Core Viewpoint - Peoples Bancorp of North Carolina, Inc. (PEBK) has shown significant growth in net earnings and key financial metrics for the fourth quarter and full year of 2025, despite facing challenges such as increased provisions for credit losses and higher non-interest expenses. Financial Performance - For Q4 2025, net earnings reached $6.6 million, an increase of 86.4% from $3.6 million in Q4 2024, driven by higher net interest income and non-interest income [2] - Basic EPS for Q4 2025 was $1.25, up 86.6% from $0.67 in the prior year, while diluted EPS increased 86.2% to $1.21 from $0.65 [2] - Full-year 2025 net earnings rose 21.3% to $19.8 million from $16.4 million in 2024, with basic EPS increasing 21.4% to $3.74 from $3.08 and diluted EPS up 21.5% to $3.62 from $2.98 [3] Revenue and Income Sources - Net interest income for Q4 2025 increased by 11.2% to $15.4 million from $13.8 million, while full-year net interest income grew 9.1% to $59 million from $54.1 million [4] - Non-interest income rose 36.4% to $9.6 million in Q4 2025 from $7.1 million a year earlier, largely due to a one-time gain from a property transaction [4] Profitability Metrics - Net interest margin (NIM) for Q4 expanded to 3.62% from 3.39% year-over-year, and full-year margin improved to 3.57% from 3.36% [5] - Return on average assets increased to 1.52% in Q4 from 0.85% a year earlier, and return on average shareholders' equity rose to 17.25% from 10.77% [5] Balance Sheet Growth - Total assets grew to $1.70 billion as of Dec. 31, 2025, from $1.65 billion a year earlier, with total loans increasing to $1.20 billion from $1.14 billion [6] - Deposits rose to $1.51 billion from $1.48 billion, indicating modest balance sheet growth [6] Asset Quality - Non-performing assets decreased to $4.2 million, or 0.25% of total assets, from $4.8 million, or 0.29%, at the end of 2024 [7] - The allowance for credit losses on loans was 0.84% of total loans as of Dec. 31, 2025, down from 0.88% a year earlier [7] Management Insights - Management attributed the strong Q4 performance to higher net interest income, increased non-interest income, and lower non-interest expenses compared to the prior year [8] - The CEO highlighted the benefits of loan growth, improved funding costs, and disciplined expense management during the period [8] Notable Transactions - A significant factor in Q4 results was a $3 million net gain from the North Carolina Department of Transportation's acquisition of the bank's former Mooresville branch property, which boosted non-interest income [9] Expense Management - Non-interest expenses declined 3.7% year-over-year in Q4, primarily due to lower salaries and legal expenses, although higher occupancy-related costs partially offset these savings [10] Future Outlook - PEBK did not provide formal financial guidance but noted that future results could be influenced by economic conditions, interest rate changes, competition, and regulatory developments [11] Operational Developments - No major acquisitions or divestitures were reported during the quarter, with the most significant development being the resolution of the eminent domain transaction [12]

Core Insights - Honeywell International Inc. reported fourth-quarter 2025 adjusted earnings of $2.59 per share, exceeding the Zacks Consensus Estimate of $2.53, with a year-over-year increase of 17% on an adjusted basis. Reported earnings were 49 cents per share, down 72% year over year due to a one-time impairment charge related to certain business classifications [1][10]. Revenue Performance - Total revenues for the fourth quarter were $9.8 billion, missing the consensus estimate of $10.07 billion, but reflecting a 6% increase from the previous year, driven by Aerospace Technologies and Building Automation segments. Organic sales rose 11% year over year [2]. - For the full year 2025, net revenues reached $37.4 billion, an 8% increase year over year, with adjusted earnings of $9.78 per share, up 12% year over year [2]. Business Segment Performance - Aerospace Technologies generated quarterly revenues of $4.52 billion, a 13% year-over-year increase, significantly surpassing the Zacks Consensus Estimate of $2.75 billion. Organic sales in this segment increased by 21% year over year, supported by strong demand in commercial aftermarket and defense markets [4]. - Industrial Automation revenues declined by 8% year over year to $2.40 billion, slightly above the consensus estimate of $2.30 billion. Organic sales grew by 1% year over year, with the decline attributed to