Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDAre was $319 million, a decrease of 3.3% year-over-year, while adjusted FFO per share was $0.35, down 2.8% compared to Q3 2024 [4][5] - Year-to-date, adjusted EBITDAre and adjusted FFO per share increased by 2.2% and 60 basis points, respectively, compared to 2024 [4] - Comparable hotel total RevPAR improved by 80 basis points compared to Q3 2024, driven by better-than-expected transient demand and higher rates [5][6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin declined by 50 basis points year-over-year to 23.9%, primarily due to increased wages and benefits [5][24] - Transient revenue grew by 2%, with double-digit growth at resort properties, particularly in Maui, San Francisco, New York, and Miami [6][21] - Group room revenue decreased approximately 5% year-over-year, attributed to renovation disruptions and the Jewish holiday calendar shift [7][22] Market Data and Key Metrics Changes - Maui experienced a 20% RevPAR growth, driven by increased occupancy and strong out-of-room spending [6][7] - Total group revenue pace in Maui is up 13% for 2026, indicating continued recovery momentum [7] - San Francisco's total group revenue pace for 2026 is up over 20%, with group rate pacing up 10% [56] Company Strategy and Development Direction - The company is focusing on capital allocation decisions that enhance long-term shareholder value, including transformational renovations and strategic asset sales [10][11] - A second agreement with Marriott for transformational renovations at four properties is expected to enhance long-term performance [11] - The company aims to leverage its investment-grade balance sheet and diversified portfolio to outperform in the current environment [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued recovery of leisure travel and the affluent consumer's prioritization of premium experiences [58] - The company raised its full-year 2025 guidance for comparable hotel RevPAR and total RevPAR to approximately 3% and 3.4%, respectively, reflecting strong performance [15][24] - Management noted that the bifurcation of the consumer market is likely to benefit upper-upscale and luxury hotels [16] Other Important Information - The company collected $5 million in business interruption proceeds for Hurricanes Helene and Milton, totaling $24 million for the year [9] - Capital expenditure guidance for 2025 is set at $605-$640 million, including significant investments for redevelopment and repositioning projects [13][26] - The company has a strong liquidity position with $2.2 billion available, facilitating strategic capital allocation decisions [27] Q&A Session Summary Question: Can we expect more asset trading in the market based on current performance? - Management indicated they will be opportunistic with capital allocation regarding dispositions and acquisitions, highlighting successful asset sales this year [33][34] Question: How are you selecting hotels and markets for investment? - The company screens assets to determine capital allocation, focusing on transformational renovations that reposition properties for better performance [42][44] Question: What are the expectations for group booking pace in 2026? - Group revenue pace for 2026 is up 5%, with strong performance expected in key markets like San Francisco and Maui [49][56] Question: How is the company managing wage and benefits increases? - Wage rate growth is expected to be lower in 2026, with New York being the only major market with upcoming labor contract negotiations [82] Question: What are the tailwinds for growth potential in 2026? - The absence of major storms on the Gulf Coast and strong performance from properties like The Don CeSar are expected to contribute positively to growth [88][90]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $71 million, or $1.42 per diluted share, with adjusted net income of $57 million, or $1.15 per diluted share, excluding gains on vessel sales [5][17] - Adjusted EBITDA for the third quarter was $108 million [5][17] - The company ended Q3 with total liquidity of $985 million, including $413 million in cash and $572 million in undrawn revolver capacity [11][20] Business Line Data and Key Metrics Changes - The lightering business generated approximately $9 million in revenue in Q3, contributing nearly $1 million in EBITDA after expenses [18] - TCE revenues from crude and products have been evenly balanced over the past year [17] Market Data and Key Metrics Changes - Oil demand growth remains healthy at 1 million barrels per day for this year and next [12] - Tankers on order represent 14% of the fleet that will deliver over the next four to five years, with a significant number of removal candidates expected as the fleet ages [14][15] Company Strategy and Development Direction - The company continues to execute a balanced capital allocation strategy, focusing on fleet renewal and returning cash to shareholders [5][16] - The company has extended its $50 million share repurchase program to the end of 2026 [5] - The company aims to maintain a healthy balance sheet while capitalizing on favorable market conditions [16][25] Management Comments on Operating Environment and Future Outlook - Management believes demand fundamentals are solid, supporting a constructive outlook for seaborne transportation [11] - The geopolitical intensity affecting tankers remains strong, with sanctions impacting trade routes and cargo flows [13] - The company expects to continue generating significant free cash flows and returning cash to shareholders [23][25] Other Important Information - The company sold five vessels in Q3 for proceeds of $67 million and plans to sell three additional older vessels in Q4 for about $37 million [7][9] - The company has nearly $600 million in undrawn credit capacity to support growth [25] Q&A Session Summary Question: Market conditions and tanker rates - The fourth quarter has shown stronger rates across all segments, with VLCCs leading the way, benefiting midsize tankers as well [31][32] Question: Crude inventory levels and offshore storage - There is currently a lot of oil on the water, but heightened inventories onshore have not yet been observed, and the forward oil curve is flat [40] Question: Opportunities in the S&P market - The company is seeing increased opportunities to divest older assets as asset values pick up, while continuing to upgrade the fleet [41]

Financial Data and Key Metrics Changes - The company reported revenue of $851.6 million for Q3 2025, a 4.4% increase compared to the same quarter last year [5][20] - Adjusted EBITDA was $173 million, down from $194.3 million in the prior year period, reflecting lower volumes and increased expenses [5][20] - Same facility volume growth was 1.3%, which was approximately 100 basis points below internal expectations [5][6] - Adjusted EBITDA guidance for 2025 was reduced to $650-$660 million from a previous range of $675 million-$700 million [6][24] Business Line Data and Key Metrics Changes - Same facility revenue grew 3.7% year over year, driven by a 2.3% increase in revenue per patient day and a 1.3% growth in patient days [20] - The company faced increased pressure on volumes, particularly in the Medicaid segment, impacting overall performance [6][30] Market Data and Key Metrics Changes - The company added 83 beds to existing facilities in Q3, bringing the year-to-date total to 274 beds added through expansions [22] - The company expects to add 500-700 beds in 2026, following the addition of over 1,700 beds in 2024 and 2025 [8][23] Company Strategy and Development Direction - The company is focusing on optimizing growth investments and its existing portfolio to improve financial performance amid increasing headwinds [7][12] - A comprehensive portfolio and capital allocation review led to a pause on several development projects that no longer projected acceptable returns [11][39] - The company aims to ensure a portfolio that meets patient demand while maximizing returns on investments [12][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing headwinds in the operating environment, particularly regarding pressures on managed care companies and Medicaid funding uncertainty [6][7] - The company remains confident in its strategy to deliver strong clinical outcomes and expects to see benefits from recent investments in quality and technology [26][52] Other Important Information - The company expects full-year 2025 startup losses to be in the range of $60 million-$65 million, with a modest decrease anticipated in 2026 [21][24] - Legal expenses related to government investigations were $39 million in Q3, down 28% from the previous quarter, with expectations for continued moderation [22][43] Q&A Session Summary Question: Can you provide more color on the challenges with payers, particularly in Medicaid? - Management noted that payer friction is more pronounced in Medicaid-heavy markets, with increased scrutiny on discharge criteria and more frequent utilization reviews [30][31] Question: How should we think about the durability of bad debts and denials as we move into 2026? - Management indicated that Q4 is seasonally slow, and while some pressures may persist, they expect a reduction in startup losses and other costs in 2026 [33][34] Question: Can you clarify the CapEx reduction and its implications for future bed openings? - The company plans to reduce CapEx by at least $300 million in 2026 while still opening multiple large facilities, as much of the capital for these projects has already been spent [39][41] Question: What is the expected impact of the five facility closures on EBITDA? - Management anticipates a mid-single-digit tailwind in 2026 from the closures, with a focus on ensuring returns on capital [45][46] Question: Can you provide insight into the $22 million in Medicaid supplemental benefits? - The company highlighted that Florida is a key state for these benefits, which could provide a significant run rate going forward [49]

