Cleveland, Feb. 19, 2026 (GLOBE NEWSWIRE) -- CBIZ, Inc. (NYSE: CBZ), a leading national professional services advisor, today announced the release of its Q1 2026 Mid-Market Pulse Report, offering fresh insight into how middle-market business leaders are navigating today’s challenges and planning for growth in a complex economic environment. The report, based on insights from more than 1,300 CBIZ clients and client service professionals, highlights key strategic priorities and top areas of concern for busine ...

Powell added that in the first quarter of 2026 , overall input costs were tracking flat versus 2025, though Mondi is facing headwinds from lower energy-related income and emissions credits. He also cited a forestry fair value gain that was EUR 32 million higher than the prior year.Powell said underlying EBITDA of EUR 1,001 million compared with EUR 1,049 million in the prior year. Volumes increased year-over-year, helped by ramp-up of new capacity. On pricing, he highlighted higher containerboard prices, wh ...

Financial Data and Key Metrics Changes - Sales increased by 6% to $137.5 million, driven by pricing, favorable sales mix, higher content value, new program launches, and tariff recovery [8][12] - Gross margin improved to 16.5%, expanding by 330 basis points year-over-year [8][14] - Net income nearly quadrupled to $5 million, or $1.21 per diluted share, with adjusted earnings per share growing 163% to $1.71 [8][21] - Cash from operations reached $14 million for the quarter, totaling $25 million year-to-date [9][23] - The company has a strong balance sheet with $99 million in cash and total debt of only $2.5 million [9][25] Business Line Data and Key Metrics Changes - The company implemented a voluntary retirement program expected to generate $3.4 million in annualized savings [10][37] - Selling, Administrative, and Engineering expenses increased to $17.9 million, or 13% of sales, due to one-time charges and investments in business transformation [18][20] Market Data and Key Metrics Changes - North American automotive production is forecasted to remain flat to moderately decline, impacting the company's sales [28] - The company expects a slight improvement in sales in the third quarter, but anticipates a year-over-year decline of approximately 3%-4% in the second half [14][56] Company Strategy and Development Direction - The company is focused on deepening customer relationships in engineered access solutions and striving for operational excellence to enable sustainable, profitable growth [29] - Investments are prioritized for organic growth, process modernization, and evaluating M&A opportunities for long-term growth [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from supply chain disruptions but noted minimal impact on sales due to customer adaptability [33] - The company is confident in its transformation efforts, having significantly expanded margins and tripled net income [28][29] Other Important Information - The company expects to generate about $40 million in cash from operations annually, with capital expenditures for fiscal 2026 projected to be less than $10 million [24][25] Q&A Session Summary Question: Were there actual revenue pushes from Q2 into Q3 due to supply chain disruptions? - Management indicated there was some slight impact from a supplier fire and chip challenges, but customers managed to work around these issues with minimal sales impact [33] Question: How should selling and administrative expenses be expected to trend in the second half? - Management expects these expenses to remain in the 10%-11% range for the back half of the year, with some adjustments for merit increases [35][36] Question: When will the $3.4 million in savings from the early retirement plan hit the bottom line? - The annual benefit will be phased in, with approximately $400,000 recognized in the current quarter and expected to reach about $800,000 per quarter by the fourth quarter [37][38] Question: What is the outlook for free cash flow? - Management noted that inventory build and restructuring costs will impact cash flow in the third quarter, but the company is intentionally building inventories to improve service delivery [39][40] Question: Can you discuss conversations with potential new customers in North America? - Management highlighted ongoing discussions focused on access products and digital keys, emphasizing the long sales cycle in the automotive industry [47][48] Question: Any updates on the product line review? - Management confirmed a focus on power access products and digital key technology, having deprioritized the switch business due to profitability concerns [55]

