Electrical Distribution Systems (EDS): Revenue was $2.3 billion , up 5% , primarily driven by North America. Operating income declined 2% and margin contracted 90 basis points , reflecting significant FX and commodity headwinds and unfavorable labor economics, partially offset by manufacturing and material improvements.Engineered Components: Revenue was $1.6 billion , up 1% . Operating income rose 8% , and margin expanded 60 basis points on volume flow-through and performance improvements, more than offsett ...

Financial Data and Key Metrics Changes - The company reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [6][17] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [7][18] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [7][21] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, a 2% increase year-over-year, but operating income declined by 17% due to investments and unfavorable FX [19][20] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income up 8% and margin expanding by 60 basis points [20] - Electrical Distribution Systems (EDS) segment revenue grew by 5% to $2.3 billion, although operating income declined by 2% due to FX and commodities headwinds [20] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, with double-digit growth in both Intelligent Systems and EDS [18] - European revenue decreased by 1%, while China revenue fell by 5%, reflecting unfavorable mix impacts [19] - Approximately 80% of new business awards in China were from local OEMs, indicating a shift in customer dynamics [19] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - A significant emphasis is placed on enhancing the product portfolio and operational capabilities, including the launch of new innovations and partnerships in robotics [8][12] - The upcoming spin-off of the EDS business into VersaGen is expected to unlock value and enhance focus on core operations [5][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and highlighted the importance of operational efficiencies [4][30] - The outlook for 2026 includes expectations of revenue growth for both new Aptiv and VersaGen, with a focus on capturing higher-margin opportunities [23][26] - The company anticipates challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [25][49] Other Important Information - The company finalized a leadership team for the EDS business, which is set to spin out as VersaGen on April 1 [5] - Full-year new business awards reached $27 billion, with expectations for 2026 bookings to exceed $30 billion [10][26] Q&A Session Summary Question: Insights on memory exposure and contract resets - The purchase value for memory is approximately $175 million, with expected low double-digit price increases in 2026 [35] Question: Guidance for new Aptiv into 2026 - The adjusted growth forecast for new Aptiv is 4%, with expectations for non-auto revenues to grow strongly [38][41] Question: EBITDA outlook for 2026 - EBITDA margins are expected to remain stable, with various factors impacting the outlook including commodity prices and investments [45][46] Question: Regional revenue performance expectations - North America is expected to lead revenue growth, while Europe may remain flat and China is anticipated to improve in the second half of the year [56] Question: Impact of EV volumes on VersaGen growth - The company expects EV growth of approximately 15% year-over-year, primarily driven by China [79]

Aptiv (NYSE:APTV) Q4 2025 Earnings call February 02, 2026 08:00 AM ET Company ParticipantsBetsy Frank - VP of Investor RelationsEmmanuel Rosner - Managing DirectorJames Picariello - DirectorJoe Liotine - CEO of VersigentJoseph Spark - Managing DirectorKevin Clark - CEOMark Delaney - Managing DirectorVarun Laroyia - CFOConference Call ParticipantsColin Langan - Senior Equity AnalystDan Levy - Senior Equity Research AnalystItay Michaeli - Equity Research AnalystOperatorGood day and Welcome to the Aptiv Q4 202 ...

Financial Data and Key Metrics Changes - Aptiv reported record fourth-quarter revenue of $5.2 billion, an increase of 3% year-over-year on an adjusted basis [5][18] - Adjusted Operating Income totaled $607 million, with earnings per share at $1.86, reflecting a 6% increase from the prior year [6][19] - Operating cash flow was $818 million, with over half allocated to share repurchases and debt reduction [6][19] Business Line Data and Key Metrics Changes - Intelligent Systems segment revenue was $1.4 billion, up 2% year-over-year, but operating income declined 17% due to investments and unfavorable FX [20][21] - Engineered Components segment revenue increased by 1% to $1.6 billion, with operating income rising 8% and margin expanding by 60 basis points [21] - Electrical Distribution Systems (EDS) revenue grew 5% to $2.3 billion, but operating income declined 2% due to FX and commodity headwinds [21] Market Data and Key Metrics Changes - North America saw an 8% revenue growth, while Europe experienced a 1% decline, and China revenue decreased by 5% [19][20] - New business bookings in China totaled $5 billion, with almost $4 billion from local OEMs, and new business awards in non-automotive markets reached over $4 billion [10][20] Company Strategy and Development Direction - The company is focusing on penetrating non-automotive markets, leveraging trends in automation, electrification, and digitalization [4][5] - Aptiv plans to spin out its Electrical Distribution Systems business as VersaGen on April 1, 2026, aiming to enhance shareholder value [5][10] - The company is committed to optimizing its cost structure and eliminating stranded costs associated with the spin-off [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment and capturing higher growth opportunities across multiple end markets [34] - The outlook for 2026 includes revenue guidance for new Aptiv in the range of $12.8-$13.2 billion, reflecting a 4% growth at the midpoint [25] - Management acknowledged challenges from FX and commodity prices but remains optimistic about margin expansion in the long term [56] Other Important Information - The company generated over $2 billion in operating cash flow for the full year, leading to a year-end cash balance of $1.9 billion [23] - Capital allocation efforts included retiring $1 billion in debt and deploying $400 million towards share repurchases [23][24] Q&A Session Summary Question: Insights on memory exposure and contract resets - Management indicated that memory costs are approximately $175 million, with low double-digit price increases expected in 2026, and confidence in negotiating cost recoveries with OEM customers [37][38] Question: Guidance for new Aptiv into 2026 - Management clarified that the 4% growth guidance is influenced by global vehicle production expectations, with strong growth anticipated in non-auto revenues [41][42] Question: EBITDA outlook for 2026 - Management provided a framework indicating stable margins with various factors impacting EBITDA, including commodity prices and investments in non-auto business growth [48][50] Question: Regional revenue performance expectations - Management expects North America to lead revenue growth, with Europe flat to slightly down and improved performance anticipated in China [58][59] Question: Impact of EV volumes on VersaGen growth - Management projected a 15% year-over-year growth in EVs, primarily driven by China, despite lower growth expectations in North America [83]