Financial Data and Key Metrics Changes - Gross revenue less network fees reached $589 million, up 61% year over year, while adjusted EBITDA was $292 million, reflecting a 56% increase [3][14] - Excluding the impact of Global Blue, gross revenue less network fees grew 19% year over year, with organic growth at 18% [4][15] - Adjusted free cash flow was a record $141 million, with a conversion rate of 48% [18] Business Line Data and Key Metrics Changes - Subscription and other revenue was $119 million in Q3, up 16% compared to the same period last year, driven by market-leading vertical software solutions [15] - Blended spreads on payment volume remained stable at 62 basis points, with expectations for full-year spreads to exceed 60 basis points [14][15] Market Data and Key Metrics Changes - In Asia, same-store sales were negative 11% in Q3 but showed recovery in October [5] - Global Blue contributed $156 million to gross revenue less network fees and $68 million to EBITDA, despite headwinds in the Asia-Pacific market [17] Company Strategy and Development Direction - The company aims for 30% plus gross revenue less network fee growth over the medium term, supported by attractive capital allocation opportunities [4] - The acquisition of Bambora, a $90 billion payment gateway, is expected to enhance customer acquisition and product capabilities [12][37] - The company is focused on deleting non-core business lines and enhancing revenue quality through strategic divestitures [11][15] Management's Comments on Operating Environment and Future Outlook - Management noted volatility in same-store sales, particularly in the restaurant and hospitality sectors, but emphasized the company's diversified and scaled operations [5][6] - The competitive landscape remains unchanged, with the company holding leading positions in various verticals [6][7] - Management expressed optimism about the potential of AI applications to enhance operational leverage and decision-making [17] Other Important Information - The board authorized a new $1 billion stock repurchase program, the largest in the company's history, to take advantage of current valuation levels [13][20] - The company reaffirmed its full-year 2025 guidance, expecting volume to range from $207 billion to $210 billion, representing 26%-27% year-over-year growth [22][23] Q&A Session Summary Question: What are the implications of Jared getting nominated to NASA? - Management indicated that it could simplify the company's structure and share class, with Jared remaining the largest shareholder [30] Question: Can you provide more context around the $90 billion gateway opportunity with Bambora? - Management highlighted the potential for revenue synergies and the importance of converting existing customers to a consolidated payment solution [33][36] Question: How does the company view organic growth moving forward? - Management confirmed that the 18% organic growth excludes acquisition impacts and aligns with medium-term guidance [41][80] Question: What is the company's philosophy on guidance? - Management emphasized a cautious approach to guidance, reflecting the current macroeconomic environment and industry volatility [51][56] Question: How does the company plan to utilize the new share buyback authorization? - Management stated that the current valuation presents an attractive opportunity for share repurchases without compromising other investment priorities [67][70]

Financial Data and Key Metrics Changes - Third quarter sales reached $3.1 billion, reflecting a 6% organic growth year-over-year [5][12] - Operating EBITDA was $840 million, an increase of 6% year-over-year, resulting in an operating EBITDA margin of 27.3% [5][12] - Adjusted EPS for the quarter was $1.09, flat compared to the previous year, primarily due to a higher tax rate [14] Business Line Data and Key Metrics Changes - **Industrials Co.**: Net sales of $1.8 billion, up 5% year-over-year, with 4% organic growth [14][16] - **Electronics Co.**: Net sales of $1.3 billion, an increase of 11% year-over-year, driven by 10% organic growth [17] - Organic growth in healthcare and water technologies was in the high single digits, while diversified industrials saw low single-digit growth [15][16] Market Data and Key Metrics Changes - North America and Asia-Pacific regions experienced 7% organic growth, while Europe saw a 6% increase year-over-year [13] - The healthcare and water business is expected to grow at about 5% organic growth on average [31] Company Strategy and Development Direction - The company is focused on driving above-market organic growth and building a robust business system [7][11] - A disciplined capital allocation model was emphasized, including a quarterly dividend of $0.20 per share and a $2 billion share repurchase authorization [6][11] - The company aims for medium-term targets of 3%-4% organic growth, 150-200 basis points of margin expansion, and 8%-10% EPS growth from 2026 to 2028 [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium-term targets, with expectations of continued growth in healthcare and water sectors [31][92] - The construction