UFP Technologies (NasdaqCM:UFPT) Q4 2025 Earnings call February 25, 2026 08:30 AM ET Speaker3Good day, welcome to the UFP Technologies fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, pleas ...

Financial Data and Key Metrics Changes - In 2025, Ryder achieved comparable earnings per share of $1,292, more than double the $595 reported in 2018, with a return on equity (ROE) of 17%, up from 13% in 2018 [12][25] - Operating cash flow increased to $2.6 billion in 2025, up more than 50% from $1.7 billion in 2018 [12][21] - For the fourth quarter, operating revenue was $2.6 billion, consistent with the prior year, while comparable earnings per share from continuing operations were $3.59, up 4% from the previous year [15][25] Business Line Data and Key Metrics Changes - Fleet Management Solutions (FMS) operating revenue decreased by 1%, with pre-tax earnings down to $136 million due to weaker market conditions [16][19] - Supply Chain Solutions (SCS) operating revenue increased by 3%, but earnings decreased by 8% due to lost business and production shutdowns in automotive [18][19] - Dedicated Transportation Solutions (DTS) operating revenue decreased by 4%, but EBT was above the prior year due to lower bad debt and acquisition synergies [19][25] Market Data and Key Metrics Changes - The U.S. economic growth is expected to be modest in 2026, with no significant change in freight market conditions anticipated [24][25] - U.S. Class 8 production is forecasted to decline by 4% in 2026, impacting the overall market dynamics [24] Company Strategy and Development Direction - Ryder's balanced growth strategy has been transformative, reducing reliance on used vehicle proceeds and focusing on asset-light supply chain and dedicated businesses [8][10] - The company is investing in customer-centric technology and AI to enhance operational efficiency and customer service [9][10] - Ryder aims to achieve higher returns by focusing on profitable growth opportunities and strategic investments [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver earnings growth and increased returns in 2026, driven by strategic initiatives and a strong contractual portfolio [24][25] - The company anticipates that the earnings power of its contractual businesses will offset near-term headwinds in transactional parts of the business [31][34] Other Important Information - Ryder has generated $3 billion in free cash flow since 2021 and has repurchased 24% of shares outstanding while increasing the quarterly dividend by 57% [14][23] - The company expects to generate approximately $10.5 billion from operating cash flow and used vehicle sales proceeds over the next three years, creating $3.5 billion of incremental debt capacity [21][22] Q&A Session Summary Question: Variability in Earnings Guidance for 2026 - The largest variability in earnings guidance is tied to the transactional business, particularly maintenance and omnichannel optimization initiatives [38][40] Question: Used Vehicle Sales Expectations - Used vehicle sales are expected to improve gradually throughout the year, with Q1 consistent with Q4 levels [45][46] Question: Impact of Market Conditions on Rental Business - The company has not seen meaningful improvement in rental and used vehicle sales, with guidance not reflecting significant market recovery [64][66] Question: Benefits of Baton Technology - Baton is expected to optimize fleet operations and enhance customer solutions through AI technology [67][68] Question: Flex Operating Structure in Dedicated Business - The flex operating structure is anticipated to optimize back-office resources and improve driver allocation, potentially offsetting margin headwinds [86][87]

Core Viewpoint - Plains All American Pipeline, L.P. is a significant player in the midstream energy sector, focusing on the transportation, storage, and marketing of crude oil and natural gas liquids, primarily in North America [1] Financial Performance - Plains All American reported fourth-quarter earnings per share of 40 cents, slightly below the analyst consensus of 41 cents, and quarterly sales of $10.56 billion, missing the expected $12.73 billion [2] - Following the earnings report, PAA shares declined by 1.6%, trading at $19.09, with a current stock price of $19.20, reflecting a decrease of 1.03% [4] Market Position and Strategy - Analysts have increased their forecasts for Plains All American despite the earnings misses, indicating confidence in the company's strategic initiatives [3] - The company is focusing on the sale of its Canadian NGL business and the acquisition of Cactus III to enhance efficiency and growth potential in the volatile oil market [3][6] - Today's trading volume for PAA is 1,496,703 shares on the NASDAQ exchange, as the company aims to become a leading North American crude oil midstream provider [5] Price Target and Analyst Outlook - Scotiabank set a price target of $23 for PAA, suggesting a potential upside of 19.57% from its then trading price of $19.24 [2][6]

