Financial Data and Key Metrics Changes - Total as-reported revenue grew by 10% in the second quarter, with constant currency organic revenue increasing by 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose by 90 basis points to 23.1% of revenue compared to the previous year [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improved working capital [5] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew by 9%, with services growing by 13% and consumables by 10% [6][7] - For the AST segment, constant currency organic revenue increased by 7%, with services up by 13% but capital equipment revenue anticipated to decline [8] - Life sciences saw a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up by 3% year-to-date [6] - Capital equipment backlog in life sciences increased by over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook for fiscal 2026 to approximately 8%-9% as-reported, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] - The company is confident in its ability to meet revised expectations, supported by strong performance in the first half of the year [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating margins improved despite headwinds from tariffs and inflation, with tariffs impacting margins by 90 basis points and material and labor inflation by 130 basis points [14][16] - The company expressed confidence in sustaining growth trends in services, particularly in the AST segment, due to stable volumes from medtech customers and recovery in bioprocessing [12][13] Other Important Information - Capital expenditures for the first half of fiscal 2026 totaled $180.1 million, with depreciation and amortization at $241.1 million [5] - The company ended the quarter with $1.9 billion in total debt, with a gross to EBITDA ratio of approximately 1.2 times [5] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management attributed the growth to stable volume from medtech customers and recovery in bioprocessing, with confidence in sustaining a 9%-10% growth outlook [12][13] Question: Can you elaborate on the operating margins despite headwinds? - Management confirmed that tariffs and inflation were significant headwinds, with tariffs impacting margins by 90 basis points and inflation by 130 basis points [14][16] Question: What is the outlook for healthcare subsegments? - Management indicated that service growth is expected to remain strong, with consumables performing well and capital equipment growth dependent on shipment timing [27] Question: How is the company addressing capacity constraints in AST? - Management stated that expanding capacity is a long process, with several expansions completed and planned, ensuring a good position in most geographies [36] Question: What is the state of single-use scopes in healthcare? - Management noted that while there is a place for single-use scopes, particularly small diameter scopes, the bulk of the business remains with large diameter scopes due to their robustness and cost-effectiveness [46]

Investment Considerations - Hyatt's asset-light earnings mix is at 79%[8] - The company's Adjusted Free Cash Flow is $540 million[9] - Hyatt has returned $4.5 billion to shareholders over the past 8 years[10] - Hyatt has industry-leading net rooms growth[10] Strategic Growth - System-wide rooms have grown by +87%[12] - Gross fee revenue has increased by +120%[12] - The pipeline has grown by +97%[12] - Loyalty members have increased by +435%[12] - Asset-light earnings mix has increased by +3,220 bps[12] Portfolio Positioning - Luxury rooms have doubled from 43,000 in 2017 to 114,000 in 2024[15] - Resort rooms have tripled from 23,000 in 2017 to 90,000 in 2024[15] - Lifestyle rooms have quintupled from 9,000 in 2017 to 48,000 in 2024[15] Q3 2025 Highlights - Adjusted EBITDA was $(49) million[39] - Gross Fees were $291 million[39] - Net Income (Loss) was $(283) million[39] - System-wide hotels RevPAR growth was +0.3%[39] - Net Rooms Growth was +12.1%[39] - World of Hyatt Member Growth was +20% reaching ~61 million[39] Full Year 2025 Outlook (Excluding Playa) - System-Wide Hotels RevPAR Growth is expected to be between 2% and 2.5%[41] - Net Rooms Growth is projected to be between 6.3% and 7%[41] - Net Income is forecasted to be between $70 million and $86 million[41] - Gross Fees are expected to be between $1,195 million and $1,205 million[41] - Adjusted EBITDA is projected to be between $1,090 million and $1,110 million[41] - Adjusted Free Cash Flow is expected to be between $475 million and $525 million[41] Capital Allocation - The company has $0.7 billion in Cash and Cash Equivalents, & Short-Term Investments[60] - The company has $1.5 billion Revolver Capacity Available, Net of Letters of Credit Outstanding[60] - Total Debt is $6.0 billion, Inclusive of $1.7 billion Delayed Draw Term Loan[60]

Earnings Call Q3 FY2025 Results November 6th, 2025 Forward Looking Statements Certain statements contained herein, including statements regarding guidance or expected proceeds are not based on historical fact and are "forward-looking statements" within the meaning of applicable securities laws. Generally, these statements can be identified by the use of words such as "guidance," "believes," "estimates," "anticipates," "expects," "on track," "feels," "forecasts," "seeks," "projects," "intends," "plans," "may ...

