reported revenue of approximately $550 million and EBITDA of about $75 million in the previous year, with a free cash flow conversion rate of around 60% [3][4] Recent Acquisition - Ranger recently acquired American Well Services (AWS), a Permian-based company, which contributed approximately $180 million in revenue and $35-$40 million in EBITDA [3][19] - The acquisition was valued at $90 million, primarily funded by $60 million in cash from Ranger's balance sheet [5][23] - This acquisition positions Ranger as the largest well service provider in the lower 48 states, enhancing its market leadership [20] Financial Performance and Strategy - Ranger has historically returned about 40% of its free cash flow to shareholders through dividends and share repurchases, with a commitment to return at least 25% [5][34] - The company has repurchased over 15% of its shares in recent years, indicating a strong focus on shareholder returns [4][34] - Ranger aims to generate over $100 million in EBITDA by 2026, reflecting a significant growth opportunity [30] Market Position and Competitive Advantage - Ranger differentiates itself from competitors by focusing on production and maintenance services, which are generally more consistent through market cycles [6][12] - The company primarily serves major oil companies like ExxonMobil, Chevron, and ConocoPhillips, benefiting from their stable work programs [12][13] - Ranger's service lines include high-spec rigs, processing and ancillary services, and a focus on safety and executional excellence [8][12] Technology and Innovation - Ranger is investing in new technologies, including the Echo electric hybrid rig, which features electric drawworks and regenerative braking [36][37] - The company is also developing an AI camera system called Overwatch to enhance safety on job sites [43] - Ranger's e-ticketing platform integrates with HR systems to streamline operations and improve cash flow [41] Financial Flexibility and Future Outlook - Ranger maintains a strong financial position with a leverage ratio of less than half a turn, allowing for continued share repurchases and potential future acquisitions [32][33] - The company expects to achieve pro forma cash flows of $80 million, providing ample resources for growth initiatives [33] Key Takeaways - Ranger Energy Services is strategically positioned for growth through its recent acquisition of AWS, strong cash flow generation, and focus on shareholder returns [19][30] - The company is committed to leveraging technology and maintaining a competitive edge in the well service industry [36][43] - Future earnings potential is promising, with expectations of exceeding $100 million in EBITDA by 2026, driven by operational efficiencies and market demand [30][31]