Financial Data and Key Metrics Changes - The company reported a net revenue increase of 6% year over year for Q3 2025, driven by improvements in payer mix and state-directed payments from New Mexico and Tennessee [6][12] - Adjusted EBITDA for Q3 2025 was $376 million, up from $347 million in the prior year, with a margin of 12.2%, an increase of 100 basis points year over year [11][12] - Leverage was reduced to 6.7 times, down from 7.4 times at year-end 2024, indicating improved capital structure [9][15] Business Line Data and Key Metrics Changes - Same-store net revenue increased by 6.0% year over year, primarily due to rate growth, with net revenue per adjusted admission up 5.6% [12][51] - Same-store inpatient admissions rose by 1.3% year over year, while same-store surgeries declined by 2.2% [12] - The company continued to grow its inpatient volume, although outpatient elective surgeries remained under pressure [7][12] Market Data and Key Metrics Changes - The company experienced a divergence in inpatient and outpatient surgeries, with outpatient surgeries down due to economic headwinds affecting consumer demand [19][20] - The payer mix improved sequentially and year over year, contributing to a more favorable revenue environment [12][20] Company Strategy and Development Direction - The company is focused on supporting caregivers and improving healthcare experiences, with plans for a leadership conference to discuss future vision and investments [5][6] - Strategic investments are being made in capacity and service line expansions, including acquisitions and new service lines in various markets [8][9] - The company is pursuing divestitures and has ongoing discussions for potential deals, indicating a strategic approach to capital deployment [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future operational and financial performance, citing improvements in consumer confidence and payer mix [6][20] - The company anticipates positive free cash flow for the full year of 2025, with expectations for continued growth in 2026 driven by Medicare rate increases and state-directed payment programs [15][26] - Management acknowledged ongoing inflationary pressures but remains confident in cost control measures and operational efficiencies [13][14] Other Important Information - The company refinanced $1.74 billion of senior secured notes, extending maturity to 2029, which provides financial flexibility [9][15] - A $28 million gain from a legal settlement was recognized, contributing to reported results but excluded from same-store metrics [11][12] Q&A Session Summary Question: Thoughts on outpatient volume recovery - Management noted that economic headwinds and consumer confidence have impacted outpatient surgeries, but improvements in payer mix and consumer sentiment are encouraging [19][20] Question: Free cash flow outlook and capital deployment - Positive free cash flow is expected for 2025, allowing for strategic capital deployment, including potential tuck-in acquisitions [24][25] Question: Trends in payer denials and underpayments - Denials have stabilized since a spike last year, with investments in internal revenue cycle management and AI tools to improve efficiency [55] Question: Impact of flu season on guidance - Flu season has started slowly, but this has been factored into guidance, with no significant uptick observed yet [56][57]

Core Insights - Baker Hughes Company (BKR) reported third-quarter 2025 adjusted earnings of 68 cents per share, exceeding the Zacks Consensus Estimate of 61 cents and improving from 67 cents in the previous year [1][10] - Total quarterly revenues reached $7,010 million, surpassing the Zacks Consensus Estimate of $6,832 million and increasing from $6,908 million year-over-year [1][10] Segment Performance - The strong quarterly results were primarily driven by the Industrial & Energy Technology business segment [2] - Revenues from the Oilfield Services and Equipment (OFSE) unit were $3,636 million, down 8% from $3,963 million a year ago, but above the estimate of $3,632 million [3] - EBITDA from the OFSE segment totaled $671 million, down 12% from $765 million in the third quarter of 2024, attributed to lower volume, inflation, and shifts in business mix, partially offset by cost-out initiatives and productivity improvements [4] - Revenues from the Industrial & Energy Technology (IET) unit amounted to $3,374 million, up 15% from $2,945 million year-over-year, exceeding the estimate of $3,182.6 million [5] - EBITDA from the IET segment was $635 million, up 20% from $528 million in the previous year, driven by volume, positive pricing, and favorable foreign exchange movements, partially offset by inflation and lower cost productivity [5] Financial Overview - Total costs and expenses for the third quarter were $6,189 million, higher than the year-ago figure of $5,899 million, and above the projection of $6,054.4 million [6] - Orders from all business segments amounted to $8,207 million, up 23% from $6,676 million a year ago, driven by strong order intake growth across both OFSE and IET segments [7][10] - Free cash flow generated was $699 million compared to $754 million a year ago [8] - Net capital expenditure in the second quarter was $230 million [9] - As of September 30, 2025, cash and cash equivalents stood at $2,693 million, with long-term debt of $5,988 million and a debt-to-capitalization ratio of 24.8% [11]