Financial Performance Summary - For the first quarter of fiscal year 2026, the company reported revenue of $30.4 million, a decrease of 22.8% compared to $39.3 million in the same period of fiscal year 2025 [1][3][4] - Gross profit was $5.1 million, down from $7.7 million year-over-year, resulting in a gross margin of 17.0%, compared to 19.5% in the prior year [1][4] - Total operating expenses decreased significantly to $7.8 million from $12.9 million in the previous year, marking a reduction of nearly 39% [2][3] - The net loss for the quarter was $3.3 million, or $0.06 per share, an improvement from a net loss of $5.6 million, or $0.10 per share, in the same quarter last year [1][4][17] Strategic Initiatives - The company has adopted a quality-over-quantity strategy, which has led to a significant reduction in operating expenses and improved financial metrics [2][3] - The company is focusing on high-quality customer selection, which has contributed to a decrease in net accounts receivable from $62.4 million to $44.5 million, a decline of approximately 29% [2][3] - The joint venture IKE Tech is making substantial progress globally, working with regulators in Europe, Southeast Asia, and the Middle East to establish age-gating technology as a mandatory standard [3] Future Outlook - The company anticipates that the positive trends in financial performance will continue throughout fiscal year 2026 [2] - There are ongoing discussions with several large and medium-sized tobacco companies regarding the innovative G-Mesh technology solutions for next-generation electronic vapor devices, with potential licensing or partnership agreements expected in the coming months [3]

Core Insights - Ralliant Corporation reported third quarter 2025 results with revenue of $529 million, flat year-over-year and up 5% sequentially, while net earnings were $40 million, leading to an EPS of $0.35 and adjusted EPS of $0.60 [2][4][12] Financial Performance - The net earnings margin was 7.5%, a decline of 960 basis points year-over-year, and the adjusted EBITDA margin was 20.4%, down 610 basis points year-over-year [3] - The company generated $139 million in cash flow from operating activities, with free cash flow of $127 million, compared to $138 million and $132 million respectively in the third quarter of 2024 [8] Segment Performance - In the Sensors & Safety Systems segment, robust demand in Utilities and Defense & Space led to double-digit revenue growth, driven by investments in power grid modernization and defense programs [5] - The Test & Measurement segment saw sequential revenue growth, particularly in the Communications and Semiconductor markets, with operating margin improvements of 660 basis points [6] Strategic Initiatives - The company executed its strategic pillars effectively, focusing on RBS Everywhere, Stronghold Positions, and Winning Growth Vectors, which contributed to performance and value creation [4] - Ralliant plans to deliver $9-$11 million in annualized cost savings by the end of 2026 as part of its Cost Savings Program [12] Capital Allocation - The Board of Directors declared a quarterly cash dividend of $0.05 per share, with a total of $200 million authorized for share repurchases, reflecting the company's commitment to return capital to shareholders [10][11]

Financial Performance - Q3 2025 vs Q3 2024 - Net sales decreased by 8% to $663 million[12] - Adjusted EBITDA decreased to $82 million from $153 million[12] - Adjusted EPS decreased to $036 from $122[12] Siding Segment - Q3 2025 vs Q3 2024 - Siding sales increased by 5%[12] - Siding net sales increased from $420 million to $443 million[19] - Siding adjusted EBITDA decreased from $123 million to $117 million[19] OSB Segment - Q3 2025 vs Q3 2024 - OSB adjusted EBITDA decreased from $33 million to $(27) million[23] - OSB net sales decreased from $253 million to $179 million[23] Liquidity and Capital Allocation - Total liquidity stands at $11 billion[13] - Return to shareholders was $19 million[12] 2025 Guidance - Siding revenue is expected to be approximately $370 million for Q4, representing approximately 3% growth[27] - Siding adjusted EBITDA is expected to be approximately $82 million for Q4, with a margin of approximately 22%[27] - OSB adjusted EBITDA is expected to be approximately $(45) million for Q4[27] - Total LP adjusted EBITDA is expected to be approximately $32 million for Q4[27]

