Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is experiencing accelerating growth in its data center segment, which supports a positive outlook for the company [1]. Group 1: Company Performance - AMD has seen a third consecutive reiteration of a buy rating, indicating strong confidence in its future performance [1]. - The growth in the data center segment is a key driver for AMD's positive outlook [1]. Group 2: Market Position - The partnership mentioned in the article suggests that AMD is actively engaging in strategic collaborations to enhance its market position [1].

Financial Data and Key Metrics Changes - The company achieved ongoing earnings of $1.81 per share, representing a 7.1% growth from the previous year and aligning with the midpoint of the forecast [5][30] - GAAP earnings for 2025 were $1.59 per share, compared to $1.20 per share in 2024, indicating significant year-over-year improvement [30] Business Line Data and Key Metrics Changes - Kentucky results increased by $0.09 per share due to higher sales volumes and additional capital expenditures, while Pennsylvania results increased by $0.04 per share driven by higher transmission revenue and distribution rider recovery [30][31] - Rhode Island results decreased by $0.02 per share due to higher operating costs, but this was partially offset by increased distribution revenue [30] Market Data and Key Metrics Changes - The company reported a significant increase in data center interconnection requests, totaling approximately 25.2 GW, which is a 23% increase since the last quarterly update [18] - In Kentucky, the economic development pipeline reflects over 9 GW of potential new load, with data center-related requests exceeding 8 GW [19] Company Strategy and Development Direction - The updated business plan extends the company's growth outlook while maintaining a focus on customer affordability and a strong credit profile [7] - The company projects capital investment needs of $23 billion from 2026 to 2029, up from $20 billion in the previous plan, to support reliability and resilience against severe weather [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of new generation resources to meet growing demand, particularly from data centers, and highlighted the need for increased capital investments to support this [24][42] - The company remains committed to affordability, having reduced O&M costs by nearly 3% annually, which has helped fund significant capital investments without increasing customer bills [21][22] Other Important Information - The company modified its annual dividend growth rate target to 4%-6% while issuing equity to fund its capital plan [11] - The company has engaged with stakeholders to support economic development, including a $3.5 billion investment by Eli Lilly in Pennsylvania [7] Q&A Session Summary Question: Update on Pennsylvania rate case process - Management indicated that discussions are ongoing and that the focus has been on the impact of data centers on customer affordability, with a constructive outcome expected regardless of whether it resolves through settlement or commission decision [49][54] Question: Contracts for GenCo and JV participation in auctions - Management stated that significant events would be communicated outside of earnings calls and that participation in special auctions would be evaluated based on risk profiles [61][63] Question: Data center backlog and generation sources - Management noted that hyperscalers are focused on speed to connect to the grid and are increasingly engaged in discussions about resource adequacy, with no signs of them pulling out of the region [70][75]

Financial Data and Key Metrics Changes - The company achieved ongoing earnings of $1.81 per share, reflecting a 7.1% growth from the previous year and aligning with the midpoint of the forecast [4][5] - GAAP earnings for 2025 were reported at $1.59 per share, compared to $1.20 per share in 2024, indicating significant year-over-year improvement [30] Business Line Data and Key Metrics Changes - Kentucky results increased by $0.09 per share, driven by higher sales volumes and additional capital expenditures [31] - Pennsylvania results increased by $0.04 per share, led by higher transmission revenue and distribution rider recovery [31] - Rhode Island results decreased by $0.02 per share due to higher operating costs, but higher distribution revenue partially offset this decline [31] Market Data and Key Metrics Changes - The company reported a significant increase in data center interconnection requests, totaling approximately 25.2 gigawatts, a 23% increase since the last quarterly update [18] - In Kentucky, the economic development pipeline reflects over 9 gigawatts of potential new load, with data centers exceeding 8 gigawatts [19] Company Strategy and Development Direction - The updated business plan extends the company's growth outlook while maintaining a focus on customer affordability and a strong credit profile [7] - The