Core Insights - The company is initiating a leadership transition plan to appoint a new CEO while maintaining business continuity and focusing on profitable growth initiatives [1][3][71] Financial Performance - The company reported a solid third-quarter performance with sales up approximately 2% and orders up about 10%, indicating strong top-line momentum [2][10] - Adjusted earnings per share for the quarter was $2.51, an increase compared to the prior year [9][10] - Free cash flow generated in the third quarter was $174 million, primarily used to pay down debt, with expectations to generate $625 million for the year [10][30][66] Market and Segment Analysis - The data center market is a significant growth area, with $135 million in orders booked in the quarter and an additional $60 million in October, reflecting strong traction [7][11] - The company’s data center business is projected to grow from $30 million five years ago to an estimated $130 million this year, with a bid pipeline approaching $1 billion [11][12][62] - Orders in the automation and motion control (AMC) segment were up 31.7% year-over-year, driven by large data center orders [24][21] Margin and Cost Dynamics - The adjusted gross margin for the third quarter was 37.6%, down 80 basis points from the prior year, impacted by tariffs and rare earth magnet availability [8][10] - Adjusted EBITDA margin was 22.7%, reflecting synergy benefits offset by mix tariffs and rare earth pressures [9][10] - The company expects to achieve margin neutrality on tariffs by the end of next year, with ongoing efforts to manage tariff impacts [30][59] Future Outlook - The company anticipates low to mid-single-digit organic sales growth in 2026, with data centers contributing significantly to this growth [38][50] - Expectations for free cash flow in 2026 are nearly $900 million, supporting further debt reduction and improving leverage ratios [39][66] - The company is investing in expanding capacity in its data center business, with new facilities in British Columbia and Texas expected to enhance production capabilities [18][19][78] Leadership Transition - The board has initiated a comprehensive search for a new CEO, expected to take about four to six months, ensuring a smooth transition and continuity in strategy [71][72]

Financial Data and Key Metrics Changes - The company reported third quarter 2025 earnings of $0.83 per share, which is one cent higher than the adjusted earnings for the same period in 2024 [3][12] - The earnings guidance for 2025 remains reaffirmed at a range of $5.17 to $5.27 per share, assuming normal weather conditions for the remainder of the year [3][15] - The utility operations contributed $0.12 more to earnings compared to third quarter 2024 adjusted earnings, with weather positively impacting earnings by about $0.01 [12] Business Line Data and Key Metrics Changes - Weather-normal retail electric deliveries increased by 1.8% compared to the third quarter of 2024, driven by a 2.9% growth in the large commercial and industrial segment [13] - Earnings from the American Transmission Company segment contributed an incremental $0.02 to Q3 earnings versus 2024 [14] - Earnings from corporate and other segments decreased by $0.11, primarily due to tax timing and higher interest expenses [14] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.1%, which is below the national average, supporting economic growth in the region [6] - The company expects electric demand to grow by 3.4 GW between 2026 and 2030, an increase of 1.6 GW compared to the prior plan [4][6] Company Strategy and Development Direction - The company plans to invest $36.5 billion in capital projects between 2026 and 2030, which is an increase of $8.5 billion from the previous five-year plan, representing over a 30% increase [6][8] - The updated capital plan anticipates an average asset base growth rate of just over 11% per year, supporting long-term projected earnings per share growth of 7% to 8% annually from 2026 to 2030 [6][17] - The company is focusing on an all-of-the-above approach for generation, investing in natural gas, batteries, and renewables to support economic growth and reliability [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's future and investment opportunities, citing strong economic development and load growth in Wisconsin as the foundation for the new five-year plan [17][18] - The management team highlighted that the growth from large customers is fostering small commercial and residential development throughout the service territory [5][6] Other Important Information - The company plans to file a rate case in Wisconsin for its biannual process, looking at inflation-type increases, but ensuring that costs from hyperscalers do not affect other customers [70] - The Very Large Customer tariff is designed to ensure that large customers pay their fair share without subsidizing other customers [10][52] Q&A Session Summary Question: On the updated growth outlook and back-end loading - Management explained that the compound annual growth rate (CAGR) will ramp up post-2027, with expectations of 7% to 8% growth in the outer years [20][21] Question: Timing around Point Beach conversations with NextEra - Conversations are ongoing, but may be shifting further out, with no capital included in the current plan for potential capacity replacement [23] Question: Microsoft expansion and its impact on the plan - Management confirmed that the growth in Southeastern Wisconsin is largely driven by data center projects, including Microsoft and Vantage Data Centers [27][28] Question: Clarification on capital plan increase - The increase in capital plan is primarily due to investments in regulated electric generation, transmission, and distribution [7][9] Question: Impact of Illinois legislation on growth - Management indicated that the Illinois legislation is being monitored, but does not expect it to have a significant effect on the company [32] Question: Future growth opportunities beyond the current plan - Management sees potential for additional growth both within the current five-year plan and beyond, depending on customer development [73]

