Corpay (NYSE: CPAY) 2025 Conference Summary Company Overview - **Company**: Corpay - **Ticker**: NYSE: CPAY - **Conference Date**: December 02, 2025 Key Points Industry and Business Segments - **Core Business**: Corporate payments and vehicle payments - **Market Focus**: Middle market companies with revenues between $300 million and $1 billion [12][14] - **Geographic Distribution**: Vehicle payments are divided into thirds across the U.S., Europe, and Brazil [19] Financial Performance and Growth Outlook - **Organic Growth Target**: Management aims for 9%-11% organic growth in 2026 [3][80] - **Corporate Payments Growth**: Expected mid-teens organic revenue growth driven by high revenue retention rates (92% overall, 95%-99% for corporate payments) [12][32] - **Vehicle Payments Growth**: Achieved 10% year-over-year organic growth in Q3, with expectations for low-single digits in Q4 [57][63] Strategic Initiatives - **Customer Acquisition**: Focus on acquiring new clients to offset attrition and drive growth [13][29] - **Cross-Border Capabilities**: Recent acquisition of Alpha Group to enhance cross-border services, expected to contribute $200 million in revenue [34][36] - **Investment in AvidXchange**: Acquired a one-third stake with plans to potentially acquire the remainder based on profitability improvements [38][41] Competitive Landscape - **Main Competitors**: Banks dominate the payment flow market, holding 90%-95% of domestic and international payment flows [12][15] - **Market Penetration**: Significant opportunity exists in the middle market, where Corpay currently has minimal share [13][15] Capital Allocation and Financial Strategy - **Free Cash Flow**: Expected to generate approximately $1.5 billion in free cash flow [75] - **M&A Strategy**: Focus on creative M&A opportunities while considering share repurchases due to current stock valuations [76][78] - **Leverage Management**: Anticipated leverage of 2.8 times post-acquisition of Alpha [65] Investor Relations and Market Perception - **Durability of Growth Model**: Management emphasizes the recurring nature of the business model and the ability to sustain organic growth [79][80] - **Leadership Stability**: CEO Ron has been with the company for 25 years, providing continuity and confidence in the management team [80] Additional Insights - **Sales Effectiveness**: Addressing past sales challenges to return to double-digit growth in vehicle payments [72][73] - **Market Trends**: Noted that 40% of B2B payments in the U.S. are still made via paper checks, indicating a significant opportunity for digital transformation [26] This summary encapsulates the key insights and strategic directions discussed during the Corpay conference, highlighting the company's growth ambitions, competitive positioning, and financial strategies.

Summary of Kelly Services FY Conference Call Company Overview - **Company**: Kelly Services (NasdaqGS: KELY.A) - **Industry**: Staffing Solutions - **Segments**: Enterprise Talent Management, Science, Engineering and Technology (SET), Education - **Market Position**: Second largest temporary staffing provider in the U.S. with a 2% market share [4][18] Key Financial Metrics - **Trailing 12-Month Revenue**: $4.4 billion [4] - **Adjusted EBITDA Margin**: 3% [4] - **Capital Deployment**: $500 million in non-core asset monetization; $900 million redeployed for scale in specialties [2] - **SG&A Cost Reduction**: Over $100 million [2] Strategic Initiatives - **Transformation**: Significant transformation ongoing, including a streamlined operating model and a focus on higher-value solutions [5][20] - **Leadership Changes**: New CEO Chris Laden, an industry veteran, joined in September; first outside CEO in company history [6][7] - **Acquisitions**: $900 million invested in acquisitions, including a $450 million IT services company [13] Segment Performance Enterprise Talent Management (ETM) - Accounts for nearly half of the business with a gross margin of around 20% and EBITDA margin over 2% [8] - Offers a range of solutions including temp staffing, perm staffing, and managed services [9] Science, Engineering, and Technology (SET) - Focused on higher-value positions and solutions, with a gross margin of 26% and EBITDA margin of nearly 6% [14] - Significant growth in project-based work, particularly in telecom and life sciences [12][13] Education - Largest provider of K-12 substitute teachers in the U.S., supporting 8,000 school districts [14] - Business has tripled over the last five years, with a significant growth opportunity as only 30% of school districts currently outsource [15] Market Dynamics - The staffing industry is fragmented, with Kelly Services maintaining a flat revenue despite a declining overall market [19][20] - Shift from staffing to outcome-based solutions, with revenue from staffing decreasing from 70% to 44% [21] Financial Outlook - Anticipated EBITDA margin to remain around 3% amid near-term headwinds [24] - Free cash flow generation of approximately $100 million [26] - Active M&A pipeline with a focus on education and SET areas [27] Additional Insights - The company is focusing on optimizing its finance, HR, and technology functions to drive efficiency [29] - Emphasis on expanding wallet share with existing clients and enhancing service offerings [28] - The company has a dual-class share structure, with B shares having voting rights [42] Conclusion - Kelly Services is undergoing a significant transformation aimed at enhancing shareholder value through strategic acquisitions, operational efficiencies, and a focus on higher-margin segments. The company is well-positioned to capitalize on growth opportunities in the staffing industry, particularly in education and specialized sectors.