Financial Data and Key Metrics Changes - Revenue declined 5% to $1.3 billion, slightly better than the outlook shared in November, with a timing shift of some wholesale deliveries contributing approximately 1 percentage point of growth [27] - Third quarter gross margin declined 310 basis points year-over-year to 44.4%, primarily due to supply chain headwinds and higher U.S. tariffs [30] - Reported diluted loss per share was $1.01, influenced by a non-cash valuation allowance against certain U.S. federal deferred tax assets [33] Business Line Data and Key Metrics Changes - Apparel revenue decreased 3%, largely due to softness in training, golf, and running categories, while sportswear remained flat [29] - Footwear revenue decreased 12%, reflecting declines across most categories, partially offset by growth in outdoor [29] - Accessories revenue decreased 3%, driven largely by declines in golf, outdoor, and team sports [29] Market Data and Key Metrics Changes - North America revenue declined 10%, primarily due to a decrease in wholesale [28] - EMEA revenue increased 6% on a reported basis and 2% on a currency-neutral basis, with growth in both wholesale and direct-to-consumer [28] - APAC revenue decreased 5% on both reported and currency-neutral bases, marking a sequential improvement from earlier declines [28] Company Strategy and Development Direction - The company is focused on execution and has made leadership changes to enhance speed and accountability [9][10] - A disciplined strategy is being implemented to simplify operations, reduce SKUs, and improve product mix and pricing [11][12] - The company aims to stabilize its footwear business by exiting low productivity styles and concentrating on fewer, higher-impact franchises [14][15] Management's Comments on Operating Environment and Future Outlook - Management believes the most disruptive phase of the reset is behind, with a focus on execution and stabilization [25] - There is growing confidence in the North American market, with expectations for stabilization in FY 2027 [45][49] - The company anticipates a decline in full-year revenue of approximately 4%, with expectations for improvement in fourth-quarter revenue trends [37] Other Important Information - The company recorded $75 million in restructuring charges and $3 million in transformation-related expenses during the third quarter [31] - Inventory was down 2% year-over-year to just over $1 billion, indicating improved inventory management [36] - The company is prioritizing balance sheet strength, ending the quarter with no amounts outstanding under its revolving credit facility [36] Q&A Session Questions and Answers Question: Can you speak to what makes you confident about stabilization in North America? - Management expressed confidence in the leadership team and the clarity of the operational model, indicating that they are addressing the right issues and seeing positive order book trends [45][46][49] Question: Are you seeing progress in Europe and APAC as well? - Management noted that EMEA has been a strong performer with 9% growth, while APAC is viewed as a critical long-term growth opportunity [61][64] Question: How are you thinking about segmentation in footwear? - The company is focusing on clear segmentation of good, better, and best products, aiming to concentrate growth at the better and best levels [68][70]

Financial Data and Key Metrics Changes - Cardinal Health reported total revenue for Q2 increased by 19% to $66 billion, driven by strong demand in the pharmaceutical and specialty solutions segment [10] - Gross margin dollars increased by 24% to $2.4 billion, reflecting a favorable mix across businesses [10] - Non-GAAP diluted EPS for the quarter was $2.63, a 36% increase compared to $1.93 in the same quarter last year [12] Business Line Data and Key Metrics Changes - Pharmaceutical and Specialty Solutions segment revenue increased by 19% to $61 billion, with segment profit rising by 29% to $687 million [12][14] - GMPD segment revenue grew by 3% to $3.3 billion, with segment profit increasing to $37 million from $18 million in the prior year [15] - Other growth businesses, including Nuclear and Precision Health Solutions, at-Home Solutions, and OptiFreight Logistics, saw revenue increase by 34% to $1.7 billion, with segment profit up by 52% to $179 million [16] Market Data and Key Metrics Changes - The company expects specialty revenues to surpass $50 billion in fiscal 2026, indicating strong growth in this high-margin area [7] - The GMPD segment's revenue growth was partially attributed to inventory restocking by distributors, which is expected to normalize in Q3 [15][21] Company Strategy and Development Direction - Cardinal Health is focused on strengthening its core business while expanding in specialty and other growth areas, with a commitment to operational excellence and simplification [6][23] - The acquisition of Solaris Health is expected to enhance the company's specialty offerings and market position [7][25] - The company is committed to investing in technology and infrastructure to improve service levels and operational efficiency [25][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic healthcare environment and deliver sustainable growth [23][32] - The updated fiscal year 2026 EPS guidance was raised to a range of $10.15-$10.35, reflecting strong performance and momentum across