Dorman Products (NasdaqGS:DORM) Q4 2025 Earnings call February 26, 2026 08:00 AM ET Company ParticipantsAlex Whitelam - VP of Investor RelationsDavid Hession - CFOKevin Olsen - CEOTristan Thomas-Martin - Equity Research AssociateConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystDavid Lentz - Managing Director and Senior Research AnalystGary Prestopino - Senior Research AnalystJeff Lee - AnalystJustin Ages - Director and Equity Research AnalystScott Stember - Manag ...

Core Viewpoint - Whirlpool Corporation has announced the pricing of its concurrent public offerings of common stock and depositary shares, aiming to raise approximately $963 million in total to repay debt and fund strategic investments [1][2]. Group 1: Offerings Details - The company is offering 6,884,057 shares of common stock at a price of $69.00 per share, and 10,500,000 depositary shares at $50.00 each, representing a 1/20th interest in newly issued 8.50% Series A Mandatory Convertible Preferred Stock [1][2]. - The net proceeds from the common stock offering are expected to be approximately $454.9 million, while the depositary shares offering is projected to yield around $508.1 million, both before underwriting discounts and expenses [1][2]. - The offerings are set to close on February 27, 2026, pending customary closing conditions [1]. Group 2: Private Placement Agreement - On February 24, 2026, the company entered into a Common Stock Purchase Agreement with Guangdong Whirlpool Electrical Appliances Co., Ltd. for the sale of 434,782 shares at $69.00 per share, totaling $30 million [1]. - The effectiveness of the Purchase Agreement is contingent upon shareholder approval from Whirlpool China, with a closing date initially scheduled for July 31, 2026, which can be delayed by the buyer for up to 240 days [1]. Group 3: Use of Proceeds - The net proceeds from the offerings will be utilized to repay a portion of the outstanding amounts under the company's revolving credit facility and for general corporate purposes, including strategic investments in vertical integration and automation [1][2]. Group 4: Preferred Stock Features - Holders of the depositary shares will have rights and preferences in the preferred stock, including conversion, dividend, liquidation, and voting rights, with dividends accumulating at an annual rate of 8.50% [1]. - Each share of preferred stock will automatically convert into a range of 12.334 to 14.492 shares of common stock by February 15, 2029, subject to anti-dilution adjustments [1].

"expect," "project," "intend," "believe," "may impact," "on track," "guarantee," "seek," and the negative of these words and words and terms of similar substance. Examples of forward-looking statements include statements relating to the offerings of Common Stock, Preferred Stock and Depositary Shares, our ability to complete the Offerings on the anticipated timeline or at all and the anticipated use of the net proceeds therefrom, as well as any other statement that does not directly relate to any historical ...

Core Insights - Drilling Tools International Corporation (DTI) has seen its stock rise by 82.3% in six months, outperforming competitors and the Oil & Gas-Field Services sub-industry [1][2] - The company has demonstrated strong financial performance despite challenges in the oil and gas sector, raising questions about the sustainability of its growth [1][5] Financial Performance - DTI reported $5.6 million in adjusted free cash flow for Q3 2025, with a target of $14 million to $19 million for the full year [5][6] - The company reduced its net debt to $46.9 million by the end of Q3, indicating financial resilience [5][6] - DTI's price-to-sales ratio stands at 0.81, significantly below the sub-industry average of 1.49, suggesting potential undervaluation [6][11] Market Position and Growth - DTI's revenues from the Eastern Hemisphere increased by 41% year over year, now representing about 15% of total revenues, indicating successful international expansion [7] - The company operates a diverse fleet of equipment and has established itself as a reliable provider in the oil and gas industry, competing effectively against larger players like Halliburton and Oceaneering [9][10] Strategic Initiatives - DTI is focusing on smart cost management, innovative technology, and strategic growth to prepare for future industry upturns [12] - The "OneDTI" initiative aims to enhance global presence and scalability through recent acquisitions [12] Challenges - DTI faced a 3.2% year-over-year decline in Q3 revenues and a net loss of $0.9 million, highlighting revenue volatility [13] - The company is experiencing a 5% decline in North American rig counts and a 42% drop in product sales to $7 million [13] - Geopolitical risks and seasonal softness in Q4 may impact DTI's operations and financial performance [14]