capital investment plan is projected at $23 billion from 2026 to 2029, an increase from the previous $20 billion plan, emphasizing investments in transmission and distribution networks [9][38] - The company aims for a 10.3% rate-based compound annual growth rate (CAGR) from 2025 to 2029, supported by critical investments [21][39] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for new, reliable generation resources to meet growing demand, particularly from data centers [44][45] - The company remains committed to minimizing bill increases for customers while ensuring financial strength and supporting economic growth [46] Other Important Information - The company modified its annual dividend growth rate target to 4%-6% while issuing equity to fund its capital plan [11] - The recent Kentucky rate case approved an aggregate increase of approximately $233 million in annual electric and gas revenues [12] Q&A Session Summary Question: Update on Pennsylvania rate case - Management indicated that discussions are ongoing, with a focus on data center load impacts and net metering rules [50][51] - The process is advancing as expected, with a final order anticipated in June [52] Question: Joint venture and bidding into auctions - Management stated that they would not wait for an earnings call to announce significant developments related to the joint venture [62] - The joint venture is evaluating participation in special auctions for new generation but will not modify the company's risk profile significantly [64] Question: Data center backlog and generation sources - Management noted that hyperscalers are focused on speed to connect to the grid and are not overly concerned about the source of generation [72] - There is a strong commitment from customers to stay in the region despite generation concerns [78] Question: Potential investment opportunities and EPS growth - Management refrained from quantifying the potential size of investment opportunities but expressed confidence in the growth plan [82]

Core Insights - Modine Manufacturing (MOD) is undergoing a significant transformation, focusing on Climate Solutions driven by increasing data center demand and a strategic portfolio simplification [1][9] Group 1: Portfolio Transformation - Modine's business mix is shifting towards Climate Solutions, with data center cooling identified as a primary growth driver, expecting 50% to 70% annual growth over the next two fiscal years [2] - The Climate Solutions segment is targeting margins of 20% to 23% for the next fiscal year, with expectations of reaching 20% to 21% margins by the fourth quarter of fiscal 2026, indicating an improvement in both mix and scale [3] Group 2: Separation of Performance Technologies - Modine plans to separate its Performance Technologies business through a Reverse Morris Trust transaction with Gentherm, expected to close in the fourth quarter of calendar 2026 [4] - This separation aims to position Modine as a pure-play Climate Solutions company, focusing on data centers, commercial HVAC, and refrigeration, while reducing exposure to cyclical automotive markets [5] Group 3: Strategic Acquisitions - In fiscal 2026, Modine has made acquisitions including AbsolutAire, L.B. White, and Climate by Design International, enhancing its HVAC and critical air capabilities [6] Group 4: Future Reporting Segments - Starting in fiscal 2027, Modine will report three segments: Data Centers, Commercial HVAC, and Performance Technologies (until the deal closes), leading to a cleaner portfolio and stronger margin potential [7] Group 5: Competitive Landscape - Modine competes with larger players like Trane Technologies and Vertiv Holdings within the Climate Solutions sector, with Trane focusing on commercial buildings and sustainability, while Vertiv aligns closely with data center infrastructure [8][10] Group 6: Long-term Outlook - Modine's transformation is expected to enhance its focus on high-growth, high-margin Climate Solutions markets, particularly in data center cooling, potentially leading to a stronger earnings profile over time [11]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $2.94 and non-GAAP diluted EPS of $3.58, reflecting a 5.3% growth from 2024 on a non-GAAP basis [7][9][15] - The quarterly dividend is being increased by 1.5% to $0.67 per share [7] - The company is initiating 2026 earnings guidance in the range of $3.68-$3.83 per share, representing a 5% growth at the midpoint from 2025 results [8][16] Business Line Data and Key Metrics Changes - The improved margin reflects new rates and regulatory execution, although it was offset by mild weather and higher operating costs [10][12] - Adjusted earnings for the fourth quarter were $1.17, compared to $1.13 in Q4 2024, despite unfavorable weather impacts [11][15] Market Data and Key Metrics Changes - The company has made significant progress in data center growth opportunities, signing a third letter of intent for a 500+ MW data center and advancing with Sabey