Standard Motor Products (NYSE:SMP) Q4 2025 Earnings call February 26, 2026 11:00 AM ET Company ParticipantsBret Jordan - Managing DirectorEric Sills - Chairman and CEONathan Iles - CFOTony Cristello - VP of Investor RelationsConference Call ParticipantsScott Stember - Managing Director and Senior Research AnalystOperatorGood day, everyone, and welcome to the Standard Motor Products fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportuni ...

Financial Data and Key Metrics Changes - In 2025, net income attributable to ONEOK increased by 12% to $3.39 billion, resulting in earnings of $5.42 per share [4][9] - Adjusted EBITDA rose by 18% to $8.02 billion, marking 12 consecutive years of growth [5][9] - For 2026, net income is expected to reach approximately $3.45 billion, with an Adjusted EBITDA midpoint of approximately $8.1 billion [10][14] Business Line Data and Key Metrics Changes - The company achieved nearly $500 million in total synergies from the Magellan acquisition, with $250 million realized in 2025 alone [6][7] - Approximately 90% of earnings are fee-based, which limits commodity exposure and supports valuation durability [7] - The natural gas pipeline segment exceeded guidance in 2025, benefiting from strategic locations in the Permian Basin and Louisiana [23] Market Data and Key Metrics Changes - In the Bakken, there are 5,000 identified wells yet to be drilled, equating to approximately 15+ years of inventory at current rig rates [8] - The company expects a low single-digit growth rate for Bakken volumes at $55-$60 per barrel crude prices [79] - The Permian Basin is projected to grow by more than 1 Bcf per year, with ONEOK well-positioned to capture this growth [26] Company Strategy and Development Direction - ONEOK aims to deliver durable growth through a disciplined capital allocation strategy and has integrated major acquisitions to enhance its platform [4][5] - The company is focused on organic expansions and capturing synergies from acquisitions to drive future growth [7][16] - The strategy includes maintaining a high-quality earnings mix and limiting commodity exposure [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to integrate acquisitions and capture expected synergies, generating additional cash flow [8] - Despite lower crude oil prices potentially slowing drilling, there is visibility into growth for 2026 and beyond [7][8] - The company remains cautious about commodity prices while maintaining confidence in the durability of its integrated asset base [8] Other Important Information - The company returned nearly $2.7 billion to shareholders through dividends and share repurchases in 2025 [10] - A quarterly dividend increase of 4% was recently announced, reinforcing the commitment to shareholder returns [10] Q&A Session Summary Question: Can you discuss the conservatism in the 2026 guidance? - Management indicated that they are planning for lower crude prices and have been intentional in their projections, which could allow for upside if prices strengthen [34] Question: What optimization opportunities exist? - Management highlighted successful discretionary ethane recovery and spot offloads in the Permian as examples of past optimization opportunities [35][36] Question: When can we expect announcements regarding power opportunities? - Advanced negotiations are ongoing with hyperscalers, and announcements are expected in the near future [39] Question: What is the outlook for Waha basis spreads? - Management noted that there is open capacity on the Eiger pipeline system, and they see potential upside if spreads remain favorable [43][44] Question: Can you elaborate on the drivers of NGL throughput volumes? - Management explained that a contract loss in the Bakken and increased ethane rejection in the Mid-Continent are tempering growth expectations [72] Question: What are the plans for capturing more third-party volumes in the Permian? - Management stated that they have significant capacity on the West Texas NGL Pipeline and are actively pursuing opportunities to attract third-party volumes [80][81]

