NON-GAAP FINANCIAL MEASURES We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other ...

Earnings Supplement Fourth Quarter 2025 February 12, 2026 1 Forward-Looking Statements – Cautionary Language Certain statements made in this presentation and in other written or oral statements made by Lincoln or on Lincoln's behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or ...

Core Insights - The company reported stable revenue of €7.9 billion for FY 2025, with a slight decline of 0.5% in reported revenue growth compared to FY 2024, primarily due to foreign exchange translation effects [3][6][8] - Organic sales growth was strong at 4.2%, driven by a volume growth of 1.5% and price growth of 2.6%, indicating robust demand for the company's products [4][6][7] - The company successfully completed its demerger from Unilever, establishing itself as an independent entity listed on multiple stock exchanges [6][24][30] Financial Performance - Operating profit decreased to €599 million from €764 million in FY 2024, largely due to increased separation and restructuring costs [6][10][12] - Adjusted EBITDA was €1,255 million, with a margin of 15.9%, down from 16.9% in FY 2024, impacted by foreign exchange effects and transitional service agreement costs [11][12][17] - Free cash flow significantly dropped to €38 million from €803 million in FY 2024, primarily due to cash outflows related to the demerger and restructuring [12][13] Brand and Market Performance - The company's leading brands, including Magnum, Ben & Jerry's, Cornetto, and the Heartbrand, were key growth drivers, with significant new product launches contributing to organic sales growth [4][8][14] - All regions contributed positively to organic sales growth, with AMEA showing the highest growth at 10.9%, while the Americas experienced a modest 0.8% growth [7][37][43] - The company focused on enhancing its market presence through digital commerce and improved availability in various channels, leading to share gains in key markets [5][9][40] Strategic Initiatives - The company is implementing a €500 million productivity program aimed at enhancing supply chain efficiency and reducing overhead costs, which delivered €180 million in savings in 2025 [22][19] - Future growth strategies include expanding consumption occasions through innovative products and enhancing brand presence across various market segments [19][20] - The company anticipates organic sales growth of 3% to 5% for 2026, along with an expected improvement in adjusted EBITDA margins [18][7]

Core Insights - GFL Environmental achieved a record adjusted EBITDA margin of 30.2% in Q4 2025, the highest in the company's history, despite commodity price declines impacting margins [1][4][8] - The company reported a 7.3% increase in revenue for Q4, driven by better-than-expected pricing, volume, and M&A contributions, partially offset by foreign exchange headwinds [3][5] - GFL's 2026 guidance targets approximately $7.0 billion in revenue, $2.14 billion in adjusted EBITDA, and $835 million in adjusted free cash flow, reflecting an 8% revenue growth and a 10% EBITDA growth [6][14][15] Financial Performance - Adjusted EBITDA for the full year 2025 was reported at $1.985 billion, with adjusted free cash flow of $756 million [9][8] - The company experienced a 6.4% pricing increase in Q4 and a 6.1% increase for the full year, exceeding original plans by 70 basis points [3][5] - GFL's net leverage at the end of 2025 was 3.4x, the lowest year-end net leverage in its history, with a potential to spend $1.5 to $2.0 billion on acquisitions in 2026 [7][13][19] Capital Allocation and M&A - GFL completed over $3.0 billion in share buybacks, including a $2.25 billion buyback plan and an additional $750 million in the second half of 2025 [11][10] - The company deployed close to $1 billion in M&A during 2025, with expectations for significant benefits rolling into 2026 [12][10] - Management emphasized a commitment to maintaining leverage in the low-to-mid 3x range while pursuing further M&A opportunities [19] Operational Efficiency - The company noted a continued trend of lower cost intensity in 2025, driven by improvements in labor turnover, fleet optimization, and procurement benefits [17] - GFL's operational initiatives are expected to contribute to further improvements in labor turnover in 2026 and 2027 [17] Strategic Initiatives - GFL relocated its executive headquarters to the U.S. to broaden eligibility for U.S. equity indices while maintaining Canadian index eligibility, with potential inclusion in Russell indices expected in mid-2026 [18] - The company is transitioning to U.S. GAAP reporting and domestic filings, which could support eligibility for additional indices in the future [18]

Core Insights - General Motors (GM) stock gained over 50% last year, significantly outperforming the market and doubling over the last two years, surpassing legacy automakers like Stellantis and Ford [1] - Despite challenges such as vehicle sales slowdown, tariff costs, and losses in the electric vehicle sector, GM's performance remains strong [1] Financial Performance - GM's 2025 financial results were robust, with expectations for even better performance in 2026, targeting adjusted pre-tax earnings between $13 billion and $15 billion, an increase of $2.3 billion from 2025 [2] - The company anticipates North America adjusted pre-tax margins to return to the 8% to 10% range in 2026, indicating a significant improvement [2] Cash Flow and Capital Allocation - GM is projected to generate adjusted automotive free cash flows of between $9 billion and $11 billion this year, focusing on buybacks and U.S. production capacity investments [3] - Since November 2023, GM has repurchased $23 billion worth of shares, reducing its outstanding share count by 35%, and announced a new $6 billion buyback program alongside a 20% dividend increase [5] Market Comparison - GM's dividend yield has risen to approximately 0.90%, which, while lower than Ford's, is complemented by superior total returns due to effective capital allocation strategies [5] - Over the last three years, GM's stock has performed significantly better than Ford, which has only increased by about 5%, attributed to GM's better execution and capital management [5]