Core Insights - Crystal International is advancing its strategy to integrate cutting-edge technology across its operations, focusing on digitalization and automation to enhance efficiency and sustainability [1][4]. Group 1: New Facility and Technology Integration - A new facility is being constructed by the company's knits division in its lifestyle wear factory in China, featuring an automated cutting workshop and a centralized smart warehouse with an advanced storage and retrieval system (AS/RS) [2]. - The logistics center, powered by a rooftop solar photovoltaic (PV) system, is expected to commence full operations in the first quarter of 2026, aiming to reduce fabric transfer times by up to 75% [3]. - The AS/RS will facilitate the autonomous flow of fabric materials and finished goods, while Automated Guided Vehicles (AGVs) will enhance the movement of sewn parts, contributing to a fully closed-looped auto-material flow system [3]. Group 2: Strategic Goals and Sustainability - The initiative aligns with Crystal International's Crystal Sustainability Vision 2030, which aims to transform all facilities into smart factories through innovative technology, thereby improving operational efficiency and sustainability performance [4]. - In October 2025, Crystal International became a partner member of Textile Exchange, a global non-profit organization promoting sustainability in the fashion and textile industries, which will help the company increase its use of eco-friendly options [6]. Group 3: Company Overview - Founded in 1970, Crystal International operates over 20 production sites across five countries, including Vietnam, China, Cambodia, Bangladesh, and Sri Lanka, producing a diverse range of apparel products [5]. - The company employs a "Co-creation" business model, collaborating with leading global brands to deliver high-quality and innovative manufacturing solutions [5].

Energy Partnership with the US - Indian oil and gas companies are exploring investments in natural gas liquefaction facilities in the US to deepen energy partnership amid geopolitical volatility [1] - Indian firms are evaluating equity infusion in US gas liquefaction projects that are under construction or nearing final investment decision [2] - The US is India's sixth largest energy trade partner, with hydrocarbon trade exceeding $13.7 billion in fiscal year 2024-25, and both countries aim to increase bilateral energy trade to $20 billion [5] Collaboration with Japan - Indian oil and gas producers are exploring collaborations with Japanese E&P companies for joint bidding under the Open Acreage Licensing Policy (OALP) [4] - India invited Japanese oil companies to participate in the ongoing tenth round of auctions under the OALP, with ethanol and biofuels identified as key areas for partnership [6] - Major Japanese E&P companies such as INPEX Corporation, JAPEX, and JX Nippon Oil & Gas Corp are involved in these discussions [7] Technological Advancements - India and Japan discussed collaboration opportunities in automation, digitalization, AI-enabled predictive analytics, SCADA systems, and advanced instrumentation to enhance efficiency in oil and gas and new energy segments [8] - Yokogawa Electric Corporation has shown strong interest in enhancing investment in India [8] Investor Confidence - Global and domestic companies have expressed strong confidence in India's growth trajectory and are keen to expand their business presence in the country [9] - Prime Minister Narendra Modi interacted with CEOs of about 27 global and domestic energy giants, indicating strong engagement in the energy sector [10]