Financial Performance & Strategy - Precision Drilling aims to maximize free cash flow by growing revenue, enhancing shareholder returns, and maintaining disciplined capital deployment[9] - The company estimates a 17% free cash flow yield potential, with $169 million in estimated free cash flow for 2025, based on an equity market cap of $1,014 million[11] - Precision Drilling plans to reduce debt by $100 million in 2025, with $101 million already repaid as of September 30, 2025[10] - The company is allocating 35%-45% of free cash flow for share repurchases, with $54 million repurchased as of September 30, 2025[10] - Precision Drilling increased its long-term debt reduction target to $700 million from 2022-2027, having already repaid $535 million as of September 30, 2025[70] Operational Highlights - Precision Drilling is upgrading 27 Super Series rigs in 2025 to drive revenue and margin growth, focusing on heavy oil & Montney rigs in Canada and gas-weighted plays in the U S [10,29] - The company's Canadian operations have a ~65% utilization rate across its 100 rigs, with Super Triple rigs at 85% utilization in the Montney/LNG play and Super Single rigs at 70% in the Oil Sands/Clearwater play as of Q3 2025[35,37] - U S natural gas drilling activity is improving, with the Baker Hughes L48 Land Gas Rig Count up 19% in 2025[44,45] - Precision Drilling has reduced its outstanding shares by 9% since Q1 2024[26,27] International Operations - Precision Drilling has 8 rigs contracted internationally, with 5 in Kuwait and 3 in Saudi Arabia, with the majority on 5-year contracts extending into 2027/28[54]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured products saw operating income of $24.7 million, with a 16% operating income margin, doubling on a 9% revenue increase [7] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, with a flat operating income margin of 14% [8] - AdTech operating income increased by 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of the 131 floating rigs [6] - The backlog as of September 30, 2025, was $568 million, with a book-to-bill ratio of 0.82 for the trailing 12-month period [7] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The focus remains on growth opportunities across all markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - The company expects revenue to decrease in Q4 2025 due to lower international OPG projects, projecting consolidated EBITDA in the range of $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, anticipating significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, the CFO, plans to retire on January 1, transitioning to an advisory role, with Mike Sumrold introduced as the new Senior Vice President of Finance [16][17] Q&A Session Summary Question: Discussion on Ocean Intervention II capabilities - The company highlighted the advantages of simultaneous autonomous survey operations, emphasizing efficiency and improved data quality [19][20] Question: Market outlook for Subsea Robotics in Brazil - The market in Brazil is robust, with significant opportunities expected, and the company anticipates an increase in market share [21][22] Question: Growth of AdTech business and capital competition - The AdTech business is low capital intensity, allowing for significant scaling without heavy investment, with increasing international opportunities noted [23][26] Question: Revenue expectations for manufactured products in Q4 - The company clarified that while revenue may decline, the quality of earnings is expected to improve due to backlog execution and operational excellence [29][30] Question: Cadence of AdTech growth in 2026 - The company expects to ramp up revenue throughout 2026, driven by new large-scale projects and ongoing contractor onboarding [33][34]

