JAKKS Pacific (NasdaqGS:JAKK) Q4 2025 Earnings call February 19, 2026 05:00 PM ET Company ParticipantsJohn Kimble - CFOStephen Berman - Chairman, CEO, and Co-FounderConference Call ParticipantsEric Beder - CEO and Senior Research AnalystGerrick Johnson - Managing Director and Senior Equity AnalystModeratorAfternoon, everyone. Welcome to the JAKKS Pacific fourth quarter and full year 2025 earnings conference call with management, who will review financial results for the quarter ended December 31st, 2025. JA ...

Moog (MOG.A) 2025 Conference Summary Company Overview - Moog is a 75-year-old technology company specializing in precision components and engineered systems, particularly in motion control applications [2][3] - The company operates in various markets: 50% defense, 20% commercial aerospace, 20% industrial, and just under 10% medical devices [6] Industry Dynamics - The aerospace and defense industry is experiencing a shortage of component suppliers, which has increased Moog's favorability [2] - Defense spending is on the rise due to geopolitical tensions, with the US budget exceeding $1 trillion and NATO allies increasing defense spending from 2% to 3.5% of GDP [8] - The commercial aerospace sector is recovering from the pandemic, with increasing production volumes for wide-body aircraft [9] Growth Drivers - **Defense Sector**: Strong demand driven by geopolitical tensions, replenishment of arsenals, and modernization programs [33][35] - **Commercial Aerospace**: Recovery post-pandemic with a focus on wide-body aircraft, particularly Boeing 787 and Airbus A350 [14][15] - **Industrial Sector**: Stable performance with robust growth in industrial automation and medical pumps [53][55] Aftermarket Business - The aftermarket segment is currently robust, approaching 40% of the commercial aircraft segment, driven by increased air traffic and long-term support agreements [19][20] - Anticipated decline in aftermarket sales as production ramp rates for new aircraft outpace aftermarket growth [21] Tariff Impact - Moog has implemented mitigation strategies in response to tariffs, which are expected to impact operating profit by $15 million to $20 million for the year [30][31] - Tariff rates are projected to average between 15% to 19% for most countries [31] Defense Portfolio - The defense portfolio is seeing broad-based demand, particularly in missile systems and modernization programs [33][35] - Moog has secured significant contracts, including a $100 million order from Lockheed Martin for the PAC-3 program [34] International Exposure - Approximately 90% of Moog's defense business is US-driven, with 10% from international markets, particularly in Europe [45][46] Margin Expansion - Moog has achieved a 260 basis point improvement in margins since 2022, focusing on pricing and simplification strategies [60][71] - The company aims for continuous improvement in margins, with a target of 75% to 100% free cash flow conversion as a percentage of net income [80][81] Acquisition Strategy - Moog recently acquired KotzWorks, a company providing fiber optic components, which complements its existing technology and enhances its defense product offerings [61][62] Conclusion - Moog is well-positioned for growth in the defense and aerospace sectors, with strong demand drivers and a focus on margin expansion through strategic initiatives and acquisitions [72][74]

Financial Data and Key Metrics Changes - Total revenue increased by 18% to $320 million in Q1 2025, driven by a 12% increase in written premium and a 13% growth in commission revenue [6][12] - Net income rose by 233% to $27 million compared to $8 million a year earlier, with adjusted EBITDA growing by 45% to $40 million [7][16] - Operating margin improved by 360 basis points to 8%, reflecting strong operational performance [14] Business Line Data and Key Metrics Changes - Membership marketplace and other revenue surged by 60% to $50 million, supported by successful auctions [6][13] - Earned premium from the risk-taking entity, AgriLife Reinsurance, increased by 12% [6][12] - The MGA membership and marketplace businesses accounted for nearly half of total revenue, with rapidly expanding margins [14] Market Data and Key Metrics Changes - The company operates primarily in the U.S., with over 90% of revenue generated domestically, providing a buffer against tariff-related impacts [10] - The company reported a loss ratio of 42%, which includes $10 million in losses from Southern California wildfires [12][16] Company Strategy and Development Direction - The strategic priorities for 2025 focus on expanding specialty insurance offerings, simplifying the membership experience, and expanding the marketplace business internationally [7][8] - The company is investing in technology transformation, including a transition to a cloud-based insurance platform, which is expected to enhance efficiency and scalability [9][15] - The company aims to double its policies in force to 3 million by 2030, positioning itself for long-term growth [7][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering high rates of profitable growth, despite potential market volatility [11] - The company reaffirmed its 2025 guidance, expecting top-line revenue growth of 12% to 13% and net income growth of 30% to 40% [17] - Management noted that while the start of 2025 was solid, growth is anticipated to accelerate in the second half of the year, particularly with State Farm partnerships [41] Other Important Information - The company ended the quarter with $128 million in cash and $147 million in total debt, including $32 million in back leverage for loans collateralized by collectible cars [16] - The company is preparing for significant upcoming auctions, including a partnership with BMW at the Villa D'Este Concorso in Italy [8][66] Q&A Session Summary Question: Can you provide an update on the relative margins generated from marketplace revenues? - Management indicated that the live auction business significantly contributed to profitability, with contribution profit margins around 30% to 35% [20][23] Question: What was the impact of catastrophes on the loss ratio? - Management explained that the loss ratio includes catastrophe losses, but without them, the loss ratio would be in the mid-30s, which is typical for the first quarter [25][27] Question: How are tariffs impacting the business? - Management stated that tariffs are not expected to have a direct impact on the business, with anticipated effects being muted due to the nature of the vehicles insured [30][34] Question: What has been observed regarding shopping behavior recently? - Management noted strong shopping activity industry-wide, although growth was slightly slower than anticipated due to various factors, including weather and large events [35][41] Question: Can you provide visibility on membership and marketplace revenue growth for the full year? - Management affirmed guidance for the entire business, indicating a good start to live auctions and upcoming events that are expected to contribute positively [44][45] Question: What is the status of the Duck Creek technology spending? - Management clarified that the technology spending is ongoing and will not be a one-time expense, as it supports future growth and efficiency [52][56]