Core Viewpoint - Lithia & Driveway is the largest global automotive retailer, focusing on new and used vehicle sales and aftersales services, while pursuing strategic growth and acquisitions to maintain its leadership position [1] Financial Performance - The company reported record full-year revenues of $37.63 billion, representing a 4% increase from the previous year [2][6] - In the fourth quarter, revenues reached $9.20 billion, with a 6.1% growth in used vehicle revenue and a 4.7% increase in used retail units on a same-store basis [3] - Aftersales revenue increased by 10.9%, contributing to a 9.8% rise in gross profit on a same-store basis [3] Earnings and Shareholder Returns - The fourth quarter diluted earnings per share were reported at $5.72, with adjusted diluted earnings per share at $6.74 [4] - In 2025, the company repurchased $947 million worth of shares, accounting for 11.4% of outstanding shares, including 3.8% in the fourth quarter [5] Strategic Initiatives - Lithia & Driveway made strategic acquisitions totaling $2.4 billion in annual revenue, emphasizing strong growth in used vehicles and aftersales despite challenges in new vehicle sales [5][6] - The financing operations achieved a record quarterly income of $23 million, a significant increase of $19 million from the previous year, with a penetration rate of 15% and an average FICO score of 751 [4]

Core Insights - FTAI Aviation is a significant player in the aviation leasing sector, focusing on managing a diverse portfolio of aircraft and engines [1] - Jefferies upgraded FTAI's stock to a "Buy" rating with a price target increase from $215 to $350, reflecting strong confidence in the company's future performance [2][6] - FTAI aims to achieve an EBITDA of $3 billion over the next two years, planning to deliver over 100 engines annually at a 40% profit margin [3][6] Stock Performance - FTAI's current stock price is $275.38, with a 1.02% increase today, and has ranged from $268.89 to $279.29 [4] - Over the past year, FTAI's stock has experienced a high of $310 and a low of $81.45, indicating significant volatility [4][6] - The company's market capitalization is approximately $28.25 billion, with a trading volume of 1,062,721 shares, reflecting investor confidence [5]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported an Adjusted EBITDA of $83.4 million, an increase of $8.1 million or nearly 11% compared to the prior year [7][10] - Net income for the first quarter was $46.6 million, compared to $38 million or $0.59 per common unit in the prior year [10] - Total gross margin for the first quarter was $238.6 million, an increase of $16.1 million or 7.2% year-over-year [12] Business Line Data and Key Metrics Changes - Retail propane gallons sold totaled 100 million, reflecting a 4.2% increase compared to the prior year [10] - The renewable natural gas (RNG) operations saw an increase in average daily RNG injection, driven by operational enhancements at the Stanfield, Arizona facility [8] Market Data and Key Metrics Changes - Average wholesale propane prices per gallon were in the $0.60 range, down from $0.90 a year ago [12] - Propane inventories were reported at 89 million barrels, which is 34% above historical averages for this time of year [12] Company Strategy and Development Direction - The company is focused on long-term strategic growth plans, including the acquisition of two propane businesses in California and progressing capital projects to grow RNG production [9] - The company is investing nearly $7 million in RNG projects and refinancing its 2027 senior notes to maintain balance sheet strength and flexibility [9] Management's Comments on Operating Environment and Future Outlook - Management noted that colder weather in northern territories drove heat-related demand, contributing to the increase in volume sold [6] - The company remains committed to growing its core propane business while also expanding into alternative, lower carbon, renewable fuels [17] Other Important Information - The Board of Supervisors declared a quarterly distribution of $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [16] - The company borrowed $115.4 million under its revolving credit facility to fund seasonal working capital needs [14] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18][20]

Financial Data and Key Metrics Changes - For Q1 2026, adjusted EBITDA increased by $8.1 million, or nearly 11%, totaling $83.4 million compared to the prior year [7][10] - Net income for the first quarter was $38 million, equating to $0.59 per common unit [10] - Total gross margin for the first quarter was $238.6 million, an increase of $16.1 million, or 7.2%, driven by higher propane volume sold and increased propane unit margins [12] Business Line Data and Key Metrics Changes - Retail propane gallons sold totaled 100 million, reflecting a 4.2% increase compared to the prior year [10] - Average daily renewable natural gas (RNG) injection increased both sequentially and year-over-year due to operational enhancements at the Stanfield, Arizona facility [7][8] Market Data and Key Metrics Changes - Average temperatures during the first quarter were 6% warmer than normal and 6% colder than the prior year, impacting demand variably across regions [11] - Wholesale propane prices remained in the $0.60 per gallon range, down from $0.90 per gallon a year ago [12] Company Strategy and Development Direction - The company is focused on long-term strategic growth plans, including the acquisition of two propane businesses in California and progressing capital projects to grow RNG production [9][17] - The company aims to maintain a strong balance sheet while investing in sustainable and renewable fuel markets [17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of colder weather on heat-related demand and expressed confidence in meeting customer needs despite challenges from harsh weather [6][16] - The company remains committed to growing its core propane business while leveraging competencies to expand into alternative, lower carbon fuels [17] Other Important Information - The Board of Supervisors declared a quarterly distribution of $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [16] - The company borrowed $115.4 million under its revolving credit facility to fund seasonal working capital needs [14] Q&A Session Summary - No questions were posed during the Q&A session, and the call concluded without further inquiries [18][20]

