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]

Tesla got $4B in free cash flow this past quarter and over $41B in total free cash flow. ...

Financial Data and Key Metrics Changes - The company generated $484 million of free cash flow in Q3 2025, net of $21 million in one-time costs related to the Olympus Energy transaction [5] - Cumulative free cash flow attributable to the company exceeded $2.3 billion over the past four quarters, with natural gas prices averaging $3.25 per million BTU [5] - The net debt balance at the end of the quarter was just under $8 billion, with a target maximum of $5 billion total debt [13][14] - A 5% increase in the base dividend to $0.66 per share was announced, reflecting confidence in the sustainability of the business [15] Business Line Data and Key Metrics Changes - Production was near the high end of guidance despite price-related curtailments, benefiting from robust productivity and compression project outperformance [6] - Operating costs dropped to record low total cash costs per unit, aided by water infrastructure investments and midstream cost optimizations [7] - Capital spending was approximately $70 million below the midpoint of guidance, supported by upstream efficiency gains [7] Market Data and Key Metrics Changes - The MVP Boost expansion project saw demand far exceeding initial expectations, leading to a 20% increase in capacity to over 600,000 dekatherms per day [9][10] - The region's appetite for Appalachian natural gas remains greater than current supply, indicating continued market strength and long-term demand growth [10] - Futures market indicators show tightening M2 basis futures for 2029 and 2030, suggesting improved pricing conditions [11] Company Strategy and Development Direction - The company is focused on integrating the Olympus Energy acquisition and has achieved significant operational improvements [8] - Strategic growth projects are being prioritized, with a strong pipeline of high-return infrastructure growth projects expected to unlock sustainable growth [24] - The LNG strategy includes signing offtake agreements with various partners, aiming for geographic diversification and competitive pricing [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the business and the strength of the integrated model, even in a moderate gas price environment [11] - The company anticipates a tightening supply picture in the U.S. gas market, driven by increasing LNG demand and slowing associated gas supply growth [21][22] - Management remains vigilant regarding potential oversupply risks in the LNG market later this decade, while also optimistic about long-term demand growth [22] Other Important Information - The company completed the full integration of Olympus Energy's operations in just 34 days, marking a record for operational transitions [8] - The company is exploring opportunities in Ohio and other regions, leveraging its extensive pipeline network [77] Q&A Session Summary Question: Key demand takeaways from the MVP Boost open season - Management noted that 100% of the shipping capacity for MVP Boost was taken by utilities, indicating a strong demand environment [27] Question: Strategic midstream capital spending outlook for 2026 - Management indicated that spending will be based on project quality and will remain disciplined [29] Question: Updates on commercial opportunities and pricing structures - Management highlighted a robust opportunity pipeline and the potential for more fixed pricing structures in future contracts [34] Question: LNG strategy and market positioning - Management emphasized the importance of timing in signing LNG agreements, focusing on projects coming online after the anticipated oversupply period [38] Question: Balance sheet priorities versus share buybacks - Management reiterated a focus on maintaining a low debt level while being prepared to act on share buybacks when opportunities arise [50] Question: Maintenance production outlook for 2026 - Management expects production volumes to remain flat compared to the 2025 exit rate [75] Question: Updates on MVP Southgate project - Management expressed optimism about the Southgate project, citing strong demand signals and the potential for future expansions [81]