reduced demand for measurement and controls products [5]. - Building Automation revenues totaled $1.97 billion, up 10% year over year, exceeding the consensus estimate of $1.92 billion. Organic sales increased by 8% year over year, driven by strength in both building solutions and products [6]. - Energy and Sustainability Solutions revenues increased by 10% to $892 million, although organic sales fell by 7% year over year, impacted by decreasing demand for petrochemical catalysts [7]. Cost and Margin Analysis - Total cost of sales was approximately $6.29 billion, an 8.3% increase year over year. Selling, general, and administrative expenses rose by 11.6% to $1.50 billion. Operating income was $996 million, down 34.5% year over year, with an operating income margin of 10.2%, compared to 16.6% in the previous year [8]. Balance Sheet and Cash Flow - As of the end of Q4 2025, Honeywell had cash and cash equivalents of $12.5 billion, up from $9.9 billion at the end of 2024. Long-term debt increased to $27.1 billion from $25.4 billion [11]. - The company generated net cash of $6.4 billion from operating activities, compared to $6.1 billion in the prior year. Capital expenditure totaled $986 million, up from $871 million in the previous year [11]. - Free cash flow for the year was $5.10 billion, reflecting a 20.3% increase from the previous year [12]. 2026 Guidance - For 2026, Honeywell expects sales to be between $38.8 billion and $39.8 billion, with organic sales projected to increase by 3-6%. Adjusted earnings per share are anticipated to be between $10.35 and $10.65, indicating a year-over-year increase of 6-9% [13].

Core Insights - United Rentals, Inc. (URI) reported lower-than-expected fourth-quarter 2025 results, with adjusted earnings per share (EPS) and total revenues missing the Zacks Consensus Estimate. Year-over-year, total revenues grew while adjusted EPS declined [1][10]. Financial Performance - Adjusted EPS for the fourth quarter was $11.09, missing the consensus estimate of $11.90 by 6.8%, and decreased 4.3% from the prior year [4]. - Total revenues reached $4.21 billion, falling short of the consensus mark of $4.26 billion by 1.1%, but grew 2.8% year-over-year [4]. - Equipment Rentals revenues increased 4.6% year-over-year to $3.58 billion, with fleet productivity rising 0.5% [5]. - Used equipment sales declined 14.6% year-over-year to $386 million, resulting in an adjusted gross margin of 47.2%, which contracted 170 basis points [5]. Segment Performance - General Rentals segment revenues grew 2.5% year-over-year to $2.4 billion, but rental gross margin contracted 120 basis points to 36.2% due to inflation and increased depreciation [6]. - Specialty segment revenues improved 9.2% year-over-year to a record $1.18 billion, although rental gross margin contracted 520 basis points to 40.3% due to higher costs and changes in revenue mix [7]. Margin Analysis - Total equipment rentals' gross margin contracted 240 basis points year-over-year to 37.6% [8]. - Adjusted EBITDA for the quarter increased 0.1% year-over-year to $1.901 billion, but the adjusted EBITDA margin contracted 120 basis points to 45.2% [8]. Full Year Overview - For the full year 2025, total revenues were $16.1 billion, growing 4.9% year-over-year, while adjusted EPS declined 2.6% to $42.06 [11]. - Adjusted EBITDA improved 2.3% year-over-year to $7.33 billion, but the adjusted EBITDA margin contracted 120 basis points [11]. Balance Sheet and Cash Flow - As of December 31, 2025, cash and cash equivalents were $459 million, with total liquidity at $3.322 billion. Long-term debt increased to $12.65 billion [12]. - Net cash from operating activities was $5.19 billion, up from $4.55 billion in 2024, and free cash flow increased 6% year-over-year to $2.18 billion [13]. Shareholder Returns - In 2025, URI returned $2.364 billion to shareholders, including $1.9 billion through share repurchases and $464 million through dividends [14]. - URI completed a $1.5 billion share repurchase program and launched a new $1.5 billion program, later raised to $2 billion [14]. 2026 Guidance - For 2026, total revenues are expected to be between $16.8 billion and $17.3 billion, with adjusted EBITDA anticipated to be between $7.575 billion and $7.825 billion [15]. - Net rental capital expenditure is projected to be in the range of $2.85 billion to $3.25 billion [15]. - Net cash from operating activities is expected to be between $5.3 billion and $6.1 billion, with free cash flow anticipated to be between $2.15 billion and $2.45 billion [16].