Financial Data and Key Metrics Changes - The company reported a net income of $39.2 million for Q3 2025, nearly doubling from the prior year and marking the highest quarterly net income in at least 20 years [5] - The combined ratio improved to 91.9%, representing the best third-quarter underwriting result in nearly 20 years [5] - Return on equity for the first nine months of 2025 reached 12.7%, the best year-to-date financial performance in nearly two decades [6] Business Line Data and Key Metrics Changes - Net written premium grew to a record $328 million in Q3 2025, reflecting a 7% increase, with core commercial business growing by 22% [5][10] - The underlying loss ratio improved by 1.9 percentage points to 56% in Q3, and by 2 percentage points to 56.7% year-to-date compared to the same periods last year [8] - Catastrophe loss ratio was exceptionally low at 1.3%, well below expectations and historical averages [9] Market Data and Key Metrics Changes - The company experienced a retention rate of 86% in Q3, consistent with the previous quarter [10] - Specialty excess and surplus lines premiums decreased slightly compared to the prior year, while competitive pressure persists in the E&S market [12] - Premium volume remained steady in Q3 compared to earlier quarters of 2025 but was down year-over-year due to selective non-renewals of treaties [13] Company Strategy and Development Direction - The company aims to deliver superior financial and operational performance while increasing relevance with distribution partners to access a wider range of business opportunities [19] - The strategic focus includes consistent profitability, diversifying growth, attracting talent, innovation, and expense management [20] - The company is evolving from a generalist to a specialist, enhancing underwriting expertise and aligning risk control capabilities [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving market dynamics, supported by a portfolio where over 45% of the core commercial book was underwritten under tighter guidelines [23] - The company remains committed to maintaining its capital management philosophy, prioritizing growth and dividend consistency [25] Other Important Information - The company declared and paid a cash dividend of $0.16 per share to shareholders of record as of August 29, 2025 [15] Q&A Session Summary Question: Thoughts on adjusting strategy in a soft market - Management emphasized the importance of delivering superior financial performance and increasing relevance with distribution partners as the market softens [19][20] Question: Changes in capital management philosophy - Management confirmed no changes in capital management approach, focusing on maintaining the right amount of capital for growth and continuing the dividend philosophy [25]

Financial Data and Key Metrics Changes - The company reported a consolidated revenue growth of 10%, adjusted EBITDA increased by 16%, and adjusted EPS was up by 29%, marking the sixth consecutive quarter of double-digit revenue gain and eighth consecutive quarter of double-digit adjusted EPS growth [4][10][22] - Free cash flow achieved its highest level since 2021, reflecting improved collections and earnings growth year to date, contributing to a reduction in net debt and an improvement in reported net leverage to 0.8 times [20][21] Business Line Data and Key Metrics Changes - Transactional revenue grew by 13%, led by a 26% increase in investment sales, debt, and equity advisory, indicating a re-acceleration in transactional businesses [4][12] - Real Estate Management Services saw strong performance with workplace management revenue increasing nearly 30% on a two-year stacked basis, while project management revenue grew in the low double digits [13][15] - Leasing advisory revenue grew nearly 30% on a two-year stacked basis, with office leasing revenue growth accelerating to 14% globally [15][16] - Capital markets services experienced significant growth, with debt advisory revenue increasing by 47% and investment sales growing by 22% [17][18] Market Data and Key Metrics Changes - The U.S. market showed broad-based activity across capital markets, office, and industrial leasing, with investors increasingly shifting to risk-on mode supported by healthy debt markets [4][12] - The industrial leasing revenue grew by 6% globally, driven by strength in the U.S., indicating a positive outlook for this segment [16][43] Company Strategy and Development Direction - The company continues to invest in technology and AI to drive long-term revenue and margin growth, with over 41% of the addressable population using proprietary AI tools daily [5][6] - A new structure for Software and Technology Solutions will be implemented to enhance scalability and client-centric approaches, aiming for profitability by full year 2026 [8][20] - The company is actively developing its strategy for growth through 2030, focusing on both resilient and transactional businesses [24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic outlook and forward indicators for transactional markets, noting that both occupier and investor clients are motivated to transact [4][12] - The company anticipates continued growth in the leasing advisory and capital markets segments, supported by a healthy pipeline and improving market conditions [17][18][22] Other Important Information - The company has increased the low end of its full-year adjusted EBITDA target range by $75 million, resulting in a new range of $1.375 billion to $1.45 billion [22][23] - Share repurchases totaled $70 million in the quarter, with a year-to-date total of $131 million, reflecting a commitment to returning capital to shareholders [21] Q&A Session Summary Question: Property management and REM growth moderation - Management clarified that the moderation in growth is primarily due to exiting low-margin contracts, particularly in Asia Pacific, while the U.S. still shows mid-single-digit growth [27][41] Question: Free cash flow and buyback strategy - Management indicated that the low leverage ratio allows for continued share repurchases as an attractive use of cash, assuming no strong M&A opportunities arise [32] Question: Impact of agentic AI solutions on financials - The main benefit from AI solutions currently is efficiency gains, with productivity significantly increasing in capital markets due to supportive tools [34][35] Question: Trends in capital markets heading into Q4 - Management noted a steady recovery in capital markets transaction volumes, with a positive outlook for continued growth [36] Question: Credit trends in multifamily and fraud charges - Management confirmed that the charges were primarily related to confirmed fraud instances, with no broader deterioration in credit trends [48][50] Question: Low margin contracts exit timeline - Management expects continued contract churn through the first half of next year as they exit low-margin contracts [54] Question: Cross-border capital allocation trends - Management observed healthy interest from Asian and Middle Eastern investors to increase their real estate allocations, indicating a positive outlook for cross-border investments [56][58]