Financial Data and Key Metrics Changes - The company reported third quarter 2025 earnings of $0.83 per share, which is $0.10 higher than the adjusted earnings for the same period in 2024 [4][17] - The earnings guidance for 2025 remains reaffirmed at a range of $5.17 to $5.27 per share [5][21] - Weather positively impacted earnings by approximately $0.01 compared to last year, with a favorable impact of $0.03 in 2025 versus $0.02 in 2024 [19] Business Line Data and Key Metrics Changes - Utility operations earnings increased by $0.12 compared to third quarter 2024 adjusted earnings [18] - Retail electric deliveries, excluding the iron ore mine, saw a 1.8% increase compared to 2024, driven by a 2.9% growth in the large commercial and industrial segment [19] - Earnings from the Corporate and Other segment decreased by $0.11, primarily due to tax timing and higher interest expenses [21] Market Data and Key Metrics Changes - Wisconsin's unemployment rate stands at 3.1%, which is below the national average, supporting economic development [9] - The company expects electric demand to grow by 3.4 gigawatts between 2026 and 2030, an increase of 1.6 gigawatts compared to the prior plan [6][9] Company Strategy and Development Direction - The company plans to invest $36.5 billion in capital projects between 2026 and 2030, which is an increase of $8.5 billion from the previous five-year plan [9][10] - The updated capital plan anticipates asset-based growth at an average rate of just over 11% per year [10] - The company will utilize an all-of-the-above approach for generation, investing in natural gas, batteries, and renewables [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic development and load growth in Wisconsin, which is the foundation of the new five-year plan [24] - The long-term projected earnings per share growth is expected to be 7% to 8% annually on a compound basis between 2026 and 2030 [10][22] - Management noted that the growth from large customers is fostering small commercial and residential development throughout the service territory [8] Other Important Information - The company expects to maintain a dividend payout ratio of 65% to 70% of earnings, with a growth rate of 6.5% to 7% consistent with past practices [25] - The proposed very large customer tariff is under review, designed to meet the needs of large customers while protecting other customers [14][15] Q&A Session Summary Question: On the updated growth outlook and its back-end loading - Management explained that the growth is expected to ramp up in 2027, with a compound annual growth rate of 7% to 8% in the outer years [29][31] Question: Timing around Point Beach conversations with NextEra - Conversations are ongoing, but may shift further out; no capital is assumed in the current plan for potential replacements [34][35] Question: Microsoft expansion and its impact on the plan - Management expressed confidence in growth in Southeastern Wisconsin, with Microsoft’s data center potentially scaling up to 2 gigawatts [40][41] Question: Clarification on capital plan increase - The increase in capital plan is primarily due to additional investments in regulated electric generation and transmission [12][22] Question: Engagement with other potential customers - Management confirmed ongoing discussions with other customers but emphasized that Microsoft and Vantage are the main focus currently [95][96] Question: Impact of the very large customer tariff on customer rates - The tariff is designed to ensure large customers pay their fair share without subsidizing other customers [89][90]

Financial Performance - 2025 Q3 GAAP EPS 为 $0.88，持续经营 EPS 为 $1.24，而 2024 Q3 持续经营 EPS 为 $1.25[4] - 2025 年年初至今 GAAP EPS 为 $2.47，持续经营 EPS 为 $2.84，而 2024 年年初至今持续经营 EPS 为 $2.69[4] - 公司重申 2025 年持续经营 EPS 指导值为 $3.75 至 $3.85[4] - 启动 2026 年持续经营 EPS 指导值为 $4.04 至 $4.16[4] - 长期 EPS 增长目标更新为 6-8+%[4] Capital Investment and Growth - 更新了 600 亿美元的五年投资计划，提供约 11% 的年化费率基础增长[4] - 2026 年至 2030 年的总资本投资为 600 亿美元[5] - 2025 年至 2030 年的综合费率基础复合年增长率约为 11%[13] - 电力分配占 23%，电力生产占 39%，电力传输占 26%，天然气 LDC 占 6%，其他占 6%，总计 600 亿美元[8] Sales and Customer Data - 2025 年年初至今加权平均零售电力销售额增长 2.5%[39] - 2025 年第三季度同比增长电力客户增长 0.9%[41] - 预计 2025 年加权平均零售电力销售额增长约 3%[51] - 预计 2026 年加权平均零售电力销售额增长约 3%，天然气销售额增长约 1%[52] Strategic Initiatives - 计划投资约 50 亿美元用于野火缓解[6] - 签订了约 3 吉瓦的数据中心负载基础计划，到 2026 年[4] - 为 SPS 和 PSCo 中超过 6,000 兆瓦的增量资源发布了 RFP[4] - 正在进行的 EPS 增长为 6-8+%，股息收益率约为 3%，总股东回报率为 10+%[57, 59]