Core Insights - Ameriprise Financial Services (AMP) reported a revenue of $4.92 billion for the quarter ended December 2025, marking a year-over-year increase of 10.2% and exceeding the Zacks Consensus Estimate by 4.45% [1] - The earnings per share (EPS) for the same period was $10.83, up from $9.36 a year ago, representing a surprise of 5.27% over the consensus EPS estimate of $10.29 [1] Financial Performance Metrics - Total Assets Under Management reached $1.3 billion, slightly above the average estimate of $1.29 billion [4] - Total Assets Under Administration were reported at $355.5 million, compared to the estimated $349.71 million [4] - Total Assets Under Management, Administration, and Advisement totaled $1.69 billion, exceeding the average estimate of $1.63 billion [4] - Management and financial advice fees generated revenues of $3.1 billion, a 14% increase year-over-year, surpassing the average estimate of $2.89 billion [4] - Revenues from Asset Management were reported at $1.04 billion, exceeding the average estimate of $924.22 million, reflecting an 11.7% year-over-year change [4] Stock Performance - Ameriprise shares have returned +1.9% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Southwest Airlines shares experienced a significant increase following the release of fourth-quarter earnings, indicating positive market sentiment despite mixed results in revenue [1] Financial Performance - The airline reported fourth-quarter revenue of $7.44 billion, reflecting a year-over-year increase of 7.4%, although it fell short of the Street consensus estimate of $7.50 billion [1] - Fourth-quarter earnings per share (EPS) were reported at 58 cents, surpassing the Street estimate of 57 cents per share [1] Future Guidance - Southwest Airlines provided optimistic guidance for 2026, projecting first-quarter EPS of 45 cents or higher, compared to a Street estimate of 34 cents [2] - The full-year EPS guidance for 2026 is set at $4 or higher, significantly exceeding the Street estimate of $3.19, representing an improvement of over 300% year-over-year [2] Management Insights - Executives indicated that 2026 is expected to be a year of margin expansion and higher earnings compared to 2025, with plans to maintain management headcount expenses at 2025 levels [3] - CEO Bob Jordan mentioned that there are currently no active aircraft requests for proposals in the market [4] Stock Performance - Southwest Airlines stock rose by 15.76% on Thursday, reaching an intraday high of $47.30, surpassing its previous 52-week high of $45.02 [5]

Core Insights - Altria Group Inc. reported fourth-quarter 2025 results with top-line revenue exceeding estimates but declining year over year, while bottom-line earnings missed expectations and remained flat compared to the previous year [1] Financial Performance - Adjusted earnings per share (EPS) for the fourth quarter were $1.30, flat year over year, and below the Zacks Consensus Estimate of $1.31, influenced by a lower adjusted tax rate and reduced share count, offset by lower adjusted operating companies' income (OCI) [2] - Net revenues totaled $5,846 million, a decline of 2.1% year over year, primarily due to decreased revenues in the smokeable products segment, although it surpassed the consensus estimate of $5,002 million [3] Segment Analysis - **Smokeable Products**: Net revenues fell 2.7% year over year to $5,119 million, driven by reduced shipment volume and increased promotional investments, partially offset by higher pricing. Revenues net of excise taxes decreased 1.1% [4] - Domestic cigarette shipment volumes dropped 7.9%, attributed to industry decline and trade inventory movements, while cigar shipment volumes increased by 4.2% [5] - Adjusted OCI in this segment decreased 2.4% to $2,643 million, impacted by reduced shipment volume and higher costs, with adjusted OCI margins falling 0.8 percentage points to 60.4% [6] - **Oral Tobacco Products**: Net revenues increased 2% to $706 million, driven by higher pricing, although shipment volumes declined by 6.3% due to retail share losses and trade inventory movements [7][8] - Adjusted OCI in this segment decreased 4.6%, influenced