the portfolio [19][23] - Management noted that while there are expectations for continued strong demand, they are not assuming outsized demand for the remainder of the year [39] Other Important Information - The company generated $1.8 billion in adjusted free cash flow year-to-date and ended the quarter with a cash position of $2.8 billion [18] - Cardinal Health has returned $1 billion to shareholders so far this year, including $375 million in share repurchases [18] Q&A Session Summary Question: Can you unpack or break down some of the components of the profit performance in Pharma Solutions? - Management noted strong demand across all categories in the pharma business, with significant contributions from specialty and generics, and emphasized strong execution by operations teams [35][37] Question: Can you parse apart the other segment a little bit? - Management indicated that the core business remains strong across the three businesses within the other segment, with the ADS acquisition performing at least consistent with expectations [46][48] Question: Can you give us a bit more on capital allocation and the capacity for further transactions? - Management highlighted a disciplined capital allocation framework and noted flexibility to assess growth opportunities while protecting the core business [52][56] Question: Should we expect to see manufacturer brand drug price decreases impact revenue or operating income? - Management stated that anticipated changes in manufacturer pricing would be adjusted within the cost structure to preserve margins, and they do not foresee significant impacts on revenue [76][78] Question: How is the company modeling revenue or earnings for GLP-1s this year? - Management indicated that while GLP-1s have seen significant volume growth, they do not expect it to be a meaningful driver for underlying profitability moving forward [84][85]

Financial Data and Key Metrics Changes - Reported earnings for Q4 2025 were $2.9 billion or $7.17 per share, while adjusted earnings were $1 billion or $2.47 per share, reflecting a flat performance compared to the previous quarter [11][12] - Capital spending for the quarter was $682 million, with operating cash flow generated at $2.8 billion [12][15] - Net debt to capital ratio stood at 38%, with a commitment to return over 50% of net operating cash flow to shareholders through dividends and share repurchases [11][12] Business Line Data and Key Metrics Changes - Midstream adjusted EBITDA increased by 40% since 2022, reaching approximately $1 billion in Q4 2025, driven by higher volumes despite lower margins [8][12] - Refining results improved due to the acquisition of WRB, with higher realized margins in the Gulf Coast, offset by weaker Central Corridor crack spreads [12][13] - Renewable Fuels saw improved results primarily due to higher realized margins, while Chemicals experienced a decrease due to lower polyethylene margins [12][13] Market Data and Key Metrics Changes - The acquisition of WRB increased exposure to Canadian heavy crude differentials by 40%, which have widened by approximately $4 per barrel since the acquisition announcement [7][12] - The worldwide crude utilization rate is expected to be in the low 90s for Q1 2026, with anticipated turnaround expenses between $170 million and $190 million [16][16] Company Strategy and Development Direction - The company is focused on safe, reliable operations, continuous improvement, and disciplined capital allocation to maximize profitability [4][18] - Strategic actions in 2025 included acquiring the remaining 50% interest in WRB, selling a 65% interest in the Germany and Austria retail marketing business, and idling the Los Angeles refinery [5][6] - The company aims to achieve an adjusted controllable cost per barrel of approximately $5.50 by the end of 2027 [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the refining sector, anticipating continued demand growth in 2026, with challenges in meeting that demand due to low refinery additions [80] - The company is optimistic about achieving a run-rate adjusted EBITDA of approximately $4.5 billion by year-end 2027, supported by organic growth opportunities [9][78] - Management emphasized the importance of maintaining a conservative balance sheet while returning cash to shareholders [11][18] Other Important Information - The company reported its best year ever for safety performance in 2025, highlighting the commitment to safety as foundational to operations [4] - The company plans to add a gas plant approximately every 12-18 months, with the Iron Mesa gas plant expected to be in service in early 2027 [9] Q&A Session Summary Question: Outlook for Mid-Continent products and feedstock opportunities post-WRB consolidation - Management highlighted the integration of refining, midstream, and marketing assets, emphasizing the advantages of heavy Canadian crude and the robust demand profile in PADD 2 [20][21] Question: 2026 priorities on cost outlook - Management indicated a target of $5.50 per barrel