Financial Data and Key Metrics Changes - Ryder reported operating revenue of $2.6 billion in Q3 2025, up 1% from the prior year, primarily due to contractual revenue growth in Supply Chain Solutions (SCS) and Fleet Management Solutions (FMS) [13] - Comparable earnings per share from continuing operations were $3.57, up 4% from $3.44 in the prior year, reflecting higher contractual earnings and benefits from share repurchases [13] - Return on equity (ROE) was 17%, up from the prior year, driven by higher contractual earnings and share repurchases, partially offset by lower rental demand and used vehicle sales [14] - Year-to-date free cash flow increased to $496 million from $218 million in the prior year due to reduced capital expenditures and lower income tax payments [14] Business Line Data and Key Metrics Changes - Fleet Management Solutions operating revenue was in line with the prior year, with pretax earnings of $146 million, up year-over-year due to higher ChoiceLease performance, offset by lower used vehicle sales and rental results [14][15] - Supply Chain operating revenue increased 4%, driven by new business in omni-channel retail, but earnings decreased 8% due to e-commerce network performance and higher medical costs [19] - Dedicated operating revenue decreased 6% due to lower fleet count, but earnings before tax (EBT) was in line with the prior year, reflecting acquisition synergies [20] Market Data and Key Metrics Changes - The company noted that 93% of its revenue is generated in the U.S., positioning it well to benefit from increased domestic industrial manufacturing [6] - Rental demand was lower than historical seasonal trends, with rental utilization on the power fleet at 70%, down from 71% in the prior year [15] - Used vehicle pricing saw a year-over-year decline of 6% for tractors and 15% for trucks, although sequential pricing for trucks increased by 7% [16] Company Strategy and Development Direction - Ryder is focused on creating value through operational excellence and investment in customer-centric technology, aiming for earnings growth driven by resilient contractual businesses and strategic initiatives [5][6] - The company expects its transformed business model to deliver ROE in the low to mid-20s when market conditions improve, with over 90% of operating revenue generated by multiyear contracts [7] - A new discretionary $2 billion share repurchase program was authorized, reflecting the company's commitment to disciplined capital allocation [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform prior cycles, citing a strong foundation from its transformed business model [8] - The outlook for 2025 includes a comparable EPS forecast of $12.85 to $13.05, driven by higher contractual earnings and benefits from strategic initiatives [29] - Management acknowledged ongoing headwinds from the freight market downturn but remains optimistic about robust sales and pipeline activity in SCS [29][30] Other Important Information - The company has returned $457 million to shareholders in 2025 through share repurchases and dividends, with a 57% increase in the quarterly dividend since 2021 [9] - The forecast for free cash flow remains unchanged at $900 million to $1 billion, reflecting lower capital expenditures and an estimated annual benefit of $200 million from tax bonus depreciation [10][30] Q&A Session Summary Question: Impact of CDL regulations on the business model - Management indicated that tighter driver markets could benefit the dedicated business as companies seek assistance in driver recruitment, with minimal impact expected on the lease side [38][40] Question: Drivers of earnings growth for next year - Management expects contractual earnings growth and strong performance in supply chain to drive revenue and earnings growth, despite muted sales in lease and dedicated due to freight market softness [42][45] Question: Used vehicle pricing and tariffs - Management noted that any price increases would likely be passed through to lease rates, and higher new truck pricing could eventually support used truck prices [52][56] Question: Supply Chain Solutions headwinds - Management acknowledged temporary headwinds in e-commerce network performance but remains optimistic about future growth and margin targets [65][66] Question: Bonus depreciation impact - The bonus depreciation is expected to provide a cash tax benefit of approximately $200 million annually, with no significant impact on operating margins [84][86]