market is anticipated to improve, with expectations of flat performance in the shelter business next year [82][93] Other Important Information - The successful completion of the CUNY separation was highlighted, with $4.2 billion received to reduce debt [18] - The company is actively pursuing M&A opportunities, particularly in healthcare and water sectors [41][53] Q&A Session Summary Question: Can you provide insight on the timing benefit in sales? - The timing benefit was customer-driven, as orders were accelerated into Q3 due to a planned blackout period for the separation [29] Question: What are the expectations for 2026? - The company expects healthcare and water to grow at about 5% organic growth, while the diversified industrials segment is projected to be flat [31][92] Question: What is the plan for the balance sheet? - The pro forma debt is expected to be around $3.25 billion, with a target to stay below 2 times net debt to EBITDA [39] Question: Can you elaborate on the RO acquisition in China? - The acquisition was primarily to add capacity and enhance local production capabilities, not to introduce new technology [97] Question: How is the healthcare business performing? - The healthcare business is expected to see mid to high single-digit growth, with strong performance in medical packaging and biopharma [80]

Financial Data and Key Metrics Changes - Dynavax reported net product revenue of approximately $90 million for Q3 2025, representing a 13% increase year over year, and total revenues of approximately $95 million, up 18% year over year [18][19] - GAAP net income for Q3 2025 was $27 million, compared to $18 million in Q3 2024, while non-GAAP adjusted EBITDA improved to $36 million from $25 million year over year [20] - The company ended Q3 2025 with cash and equivalents of $648 million, down from $714 million at the end of 2024, primarily due to a completed $200 million share repurchase program [21] Business Line Data and Key Metrics Changes - Heplisav-B generated approximately $90 million in net product revenue, achieving a 46% market share in the U.S. adult hepatitis B vaccine market, up from 44% in the prior year [10][11] - The retail segment market share for Heplisav-B grew to 63%, compared to 59% in Q3 of the previous year, indicating strong performance in this critical growth segment [10][11] Market Data and Key Metrics Changes - The adult hepatitis B vaccine market is expanding under the ACIP universal recommendation, with a large catch-up cohort of over 100 million unprotected adults [10] - The overall market for adult hepatitis B vaccines is expected to peak at over $900 million in the U.S. by 2030, with Dynavax targeting at least 60% market share [12][13] Company Strategy and Development Direction - Dynavax is focused on maximizing and growing Heplisav-B, advancing its internal pipeline, and executing strategically aligned business development transactions [59] - The company has entered into a strategic license agreement with Vaxart for a novel oral COVID-19 vaccine program, which is expected to provide improved protection through intestinal delivery [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the long-term goal of at least 60% market share for Heplisav-B by 2030, supported by ongoing growth in the retail segment and increased awareness of the ACIP recommendation [12][13] - The company anticipates continued growth and progress in its pipeline, with key milestones expected in the second half of 2026 [23][24] Other Important Information - A new $100 million share repurchase program was authorized, reflecting the company's commitment to enhancing shareholder value [21][24] - R&D expenses for Q3 2025 were $19 million, up from $14 million in the same quarter last year, reflecting advancements in the pipeline [19] Q&A Session Summary Question: Why license a COVID vaccine now? - Management believes this is a strategic opportunity to grow the market with improved vaccine options, despite recent challenges in the COVID vaccine landscape [26][27] Question: What is the power of the trial with 5,400 patients? - The study is adequately powered to demonstrate improvement over the comparator mRNA vaccine, despite the reduction in size [28] Question: Will the company be able to conduct registrational studies for both shingles and the oral COVID-19 vaccine simultaneously? - Management confirmed that they are capable of managing the staging of activities for both programs [30][31] Question: What is needed to advance the oral vaccine program? - The goal is to demonstrate an improved option compared to the mRNA vaccine, with a focus on both efficacy and tolerability [35][36] Question: How does seasonality affect Heplisav-B revenue in Q4? - Management acknowledged that seasonality exists but expects stronger fourth quarters as retail continues to grow in adult immunizations [38][39] Question: What is the long-term outlook for Heplisav-B market share? - Management is confident in achieving the 60% market share target by 2030, with ongoing progress expected [52][54]