by elevated SG&A costs and a decline in shipment volumes, with adjusted OCI margins decreasing 5 percentage points to 64.5% [9] Capital Management - Altria ended the quarter with cash and cash equivalents of $4,474 million and long-term debt of $24,140 million, alongside a total stockholders' deficit of $3,502 million [10] - In Q4 2025, the company repurchased 4.8 million shares for $288 million, and for the full year, it repurchased 17.1 million shares totaling $1 billion, with $1 billion remaining under the share repurchase program [11] Future Outlook - For 2026, Altria expects adjusted EPS in the range of $5.56 to $5.72, indicating year-over-year growth of 2.5% to 5.5% from a base of $5.42 in 2025, with growth anticipated to be weighted towards the second half of the year [12] - The company projects an adjusted effective tax rate of 22.5% to 23.5%, capital expenditures of $300-$375 million, and depreciation and amortization expenses of approximately $225 million [13]

Core Insights - Sherwin-Williams Company (SHW) reported fourth-quarter 2025 earnings of $1.92 per share, a 1.1% increase from $1.90 in the same quarter last year, with adjusted earnings of $2.23 per share surpassing the Zacks Consensus Estimate of $2.12 [1][8] - The company achieved revenues of $5,595.9 million, reflecting a year-over-year increase of 5.6%, and exceeded the Zacks Consensus Estimate of $5,546.2 million [1][8] Segment Performance - The Paint Stores Group segment recorded net sales of $3,127.1 million, a 2.7% increase year over year, but fell short of the Zacks Consensus Estimate of $3,151 million, with growth driven by higher selling prices [2] - The Consumer Brands Group saw net sales rise by 24.5% year over year to $824.7 million, surpassing the consensus estimate of $791 million, attributed to the acquisition of Suvinil and favorable foreign currency translation, although profits decreased due to restructuring costs [3] - The Performance Coatings Group's net sales increased by 3.3% year over year to approximately $1,642.1 million, beating the consensus estimate of $1,629 million, driven by acquisitions and favorable currency translation [4] Financial Overview - For the year, the company generated $3.45 billion in net operating cash and returned $2.45 billion to shareholders through dividends and stock repurchases of 4.8 million shares, with authorization to buy back 29.6 million shares of common stock as of December 31, 2025 [5] - For the first quarter and full-year 2026, the company anticipates net sales growth in the mid-single-digit percentage range, with projected net income per share between $10.7 and $11.1, and adjusted net income per share forecasted between $11.5 and $11.9 [6] Stock Performance - Sherwin-Williams shares have declined by 4.4% over the past year, compared to a 1.5% decline in the industry [7]

Core Insights - Valero Energy Corporation (VLO) reported fourth-quarter 2025 adjusted earnings of $3.82 per share, exceeding the Zacks Consensus Estimate of $3.22, and significantly up from 64 cents per share in the same quarter last year [1][9] - Total quarterly revenues decreased slightly from $30.8 billion in the prior-year quarter to $30.4 billion, but still surpassed the Zacks Consensus Estimate of $28.1 billion [1][2] Financial Performance - The improved quarterly results were driven by increased refining margins, higher ethanol production volumes, and lower total cost of sales, although these were partially offset by a decline in renewable diesel margins [2] - Valero's total cost of sales amounted to $28,468 million, down from $30,127 million in the previous year, attributed to a decrease in the cost of materials and other expenses [10] Dividend Announcement - Valero Energy increased its quarterly cash dividend to $1.20 per share, representing a 6% increase from the previous dividend of $1.13 per share, payable on March 9, 2026, to shareholders of record as of February 5, 2026 [3] Segment Performance - Adjusted operating income in the Refining segment reached $1,733 million, up from $441 million in the year-ago quarter, supported by a higher refining margin per barrel [4] - The Ethanol segment reported an