Financial Data and Key Metrics Changes - The company reported a net sales decrease of 3.3% for Q1 2026, with organic net sales down 6% primarily due to softness in the Home and Personal Care business and an accelerated seasonal inventory build from the previous year [18] - Adjusted EBITDA for the quarter was $62.6 million, a decrease of $15.2 million, driven by lower volume and reduced gross margins [20] - The gross profit decreased by $16.2 million, with a gross margin of 35.7%, down 110 basis points [19] Business Line Data and Key Metrics Changes - Global Pet Care business reported an 8.3% increase in net sales, with organic net sales up 5.8%, driven by strong performance in companion animal and aquatics categories [23] - Home and Garden business saw a significant net sales decrease of 19.8%, attributed to prior year inventory build and typical seasonal trends [28] - Home and Personal Care business experienced a net sales decrease of 7.6%, with organic net sales down 11.1%, impacted by higher inventory levels at a key retailer [33] Market Data and Key Metrics Changes - North America showed growth in the Global Pet Care segment, with share gains in companion animal categories [8] - EMEA sales in the Global Pet Care segment decreased in the low single digits, primarily due to a decline in dog and cat food sales [24] - LATAM region reported high teens growth in Home and Personal Care, driven by positive consumer reactions to new product launches [34] Company Strategy and Development Direction - The company aims to maintain a healthy balance sheet and focus on operational excellence, with ongoing investments in brand innovation and strategic acquisitions [10][12] - The strategic priority includes a "fewer, bigger, better" approach to concentrate resources on high-impact initiatives [11] - The company is optimistic about the M&A landscape and aims to be a consolidator in the Global Pet Care and Home and Garden sectors [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery from tariff disruptions and macroeconomic volatility, noting early signs of recovery in consumables [7] - The company anticipates continued softness in the Home and Personal Care business but expects stabilization in the second half of the fiscal year [38] - Management reiterated expectations for flat to low single-digit growth in net sales and adjusted EBITDA for fiscal 2026 [39][46] Other Important Information - The company generated nearly $60 million of adjusted free cash flow in Q1 and repurchased approximately 600,000 shares [9] - A new $300 million share repurchase program has been authorized by the board [9] - The company ended the quarter with a cash balance of $126.6 million and net debt of $452.3 million [22] Q&A Session Summary Question: Has the pet market reached a bottom? - Management refrained from making definitive statements about market bottoms but expressed satisfaction with market share gains in the pet segment [48][49] Question: Commitment of retailers to the garden category? - Management is optimistic about the Home and Garden business, citing strong POS trends and new product launches [50][51] Question: Anticipated improvement in sales cadence? - Management expects the pet business to continue growing, while Home and Garden will see stronger performance in the second half of the year [58][59] Question: Levels of investment in brands? - Investment levels are deemed appropriate for Global Pet Care and Home and Garden, with potential pullbacks in Home and Personal Care based on recovery [62][64] Question: Innovation pipeline for FY 2026? - Management confirmed a strong pipeline of new products for both Home and Garden and Global Pet Care, with successful launches expected to drive growth [66] Question: Progress in the Home and Personal Care business? - Management acknowledged challenges but noted improvements in the North American market and a focus on strategic solutions for the business unit [71][76]

Core Insights - Silgan reported a decrease in fourth-quarter 2025 profit, with net income at $18.2 million compared to $45.1 million in the same quarter of 2024, and earnings per diluted share fell to $0.17 from $0.42 [1] - Quarterly net sales increased to $1.47 billion, a 4% rise influenced by higher raw material costs and favorable currency exchange rates [1] Financial Performance - The dispensing and specialty closures segment generated $643.6 million, up 1% from the prior year, while metal containers saw an 11% revenue increase to $675.6 million due to price adjustments and increased sales volumes [2] - Custom containers' revenue fell 8% to $149.4 million, primarily due to lower volumes and the impact of exiting lower margin business [2] - For the full year 2025, Silgan's net income was $288.4 million, an increase from $276.4 million in 2024, with earnings per diluted share at $2.70 compared to $2.58 a year ago [3] - Annual net sales totaled $6.5 billion, an 11% gain from $5.9 billion the previous year [3] Segment Performance - The dispensing and specialty closures segment contributed $2.7 billion, up 17%, partly due to the acquisition of Weener Plastics and higher demand in fragrance and beauty dispensing products [3] - Metal containers generated $3.1 billion in sales, an increase of 8%, while custom containers finished with $637.6 million in net sales, down 2% [4] Future Outlook - Looking ahead to 2026, the group expects adjusted net income per diluted share between $3.7 and $3.9, a slight increase from the adjusted figure of $3.72 in 2025 at the midpoint of guidance [4] - The company highlighted meaningful progress from key strategic initiatives, including the successful integration of the Weener acquisition and completion of a multi-year cost savings program [5] - The company expressed confidence in its strong business fundamentals and continued demand for its product portfolio in consumer staple end markets [6]