Core Insights - Galapagos NV has concluded its strategic review process, deciding to wind down its cell therapy business to optimize capital allocation for a sustainable future [1][4] - The company has a robust balance sheet with €3.05 billion in cash and financial investments as of September 30, 2025, and expects to end the year with approximately €2.975 billion to €3.025 billion [1][15] - Leadership changes have been made to align with the new strategic direction, enhancing corporate and business development capabilities [3][6] Financial Performance - Total net revenues for the first nine months of 2025 reached €211.4 million, a 6% increase from €200.1 million in the same period of 2024 [5][9] - The company reported an operating loss of €462.2 million for the first nine months of 2025, significantly higher than the €125.6 million loss in the same period of 2024, primarily due to a €204.8 million impairment related to the cell therapy business [7][10] - Net loss from continuing operations was €463.0 million for the first nine months of 2025, compared to a net loss of €20.4 million for the same period in 2024 [10][12] Strategic Focus - The management aims to strategically deploy capital in a disciplined manner, focusing on value-accretive transactions, particularly in small molecule and biologics programs in immunology and oncology [1][4] - The company is actively evaluating opportunities and believes its partnership with Gilead provides a strategic advantage in pursuing these opportunities [1][4] Operational Changes - The wind down of the cell therapy business is expected to impact approximately 365 employees across various locations, with the remaining organization projected to consist of 35-40 employees by the end of 2026 [4][15] - The company anticipates being cash flow neutral to positive by the end of 2026, excluding any business development activities and currency fluctuations, if the wind down is successfully implemented [1][15] Clinical Pipeline - Galapagos is advancing its clinical pipeline, including GLPG5101, a CD19 CAR-T candidate in Phase 1/2 trials, and GLPG3667, a small molecule TYK2 inhibitor in Phase 3-enabling studies [5][6]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $12.6 million or $0.31 per share for the third quarter of 2025, with earnings increasing throughout the quarter and into the fourth quarter due to record volumes of refined products [4][11] - EBITDA for the third quarter was $27.6 million, with a cash break-even level reduced to $11,700 per day, and an even lower operating break-even of $10,800 per day [11][12] Business Line Data and Key Metrics Changes - The company's MRs earned $24,700 per day in the third quarter and $24,900 so far in the fourth quarter, with 40% booked [5] - Chemical tankers earned $22,600 per day in the third quarter and $22,200 so far in the fourth quarter, with 35% booked [5] Market Data and Key Metrics Changes - Export volumes in refined products reached record levels during the quarter, driving robust product tanker demand [8] - 50% of the LR2 fleet is now trading in the crude market, up 23% over the past year, indicating tight supply-demand balances [8] - 16% of the global tanker fleet is sanctioned, significantly reducing the pool of compliant vessels [8] Company Strategy and Development Direction - The company is focused on balancing capital returns to shareholders while growing the business and reinvesting in the fleet, maintaining low debt levels [6][7] - The company has fully redeemed $30 million of preferred shares, further reducing cash break-even levels and enhancing the quality of its trading book through long-term charter contracts [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand drivers for product tankers, noting significant geopolitical factors creating volatility and increased trading activity [21][23] - The company highlighted the ongoing evolution of trade flows and long-term demand, particularly in regions like California where refined product imports are up 50% year-on-year [10] Other Important Information - The company is investing in digitalization projects and fuel efficiency upgrades, with capital expenditures for 2025 projected at $37 million [12] - The on-hire availability of the fleet was strong at 99% in the third quarter, reflecting effective operations [13] Q&A Session Summary Question: Insights on MR spot rates and winter expectations - Management acknowledged the correlation between MR and crude tanker rates, expressing confidence in the significant ramp-up in earnings and long-term demand drivers [20][21] Question: Thoughts on chartering strategy and appetite for similar deals - Management explained the decision to lock in a long-term charter with an oil major as a way to secure strong returns while maintaining a balanced portfolio approach [25][26] Question: Market outlook and capital deployment strategy - Management indicated that future capital deployment will be guided by market conditions, with a focus on value-enhancing transactions and maintaining a strong governance