Financial Data and Key Metrics Changes - The company achieved a strong fourth quarter performance with organic revenue growth of 4% and adjusted EPS growth of 10% [6][11] - Free cash flow remained robust, supporting strategic M&A, dividends, and share repurchases [4][5] - The company reported a record backlog of $7.8 billion, with exceptional enterprise organic bookings up 22% [6][8] Business Line Data and Key Metrics Changes - Americas Commercial HVAC bookings increased by over 35% year-over-year, contributing significantly to the overall growth [6][10] - Applied Solutions bookings surged more than 120%, achieving a record book-to-bill ratio of 200% [6][10] - EMEA HVAC bookings grew mid-teens, while residential bookings were up mid-single digits, but revenues declined mid-teens due to inventory normalization [10][11] Market Data and Key Metrics Changes - The Americas Commercial HVAC market showed strong growth, while residential markets faced challenges with a projected decline of up to 5% [10][14] - EMEA transport markets are expected to be flat to modestly lower, while Asia Pacific faced challenges, particularly in China, with double-digit declines in bookings and revenue [10][15] Company Strategy and Development Direction - The company emphasizes a purpose-driven strategy focused on sustainability and performance, positioning itself to meet growing energy demands through innovation [3][4] - Continued investment in services and digital capabilities is expected to drive growth, particularly in the commercial HVAC sector [9][18] - The acquisition of Stellar Energy is aimed at enhancing modular design capabilities and addressing supply chain constraints [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong growth for 2026, driven by exceptional bookings and a robust backlog [10][14] - The outlook for the residential market is cautious, with expectations of a gradual recovery in the second half of 2026 [14][15] - Management highlighted the importance of disciplined execution and innovation in maintaining competitive advantage [3][21] Other Important Information - The company plans to deploy between $2.8 billion and $3.3 billion in 2026, with a focus on strategic M&A and share repurchases [18][19] - The company expects to maintain a strong balance sheet and free cash flow conversion of 100% or greater [16][17] Q&A Session Summary Question: Guidance on revenue for Americas Commercial HVAC - Management indicated strong bookings growth in the second half of 2025, expecting revenue growth of 7%-8% in Q1 2026, increasing to low teens in the second half [22][24] Question: Confidence in U.S. Residential HVAC inventory and pricing - Management confirmed that inventory levels are normalized and pricing has not faded, with expectations of flat to down 5% in 2026 driven by volume [25][26][28] Question: Broadening of orders among end markets - Management noted broad-based growth across multiple verticals, including data centers, with encouraging signs in previously weak sectors like retail and office [33][34] Question: Impact of customer lead times on orders - Management stated that there have been no significant changes in lead times, maintaining competitiveness in delivery [39][40] Question: European margins and price-cost dynamics - Management expects European margins to improve in 2026, with a target of 25% or better organic incrementals across segments [48][50] Question: Biopharma reshoring visibility - Management is optimistic about large pharma projects related to reshoring, tracking several mega projects in the pipeline [78][80] Question: Data center HVAC content and future trends - Management believes the fraction of spending on HVAC in data centers will remain stable, with innovations in thermal management systems expected [87][88]

Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated funds from operations (FFO) of $2.6 billion in 2025, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4][5] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a conservative payout ratio of 66% and a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [5][6] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion in capital recycling initiatives, with higher revenues in rail and toll road segments [6][7] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [7][8] - The data segment's FFO surged over 50% to $502 million, attributed to new investments and strong organic growth, including the commissioning of 220 megawatts of capacity at hyperscale data centers [8][9] Market Data and Key Metrics Changes - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [9] - In 2025, corporates invested around $500 billion into AI-related infrastructure, with expectations for further capital investment in the next two years [11][12] Company Strategy and Development Direction - The company is focused on a prudent, risk-focused approach to AI infrastructure investing, emphasizing long-term contracts and selective partnerships with investment-grade counterparties [12][13] - Brookfield Infrastructure aims to capitalize on structural themes such as digitalization, decarbonization, and deglobalization, positioning itself for a super cycle in infrastructure investment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating a return to 10% or higher per unit growth, supported by resilient cash flows and a robust pipeline of investment opportunities [20][21] - The company highlighted the importance of maintaining a disciplined execution strategy to convert demand into durable returns, particularly in the data center sector [16][17] Other Important Information - The company achieved record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [9] - Significant new investments included a $125 million acquisition of a South Korean industrial gas business and a $300 million investment in a railcar leasing platform [19] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (around 15 years) help avoid technology risks by ensuring that any necessary infrastructure changes are not at their cost [28][30] Question: What is the expected return on new data center developments? - Management indicated that new data centers yield a return of 9% to 10%, with monetization at cap rates of 5.5% to 6%, leading to potential equity returns in the high teens or twenties [26][27] Question: Can you provide details on the KKR acquisition of data centers? - Management stated that they cannot disclose specific transaction details but confirmed joint ventures with institutional investors across North America and Europe, totaling about 850 megawatts [35][36] Question: What is the outlook for inflation indexation across geographies in 2026? - Management expects inflation indexation in OECD markets to average between 2% and 3%, with emerging markets like India and Brazil ranging from 2% to 4% [46][47] Question: How is the capital backlog in data operations expected to evolve? - Management noted a significant increase in the capital backlog, driven by hyperscale projects, and expects about $1.5 billion to come online in 2026 [51][59]