Financial Data and Key Metrics Changes - In 2025, net income attributable to ONEOK increased by 12% to $3.39 billion, resulting in earnings of $5.42 per share [4][9] - Adjusted EBITDA rose by 18% to $8.02 billion, marking 12 consecutive years of growth [5][9] - For 2026, net income is expected to reach approximately $3.45 billion, with an adjusted EBITDA midpoint of about $8.1 billion [10][14] Business Line Data and Key Metrics Changes - The company achieved nearly $500 million in total synergies from the Magellan acquisition, with $250 million realized in 2025 alone [6][7] - Approximately 90% of earnings are fee-based, which limits commodity exposure and supports valuation durability [7] - The natural gas pipeline segment exceeded guidance in 2025, benefiting from strategic locations in the Permian Basin and Louisiana [23] Market Data and Key Metrics Changes - In the Bakken region, there are 5,000 identified wells yet to be drilled, equating to approximately 15 years of inventory at current rig rates [8] - The company expects a low single-digit growth rate for Bakken volumes at $55-$60 per barrel crude prices [79] - The Permian Basin is projected to grow by more than 1 Bcf per year, with ONEOK well-positioned to capture this growth [26] Company Strategy and Development Direction - ONEOK aims to deliver durable growth through a disciplined capital allocation strategy and has integrated major acquisitions to enhance its platform [4][5] - The company is focused on organic expansions and capturing synergies from acquisitions to drive future growth [7][16] - Management emphasizes the importance of safety and operational excellence while pursuing long-term value [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that lower crude oil prices may slow drilling but maintains visibility into growth for 2026 and beyond [7][8] - The company is cautious about commodity prices but remains confident in the durability of its integrated asset base [8][10] - Management highlighted the importance of employee contributions in driving strategy and operational success [31] Other Important Information - The company returned nearly $2.7 billion to shareholders in 2025 through dividends and share repurchases, with a recent 4% increase in quarterly dividends [10] - Capital expenditure guidance for 2026 is set between $2.7 billion and $3.2 billion, focusing on high-return projects [16][94] Q&A Session Summary Question: Can you discuss the conservatism in the 2026 guidance? - Management indicated that they are planning for crude prices in the $55-$60 range, which could impact spread differentials and producer cash flow [34] Question: What optimization opportunities exist beyond the guidance? - Management noted successful discretionary ethane recovery and spot offloads in the Permian as potential upside [35][36] Question: What is the outlook for power opportunities? - Advanced negotiations with hyperscalers are ongoing, with potential announcements expected soon [39] Question: Can you clarify the Waha basis spreads and guidance assumptions? - Management confirmed that they have open capacity on the Eiger pipeline and see potential upside in spreads [43][44] Question: What drives the NGL throughput volumes forecast? - Management explained that a contract loss in the Bakken and increased ethane rejection in the Mid-Continent temper growth expectations [72] Question: What are the natural gas storage opportunities? - Management highlighted expansion opportunities in Texas and Louisiana, driven by industrial customers and LNG projects [86][87]

Financial Data and Key Metrics Changes - In 2025, net income attributable to ONEOK increased by 12% to $3.39 billion, resulting in earnings of $5.42 per share [4][7] - Adjusted EBITDA rose by 18% to $8.02 billion, marking 12 consecutive years of growth [4][6] - For the fourth quarter of 2025, net income was $977 million, or $1.55 per share, with adjusted EBITDA totaling $2.15 billion [7][8] Business Line Data and Key Metrics Changes - The company achieved nearly $500 million in total synergies from acquisitions, with approximately $250 million realized in 2025 alone [4][5] - Approximately 90% of earnings are fee-based, which limits commodity exposure and supports valuation durability [5] Market Data and Key Metrics Changes - In the Bakken region, there are 5,000 identified wells yet to be drilled, equating to over 15 years of inventory at current rig rates [6] - The natural gas pipeline segment exceeded guidance in 2025, benefiting from strategic locations in the Permian Basin and Louisiana [21][22] Company Strategy and Development Direction - ONEOK aims to maintain a disciplined capital allocation strategy while integrating major acquisitions and advancing long-cycle growth projects [3][4] - The company expects to achieve an adjusted EBITDA midpoint of $8.1 billion for 2026, supported by volume growth and completed projects [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to integrate acquisitions and capture expected synergies, despite lower crude oil prices potentially slowing drilling activity [5][6] - The company anticipates continued growth in 2026 and beyond, driven by customer development plans and strategic expansions [6][7] Other Important Information - ONEOK plans to reduce capital expenditures in the coming years as current projects are completed, with a 2026 guidance range of $2.7 billion to $3.2 billion [15][16] - The company does not expect to pay meaningful cash taxes until 2029, supporting free cash flow and capital allocation flexibility [16] Q&A Session Summary Question: 2026 outlook and conservative guidance - Management discussed the conservative assumptions around commodity prices and potential optimization opportunities that could provide upside to guidance [33][34] Question: Power opportunity and customer engagement - Management indicated advanced negotiations with hyperscalers and positive momentum in securing deals, with announcements expected soon [38][39] Question: NGL throughput volumes and guidance - Management explained that flat NGL throughput guidance is influenced by contract expirations and ethane recovery assumptions [72][73] Question: Natural gas storage opportunities - Management highlighted ongoing expansions in Texas and Louisiana, driven by industrial customers and LNG projects [87][88] Question: CapEx guidance and project breakdown - Management provided insights into major projects for 2026, including the Denver pipeline expansion and Shadowfax plant [94][96]