Financial Data and Key Metrics Changes - Sales grew 9.7% year over year to $80 million, driven by strength in marine propulsion and industrial product groups [5][13] - Gross profit rose 18.7% to $22.9 million, with gross margin increasing 220 basis points to 28.7% [13][17] - EBITDA increased 172% year over year to $4.7 million, reflecting expanded sales and profitability [14][15] - Net loss attributable to Twin Disc improved to $518.04 per diluted share from a loss of $2.8 million or $0.20 last year [14] Business Line Data and Key Metrics Changes - Marine and propulsion business sales increased 14.6% year over year to $48.2 million, driven by workboat activity and government programs [8] - Land-based transmission sales were stable, up 1.6% year over year to $17.6 million, with oil and gas shipments nearly flat [9][10] - Industrial business grew 13.2% year over year, supported by acquisitions and broad-based customer activity [10] Market Data and Key Metrics Changes - North America was the primary driver of sales growth, with increased demand for VET products [15] - Defense-related projects represented a growing share of total backlog, increasing by $4 million sequentially and up 45% year over year [6][7] - The overall mix shifted toward North America, while Asia Pacific and the Middle East accounted for a smaller portion of total sales [15] Company Strategy and Development Direction - The company focuses on global footprint optimization, operational excellence, and disciplined capital allocation [11][12] - Near-term priorities include reducing debt and strengthening the balance sheet while investing in targeted organic initiatives [11] - The strategy emphasizes capturing emerging opportunities in defense and hybrid propulsion markets [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining outperformance and delivering strong profitability amid an evolving macroeconomic environment [4] - The company remains mindful of potential tariff developments, expecting a temporary 1-3% tariff impact on second quarter cost of sales [5] - Management is optimistic about the defense-related pipeline and the potential for growth in natural gas demand [29] Other Important Information - The company reported a robust backlog of $163.3 million, up 13% year over year, providing solid visibility for the balance of fiscal 2026 [10] - Inventory levels increased slightly due to strong demand and pre-buys [10][16] - The company maintains a conservative net leverage ratio of 1.3 times, providing flexibility to navigate the current macroeconomic environment [16] Q&A Session Summary Question: Can you help us with the timing of shipment acceleration and expected margin impact in military? - Management expects shipment volume for NATO vehicles to double in a year, with a similar growth trajectory for autonomous vessels [22][24] Question: Do you have the capacity to support that kind of ramp right now? - Management indicated that they have the capability to meet U.S. Navy demand and are evaluating CapEx spending to support growth [25] Question: Can you talk about changes in business conditions and order activity in the oil and gas business? - Management noted that while they are less dependent on oil and gas, they see signs of demand recovery and are cautiously optimistic about natural gas opportunities [26][29] Question: Can you discuss the relatively flat top line in land-based transmissions? - Management described steady demand but noted some shifts in volume between regions, with oil and gas trading off unit volume in China for North America [30][32] Question: How do you view the sustainability of the gross margin improvement? - Management believes the gross margin improvement is sustainable, contingent on maintaining the current mix and addressing tariff impacts [39][40] Question: What is the outlook for free cash flow this year? - Management targets 60% free cash flow as a percentage of EBITDA and aims to recover Q1 performance in Q2 [41][42]

Business Overview - Lucky Strike operates 369 locations as of November 2025, well-positioned in attractive North American markets and expanding into Family Entertainment Centers (FECs) through the acquisition of Boomers[24] - The company's diversified portfolio includes bowling (46%), food & beverage (35%), and amusement & other (19%) revenue streams in FY25, mitigating seasonality and consumer discretionary spending risks[26] Financial Performance - Total Revenue increased by 4% from $1,154,614 thousand in FY24 to $1,201,333 thousand in FY25[55] - Same Store Revenue decreased by 3.7% from $1,029,251 thousand in FY24 to $990,678 thousand in FY25[55] - Adjusted EBITDA increased from $361,497 thousand in FY24 to $367,687 thousand in FY25, with margins of 31.3% and 30.6% respectively[59] - Adjusted Location EBITDA margin was 36% in Q1 FY25, 42% in Q2 FY25, 44% in Q3 FY25, and 40% in Q4 FY25[57] Strategic Initiatives - The company sold 260,000 summer passes in 2025, with members visiting 9 times per pass, driving loyalty and year-round revenue[18] - Lucky Strike plans to rebrand nearly 100 locations by the end of the year and complete the rebrand by the end of 2026[33] Acquisitions and Value Creation - Lucky Strike acquired AMF for $310 million in 2013, with Lucky Strike contributing $20 million of equity, resulting in an estimated value creation of $1.3-$1.5 billion[20] - The company acquired Brunswick locations in 2014 for $260 million and immediately entered into a Sale-Leaseback Transaction reducing purchase price to $60 million[20, 21] - The company deployed $700 million of capital into acquisitions in the past three years[21]