Financial Data and Key Metrics Changes - Ryder reported operating revenue of $2.6 billion in Q3 2025, up 1% from the prior year, primarily due to growth in contractual revenue [11] - Comparable EPS from continuing operations increased to $3.57, up 4% from $3.44 in the prior year, reflecting higher contractual earnings and benefits from share repurchases [11] - Return on equity (ROE) was 17%, up from the prior year, driven by higher contractual earnings and share repurchases, partially offset by lower rental demand and used vehicle sales [11] - Year-to-date free cash flow increased to $496 million from $218 million in the prior year due to reduced capital expenditures and lower income tax payments [11] Business Line Data and Key Metrics Changes - Fleet Management Solutions (FMS) operating revenue was in line with the prior year, with pre-tax earnings of $146 million, reflecting higher ChoiceLease performance [12] - Supply Chain Solutions (SCS) operating revenue increased 4%, driven by new business in omnichannel retail, but earnings decreased 8% due to e-commerce network performance and higher medical costs [15] - Dedicated Transportation Solutions (DTS) operating revenue decreased 6% due to lower fleet count, but EBT was in line with the prior year, reflecting acquisition synergies [16] Market Data and Key Metrics Changes - 93% of Ryder's revenue is generated in the U.S., positioning the company to benefit from increased domestic industrial manufacturing [5] - The rental demand was lower than historical seasonal trends, with rental utilization on the power fleet at 70%, down from 71% the prior year [12] - Used vehicle pricing declined 6% for tractors and 15% for trucks year-over-year, reflecting ongoing weakness in market conditions [13] Company Strategy and Development Direction - Ryder's balanced growth strategy focuses on operational excellence and investment in customer-centric technology, aiming to improve full-cycle returns and unlock long-term shareholder value [5] - The company expects earnings growth in 2025 driven by resilient contractual businesses and strategic initiatives, with a forecasted ROE of 17% [22] - Ryder has authorized a new discretionary share repurchase program, reflecting a commitment to disciplined capital allocation [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's cycle-tested business model, which has demonstrated resiliency during the freight cycle downturn [6] - The company anticipates continued earnings growth from multi-year strategic initiatives, with expected annual pre-tax earnings benefits of approximately $150 million [24] - Management noted that while there are near-term headwinds in lease and dedicated sales due to market conditions, robust sales activity in SCS is encouraging [22] Other Important Information - Ryder's forecast for free cash flow remains unchanged at $900 million to $1 billion, reflecting lower capital spending and an annual cash flow benefit of approximately $200 million from tax bonus depreciation [8] - The company has repurchased approximately 22% of its shares outstanding since 2021 and increased the quarterly dividend by 57% [7] Q&A Session Summary Question: Impact of CDL regulations on business model - Management indicated that tighter driver markets could benefit the dedicated business as companies seek assistance in driver recruitment [30][32] Question: Drivers of earnings growth for 2026 - Management expects contractual earnings growth and benefits from strategic initiatives to drive earnings growth, with strong performance anticipated in supply chain solutions [34][35] Question: Challenges in used vehicle pricing - Management acknowledged challenges in used vehicle pricing but noted that higher new truck pricing could eventually support used truck values [39][40] Question: Supply chain performance and headwinds - Management highlighted that recent headwinds in supply chain performance were temporary and attributed to specific customer issues, with expectations for recovery [49][50] Question: Bonus depreciation impact on financials - Management clarified that the bonus depreciation will provide a cash tax benefit of approximately $200 million annually, with no significant impact on operating margins [61][62]

Financial Data and Key Metrics Changes - The company achieved record net revenue and record adjusted EBITDA for the third quarter of 2025, with the live and historical racing segment also reaching record levels [5][22] - The live and historical racing segment grew revenue by 21% and adjusted EBITDA by 25% compared to the prior year quarter, marking the 21st consecutive quarter of record growth for this segment [22] - Free cash flow generated was $166 million, or $2.34 per share, representing a 13% increase from the prior year quarter [25][26] Business Line Data and Key Metrics Changes - The regional gaming properties performed well, with adjusted EBITDA increasing over $3 million, and margins up 1.1 points compared to the prior year quarter [25] - The Rose gaming venue in Virginia showed significant growth, with gaming revenues increasing and a strong customer database being built [14][15] - The Exacta business benefited from the growth of HRM operations in Kentucky and Virginia, contributing to record adjusted EBITDA for