CECO Environmental (NasdaqGS:CECO) Q4 2025 Earnings call February 24, 2026 08:30 AM ET Company ParticipantsAmit Dayal - Managing DirectorMarcio Pinto - Head of Financial Planning and Investor RelationsPeter Johansson - Chief Financial and Strategy OfficerTodd Gleason - CEOConference Call ParticipantsAaron Spychalla - Senior Research AnalystBobby Brooks - Senior Research AnalystGerard Sweeney - Managing Director and Senior Research AnalystJim Ricchiuti - Senior AnalystRob Brown - Senior Research AnalystOpera ...

What happened According to a Securities and Exchange Commission (SEC) filing dated Feb. 17, 2026, Ananym Capital Management, LP, liquidated its entire holding of 795,411 shares in Six Flags Entertainment (NYSE:FUN). The estimated transaction value for the sale was $18.07 million based on the quarterly average share price. The quarter-end value of the stake was reduced by $18.07 million, capturing both the sale and any price drift during the period. What else to know Ananym Capital fully sold out of Six ...

Core Insights - Cenovus Energy reported record upstream production in 2025, averaging 834,000 barrels of oil equivalent per day (BOE/d), a 3% increase from 2024 excluding the MEG acquisition impact [1][6] - The company achieved a significant reduction in total upstream non-fuel operating costs by approximately 4% year over year [1] - Downstream operations saw an average refinery utilization of 95% across Canadian and U.S. segments, with notable cost reductions in refining operations [1][15] Production and Operational Performance - In Q4 2025, Cenovus achieved upstream production of 918,000 BOE/d, including record oil sands production of 727,000 BOE/d, and exited December producing over 970,000 BOE/d [9][6] - At Christina Lake, production averaged 309,000 barrels per day in Q4, with the acquired Christina Lake North asset contributing significantly to production rates [10] - The Foster Creek asset reported a quarterly production record of 220,000 barrels per day, reflecting the success of the Foster Creek Optimization Project [12] Financial Performance - Cenovus reported a Q4 operating margin of approximately CAD 2.8 billion and adjusted funds flow of CAD 2.7 billion, with upstream operating margins exceeding CAD 2.6 billion [15] - Net debt increased to approximately CAD 8.3 billion, largely due to the MEG acquisition, while the company returned CAD 1.1 billion to shareholders [20] - The company set a long-term net debt target of CAD 4 billion and plans to return about 75% of excess free funds flow to shareholders once net debt reaches CAD 6 billion [20] Strategic Initiatives and Projects - The acquisition of MEG Energy was completed, adding over 100,000 barrels per day of production and expected annual synergies of CAD 150 million in 2026-27 and over CAD 400 million by the end of 2028 [7][17] - Key projects include the West White Rose, which is in final commissioning with expected first oil in Q2 2026, and ongoing work at Christina Lake and Foster Creek [4][8] - Cenovus has expanded its crude egress capabilities, reducing reliance on Alberta markets from 80% in 2018 to approximately 40% today [22] Market and Egress Strategy - The company emphasized improved U.S. downstream market capture, achieving an adjusted market capture of around 95% in the quarter [18] - Cenovus extended gas sales agreements in China, which are expected to add nearly CAD 2 billion of incremental free cash flow over the life of the fields [23]