for controllable refining costs, with continuous improvement initiatives in place [24][27] Question: Turnaround management and utilization rates - Management noted a relatively light turnaround cycle in 2026, with a focus on maintaining low turnaround costs while maximizing utilization [32][34] Question: Cash flow framework and stock buyback capacity - Management outlined a framework for returning cash to shareholders, with approximately $4 billion available for debt reduction and buybacks [36][38] Question: Dynamics of WCS spreads and Venezuelan crude - Management confirmed the ability to process Venezuelan crude and its potential impact on heavy crude differentials, while also addressing market expectations [42][44] Question: Refining operational performance and M&A opportunities - Management acknowledged the potential for M&A if value-creating opportunities arise, particularly in the Mid-Continent or Gulf Coast regions [90][92]

Financial Data and Key Metrics Changes - Reported earnings for Q4 2025 were $2.9 billion or $7.17 per share, while adjusted earnings were $1 billion or $2.47 per share, reflecting a flat performance compared to the previous quarter [11][12] - Capital spending for the quarter was $682 million, with operating cash flow generated at $2.8 billion [12][14] - Net debt to capital ratio stood at 38%, with a commitment to return over 50% of net operating cash flow to shareholders through dividends and share repurchases [11][12] Business Line Data and Key Metrics Changes - Midstream adjusted EBITDA increased by 40% since 2022, reaching approximately $1 billion in Q4 2025, driven by higher volumes despite lower margins [8][12] - Refining results improved due to the acquisition of WRB and higher realized margins in the Gulf Coast, offset by weaker margins in the Central Corridor [12][13] - Chemicals segment saw a decrease in results primarily due to lower polyethylene margins driven by lower sales prices [12][13] Market Data and Key Metrics Changes - The acquisition of WRB increased exposure to Canadian heavy crude differentials by 40%, which have widened by approximately $4 per barrel since the acquisition announcement [7][12] - PADD 2 is expected to have robust demand for the next decade, with gasoline stable and diesel and jet fuel continuing to grow [21] Company Strategy and Development Direction - The company is focused on safe, reliable operations, continuous improvement, and disciplined capital allocation to maximize profitability [4][18] - Strategic actions in 2025 included acquiring the remaining 50% interest in WRB, selling a 65% interest in the Germany and Austria retail marketing business, and idling the Los Angeles refinery [5][6] - The company aims to achieve an adjusted controllable cost per barrel of approximately $5.50 by the end of 2027 [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the refining sector, anticipating continued demand growth and challenges in meeting that demand due to low refinery additions [80] - The company is optimistic about achieving its cost reduction targets and improving operational reliability [27][28] - Management highlighted a positive inflection point in results for 2025, with expectations for continued improvement in 2026 [18][80] Other Important Information - The company plans to add a gas plant approximately every 12-18 months, with a run-rate adjusted EBITDA target of approximately $4.5 billion by year-end 2027 [9][10] - The company has streamlined its operations and reduced headcount to enhance efficiency and performance [17] Q&A Session Summary Question: Outlook for Mid-Continent products and feedstock opportunities post-WRB consolidation - Management highlighted strong integration between refining, midstream, and marketing assets, with a focus on maximizing the advantage of heavy Canadian crude [21] Question: 2026 priorities on cost outlook - Management indicated a target of $5.50 per barrel for controllable refining costs, with continuous improvement initiatives in place [24][27] Question: Turnaround management and utilization rates - Management noted a relatively low turnaround cycle for 2026, with a focus on maintaining high utilization rates [33][34] Question: Cash flow framework and stock buyback capacity - Management outlined a framework for returning cash to shareholders, with approximately $4 billion available for debt reduction and buybacks [36][38] Question: Dynamics of WCS spreads and Venezuelan crude - Management confirmed the ability to process Venezuelan crude and its impact on heavy crude differentials, emphasizing flexibility in crude sourcing [44][46] Question: Potential for consolidation in the refining industry - Management expressed openness to M&A opportunities that enhance competitive advantage, particularly in the Mid-Continent or Gulf Coast [92]