Market Outlook - Fluence expects US orders to constitute a significant portion of its backlog in the coming year [1] - The anticipated surge in US orders is attributed to increased power demand driven by electrification and data center expansion [1]

Group 1 - Flex Ltd. is recognized as a promising stock under $100, with BofA raising its price target to $65 from $58 while maintaining a Buy rating [1] - The company aims for a 20% CAGR in data center revenue and is currently exceeding this target, prompting BofA to increase its financial estimates for Flex [1][2] - Flex reported record results for FQ1 2026, with revenues of $6.6 billion, a 4% year-over-year increase, and an adjusted EPS of $0.72, reflecting over a 40% rise from the previous year [2] Group 2 - The primary growth driver for Flex is its Data Center business, projected to generate approximately $6.5 billion in revenue for FY2026, achieving an annual growth target of 35%, which constitutes 25% of total company revenue [2] - Flex is positioned as the sole provider of end-to-end cloud IT integration and a comprehensive power and cooling portfolio, offering integrated solutions including IT hardware and liquid cooling technology [3] - The company operates through two segments: Flex Agility Solutions/FAS and Flex Reliability Solutions/FRS, providing tech innovation, supply chain, and manufacturing solutions across various industries [4]

Group 1 - Ferguson Enterprises Inc. (FERG) is a leading distributor of building products, serving both residential and non-residential markets with a wide array of plumbing, HVAC, waterworks, and construction supplies [2] - The company achieved organic growth of 1% in its Residential segment in 2025, outperforming a 3% sector decline, and 6% growth in Non-Residential versus flat sector growth, outperforming peers by approximately 500 basis points [3] - FERG maintains gross margins around 30%, operating margins of 9–10% (adjusted 11.4% in Q4), and an ROIC of 30% in 2023–2024, reflecting efficient operations and strong capital allocation [4] Group 2 - FERG is positioned to benefit from reshoring, data center growth, and ongoing market share gains, with mid-single-digit revenue growth and mid- to high-single-digit free cash flow growth expected over the next five years [5] - Potential upside catalysts include inclusion in the S&P 500, which could re-rate the stock, while the company's scale, expertise, and consistent profitability provide a resilient investment profile [5] - The company’s competitive moat is anchored in distribution volume, broad product offerings, and specialized knowledge in water-related and dual-trade projects, effectively targeting professional customers [4]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 increased 280% to $5,740,000 compared to $1,510,000 in Q2 2024 [9] - For the six months ended 2025, total revenues increased 314% to $10,690,000 from $2,580,000 in the same period last year [9] - Gross margin for Q2 2025 increased 808% to $1,520,000 compared to negative $215,000 for Q2 2024 [11] - Net loss for Q2 2025 totaled $3,520,000 compared to a net loss of $3,200,000 for Q2 2024, a 10% increase attributed to noncash stock-based compensation [15] Business Line Data and Key Metrics Changes - The asset management agreement (AMA) with APR Energy has stabilized financials, contributing approximately $5,690,000 in recurring services and consulting revenue in Q2 2025 [9][10] - The railcar inspection portal business has remained flat, but is expected to see broader usage in the coming years [3] - Operating expenses for Q2 2025 increased 65% to $4,960,000 compared to $3,000,000 for Q2 2024, largely due to noncash stock-based compensation [12] Market Data and Key Metrics Changes - The company has successfully installed and delivered a 150 megawatt gas turbine power plant in Mexico in 35 days, indicating strong operational capabilities [2] - The edge data center business is gaining momentum, with plans to install 15 edge data centers in Texas this year [2] Company Strategy and Development Direction - The company is pivoting to the edge data center business, with a growing pipeline of opportunities for 2026 [2] - The management team has identified the need to diversify into at least two distinct businesses to achieve significant growth and profitability [5] - The company expects to achieve breakeven to profitability by Q4 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the guidance issued for the year, citing improved financial conditions compared to the previous year [3] - The company anticipates continued revenue growth in the next two quarters, driven by the execution of the AMA and the deployment of edge data centers [8] - Management highlighted the overwhelming demand for behind-the-meter power solutions for large U.S.-based data center operators [22] Other Important Information - The company raised over $50,000,000 in capital, significantly improving its balance sheet and allowing for expansion into new markets [7] - Current contracts in backlog represent more than $40,000,000 in revenue, with approximately $12,300,000 projected to be recognized in 2025 [18] Q&A Session Summary Question: What is the fully diluted share count? - The fully diluted share count is currently 25,000,000 shares [27] Question: Can you provide insight on noncash stock-based compensation? - Noncash compensation is roughly about $1,000,000 a quarter [30] Question: Will the company consider posting non-GAAP earnings numbers? - The company will consider using non-GAAP financials in the future [31] Question: What is the expected revenue per unit for the edge data centers? - Each edge data center is expected to earn around $300,000 to $500,000 annually once fully operational [37] Question: What is the timeline for cash flow from the edge data centers? - It takes about 90 days to manufacture and deliver an edge data center, followed by approximately two weeks for installation [48] Question: What is the gross profit margin once the edge data centers are operational? - The targeted gross profit margin is in the mid-70s, with EBITDA targeted just above 50% [53]