to a development agreement [7][24] - The company is actively pursuing large load customers in both Montana and South Dakota, with ongoing discussions and agreements in place [26][27] Company Strategy and Development Direction - The company announced an all-stock merger agreement with Black Hills Corporation, expected to close in the second half of 2026, which aims to enhance scale and growth opportunities [4][20] - The updated five-year capital plan is set at $3.21 billion, a 17% increase over the prior plan, focusing on self-funded capital and maintaining high credit quality [8][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative outcomes in Montana, which support transmission investments and wildfire risk management [5][6] - The company is optimistic about its ability to serve large load customers and the benefits of the merger, which is expected to create long-term value for both shareholders and customers [20][22] Other Important Information - The company has filed joint requests for merger approval in multiple states and is preparing for hearings in the second quarter of 2026 [23] - The company is addressing environmental concerns related to Colstrip and is prepared to invest in necessary upgrades if required [81][83] Q&A Session Summary Question: Update on large load tariff filing - The company plans to file a large load tariff once a signed ESA is in place, aiming for completion by the end of Q2 2026 [39][41] Question: Education plan for stakeholders regarding data centers - Management is focused on demonstrating the benefits of data centers and ensuring that they contribute fairly to system costs [42][45] Question: ESA strategy and financing implications - The company is working to ensure that ESAs protect customers while also addressing the unique needs of each data center [60][62] Question: Update on South Dakota plant and environmental upgrades - The South Dakota plant is expected to be completed by 2030, and the company is prepared to invest in environmental upgrades as necessary [78][81] Question: Concerns about merger regulatory delays - Management is confident in the timelines for both South Dakota and Montana, stating that the processes are progressing as expected [94][95]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $2.94 and non-GAAP diluted EPS of $3.58 for the full year 2025, reflecting a 5.3% growth from 2024 on a non-GAAP basis [7][10][16] - The quarterly dividend was increased by 1.5% to $0.67 per share [7] - The company initiated 2026 earnings guidance in the range of $3.68-$3.83 per share, representing a 5% growth at the midpoint compared to 2025 results [17] Business Line Data and Key Metrics Changes - The improved margin for the fourth quarter was attributed to new rates and regulatory execution, although it was offset by mild weather and higher operating costs [11][12] - Adjusted earnings for the fourth quarter were $1.17, compared to $1.13 in Q4 2024, despite unfavorable weather impacting results [12][16] Market Data and Key Metrics Changes - The company is actively pursuing data center growth opportunities, having signed a third letter of intent for a 500+ MW data center and progressed with another from a letter of intent to a development agreement [4][7] - The company is focusing on large load customers in Montana and South Dakota, with significant interest from data centers in both states [27][28] Company Strategy and Development Direction - The company announced an all-stock merger agreement with Black Hills Corporation, expected to close in the second half of 2026, which aims to enhance scale, position, and growth opportunities [4][21] - The updated five-year capital plan is set at $3.21 billion, a 17% increase over the prior plan, reflecting the inclusion of new projects [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative outcomes in Montana, which support transmission investment and mitigate wildfire-related risks [5][6] - The company is committed to maintaining high credit quality and is focused on self-funding its capital plan while managing equity issuance carefully [19][20] Other Important Information - The company has filed joint requests for merger approval in multiple states and is preparing for hearings expected in the second quarter of 2026 [24] - The company is also addressing environmental concerns related to its Colstrip operations and is prepared to invest in necessary upgrades if required [80][81] Q&A Session Summary Question: Update on large load tariff filing - The company plans to file a large load tariff in sync with a signed ESA, aiming for completion by the end of Q2 2026 [38][40] Question: Education plan for stakeholders regarding data centers - Management highlighted ongoing discussions to educate stakeholders on the benefits of data centers and the importance of a tariff that protects customers [41][44] Question: ESA strategy and financing implications - The company is focused on ensuring that ESAs are aligned with tariffs to protect customers, with plans to file by the first half of 2026 [58][60] Question: Update on South Dakota plant and turbine queue - The company is investing in turbines for the 131 MW plant, expected to be completed by 2030 [76][78] Question: Environmental upgrades at Colstrip - Management indicated readiness to invest in environmental controls if necessary, while maintaining a focus on keeping Colstrip operational [80][81] Question: Concerns about merger regulatory timelines - The company is working with regulators in South Dakota and Montana, expressing confidence in the timelines despite some delays [92][93]