South Bow Investor Day Summary Company Overview - **Company**: South Bow - **Event**: Inaugural Investor Day - **Key Executives Present**: Bevin Wirzba (CEO), Van Dafoe (CFO), Richard Prior (COO) [1][2] Core Industry Insights - **Industry Focus**: Heavy oil supply and demand dynamics - **Market Position**: South Bow connects the strongest supply of heavy oil globally to high demand markets in the Midwest and Gulf Coast [4][9] - **Unique Value Proposition**: South Bow operates an integrated value chain, enhancing customer relationships and creating value for both shareholders and customers [4][10] Financial Performance and Goals - **Milestones Achieved**: Successfully completed a spin-off from TC, listed on NYSE on October 8, 2024, and met all initial commitments [6][7] - **Financial Strategy**: Focus on reducing costs, maintaining a lean operational model, and optimizing capital allocation [11][30] - **Debt Management**: Targeting a leverage ratio of four times by 2027, ahead of schedule [30][54] Safety and Operational Excellence - **Safety Record**: Achieved 1.5 million work hours without a recordable incident in 2025 [18] - **Operational Goals**: Continuous improvement in safety performance and operational efficiency [27][33] - **Asset Integrity Focus**: Investing $150 million annually in pipeline integrity programs, aiming for industry-leading performance [56][57] Growth Strategy - **Growth Opportunities**: Plans for both organic growth (e.g., BlackRod project) and inorganic opportunities to expand revenue streams [28][41] - **Market Demand**: Anticipated increase in Canadian crude oil demand in the U.S., particularly in PADD 2 and PADD 3 markets [71][72] - **Production Forecast**: Potential for an additional million barrels per day from the Western Canadian Sedimentary Basin (WCSB) over the next decade [74] Key Challenges and Responses - **Incident Management**: Addressed the Milepost 171 incident effectively, with rapid response and remediation efforts [62][63] - **Regulatory Compliance**: Ongoing transparency with regulators and commitment to improving pipeline integrity [66][67] Conclusion - **Commitment to Shareholders**: South Bow emphasizes a sustainable dividend, financial discipline, and a focus on long-term growth while maintaining a strong balance sheet [44][45][53] - **Future Outlook**: Confident in the ability to leverage existing assets and market conditions to drive growth and enhance shareholder value [48][72]

Core Insights - The recent inflation has shifted the investment landscape, making low-yielding assets less attractive for income-seeking investors [1] - Higher interest rates are currently available, providing new opportunities for investors to offset purchasing power loss [1] Investment Strategy - The focus is on building a portfolio that balances strong growth potential with solid fundamentals [1] - Emphasis is placed on high-quality businesses in the U.S. and Europe, characterized by industry-leading profitability, low leverage, and growth potential [1] - The investment approach is centered around capital allocation and identifying businesses that are worth holding for the long term [1]

Operational Performance - LATAM transported over 229 million passengers, supported by a 93% capacity growth (ASK) year-over-year[8] - Consolidated load factor reached 854%, a 05 percentage point increase compared to the third quarter of 2024[8] - Passenger unit revenue increased by 84% while maintaining broadly stable unit costs[8] Financial Highlights - Adjusted EBITDAR totaled US$1150 million, with an adjusted operating margin of 181%[8] - Net income reached US$379 million[8] - LATAM executed a share repurchase program for US$433 million[8] Strategic Initiatives - LATAM announced the acquisition of up to 74 Embraer aircraft to enhance connectivity in South America, including 24 firm orders and 50 purchase options[8, 9] - The Embraer E195-E2 offers a 30% lower fuel consumption per seat compared to previous-generation models[10] - LATAM will introduce Premium Comfort class in 2027 to enhance the long-haul experience[20] Guidance Update - LATAM updated its 2025 guidance, projecting an adjusted EBITDAR range between US$400 billion and US$410 billion and an adjusted operating margin between 160% and 165%[36]