adjusted operating profit of $117 million, up from $20 million in the prior-year quarter, aided by higher production volumes and increased margins [4] - Operating income in the Renewable Diesel segment fell to $92 million from $170 million in the year-ago quarter, impacted by a decline in sales volume and margins [5] Throughput Volumes - Valero's refining throughput volumes totaled 3,113 thousand barrels per day (MBbls/d), an increase from 2,995 MBbls/d in the previous year [6][9] - The Gulf Coast region contributed approximately 59.8% to the total throughput volume, with other regions accounting for 14.8% (Mid-Continent), 16.8% (North Atlantic), and 8.5% (West Coast) [7] Margins and Expenses - The refining margin per barrel of throughput increased to $13.61 from $8.44 in the prior year, while refining operating expenses per barrel rose to $5.03 from $4.67 [8] - Valero's adjusted refining operating income was $6.05 per barrel of throughput compared to $1.60 a year ago [8] Capital Investment and Balance Sheet - The fourth-quarter capital investment totaled $412 million, with $368 million allocated toward sustaining the business [11] - At the end of the fourth quarter, Valero had cash and cash equivalents of $4.7 billion, total debt of $8.3 billion, and finance-lease obligations of $2.4 billion [11]

Core Insights - Hexcel Corporation (HXL) reported fourth-quarter 2025 adjusted earnings of 52 cents per share, matching the previous year's figure and exceeding the Zacks Consensus Estimate by 4% [1] - The company’s GAAP earnings surged 757.1% year-over-year to 60 cents per share from 7 cents [1] Financial Performance - For 2025, HXL's adjusted earnings were $1.76 per share, down 13.3% from $2.03 in 2024, attributed to lower net sales and operating income [2] - In Q4 2025, net sales reached $491.3 million, surpassing the Zacks Consensus Estimate of $478 million by 2.7% and increasing 3.7% from $473.8 million in the same quarter last year [3] - Total sales for 2025 were $1.89 billion, a slight decrease of 0.5% from $1.90 billion in 2024, primarily due to lower sales in the Commercial Aerospace market [3] Operational Metrics - Hexcel's gross margin in Q4 was 24.6%, a contraction of 40 basis points year-over-year [4] - Selling, general and administrative (SG&A) expenses decreased by 13.2% year-over-year to $41.6 million, while research and technology expenses rose 5.9% to $14.3 million [4] - Adjusted operating income for the quarter was $65.1 million, compared to $57.1 million in the previous year [4] Market Segment Contributions - In the Commercial Aerospace segment, net sales increased by 7.6% year-over-year to $299.5 million, driven by strong demand for Airbus A320neo, Boeing 787, and 737 MAX [5] - Conversely, net sales in the Defense, Space & Other segment fell by 1.9% year-over-year to $191.8 million, impacted by the divestment of the Austrian-based industrial business [5] Financial Position - As of December 31, 2025, Hexcel's cash and cash equivalents were $71 million, down from $125.4 million at the end of 2024 [6] - Long-term debt increased to $993 million from $700.6 million year-over-year [6] - Cash provided by operating activities in 2025 was $230.5 million, compared to $289.9 million in the previous year [6] Future Guidance - Hexcel anticipates sales in the range of $2 billion to $2.1 billion for 2026, with the Zacks Consensus Estimate at $2.07 billion [8] - The company expects adjusted earnings per share to be between $2.10 and $2.30, with the Zacks Consensus Estimate at $2.29 [8] - Hexcel projects free cash flow exceeding $195 million in 2026 and capital expenditures to be less than $100 million [9]

4Q25 Earnings Presentation January 29, 2026 Valley 2 | | 4Q25 | 3025 | 4Q24 | 4Q25 | 3Q25 | 4Q24 | | --- | --- | --- | --- | --- | --- | --- | | Net Income ($mm) | $195.4 | $163.4 | $115.7 | $180.2 | $164.1 | $75.7 | | Return on Average Assets Annualized | 1.24% | 1.04% | 0.74% | 1.14% | 1.04% | 0.48% | | Annualized ROATCE 2 | 14.2% | 12.1% | 9.2% | 13.1% | 12.1% | 6.0% | | Efficiency Ratio (Non-GAAP) | -- | -- | -- | 53.5% | 53.4% | 57.2% | | Diluted Earnings Per Share | $0.33 | $0.28 | $0.20 | $0.31 | $0. ...