Financial Data and Key Metrics Changes - The company reported GAAP diluted EPS of $2.94 and non-GAAP diluted EPS of $3.58 for the full year 2025, reflecting a 5.3% growth from 2024 on a non-GAAP basis [6][9][15] - The quarterly dividend was increased by 1.5% to $0.67 per share [6] - The company initiated 2026 earnings guidance in the range of $3.68-$3.83, representing a 5% growth at the midpoint compared to 2025 results [7][17] Business Line Data and Key Metrics Changes - The improved margin for the fourth quarter was attributed to new rates and regulatory execution, although it was offset by mild weather and higher operating costs [10][12] - Adjusted earnings for the fourth quarter were $1.17, compared to $1.13 in Q4 2024, despite unfavorable weather impacts [11][15] Market Data and Key Metrics Changes - The company is focusing on data center growth opportunities, having signed a third letter of intent for a 500+ MW data center and progressed with another from a letter of intent to a development agreement [6][24] - The company has seen a significant interest in large load customers in South Dakota, with established processes for accommodating them [27] Company Strategy and Development Direction - The company announced an all-stock merger agreement with Black Hills Corporation, which is expected to close in the second half of 2026, aiming to enhance scale and growth opportunities [4][21] - The company is committed to maintaining high credit quality while pursuing a self-funded capital plan, with an updated five-year capital plan of $3.21 billion, a 17% increase over the prior plan [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the legislative outcomes in Montana, which support transmission investments and clarify wildfire-related risks [5] - The company is optimistic about its ability to serve large load customers and enhance reliability and affordability for its customers [30][100] Other Important Information - The company has completed its acquisition of the Avista and Puget Colstrip interests, increasing its ownership in Colstrip from 30% to 55% [30] - The company is actively working on regulatory approvals for its merger and has filed necessary documents with multiple state commissions [24][92] Q&A Session Summary Question: Update on large load tariff filing - The company plans to file a large load tariff once a signed ESA is in place, aiming for completion by the end of Q2 2026 [38][40] Question: Education plan for stakeholders regarding data centers - Management noted ongoing discussions to educate stakeholders on the benefits of data centers and the importance of a tariff that protects customers [41][45] Question: Concerns about delays in merger approvals - Management indicated no concerns regarding the timelines in South Dakota and Montana, stating that the processes are progressing as expected [92][93] Question: Update on the South Dakota plant and turbine queue - The company is investing in turbines for the 131 MW plant, expected to be completed by 2030 [76][77] Question: Environmental upgrades at Colstrip - Management stated that they will invest in necessary upgrades to keep Colstrip operational, depending on regulatory requirements [78][81]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share (EPS) of $3.91 for 2025, which is in the top half of the guidance range, with expectations of over 8% annual growth through 2029 [3][25] - Retail sales increased approximately 4% in 2025, with industrial sales contributing a 7% increase [25][26] - The company anticipates an 8% compound annual growth rate in retail sales through 2029, driven by a 15% growth in industrial sales [4][26] Business Line Data and Key Metrics Changes - The company achieved 4% sales growth in 2025, primarily driven by industrial sales [4] - Significant electric service agreements totaling approximately 3.5 gigawatts were signed in 2025, indicating strong demand from data centers and traditional industrial segments [5][6] - The company has a pipeline of 7-12 gigawatts for data centers and 3-5 gigawatts for other industries, with a clear line of sight on equipment to serve 8 gigawatts of incremental load [6][12] Market Data and Key Metrics Changes - Entergy's utility remains in the first quartile for Net Promoter Score for both residential and business customers, with Entergy Texas ranked number one in customer satisfaction for business