Summary of Orion Acquisition Conference Call Company and Industry Overview - **Company**: Orion Acquisition of J.E. McAmis and JEM Marine Leasing - **Industry**: Marine construction and heavy civil contracting Key Points and Arguments 1. **Acquisition Announcement**: Orion has acquired J.E. McAmis, a specialized heavy civil contractor, enhancing its capabilities in marine construction [2][4] 2. **Strategic Fit**: The acquisition is seen as a strategic move to strengthen Orion's position in the marine construction sector, particularly in the Pacific Northwest [4][13] 3. **Financial Highlights**: - Purchase consideration is $60 million, including $46 million in cash, a $12 million subordinated promissory note, and $2 million in common equity [10] - McAmis has a historical revenue run rate of $40 million with EBITDA margins consistently above 20% [11] - McAmis has a backlog of $24 million and a pipeline of opportunities worth over $1.4 billion [29][15] 4. **Operational Strengths**: McAmis is recognized for its safety record, on-time performance, and strong relationships with federal clients, particularly the U.S. Department of Defense and U.S. Army Corps of Engineers [5][39] 5. **Growth Opportunities**: The acquisition is expected to provide access to new projects and markets, particularly in environmental restoration and coastal protection, aligning with increasing federal investments in infrastructure [8][78] 6. **Cultural Alignment**: The leadership of McAmis is seen as a good cultural fit with Orion, which is crucial for successful integration [9][34] 7. **Integration Strategy**: The integration will focus on leveraging McAmis' expertise across Orion's existing operations, particularly in expanding geographic reach [41][56] 8. **Future M&A Strategy**: Orion plans to continue evaluating acquisition opportunities that align with its strategic goals, emphasizing cultural fit and operational synergies [44][80] Additional Important Content 1. **Equipment and Fleet**: McAmis brings specialized marine equipment valued at over $34 million, enhancing Orion's operational capabilities [5][17] 2. **Project Examples**: McAmis recently completed a $170 million project on the Columbia River, showcasing its ability to handle complex marine construction projects [7] 3. **Federal Work Dependency**: Over 80% of McAmis' revenue comes from projects with the Army Corps of Engineers, indicating a strong reliance on federal contracts [39] 4. **Contingent Consideration**: The acquisition includes performance-based incentives for McAmis' management, ensuring alignment with Orion's growth objectives [54][65] This summary encapsulates the key aspects of the conference call, highlighting the strategic importance of the acquisition and its implications for Orion's future growth and operational capabilities.

Core Insights - The article highlights the challenges faced by wealth management firms in achieving organic growth, despite rising market conditions [1] - The RIA Edge 100 recognizes registered investment advisors (RIAs) that demonstrate strategic growth while maintaining high client service standards [1][3] Group 1: Growth Strategies - Firms are focusing on deliberate scaling through operational improvements rather than relying solely on favorable market conditions [2] - The growth of these firms is occurring amidst accelerated consolidation, talent competition, and rising client expectations for holistic wealth solutions [2] Group 2: Definition of Success - Leading firms are redefining success by building resilient organizations, enhancing leadership teams, investing in next-generation talent, and improving operational efficiency [3] - The goal of the RIA Edge 100 list is to highlight firms that achieve intentional, strategic growth rather than those benefiting passively from market movements [4] Group 3: Evaluation Metrics - Firms included in the RIA Edge 100 are SEC-registered investment advisors specializing in financial planning, managing at least $500 million in assets, and primarily serving high-net-worth clients [5] - The evaluation metrics used to develop the list include five-year AUM growth, employee-to-client ratio, AUM per advisor, and the percentage of employees holding CFP certification [6]