Financial Data and Key Metrics Changes - The company reported normalized EBITDA of $250 million for the third quarter, with distributable cash flow of $236 million benefiting from a current tax recovery of $71 million due to changes in U.S. tax legislation [12][14] - The outlook for distributable cash flow is revised to approximately $700 million for 2025, with an effective tax rate expected to range between 20-21% [12][14] - The normalized EBITDA guidance for 2025 is reaffirmed at $1.01 billion, with a forecast of $1.03 billion for 2026 [12][13] Business Line Data and Key Metrics Changes - The marketing segment is expected to see normalized EBITDA approximately $25 million higher due to recovery from losses recorded in 2025 [13] - The InterAlberta and other segments are projected to increase normalized EBITDA by approximately $10 million, reflecting cash flows from the BlackRod project ramping up in the second half of 2026 [13] Market Data and Key Metrics Changes - The company anticipates favorable conditions for supply growth in late 2026 to early 2027, which is expected to exceed current egress capacity [22] - The ongoing dialogue between Canada and the U.S. regarding energy solutions is seen as a positive development for the company's market positioning [5][20] Company Strategy and Development Direction - The company is focused on growing its business and enhancing competitiveness while ensuring safe operations and financial strength [4][16] - There is an emphasis on leveraging pre-invested corridors for future projects, particularly in Alberta and the U.S. [19] - The company aims to mature and execute its growth portfolio through both organic and inorganic opportunities [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integrity of the pipeline system following remedial actions and inspections, aiming to return Keystone to baseline operations by 2026 [8][10] - The company is optimistic about the potential for growth in customer supply and the overall market environment [22] Other Important Information - The company has successfully completed the BlackRod project on schedule and within budget, with facility commissioning work underway [10] - A quarterly dividend of $0.50 per share has been approved, payable on January 15 to shareholders of record on December 31 [14] Q&A Session Summary Question: Update on major projects and crude pipeline - Management confirmed they are providing advisory support for a crude pipeline project in Alberta but emphasized that it is limited to advisory roles [19][20] Question: Outlook on marketing and crude spreads - Management anticipates improved conditions for egress and supply growth by late 2026 to early 2027, with expectations for wider spreads [22] Question: Details on tax optimization and U.S. legislation changes - Tax benefits were derived from extended interest deductions and accelerated tax pools, with expectations for these benefits to continue into 2026 [26][27] Question: Transition agreements and cost savings - Management indicated that optimization efforts have not been included in the EBITDA outlook but are expected to contribute positively in the future [29][30] Question: Organic growth opportunities and project types - The company is exploring various growth opportunities in both Canada and the U.S., with a focus on customer needs [34][35] Question: CapEx assumptions for 2026 - Management suggested that an average investment of around $100 million per year is necessary to achieve the targeted EBITDA growth [43][44] Question: Variable toll settlements and P&L impact - Management confirmed that remaining payments related to variable toll settlements would be normalized out of EBITDA [45][46]