electric service in the South [4] - The company noted record employment milestones across all states in 2025, reflecting positive economic development activity [8] Company Strategy and Development Direction - The company is focused on a customer-first strategy that aims to create value for all stakeholders, with a $43 billion capital plan through 2029 to support customer needs [11][25] - The company is exploring new rate offerings such as demand response and time of use rates to complement existing billing options [10] - Entergy is committed to maintaining low rates while improving customer experience and reliability through investments in infrastructure [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook, citing strong demand from data centers and industrial sectors [5][25] - The company is proactive in addressing equity needs and has secured significant credit requirements to protect existing customers [31][43] - Management acknowledged the impact of Winter Storm Fern on operations, estimating restoration costs of up to $300 million for Louisiana and up to $200 million for Mississippi [31] Other Important Information - The company plans to host an Investor Day on June 9 in New York City to discuss significant opportunities and provide a five-year outlook [24] - The company has implemented various programs to improve reliability and reduce outages, funded by data center revenues [9][10] Q&A Session Summary Question: On the large load ramp, was phase one of Hut 8 already partially in plan? - Management indicated that Hut 8 is included in the probability-weighted growth but does not add to the capital plan at this stage [38][39] Question: What protections are in place for large load customers? - Management confirmed that significant credit requirements, including termination fees and minimum bills, are in place to protect against customer walkaways [42][43] Question: What updates should be expected at the Investor Day? - Management stated that the Investor Day will provide more clarity on data center contracts and a longer-term outlook, with potential announcements depending on timing [68] Question: How is the company addressing customer benefits from data centers? - Management explained that the $5 billion in rate offsets is related to contributions to fixed costs and investments in resilience and reliability [60][61] Question: What is the status of the Cottonwood addition to the capital plan? - Management confirmed that Cottonwood is included in the capital plan and is pending regulatory approval [61]

Financial Data and Key Metrics Changes - The company reported a record performance in Q4 2025, achieving a 17% year-over-year growth in revenue, adjusted EBITDA, and AFFO [3] - For the full year, revenue increased 12% to $6.9 billion, adjusted EBITDA grew 15% to $2.6 billion, and AFFO increased 15% to $1.5 billion [3][23] Business Line Data and Key Metrics Changes - Data center revenue increased 30% in 2025, with a 39% increase in Q4 alone, driven by strong demand from hyperscalers [4] - Asset Lifecycle Management (ALM) revenue grew 63% in total for 2025, including 40% organic growth, with a notable 56% organic growth in Q4 [6] - Digital solutions revenue surpassed $500 million in 2025, supported by double-digit growth and a strong pipeline for future projects [7] - The physical storage business achieved record revenue, growing at a mid-single-digit rate, marking 37 consecutive years of organic storage rental revenue growth [9] Market Data and Key Metrics Changes - The company expects data center revenue to exceed $1 billion in 2026, representing over 25% year-on-year growth [27] - The ALM business is projected to reach $850 million in revenue for 2026, indicating approximately 35% year-over-year growth [29] Company Strategy and Development Direction - The company aims to sustain industry-leading revenue and earnings growth into 2026 and beyond, capitalizing on robust demand in the data center industry [4] - The growth portfolio, including data center, ALM, and digital solutions, is expected to support double-digit growth in the future [8] - The company is focused on cross-selling opportunities within its existing customer base, which includes 950 of the 1,000 largest global companies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining strong data center growth, supported by a backlog expected to drive over 25% revenue growth in 2026 [5] - The company anticipates another record year in 2026, with guidance for total revenue between $7.625 billion and $7.775 billion, representing a year-on-year growth of 12% at the midpoint [31] Other Important Information - The company declared a quarterly dividend of $0.864 per share, a 10% increase from the previous year [29] - Capital expenditures for 2026 are planned at $2.0 billion for growth and $150 million for recurring CapEx, slightly down from the previous year [30] Q&A Session Summary Question: Can you touch on the data center pipeline? - Management highlighted