framework [38][40]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $12.6 million or $0.31 per share for Q3 2025, with earnings increasing throughout the quarter and into Q4, driven by record volumes of refined products [5][12] - EBITDA for the third quarter was $27.6 million, with a cash break-even level reduced to $11,700 per day, and an operating break-even of $10,800 per day [12][15] Business Line Data and Key Metrics Changes - The company's MRs earned $24,700 per day in Q3 and $24,900 so far in Q4, with 40% booked [6] - Chemical tankers earned $22,600 per day in Q3 and $22,200 so far in Q4, with 35% booked [6] Market Data and Key Metrics Changes - Export volumes in refined products reached record levels, fueling robust product tanker demand, while high crude fleet utilization is tightening supply across the tanker industry [8][9] - 50% of the LR2 fleet is now trading in the crude market, up 23% over the past year [9] Company Strategy and Development Direction - The company is focused on balancing capital returns to shareholders with business growth and fleet reinvestment while maintaining low debt levels [7][15] - The company has fully redeemed $30 million of preferred shares, enhancing its capital structure and reducing cash break-even levels [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market outlook, citing significant near-term disruptions and tight supply-demand balances [8][23] - Geopolitical factors are creating inefficiencies that favorably impact the market, with 16% of the global tanker fleet now sanctioned [9][10] Other Important Information - The company is investing in digitalization projects and biofuel bunkers to support trading strategies in the EU, achieving full fuel compliance across the fleet in 2025 [13][14] - The company has a strong on-hire availability of 99% in Q3, reflecting effective operations [14] Q&A Session Summary Question: Insights on MR spot rates and winter expectations - Management acknowledged the correlation between MR and crude tanker rates, expressing confidence in the significant ramp-up in earnings and long-term demand drivers [20][22] Question: Market dynamics and product tanker performance - Management noted that while product tankers have improved, they have not surged like crude tankers, attributing this to the need for cargoes to deliver into the refining system [29][31] Question: Future capital deployment strategy - Management indicated that future steps will be guided by market conditions, with a focus on value-enhancing transactions and maintaining a balanced approach to capital allocation [35][37]

Core Insights - The company is focused on disciplined capital allocation, balancing shareholder returns with business growth and fleet reinvestment while maintaining low debt levels [1][2][4] - The company has declared its twelfth consecutive dividend and fully redeemed $30 million of preferred shares, which has reduced cash breakeven levels [2][10] - The market for product tankers is experiencing strong demand due to record export volumes and refined products in transit, alongside geopolitical factors affecting supply [5][6][20] Financial Performance - The company reported adjusted earnings of $12.6 million or $0.31 per share for the third quarter, with earnings increasing throughout the quarter [4][10] - The average Time Charter Equivalent (TCE) rates for MRs were $24,700 per day in Q3 and $24,900 so far in Q4, significantly above cash breakeven levels [3][10] - EBITDAR for the third quarter was reported at $27.6 million, indicating strong operational performance [10] Market Dynamics - The product tanker market is characterized by tight supply-demand balances, with 50% of the LR2 fleet now trading in the crude market, a 23% increase over the past year [5][6] - Geopolitical factors have led to 16% of the global tanker fleet being sanctioned, reducing the pool of compliant vessels and limiting available supply [5][6] - The aging fleet and a shrinking order book, with only 13% of the fleet represented in the order book, are expected to create favorable supply dynamics [7][8] Strategic Initiatives - The company is enhancing its trading book through long-term charter contracts, including a recent two-year charter at $21,250 per day with an oil major [2][23] - Capital expenditures for 2025 are projected at $37 million, with a focus on efficiency upgrades and tank coating projects [11][32] - The company is investing in digitalization and AI projects to optimize voyage performance and achieve full fuel compliance by 2025 [12][32] Future Outlook - The company anticipates continued strength in earnings supported by favorable market conditions and strong operational performance [13][20] - The evolving trade flows and long-term demand for product tankers are expected to drive ton-mile demand, particularly as refinery capacities shift towards Asia and the Middle East [7][8][20] - The company remains flexible in capital deployment, considering both shareholder returns and reinvestment opportunities based on market conditions [30][32]