Financial Data and Key Metrics Changes - In Q4 2025, Cenovus generated approximately CAD 2.8 billion of operating margin and CAD 2.7 billion of adjusted funds flow, with upstream operating margin over CAD 2.6 billion, consistent with the prior quarter despite declining benchmark oil prices [20][21] - Oil sands non-fuel operating costs decreased to CAD 839 per barrel in Q4, over CAD 1.25 lower than the prior quarter due to higher production volumes and reduced maintenance activity [20] - Full-year capital spending reached CAD 4.9 billion, supporting sustaining activity and growth projects [23] Business Line Data and Key Metrics Changes - Upstream production in 2025 averaged 834,000 BOE per day, a 3% increase from 2024, excluding the MEG Energy acquisition [8] - In Q4, upstream production reached 918,000 BOE per day, with oil sands production at 727,000 BOE per day, both records for the company [11] - Downstream operating margin was CAD 149 million in Q4, despite inventory holding losses and turnaround expenses [21] Market Data and Key Metrics Changes - The Canadian refining business achieved a crude throughput of 113,000 barrels per day in Q4, with a utilization rate of about 105% [18] - U.S. refining delivered crude throughput of 353,000 barrels per day, approximately 97% utilization [18] - Adjusted market capture was around 95% in Q4, reflecting the ability to capitalize on market opportunities [19] Company Strategy and Development Direction - Cenovus aims to leverage synergies from the MEG Energy acquisition, targeting CAD 150 million in annual synergies in 2026 and 2027, and over CAD 400 million by the end of 2028 [13] - The company is focused on operational excellence and cost reduction, with plans to increase production to over 70,000 barrels per day at Sunrise by 2028 [15] - Cenovus is committed to maintaining a strong balance sheet while pursuing growth opportunities, with a focus on brownfield development and debottlenecking projects [97] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential volatility in WCS pricing, highlighting improved egress options and a strong balance sheet [66][69] - The company anticipates continued operational momentum into 2026, supported by recent production records and successful project completions [11][12] - Management emphasized the importance of safety and operational reliability as core values driving the company's performance [5] Other Important Information - Cenovus completed the acquisition of MEG Energy, adding over 100,000 barrels a day of production capacity and enhancing its heavy oil portfolio [10] - The company divested its interest in the WRB Refining joint venture, gaining full operational control of its downstream business [10] Q&A Session Summary Question: What are the next steps for the MEG assets? - Management indicated that they have quickly moved to capture corporate synergies and are focusing on operational improvements and redevelopment programs [33][34] Question: Can you elaborate on the solvent enhanced oil recovery techniques? - Management confirmed the initiation of a solvent project at Spruce Lake North, which is expected to enhance production and recovery rates [42][43] Question: What drove the significant increase in U.S. market capture? - The increase was attributed to reliability improvements, market opportunities due to supply disruptions, and effective commercial optimization strategies [51][52] Question: How does Cenovus plan to balance capital allocation between growth and shareholder returns? - Management stated that 50% of free cash flow will be used for deleveraging until net debt reaches CAD 6 billion, with the remaining 50% returned to shareholders [72][75]