Core Insights - PepsiCo, Inc. reported strong fourth-quarter 2025 results with revenues and earnings per share (EPS) exceeding expectations and showing year-over-year improvement [1][3] - The company experienced accelerated net revenue growth, demonstrating its ability to adapt in a challenging environment [1] Financial Performance - PepsiCo's fourth-quarter core EPS was $2.26, surpassing the Zacks Consensus Estimate of $2.24 and reflecting a 15.3% year-over-year increase [3] - Reported EPS was $1.85, marking a 68% year-over-year surge in the fourth quarter [3] - Net revenues reached $29.34 billion, a 5.6% increase year over year, slightly above the Zacks Consensus Estimate of $29 billion [7] - Organic revenue growth was 2.1% year over year, driven by a 4.5% increase in effective net pricing, despite a 2% decline in organic volume [7] Segment Performance - Revenue growth was observed across all segments, with notable increases in EMEA (12%), LatAm Foods (11%), and PBNA (4%) [12] - Organic revenues improved in most segments, except for PFNA, which saw a 1% decline [13] Operational Efficiency - Reported operating income rose 58% year over year to $3.6 billion, while core operating income increased 17.7% to $4.1 billion [10] - The operating margin expanded significantly to 12.1% from 8.1% in the previous year [10] Future Outlook - For 2026, PepsiCo anticipates organic revenue growth of 2-4%, with a focus on innovation and productivity to enhance competitiveness [20] - The company expects core constant-currency EPS to increase by 4-6%, with core EPS growth projected at 5-7% [21] - Capital spending is expected to remain below 5% of net revenues, with a target free cash flow conversion ratio of at least 80% [22] Shareholder Returns - PepsiCo announced a 4% increase in its annualized dividend to $5.92 per share, marking the 54th consecutive year of dividend growth [15] - The company plans to return a total of $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1 billion in share repurchases [23]

Financial Data and Key Metrics Changes - The company reported sequential revenue growth of 5% in Q4 2025, with adjusted EBITDA margins above 22% and free cash flow conversion of 76% [5][6][10] - Full year 2025 adjusted free cash flow totaled $466 million, representing a 43.7% conversion ratio, a significant improvement over 2024 [10][22] - The net leverage ratio improved to 0.42 times, down from 3.3 times at the beginning of 2021, reflecting a stronger balance sheet [22] Business Line Data and Key Metrics Changes - The Completions and Artificial Lift segments were the largest contributors to top-line growth, with Completions becoming the largest product line due to technology advancements [8][9] - The company experienced a decline of over 50% in revenues from Mexico for the full year 2025, but stability has been reached with steady activity levels [8][12] - The Middle East, North Africa, and Asia region delivered 4% sequential growth, driven by Kuwait, Oman, the UAE, and Indonesia [7][12] Market Data and Key Metrics Changes - North America showed modest growth, supported by higher Canadian activity, while US land activity declined [6][12] - The Europe, Sub-Sahara Africa, and Russia region experienced a 2% sequential decline, indicating ongoing softness in that market [6] - The company anticipates a decline in North America spending in 2026, with mid- to high single-digit declines in activity levels expected [12][73] Company Strategy and Development Direction - The company plans to focus on cost control and productivity improvements in the first half of 2026, with expectations for customer spending to increase in the second half [12][16] - Strategic initiatives include a significant investment in a new ERP system to enhance operational efficiency and data transparency [101] - The company is optimistic about potential opportunities in Venezuela, contingent on stable governance and regulatory environments [15][61] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in Saudi Arabia and the potential for growth in the second half of 2026 [33][34] - The company remains focused on driving cost and capital expenditures to optimal levels for the current activity mix [26][27] - Management highlighted the importance of maintaining margins and cash performance amid expected revenue declines in 2026 [75][94] Other Important Information - The company returned $173 million to shareholders in 2025 through dividends and share repurchases, representing approximately 37% of annual adjusted free cash flow [21][22] - The company expects 2026 revenues to be in the range of $4.6 billion to $5.05 billion, with adjusted EBITDA projected between $980 million and $1.12 billion [24] Q&A Session Summary Question: Outlook for Saudi Arabia - Management is hopeful for a healthy recovery in Saudi Arabia in the second half of 2026 as rigs come online, emphasizing the importance of technology development [33][34] Question: Broader Middle East and North Africa Market - The region remains strong for the company, with continued momentum in the UAE and Kuwait, although some variability is expected in other countries [41][42] Question: Mexico Business Trends - Management noted three consecutive quarters of sequential improvements