Financial Data and Key Metrics Changes - The company reported normalized EBITDA of $250 million for the third quarter, with distributable cash flow of $236 million benefiting from a current tax recovery of $71 million due to changes in U.S. tax legislation [12][14] - The outlook for distributable cash flow is revised to approximately $700 million for 2025, with an effective tax rate expected to range between 20-21% [12][14] - The normalized EBITDA guidance for 2025 is reaffirmed at $1.01 billion, with a forecast of $1.03 billion for 2026 [12][13] Business Line Data and Key Metrics Changes - The marketing segment is expected to see normalized EBITDA approximately $25 million higher, while InterAlberta and other segments are projected to increase by about $10 million due to BlackRod cash flows ramping up [13] - Keystone's normalized EBITDA is anticipated to be approximately $15 million lower due to reduced planned maintenance capital expenditures [13] Market Data and Key Metrics Changes - The company is encouraged by ongoing dialogues in Canada and the U.S. regarding energy solutions, which highlight the resilience of its customers' businesses and the strategic positioning of its assets [5][6] - The company expects conditions to become more favorable for supply growth in late 2026 to early 2027, as supply growth is anticipated to exceed current egress capacity [22] Company Strategy and Development Direction - The company aims to grow its business and enhance competitiveness while ensuring safe operations and financial strength [4][16] - The focus is on leveraging pre-invested corridors for future projects and optimizing processes post-transition from TC Energy [6][29] - The company is committed to maintaining safe operations and progressing towards returning Keystone to baseline operations [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the integrity of the pipeline system following remedial actions and ongoing inspections [8][9] - The company is optimistic about returning Keystone to baseline operations in 2026, ahead of market differentials widening and increased demand for uncommitted capacity [10][16] Other Important Information - The company has successfully completed the BlackRod project on schedule and within budget, with facility commissioning work underway [10] - Legal proceedings related to variable toll disputes have been withdrawn, allowing the company to focus on new business opportunities [11] Q&A Session Summary Question: Update on Alberta's proposed crude pipeline and Keystone XL discussions - Management confirmed they are providing advisory support for Alberta's initiative but cannot comment on trade negotiations between the U.S. and Canada [19][20] Question: Outlook on crude spreads and inventory normalization - Management anticipates improved conditions for egress in late 2026 to early 2027, driven by supply growth from customers [22] Question: Details on tax optimization and U.S. legislation changes - Tax benefits stem from extended interest deduction legislation and accelerated tax pools, with expectations to return to a regular tax cadence by 2027 [26][27] Question: Impact of transition agreements on cost savings and EBITDA - Management indicated that optimization efforts are not included in the current EBITDA outlook but are expected to contribute positively in the future [29][30] Question: Organic growth opportunities and project types - The company is exploring various growth opportunities in both Canada and the U.S., with a focus on maturing projects [34][35] Question: CapEx assumptions for 2026 - Management suggested a consistent investment of approximately $100 million annually to achieve EBITDA growth targets, with no sanctioned projects currently [43][44] Question: Variable toll settlements and P&L impact - Management confirmed that remaining payments related to variable toll settlements would be normalized out of EBITDA [45][46]

Summary of Distribution Solutions Group (DSG) FY Conference Call Company Overview - **Company Name**: Distribution Solutions Group (DSGR) - **Industry**: Specialty Distribution - **Market Capitalization**: Approximately $2 billion, up from less than $1 billion three years ago [3][2] - **EBITDA**: Currently around $190 million, increased from approximately $90 million at the time of the merger [3][2] Core Business Segments 1. **Lawson Products** - Established 73 years ago with about 1,000 sales representatives [4][2] - Focuses on Class C and MRO (Maintenance, Repair, and Operations) products, managing vendor inventory for over 80,000 customers [4][2] - Gross margins near 70% before sales costs [7][2] 2. **Gexpro Services** - A leading OEM provider, with 70% of products customized to client specifications [4][2] - Manages the supply chain for Class C items, which are low-cost but high-volume components [5][2] - Operates with margins of 13%-14% [22][2] 3. **TestEquity Group** - Comprises about 40% of DSG's revenue, focusing on electronic production supplies and test measurement equipment [5][2][23][2] - Recently appointed a new CEO to revamp the go-to-market strategy [23][2] Financial Performance - **Organic Growth**: Achieved 6% organic growth year-over-year [28][2] - **Recent Acquisitions**: Made five acquisitions in 2024, three of which were on the Lawson side [21][2] - **Cash Flow**: Generated cash flow from operating activities of $38 million in Q3 and $33 million in Q2 [27][2] - **Capital Allocation**: Deployed approximately $550 million in capital for acquisitions since the formation of DSG [26][2] Strategic Initiatives - **M&A Strategy**: DSG has a dedicated M&A team supported by Luther King Capital Management (LKCM), which owns 78% of DSG shares [10][2][25][2] - **Customer Retention**: High revenue retention rates, particularly in Gexpro Services, with minimal customer churn [11][2][17][2] - **Diversification**: Serves over 200,000 customers across various end markets, with no single market exceeding 20% of total sales [12][2][17][2] Competitive Advantages - **Asset-Light Model**: CapEx is about 1% of sales, allowing for significant free cash flow generation [12][2] - **Strong Supplier Relationships**: Maintains a diverse supplier base with minimal concentration risk [13][2] - **Integrated Sales Approach**: Sales teams incentivized to cross-sell services among the three verticals, enhancing customer relationships [31][2][32][2] Challenges and Considerations - **Internal Competition**: There exists a competitive nature among the three verticals for capital allocation, but this is viewed positively as it drives performance [36][2][37][2] - **Market Adaptability**: The company has shown resilience through various business cycles, adjusting resources as needed across different end markets [22][2][12][2] Conclusion Distribution Solutions Group is positioned strongly within the specialty distribution industry, demonstrating significant growth, a robust M&A strategy, and a commitment to customer service and operational efficiency. The company’s diversified approach across its three verticals provides a solid foundation for continued success and resilience in fluctuating market conditions.