strong momentum with over 40 MW of leasing in Q4 and significant interest in markets like Northern Virginia, Richmond, and Madrid [36][38] Question: Can you provide more color on the momentum in ALM? - Management noted a 20% increase in the number of Fortune 1000 customers using ALM services, with expectations for continued growth in both existing and new customers [42][46] Question: How much of the ALM growth came from volumes versus pricing? - Management indicated that the growth was balanced between hyperscale and enterprise, with strong pricing trends contributing positively [49][51] Question: Can you dive deeper into gross margin trends in the services business? - Management explained that gross margins were affected by mix, with services margins improving year-over-year due to strong execution and operational leverage [54][56] Question: What is the M&A landscape for ALM and data centers? - Management stated that while they do not foresee significant M&A activity in data centers, they continue to explore opportunities in the ALM space to expand their footprint [60][66] Question: Any meaningful restructuring charges to consider for 2026? - Management confirmed there will be no restructuring charges in 2026, as the previous restructuring plan ended last year [69]

Financial Data and Key Metrics Changes - The company reported a record revenue of $1.84 billion for Q4 2025, up $262 million year-on-year, representing a 17% increase [20] - Full-year revenue increased 12% to $6.9 billion, with Adjusted EBITDA growing 15% to $2.57 billion and AFFO increasing over 15% to $1.54 billion [23] - Adjusted EBITDA margin reached 38.3%, the highest level reported to date, with a 15% year-on-year increase in Adjusted EBITDA [22][10] Business Line Data and Key Metrics Changes - Data center revenue increased 30% in 2025, with a 39% increase in Q4 alone, driven by strong leasing activity [4] - Asset Lifecycle Management (ALM) revenue grew 63% in total for 2025, including 40% organic growth, with Q4 organic growth at 56% [6] - Digital solutions revenue surpassed $500 million in 2025, driven by double-digit growth and a strong pipeline for future projects [7] Market Data and Key Metrics Changes - The data center market is expected to remain strong, with a projected 25% revenue growth in 2026 and over 20% growth in 2027 [5] - The company has a backlog that supports its growth expectations, with 400 MW of capacity expected to energize over the next 24 months [5] - The physical storage business achieved record revenue, growing at a mid-single-digit rate, marking 37 consecutive years of organic storage rental revenue growth [9] Company Strategy and Development Direction - The company aims to sustain industry-leading revenue and earnings growth into 2026 and beyond, capitalizing on robust demand in the data center industry [4] - The growth portfolio, including data center, ALM, and digital solutions, accounted for two-thirds of the company's growth in 2025 [8] - The company is focused on cross-selling opportunities within its existing customer base, which includes 950 of the 1,000 largest global companies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another record year in 2026, with expectations for total revenue between $7.625 billion and $7.775 billion [31] - The company anticipates continued strong demand for its services, particularly in the data center and ALM sectors, supported by recent commercial wins [11] - Management highlighted the importance of operational efficiency and strong execution in driving profitability and margin expansion [10] Other Important Information - The company declared a quarterly dividend of $0.864 per share, a 10% increase from the previous year, reflecting its commitment to returning value to shareholders [29] - Capital expenditures for 2026 are planned at $2.0 billion for growth and $150 million for recurring CapEx, slightly down from the previous year [30] Q&A Session Summary Question: Can you discuss the data center pipeline and leasing activity? - Management noted strong momentum with over 40 MW of leasing in Q4 and highlighted key markets such as Northern Virginia, Richmond, and Madrid as areas of interest for future deals [36][37] Question: What is the momentum in the ALM business and opportunities for growth? - Management indicated strong organic growth in ALM, with expectations for 20% organic growth in the enterprise segment and significant opportunities for expansion through acquisitions [42][46] Question: Can you elaborate on gross margin trends in the services business? - Management explained that while total gross margin is affected by mix, services gross margin improved year-on-year, driven by operational efficiency and pricing [54][56] Question: What is the outlook for the U.S. Department of Treasury contract? - Management expects approximately $45 million in revenue from the Treasury contract in 2026, with potential to ramp up to around $100 million as outsourcing progresses [80][81]