Financial Data and Key Metrics Changes - The company generated $484 million of free cash flow in Q3 2025, net of $21 million in one-time costs related to the Olympus transaction [5] - Cumulative free cash flow attributable to the company exceeded $2.3 billion over the past four quarters, with natural gas prices averaging $3.25 per million BTU [5] - The net debt balance at the end of the quarter was just under $8 billion, with a target maximum of $5 billion total debt [13][14] Business Line Data and Key Metrics Changes - Production was near the high end of guidance despite price-related curtailments, benefiting from robust productivity and compression project outperformance [6][7] - Operating costs dropped to record low total cash costs per unit, supported by water infrastructure investments and midstream cost optimizations [7] - Capital spending was approximately $70 million below the midpoint of guidance, aided by upstream efficiency gains and midstream optimization [7] Market Data and Key Metrics Changes - The MVP Boost expansion project saw demand far exceeding initial expectations, leading to a 20% increase in capacity to over 600 MDth/d [9][10] - The region's appetite for Appalachian natural gas remains greater than current supply, indicating continued market strength and long-term demand growth [10] - Futures market indicators show tightening M2 basis futures for 2029 and 2030, reflecting anticipated improvements in Appalachian pricing [11] Company Strategy and Development Direction - The company is focused on integrating the Olympus Energy acquisition and has achieved significant operational improvements since taking control of the assets [8] - Strategic growth projects are being advanced, with a strong pipeline of opportunities to provide natural gas supply and infrastructure to service new load growth in Appalachia [9][24] - The company aims to maintain a low-cost structure while expanding its LNG strategy, signing offtake agreements with various partners for future growth [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of the business and the potential for future growth, citing a strong foundation and effective execution [12] - The company anticipates a tightening supply picture in the U.S. gas market driven by surging LNG demand and slowing associated gas supply growth [21][22] - Management remains vigilant regarding potential oversupply risks in the LNG market later this decade, while also highlighting the importance of maintaining a strong balance sheet [22][50] Other Important Information - The company increased its base dividend by 5% to $0.66 per share, reflecting confidence in the sustainability of its business and cash flow generation [15] - The company is exploring opportunities to optimize its midstream and upstream operations, focusing on high-return projects that unlock sustainable growth [24][56] Q&A Session Summary Question: Key demand takeaways from the MVP Boost open season - Management noted that 100% of the shipping capacity for MVP Boost was taken by utilities, indicating a strong demand environment compared to previous projects [27] Question: Strategic midstream capital spending outlook for 2026 - Management indicated that spending will be based on the quality of projects and will remain disciplined, with a focus on holistic returns [29] Question: Trends in commercial opportunities and pricing structures - Management highlighted a robust opportunity pipeline and the potential for more fixed pricing structures in future contracts [34] Question: LNG strategy and market positioning - Management emphasized the importance of timing in signing agreements and the strategic positioning to access international markets post-2027 [38][88] Question: Marketing optimization and future strategies - Management expressed confidence in the marketing team's potential and the importance of optimizing production value without speculative trading [42][47] Question: Maintenance production outlook for 2026 - Management expects production volumes to remain flat compared to the 2025 exit rate, with adjustments based on market conditions [77] Question: Updates on MVP Southgate project - Management indicated that the strong demand environment enhances the potential for the Southgate project, with ongoing studies for optimization [84][86]

Financial Performance - The company's total sales volumes reached 634 Bcfe with an average realized price of $2.76 per Mcfe in 3Q25 [8] - Adjusted EBITDA attributable to EQT was $1200 million in 3Q25 [8] - Free cash flow attributable to EQT was $484 million in 3Q25 [8] - Capital expenditures amounted to $618 million in 3Q25 [8] - Cumulative free cash flow outperformance vs consensus was approximately $600 million over the past four quarters [13, 15] Operational Efficiency and Integration - Capital spending was 10% below the mid-point of guidance due to efficiency gains and midstream cost optimization [9] - Per unit operating costs were 7% below the mid-point of guidance due to lower gathering, LOE, and SG&A expenses [9] - The company achieved operational integration of Olympus upstream and midstream assets in 34 days [9, 19] - Drilling of two deep Utica wells was ~30% faster than Olympus' historic performance, saving >$2 million per well [9, 19] Strategic Initiatives and Market Positioning - Increased dividend by 5%, with a compounded annual dividend growth rate of ~8% since 2022 [9] - Expansion capacity of MVP Boost upsized by 20% to 600 MDth/d due to robust utility demand [9, 33] - Signed LNG offtake agreements for 4.5 million tonnes per annum (MTPA) with Sempra, NextDecade, and Commonwealth LNG beginning in 2030-2031 [9]