Financial Performance - The company's Q3 2025 combined ratio was 790%, the best as a publicly traded company to date[14] - The annualized Operating ROAE was 214% for Q3 2025[14, 15] - Book value per diluted common share grew to $2329[14, 19] - Gross premiums written for the trailing twelve months ended September 30, 2025 were $47 billion[7, 8] Growth and Premiums - Gross premiums written grew by 8% in Q3 2025 compared to Q3 2024, reaching $798 million[15, 18] - Year-to-date gross premiums written increased by 8% or $290 million, totaling $3739 million[19, 20] - Insurance gross premiums written increased by 6% year-to-date, reaching $2775 million[23, 25] - Reinsurance gross premiums written increased by 16% year-to-date[27, 30] Capital Management - The company returned $180 million of capital to common shareholders in the nine months ended September 30, 2025, including $143 million in share repurchases and $37 million in dividends[20] - The company has $1531 million remaining for share repurchase authorization[37] Investment Portfolio - Net investment income for Q3 2025 was $46 million, bringing the year-to-date total to $140 million[15, 36]

Summary of Celsius Holdings Conference Call Company Overview - **Company**: Celsius Holdings - **Industry**: Beverages, specifically energy drinks Key Points and Arguments Q3 Performance - Celsius reported a strong Q3 with **$200 million in EBITDA** and a **13% year-over-year growth rate** as per Circana data [2][4] - Alani Nu brand is projected to reach a **$1.2 billion run rate** by the end of Q3, capturing over **20% market share** in its category [4][34] Marketing and Promotions - The company emphasized the success of the **Live Fit Go campaign**, which has been a significant driver of growth since its launch in June [2][4] - Promotional activities included participation in **Amazon Prime Day** and various promotions at **Costco**, which contributed to revenue recognition timing discrepancies between Q2 and Q3 [3][4] Transition to PepsiCo - The transition of Alani Nu into the Pepsi system is underway, with expectations for a smooth integration [5][6] - Management indicated that the transition may not result in the typical large inventory fill due to cash management practices at large CPG companies [6][7] Market Dynamics - The energy drink category is experiencing healthy growth, with Celsius and Alani Nu attracting new consumers, particularly among females and those seeking sugar-free options [13][14][17] - The company anticipates continued growth in the energy drink sector, albeit at a more sustainable rate than the mid-teens growth seen recently [14] Competitive Landscape - Celsius is positioned as a leader in the female and sugar-free segments, with a strong brand identity that takes time to build [27][28] - The company acknowledges increased competition, particularly from Monster, which is launching a female-focused product [27][28] Future Outlook - The management is optimistic about Q4 and 2026, expecting improvements in gross margins and EBITDA as integration with Pepsi progresses [48][49] - The company plans to continue investing in marketing, with **23%-25% of revenue** allocated to sales and marketing in Q4 [50] Capital Allocation and M&A Strategy - Celsius announced a buyback program to address perceived undervaluation and is open to future M&A opportunities, particularly in vertical integration [54][55] - The company is also focusing on enhancing its manufacturing capabilities to drive efficiencies [56] Protein Product Opportunities - While the primary focus of the Alani Nu acquisition was energy drinks, there is potential for growth in the protein category, although no immediate plans are in place [57][59] International Expansion - Celsius aims to expand its international footprint, currently at about **5% international sales**, with plans to evaluate new markets [63][64] - The company is building a robust international team to support this growth [65] Conclusion - Celsius Holdings is positioned for continued growth in the energy drink market, with strong brand identities, a successful transition to Pepsi, and a focus on marketing and international expansion. The management remains optimistic about future performance despite current market challenges and competition.