Financial Data and Key Metrics Changes - In 2025, Brookfield Infrastructure generated funds from operations (FFO) of $2.6 billion, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [4][5] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion of capital recycling initiatives, with revenue growth in rail and toll road segments averaging 2% and 3% respectively [5] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [6] - The data segment saw FFO of $502 million, a more than 50% increase compared to the previous year, attributed to new investments and strong organic growth in data storage [6] Market Data and Key Metrics Changes - The company reported record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [8] - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [7] Company Strategy and Development Direction - Brookfield Infrastructure is focusing on AI infrastructure investing, leveraging sector tailwinds to create durable value for unitholders [2][10] - The company is applying a risk-focused approach to AI infrastructure, emphasizing long-term contracts and selective investment in strong counterparties [11][12] - The strategic initiatives include deploying approximately $1.5 billion into new investments and maintaining a robust pipeline of opportunities across sectors and geographies [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a constructive backdrop for infrastructure in 2026, driven by digitalization, decarbonization, and deglobalization trends [19] - The company anticipates returning to a growth target of 10% or higher per unit in 2026, supported by resilient cash flows and a strong capital deployment outlook [20] Other Important Information - The company completed approximately $16 billion in financings to de-risk operating company balance sheets [3] - The company has secured two transactions expected to generate attractive returns, including a sale of a Brazilian electricity transmission concession and a capital partnership for data centers in North America [9] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (15 years) help manage technology risk by ensuring that any necessary infrastructure changes are not at their cost, allowing them to focus on core infrastructure [24][28] Question: Can you provide details on the KKR acquisition of a stake in a portfolio of data centers? - Management stated they cannot disclose specific transaction details but confirmed joint ventures with institutional investors, including KKR, across various markets [32][34] Question: What is the expected inflation indexation across geographies in 2026? - Management indicated that inflation indexation in OECD markets is expected to average between 2% and 3%, while emerging markets like India and Brazil may see inflation pass-through in the range of 2%-4% [45] Question: Can you provide an update on the capital backlog and its drivers? - Management noted that the data center platform saw significant growth, with a backlog increase driven by new contracts and acquisitions, particularly in North America and Europe [49][51] Question: How does the Canada-Alberta MOU impact midstream investments? - Management stated it is too early to determine the MOU's impact but noted existing growth initiatives and a strong operational environment in Canada [64][66]

Core Insights - Techem has made significant progress in climate protection, digitalization, and circular economy as highlighted in its sixth sustainability report [1][2] - The company is committed to reducing its carbon footprint and supporting the decarbonization of the building sector through various products and services [2] Climate Goals and CO2 Reduction - In the fiscal year 2025, Techem's total CO2 footprint was approximately 221,407 tons, representing an 11.2% decrease from the previous year, primarily due to reduced Scope-3 emissions [2] - Compared to the base year 2020, this marks a 27% reduction, demonstrating the effectiveness of the implemented climate protection measures [2] - Techem aims to enhance energy efficiency and CO2 reduction through continuous monitoring, optimization of heating systems, and decarbonized heat supply [2] Digital Transformation - The development of the One Digital Platform is driving the digital transformation of the building sector, creating a foundation for increased energy efficiency and CO2 reduction [1][2] - 85.4% of Techem's measuring devices are now capable of wireless communication, enabling data-driven transparency and effective sustainability management [2][6] E-Mobility and Charging Infrastructure - Techem has installed 2,013 charging points for electric vehicles by the end of fiscal year 2025, with plans to expand this to over 5,000 by the end of 2027, all powered by green electricity [3] - The company has electrified 50.4% of its German vehicle fleet, a 20.5% increase from the previous year, with a target of reaching 90% by the end of 2028 [3] Circular Economy Initiatives - Techem has established a Re-Use Center to enhance resource efficiency, allowing devices and components to be reused or recycled, with up to 98% of materials being returned to industrial cycles [4] Sustainability Ratings and Awards - Techem received an "AA" ESG rating from MSCI, positioning it among the leading companies in environmental, social, and governance practices [5] - The company outperforms the industry average in key categories such as carbon emissions and corporate behavior [5] Reporting Standards - Techem's sustainability reporting is voluntary and aligns with Global Reporting Initiative (GRI) standards, preparing for European Sustainability Reporting Standards (ESRS) [8]