Core Viewpoint - Johnson & Johnson (JNJ) is a leading player in the healthcare sector, demonstrating strong market performance and investor confidence, with RBC Capital maintaining an "Outperform" rating and raising the price target to $255 [1][4][5] Financial Performance - From May 2025 to February 2026, JNJ's stock increased by 52%, attributed to improved earnings and product achievements [2][5] - The company's revenue grew by 3.2%, supported by better margins, innovation, and strategic evolution [2] - JNJ's current stock price is $233.39, reflecting a 1.14% increase, with a daily trading range between $230.48 and $235.20 [2] Market Position - JNJ's market capitalization is approximately $562.31 billion, with a trading volume of 1,331,327 shares [3][5] - The stock has experienced a high of $235.24 and a low of $141.50 over the past year [3] Strategic Outlook - RBC Capital's decision to raise the price target indicates confidence in JNJ's future growth prospects, driven by strategic initiatives and product innovations [4][5] - The company's effective risk management and progress in legal matters have bolstered its positive performance and investor confidence [3]

Core Viewpoint - Air Products and Chemicals, Inc. reported strong financial results for its fiscal first quarter, demonstrating resilience in challenging market conditions and maintaining a positive outlook for the fiscal year 2026 [2][3][4]. Financial Performance - The company achieved an EPS of $3.16, exceeding the estimated $3.04, and revenue reached approximately $3.1 billion, surpassing the estimated $3.05 billion [2][6]. - The GAAP EPS was reported at $3.04, marking a 10% increase year-over-year, while GAAP operating income rose to $735 million, a 14% increase from the previous year [3]. - Adjusted EPS of $3.16 and adjusted operating income of $757 million reflect a 12% rise, indicating robust financial health [3]. Guidance and Projections - Air Products is maintaining its full-year adjusted EPS guidance for fiscal 2026, projected to be between $12.85 and $13.15 [4][6]. - For the second quarter, the adjusted EPS is expected to range from $2.95 to $3.10 [4]. Strategic Initiatives - The company is engaged in advanced negotiations with Yara International for low-emission ammonia projects and has secured a $140 million contract with NASA for liquid hydrogen supply [5]. - Air Products increased its quarterly dividend to $1.81 per share, marking the 44th consecutive year of dividend increases [5]. - The company has a strong liquidity position, with a current ratio of 1.38, supporting its strategic initiatives for future growth [5].

Financial Data and Key Metrics Changes - The company reported a core return on assets (ROA) of 1.62% for the quarter and an adjusted ROA of 1.35% with an adjusted efficiency ratio of 64.45% [3][4] - Net interest income increased by 4.7% over the prior quarter, while adjusted non-interest income rose by 8.3% [17] - The tangible common equity (TCE) ratio improved to 8.72%, up from 8.24% in the prior quarter [25] Business Line Data and Key Metrics Changes - The retirement division generated total revenue of $17.3 million, a 4.6% increase over the prior quarter, driven by growth in asset and transaction-based fees [22] - The wealth management business saw revenues increase by 13.4% to $7.4 million, with end-of-quarter assets under management rising by 0.8% [24] - Core revenues from fee income grew by 7% year-over-year, maintaining over 40% of total revenues [9] Market Data and Key Metrics Changes - The company experienced a decline in loans by 1.3% over the previous quarter due to strategic downsizing of the loan portfolio [19] - Deposits declined by 5%, primarily due to the calling in of broker deposits and other wholesale funding [20] - The loan-to-deposit ratio was reported at 96.6%, with a deposit retention rate close to 95% since the acquisition of Home Federal [21] Company Strategy and Development Direction - The company aims for sustainable organic growth and a return to top-tier profitability, focusing on enhancing its commercial bank and improving returns [5][6] - A strategic entry into the mid-market commercial and industrial (C&I) space is expected to drive growth, with strong pipelines entering 2026 [7] - The company plans to double the number of wealth management advisors and invest in technology and AI to enhance scalability and improve margins [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic position and momentum as it enters 2026, highlighting strong core financial performance and successful execution of strategic initiatives [3][4] - The company anticipates loan growth in the mid-single digits and deposit growth in the low single digits for 2026, with a net interest margin projected around 3.5%-3.6% [26][27] - Management noted that the competitive environment for deposits remains strong, with expectations of continued pressure on margins [80] Other Important Information - The company successfully converted its entire wealth business onto a new system, achieving 100% client retention [11] - The allowance for loan losses remained robust at 1.53% of total loans, with net recoveries reported [9] - The company has close to $2.8 billion in liquidity to support loan growth and other liquidity events [25] Q&A Session Summary Question: Balancing dynamics for 2026 regarding loan and deposit growth - The company aims to manage a loan-to-deposit ratio around 95%-96%, acknowledging potential seasonal fluctuations [34] Question: Insights on expenses and technology investments - The guidance incorporates team additions and variable costs related to technology investments [36][37] Question: Loan growth expectations and credit trimming - A significant portion of loan runoff was intentional, focusing on reducing marginal credits and enhancing C&I relationships [42] Question: Non-performing loans and resolution expectations - The increase in non-performing loans was related to a multifamily loan, with expectations for resolution in the first half of the year [45] Question: Tax rate expectations for 2026 - The anticipated tax rate for 2026 is 24% [73]