Financial Data and Key Metrics Changes - In Q4 2025, Cenovus generated approximately CAD 2.8 billion in operating margin and CAD 2.7 billion in adjusted funds flow, with upstream operating margin exceeding CAD 2.6 billion, consistent with the prior quarter despite declining benchmark oil prices [19][20] - Oil sands non-fuel operating costs decreased to CAD 839 per barrel in Q4, over CAD 1.25 lower than the previous quarter due to higher production volumes and reduced maintenance activity [19] - Net debt at the end of Q4 was approximately CAD 8.3 billion, an increase of about CAD 3 billion due to the MEG transaction, partially offset by CAD 1.9 billion from the sale of WRB [23] Business Line Data and Key Metrics Changes - Upstream production reached 834,000 BOE per day in 2025, a 3% increase from 2024, excluding the MEG Energy acquisition [6] - In Q4, upstream production was 918,000 BOE per day, with oil sands production at 727,000 BOE per day, both records for the company [10] - Downstream operating margin was CAD 149 million in Q4, despite challenges in regional crack spreads, with adjusted market capture around 95% [20][18] Market Data and Key Metrics Changes - The Canadian refining business achieved a crude throughput of 113,000 barrels per day in Q4, with a utilization rate of about 105% [17] - U.S. refining delivered crude throughput of 353,000 barrels per day, approximately 97% utilization [17] - The company expects to maintain adjusted market capture around 70% at a $14 WCS heavy oil differential, with opportunities for improvement [20][53] Company Strategy and Development Direction - Cenovus aims to leverage synergies from the MEG acquisition, targeting CAD 150 million in annual synergies in 2026 and 2027, and over CAD 400 million by the end of 2028 [12] - The company is focused on operational excellence and cost reduction, with plans to increase production at Christina Lake to around 400,000 barrels per day [22] - Cenovus is actively evaluating egress options to mitigate exposure to WCS volatility, with a strong emphasis on maintaining a robust balance sheet [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate potential risks associated with WCS volatility, highlighting a significant reduction in crude sold in Alberta [68] - The company is optimistic about its operational momentum continuing into 2026 and beyond, supported by strong performance and strategic acquisitions [10][25] - Management emphasized the importance of safety and operational reliability as foundational elements of the company's strategy [4] Other Important Information - Cenovus completed two significant transactions in 2025, including the acquisition of MEG Energy and the sale of its interest in the WRB Refining joint venture, enhancing its control over downstream operations [9] - The company is progressing on major capital projects, including Narrows Lake, Foster Creek, and West White Rose, with a focus on optimizing production and reducing costs [22][96] Q&A Session Summary Question: What are the next steps for the MEG assets? - Management indicated that they have quickly moved to capture corporate synergies and are focusing on operational improvements and redevelopment programs to enhance production [33][34] Question: Can you elaborate on the solvent enhanced oil recovery techniques? - Management confirmed the initiation of a solvent project at Spruce Lake North, which is expected to improve production and recovery rates [41][42] Question: What drove the significant increase in U.S. market capture? - The increase was attributed to reliability improvements and market opportunities due to supply disruptions, allowing the company to optimize its product mix [51][52] Question: How does Cenovus plan to balance capital allocation between growth and shareholder returns? - The company plans to allocate 50% of free cash flow to deleveraging until net debt reaches CAD 6 billion, after which it will increase shareholder returns [72][75]

Core Insights - The company achieved solid EBITDAaL growth of 4.0% for the full year 2025, slightly exceeding guidance, driven by synergies from the VOO acquisition and operational efficiencies [1][7][8] Financial Highlights - Revenues for H2 2025 decreased by 1.5% year-over-year to €1,000.6 million, with full-year revenues also down by 1.5% to €1,963.4 million [3][4] - Retail service revenues fell by 1.9% in H2 2025 to €791.4 million, with a similar decline for the full year [3] - EBITDAaL for H2 2025 increased by 3.4% to €301.3 million, with a full-year EBITDAaL of €566.1 million, reflecting a 4.0% increase [3][4] Customer Base and Operational Performance - Mobile postpaid customer base grew by 2.5% year-over-year to 3.6 million, while cable customer base increased by 1.8% to 1,039,000 [2][4] - Net adds for mobile postpaid decreased by 49.0% to 38,000, and cable net adds fell by 68.7% to 5,000 [2][4] Capital Expenditure and Cash Flow - eCapex for the full year increased by 2.1% to €375.9 million, driven by RAN sharing and 5G deployment [5][6] - Adjusted operating cash flow rose by 7.9% to €190.2 million, while net cash from operating activities increased by 4.5% to €525.6 million [5] Debt and Profitability - Net financial debt decreased by 4.7% to €1,815.1 million, with total borrowings down by 3.4% to €1,895.8 million [5] - Net profit for the period increased significantly by 139.5% to €41.3 million [5] Strategic Outlook - The company plans to target an EBITDAaL growth of approximately 3.5% for 2026, with expected eCapex around €360 million [9][11] - The Board of Directors will not propose a dividend for 2025 to preserve cash for future investments [10]