in Mexico, indicating stability and slight growth expectations for 2026 [51][52] Question: Venezuela Market Potential - Management clarified that no uptick from Venezuela is included in current guidance, but there is potential for significant revenue if conditions stabilize [60][61] Question: Offshore Activity Outlook - Management expressed excitement about improvements in offshore deepwater activity and the potential for growth in various product lines [66][68] Question: North America Activity Outlook - Management acknowledged expected declines in North America but emphasized efforts to maintain margins and drive innovation to offset market pressures [72][75] Question: First Quarter Guidance - Management explained that the first quarter guidance reflects typical seasonality and some orders pulled into Q4, with expectations for a ramp-up in the second half of 2026 [78][80]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for the first quarter was $1.53, which is 13% lower than the same quarter last year [18] - Operating cash flow was strong at $126 million, with discretionary free cash flow of $71 million [18] - The company ended the quarter with a cash balance of $230 million and a liquidity position of approximately $1.4 billion [18] - Capital expenditures for the first quarter were $69 million, with expectations for fiscal 2026 to be between $200 million and $230 million [18] Business Segment Data and Key Metrics Changes - EBIT in the Reinforcement Materials segment declined by 22% compared to the first quarter of fiscal 2025, primarily due to lower volumes in the Americas and Asia Pacific [4][8] - EBIT in the Performance Chemicals segment increased by 7% compared to the first quarter of fiscal 2025, driven by a more favorable product mix and momentum in battery materials [4][8] - In Reinforcement Materials, volumes were down 7% year-over-year, with a 15% decline in the Americas and a 3% decline in Asia Pacific, while Europe saw a 6% increase [19] Market Data and Key Metrics Changes - Tire imports from Asia have increased by approximately 4% year-over-year in the U.S., while Brazil experienced a 4% year-over-year decline in passenger car tire imports due to tariffs [6] - In Europe, tire imports remain elevated, with an 8% increase year-to-date as of November 2025 [7] - The company anticipates that domestic tire production in Western regions will return to growth in 2026 and 2027, influenced by trade measures and pent-up demand [24] Company Strategy and Development Direction - The company is focused on reinforcing its leadership in the Reinforcement Materials segment while investing in growth opportunities in Battery Materials [9][12] - A multiyear agreement with PowerCo, a subsidiary of Volkswagen Group, is expected to enhance the company's position in the battery materials market [15] - The company plans to rationalize Carbon Black capacity in the Americas and Europe to align with current demand levels [11] Management's Comments on Operating Environment and Future Outlook - The management noted that the global demand environment remains challenging, particularly in the Reinforcement Materials segment, due to depressed tire production levels [5] - There are expectations for improving EBIT in the second half of fiscal 2026, driven by new capacity in Indonesia and an acquisition in Mexico [20][22] - The company anticipates continued strong free cash flow generation and plans to return cash to shareholders through dividends and share repurchases [23][27] Other Important Information - The company delivered $50 million in cost savings in fiscal year 2025 and expects to achieve an additional $30 million in cost reductions in fiscal 2026 [9][10] - EBITDA margins for the Battery Materials product line remain attractive at 22% on a trailing twelve-month basis [13] Q&A Session Summary Question: What are you seeing on tire exports leaving the ports in Asia? - The company noted that tire imports in the Americas have been decreasing sequentially, while in South America, tariffs have resulted in a modest year-over-year decline [30] Question: Is the volume weakness in Europe silicas due to the construction silicones market or Dow's silanes closure? - The management indicated that the demand weakness is more related to general market conditions rather than Dow's closure [32] Question: Have you quantified the expected earnings contribution from the agreement with PowerCo? - The company has not disclosed specific earnings contributions due to confidentiality but emphasized the strategic importance of the agreement [35] Question: How does the new Mexico plant fit into America's manufacturing footprint? - The Mexico plant is seen as strategically important, providing operational synergies and supporting long-term partnerships with customers like Bridgestone [44] Question: How are volumes trending in the Americas compared to the December quarter? - Volumes in January are up year-over-year in the Americas, with a sequential increase expected due to seasonal factors [61]