Financial Data and Key Metrics Changes - Q4 core FFO was $1.44 per share, finishing at the top end of guidance ranges [10] - Average occupancy was 95.3% for Q4 and 95% for the full year, with period-end occupancy at 95.8% [10] - Same-store NOI growth was 4.7% on a net effective basis and 5.7% on a cash basis, exceeding guidance [11] - Net effective rent change for the year was over 50%, with a quarterly change of 44% [10][11] Business Line Data and Key Metrics Changes - The company signed 57 million sq ft of leases in Q4, driving occupancy towards 96% [9] - Development platform, particularly build-to-suits, exceeded expectations, capturing significant market share [9] - The Data Center business saw a growing power pipeline, with expectations for solid starts in the upcoming year [9] Market Data and Key Metrics Changes - Q4 net absorption was 59 million sq ft in the U.S., leading to a decline in U.S. vacancy to 7.4% [14] - Many markets are experiencing a slowdown in rent decline, with some showing positive growth [14] - International markets, particularly in Latin America and Europe, are outperforming, with strong occupancy and rent growth [16] Company Strategy and Development Direction - The company focuses on three priorities: extending leadership as a best-in-class operator, capturing value creation opportunities in logistics and data centers, and enhancing shareholder returns through growth in assets under management [7][8] - The company aims to develop critical infrastructure in logistics and data centers, leveraging customer relationships and expertise [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational momentum and strategic initiatives in place for 2026, indicating a strong position for long-term growth [22] - The tone of customer conversations is increasingly positive, with e-commerce driving demand [15] - Management noted that while uncertainties exist, they are treated as planning assumptions rather than impediments [15] Other Important Information - The company sold approximately $900 million of value-maximized assets and acquired $625 million at attractive discounts [11] - The company achieved significant milestones in strategic capital, including the IPO of the China AMC Prologis Logistics REIT [17] Q&A Session Summary Question: Changes in strategic initiatives with new leadership - Management highlighted a focus on compounding the core logistics business while broadening the platform, with plans to grow strategic capital significantly [24][25] Question: Market rent growth expectations for 2026 - Management expects net absorption to approach 200 million sq ft in 2026, with vacancies declining to 7.1%-7.2% by year-end [33] Question: Data Center project details and guidance - Management indicated that 40% of the overall development starts guidance will be in Data Centers, with a mix of powered shell and turnkey projects [38] Question: Update on the 10 GW power outlook - Management remains confident in the 10 GW pipeline, emphasizing the significant opportunities available [43] Question: Capital deployment pipeline and ramp-up - Management noted that capital deployment decisions are made based on market conditions, with a significant number of opportunities available [56][57] Question: Same-store growth guidance breakdown - Management indicated that occupancy gains are expected across geographies, with a smaller contribution from mark-to-market as rent changes normalize [79]

Core Insights - Neogen Corporation is a key player in the food and animal safety industry, focusing on products for food safety, animal safety, and genomics, with competitors like IDEXX Laboratories and Zoetis [1] - The company reported strong second-quarter fiscal 2026 results, with earnings per share (EPS) of 10 cents and revenues of $224.7 million, both exceeding expectations, leading to a 31.6% increase in stock price [2] - Neogen has raised its fiscal 2026 revenue guidance to between $845 million and $855 million, with an adjusted EBITDA of approximately $175 million, indicating a positive outlook [3] Financial Performance - The company experienced a 2.8% year-over-year revenue decrease, but core revenues grew by 2.9%, offsetting declines from divestitures and discontinued products [2] - Neogen's results exceeded the Zacks Consensus Estimate by 7.93%, reflecting strong performance [3] Financial Metrics - Neogen's price-to-sales ratio is approximately 2.35, and the enterprise value to sales ratio is about 3.09, indicating a premium valuation [4] - The enterprise value to operating cash flow ratio is high at 41.08, suggesting a premium relative to cash flow generation [4] - The debt-to-equity ratio stands at 0.38, indicating a low level of debt compared to equity [4] Liquidity Position - The company maintains a strong liquidity position with a current ratio of approximately 3.91, indicating sufficient current assets to cover liabilities [5] - Strategic initiatives and a strong market position have driven investor confidence, as evidenced by the stock price surge following the earnings report [5]