the Wagering Services and Solutions segment [24] Market Data and Key Metrics Changes - The company is expanding its international reach with the addition of three new points races in Dubai and Saudi Arabia, enhancing the quality of the international pathway to the Kentucky Derby [10] - Virginia has proven to be a strong investment environment, with 4,875 HRMs deployed and continued growth in gaming revenue [15][16] Company Strategy and Development Direction - The company is focused on five key growth catalysts for the Kentucky Derby, including ticketing revenue, broadcast rights, wagering, sponsorships, and selective renovations [7][11] - A significant investment of $280 to $300 million is planned for the construction of a new venue called Victory Run, aimed at enhancing the guest experience during Derby Week [12][13] - The company is committed to maintaining a disciplined capital management strategy while balancing share repurchases and project investments [27][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Kentucky Derby and HRM properties, citing strong customer engagement and market expansion [20][22] - The company anticipates continued improvement in margins and performance as it drives better awareness and customer engagement in its venues [61] - Management acknowledged the challenges posed by illegal gaming machines in Virginia but noted strong enforcement and progress in addressing these issues [70][72] Other Important Information - The Board of Directors approved a 7% increase in dividends, marking the 15th consecutive year of increased dividends per share [27] - The company expects to spend $200 to $240 million on project capital in 2025, with a focus on strategic investments in its flagship assets [26][28] Q&A Session Summary Question: ROI targets for Victory Run - The company targets a 20% unlevered IRR focused on year three for the Victory Run project [32] Question: Prospective opportunity for ETGs - Management sees electronic table games as an important opportunity but is cautious about predictions due to regulatory factors [36][37] Question: Capital allocation and leverage - The company is committed to reducing leverage below 4 times next year while balancing share repurchases and capital investments [40] Question: Benefits of owning properties outright - Owning real estate provides stability and predictability, which management believes is not fully recognized in the market [42][43] Question: M&A environment - There has been a recent pickup in M&A activity, and the company remains flexible in its approach to acquisitions [46][48] Question: Emerging landscape of prediction markets - The company plans to approach prediction market operators to explain the legal framework governing horse racing wagering [66][67] Question: Illegal machines in Virginia - Management reported strong enforcement against illegal machines and believes the situation is under control [70][72]

FISCAL FOURTH QUARTER AND FISCAL 2025 HIGHLIGHTS October 22, 2025 PLEXUS CONFIDENTIAL SAFE HARBOR AND FAIR DISCLOSURE STATEMENT Some of the statements made and information provided during our call as well as information included in the supporting materials will be forward looking statements, including, without limitation, those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation and future business outlook. Fo ...

Key Points Warren Buffett focuses on stocks that have competitive advantages, not just a high dividend yield. He looks at the underlying cash flow that fuels dividend growth. Buffett also cares about buying stocks at a discounted valuation. 10 stocks we like better than Apple › Dividends are a fantastic avenue for investors to build wealth in the stock market over the long term. However, when most investors hunt for dividend-paying stocks, they focus on the wrong criterion: dividend yield. A hig ...

Core Insights - The article emphasizes the importance of identifying underpriced equities with strong upside potential and overappreciated companies with inflated valuations in investment strategies [1] - It highlights the significance of analyzing Free Cash Flow and Return on Capital for deeper investment insights beyond basic profit and sales analysis [1] - The author acknowledges that while some growth stocks may deserve premium valuations, it is crucial for investors to investigate whether the market's current opinions are justified [1] Industry Focus - The energy sector, particularly oil and gas supermajors, mid-cap, and small-cap exploration and production companies, is a primary focus area for investment analysis [1] - The article also covers a variety of other industries, including mining, chemicals, and luxury goods, indicating a broad approach to investment research [1]