Financial Data and Key Metrics Changes - In Q4 2025, revenues grew by 7.3%, driven by better-than-expected contributions from pricing, volume, and M&A, despite headwinds from foreign exchange [12] - Adjusted EBITDA for the full year reached $1.985 billion, with Q4 margins at 30.2%, marking the highest Q4 margin in the company's history [13][14] - Adjusted Free Cash Flow for Q4 was $425 million, totaling $756 million for 2025, ahead of plan due to EBITDA outperformance [14] Business Line Data and Key Metrics Changes - Pricing increased by 6.4% for Q4 and 6.1% for the year, exceeding original expectations [12] - Adjusted EBITDA margins expanded by 175 basis points in the Canadian segment and increased in the U.S. segment, excluding the impact of prior year hurricane volumes [13] - C&D-related volume remained soft, but the company is positioned for recovery when the broader economy improves [12] Market Data and Key Metrics Changes - Q4 volumes were 70 basis points ahead of plan, attributed to unanticipated special waste activity [12] - The pricing environment remains constructive, with expectations for continued pricing above internal cost of inflation [6] - Commodity prices decreased by 33% year-over-year, impacting margins, but underlying consolidated margins improved by over 150 basis points from the prior year [13][17] Company Strategy and Development Direction - The company aims to achieve low- to mid-30s margins by 2028, with a focus on operational efficiency and capital allocation strategy [7][10] - The sale of the ES segment has simplified the business into a pure-play solid waste leader, enhancing equity value [8] - The relocation of the executive headquarters to the U.S. is expected to increase visibility with investors and broaden the shareholder base [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet and potentially exceed 2026 guidance, citing multiple avenues for upside [10][11] - The macro environment remains challenging, but there are signs of recovery in capital spending from large customers, which could lead to increased volume [92] - The company is committed to maintaining leverage in the low to mid-3s range while pursuing M&A opportunities [22] Other Important Information - The company completed $3 billion in share repurchases in 2025, with an additional $750 million deployed in the second half of the year due to favorable stock pricing [9] - Adjusted Free Cash Flow conversion improved to 38%, with expectations for further growth in 2026 [19] - The company plans to provide more detailed disclosures regarding the performance of GIP and ES in future quarterly releases [77] Q&A Session Summary Question: Does the leverage guidance assume no incremental M&A and buyback? - Management confirmed that the leverage guidance is based on exiting 2026 in the low to mid threes, with potential increases if M&A and buybacks occur [22] Question: Can you break down the EBITDA bridge for 2026? - Management acknowledged the components affecting EBITDA, including M&A rollover benefits and FX impacts, indicating organic EBITDA growth in the mid- to high single digits is achievable [24][25] Question: What is the outlook for incremental growth CapEx investments? - Management indicated that growth CapEx is front-end loaded, with expectations for significant contributions from EPR in Q1, tapering off through the year [30][32] Question: How are volumes expected to perform in 2026? - Management anticipates modestly positive volumes, with potential upside from EPR and market conditions improving [33][35] Question: How does the company balance M&A and share buybacks? - Management stated that while the stock is undervalued, they will continue to evaluate both M&A opportunities and share buybacks based on market conditions [37][38] Question: What is the expected cadence of pricing in 2026? - Management expects a strong start in Q1 with pricing tapering down throughout the year, indicating high visibility into pricing for 2026 [41][42] Question: How did GIP and ES perform in 2025? - Management reported that both businesses performed in line with expectations, with GIP primarily driven by government contracts [45] Question: Is there a plan for more disclosure on GIP and ES? - Management confirmed plans to provide more detailed disclosures on these businesses in future reports [77]

Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with adjusted operating income of $412 million, reflecting an 18% margin [15] - Free cash flow reached $272 million, exceeding previous forecasts, with expectations of at least $200 million for 2026 [4][14] - Domestic operations revenue decreased by 5% to $2 billion for the full year, while subscription revenue stabilized with a decrease of less than 1% [15][16] Business Line Data and Key Metrics Changes - Streaming revenue became the largest single source of domestic revenue, growing by 12% for the full year and 14% in the fourth quarter, offsetting declines in linear affiliate revenue [16][17] - Domestic advertising revenue decreased by 15% for the year, primarily due to linear ratings declines [17] - International revenue decreased by 4% for both the year and the quarter, but advertising revenues grew by 6% for the full year [18] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, flat compared to the previous year [16] - The advertising market saw a significant influx of digital inventory, impacting pricing negatively in the first half of 2025, but recovery was noted in the latter half [29][33] Company Strategy and Development Direction - AMC Networks is focusing on a streaming strategy that emphasizes genre-specific content curation and efficient content delivery [4][5] - The company aims to strengthen its balance sheet and reduce gross debt, having reduced it by almost $600 million in 2025 [18][19] - The acquisition of RLJ Entertainment is expected to enhance operational clarity and simplify the business structure [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the company's independence as a strength in a changing industry landscape [11] - The outlook for 2026 includes expectations of approximately $2.25 billion in consolidated revenue, with stable domestic subscription revenue anticipated [21][22] - Management acknowledged the challenges in the advertising market but highlighted improvements in digital advertising performance [29][33] Other Important Information - The company repurchased approximately 850,000 shares of Class A common stock for about $7.5 million in the fourth quarter [19] - AMC Networks is committed to maintaining a healthy cash position, ending the year with approximately $675 million in total liquidity [19] Q&A Session Summary Question: Advertising performance and expectations for 2026 - Management acknowledged that advertising performance was below expectations in 2025 but expressed confidence in a recovery strategy for 2026, focusing on digital and streaming [26][29] Question: The value of The Walking Dead rights - Management confirmed ongoing conversations regarding the monetization of The Walking Dead rights, expressing optimism about their value [28] Question: Ad contributions from streaming and FAST channels - Management noted that digital advertising is a significant portion of revenue, with strong performance in Q4, and emphasized the importance of cross-platform buying [33][35] Question: Affiliate revenue outlook and content spend - Management highlighted positive trends in affiliate revenue and confirmed continued investment in premium programming while maintaining free cash flow [40][41]

Financial Data and Key Metrics Changes - AMC Networks generated consolidated revenue of $2.3 billion for 2025, with adjusted operating income of $412 million and a margin of 18% [15] - Free cash flow reached $272 million, exceeding previous forecasts, with expectations of at least $200 million for 2026 [4][14] - Domestic operations revenue decreased by 5% to $2 billion for the full year, with a 1% decline in the fourth quarter [15] Business Line Data and Key Metrics Changes - Streaming revenue became the largest single source of domestic revenue, growing by 12% for the full year and 14% in the fourth quarter, offsetting declines in linear affiliate revenue [16] - Domestic advertising revenue decreased by 15% for the year and 10% for the fourth quarter, primarily due to linear ratings declines [17] - International revenue decreased by 4% for both the year and the quarter, with advertising revenues growing by 6% for the full year [18] Market Data and Key Metrics Changes - The company ended 2025 with 10.4 million streaming subscribers, with subscriber numbers remaining flat compared to the previous quarter and year [16] - The advertising market saw a significant influx of digital inventory, impacting pricing negatively in the first half of 2025, but recovery was noted in the latter half [29] Company Strategy and Development Direction - AMC Networks is focusing on a streaming-first strategy, enhancing its content offerings and leveraging partnerships to drive growth [4][9] - The company aims to maintain a strong balance sheet while investing in high-quality programming and reducing gross debt [20][23] - The acquisition of RLJ Entertainment is expected to simplify the business structure and enhance operational clarity [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing the return of The Walking Dead rights as a significant opportunity for monetization [28] - The company anticipates stable domestic operations subscription revenue in 2026, despite linear revenue declines [21] - Management highlighted the importance of maintaining a healthy cash position and the expectation of continued free cash flow generation [19][22] Other Important Information - The company repurchased approximately 850,000 shares of Class A common stock for about $7.5 million in the fourth quarter [19] - AMC Networks has extended the majority of its revolving credit facility to 2030, improving its maturity profile [18] Q&A Session Summary Question: Advertising performance and expectations for 2026 - Management acknowledged that advertising performance was below expectations in 2025 but expressed confidence in a recovery strategy for 2026, focusing on digital and streaming [26][29] Question: Ad contribution from streaming and FAST channels - Management noted that digital advertising is a significant portion of revenue, with strong performance in Q4, and emphasized the importance of cross-platform buying [33][35] Question: Subscriber universe and cash spend on content - Management discussed the positive trends in affiliate revenue and the importance of continuing to invest in premium programming while maintaining free cash flow [40][42]

Almost all of Apple's ( AAPL ) big tech peers are set to see their free cash flows approach zero in 2026, as they invest heavily in AI. Amazon ( AMZN ) is looking at $200 billion of capex, Alphabet (I aim to invest in companies with perfect qualitative attributes, buy them at an attractive price based on fundamentals, and hold them forever. I hope to publish articles covering such companies approximately 3 times per week, with extensive quarterly follow-ups and constant updates.I manage a concentrated portf ...

Core Viewpoint - Almost all major tech companies, including Apple, Amazon, and Alphabet, are projected to see their free cash flows approach zero by 2026 due to significant investments in AI [1] Group 1: Company Insights - Apple (AAPL) is among the big tech peers expected to experience a decline in free cash flow as it invests heavily in AI [1] - Amazon (AMZN) is planning to allocate $200 billion towards capital expenditures [1] - Alphabet is also involved in substantial investments in AI, contributing to the trend of reduced free cash flows across the sector [1]