Methode Electronics (MEI) Conference Call Summary Company Overview - Methode Electronics is an 80-year-old global supplier of custom engineered solutions, with a business split primarily between automotive (50%) and industrial (45%) sectors, and a small portion (5%) in interface business [2][5] Key Financial Highlights - In fiscal 2025, Methode reported sales of $1,050 million, adjusted EBITDA of $43 million, and free cash flow of €26 million, the highest since 2023 [18][19] - The company aims to double EBITDA to $70-80 million in fiscal 2026 despite a projected revenue decrease from $1,000 million to $950 million [18][19][50] Operational Challenges and Strategies - The company faced significant challenges in the EV sector, particularly in North America, which are expected to continue into 2026, with a return to growth anticipated in 2027 [4][14] - Methode is focusing on improving operational execution, stabilizing its base, and enhancing launch capabilities, particularly in its Mexican and Egyptian facilities [10][12][13] - The leadership team has been restructured to drive efficiencies and improve supply chain management [12][13] Market Dynamics - Methode's business in Mexico has $265 million in annual sales exposed to tariffs, with over 95% being USMCA compliant [23] - The company is leveraging its global footprint to mitigate tariff impacts and enhance customer interactions [24][25] - Despite challenges in the automotive sector, Methode is optimistic about growth in data centers, with sales expected to rise from $35 million in fiscal 2024 to $80 million in fiscal 2025 [35][36] EV Market Outlook - Methode's content opportunity for battery electric vehicles (BEVs) is approximately twice that of internal combustion engine (ICE) vehicles [33] - The company is adjusting its strategy in response to regulatory changes and program delays in North America, while continuing to pursue opportunities in China and Europe [28][29] Portfolio and Capital Allocation - Methode is reviewing its product portfolio to focus on high-margin, high-growth areas, which may include divestitures to strengthen the balance sheet [44][46] - The company aims to reduce its net debt from $214 million to a target range of 1.5 to 2 times EBITDA, with a long-term goal of around 1 [55][56] Conclusion - Methode Electronics is undergoing a significant transformation aimed at stabilizing operations, improving financial performance, and positioning itself for future growth in both automotive and non-automotive sectors, particularly in data centers and EV technologies [19][20][62]

Load Growth Opportunities - Alliant Energy anticipates a greater than 30% increase in projected demand by 2030, using a 2024 base of approximately 6 GW maximum demand[7] - The company has contracted peak demand of +2.1 GW, representing potential load served through a combination of existing or new resources, short-term market purchases, and/or load flexibility[6,9] - Alliant Energy projects electric sales growth at a CAGR of 9-10% from 2025-2030[6] Tax Credits and Financing - Alliant Energy expects approximately $350 million of tax credits to be generated and transferred in 2025[26] - The company anticipates generating $1.5 billion in transferable tax credits through 2028, as projects are either already in service or safe harbored[10,13] - Alliant Energy plans to issue approximately $725 million in debt for AE Finance/Parent, $400 million for IPL, and $300 million for WPL in 2025[26] Regulatory and Financial Performance - Alliant Energy reaffirms its 2025 EPS guidance range of $3.15 - $3.25[23] - Q2 2025 earnings per share (EPS) were $0.68, compared to $0.57 ongoing earnings per share in Q2 2024[20] - The company plans approximately 800 MW of energy storage in service by 2027 and aims to safe harbor 100% of approximately 1,200 MW of new wind capacity[12]