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

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

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

Core Insights - The company has completed the divestment of its FoodTech Equipment offering, marking a strategic shift towards enhancing its digital focus and recurring revenues [1][12] - The fourth quarter saw an exceptional order intake growth of 191%, particularly in Data Center Technologies (DCT), which experienced a 416% increase in order intake [4][6] - Despite strong demand, profitability was impacted by temporary factors such as lower volumes and tariffs, leading to a decline in the adjusted EBITA margin [5][6] Financial Performance - For the full year 2025, order intake increased by 85%, reaching a record level, with a significant backlog growth of 53% driven by DCT and FoodTech [8] - Net sales for the fourth quarter declined by 8%, influenced by currency effects and a decrease in AirTech, while FoodTech showed growth [6][8] - Earnings per share for the fourth quarter amounted to SEK -0.06, compared to SEK 0.85 in the previous year, indicating a decline in profitability [6] Operational Highlights - The company maintained a strong cash flow from operating activities, largely due to advances from customers in DCT [6][8] - In AirTech, order intake remained stable, but profitability was affected by underutilization and lower volumes due to a weaker battery market [6][7] - The company has implemented cost reduction measures, achieving over MSEK 100 in savings in 2025, with additional savings expected by the end of 2026 [10] Strategic Outlook - The company anticipates historically high turnover for the full year 2026, with stronger contributions expected in the second half driven by increased shipments and improved execution [4][15] - In DCT, customer demand is expected to remain strong, with improvements in margins anticipated as tariff effects ease [14][15] - The company aims to focus on continued growth in DCT, scaling FoodTech's digital platform, and improving margins in AirTech through operational measures [16]

Industry Overview - The Zacks Multiline Insurance industry includes companies that provide bundled insurance coverage for various needs, enhancing customer retention and offering lower premium payments compared to individual policies [3] - The industry is characterized by diversified product portfolios, which help lower concentration risk and improve revenue generation [4] Key Trends - Product diversification is aiding multiline insurers in reducing concentration risk and improving retention ratios, with better pricing and prudent underwriting expected to benefit major players like AIG, Prudential, Markel, Principal Financial, and Everest Group [1] - The increasing acceptance of embedded insurance is projected to drive industry growth, with global premiums from embedded insurance expected to exceed $722 billion by 2030 [1] - The transition to green energy and the rise of cyber insurance due to increased AI adoption are identified as growth opportunities [4] Mergers and Acquisitions - The solid capital levels of multiline insurers are anticipated to fuel M&A activities, with a focus on diversifying operations into new business lines and geographies [2][5] - Consolidation is expected to rise in 2025, driven by technology-driven deals, particularly in the insurance technology sector [5] Technological Adoption - The industry is experiencing significant digitalization, utilizing technologies such as blockchain, AI, and advanced analytics to enhance operations and reduce costs [6] - Insurers are focusing on improving data and analytics capabilities to optimize premium calculations and risk management [6] Financial Performance - The Zacks Multiline Insurance industry currently holds a Zacks Industry Rank of 95, placing it in the top 39% of 243 Zacks industries, indicating positive earnings outlook [8][9] - The industry's earnings estimates have been revised upward by 6.7% for the current year, reflecting a positive trend [9] Stock Performance - Over the past year, the Multiline Insurance industry has underperformed compared to the Finance sector and the Zacks S&P 500 composite, with a collective gain of 1.2% [10] - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 2.63X, lower than the S&P 500's 8.66X and the sector's 4.32X [13] Company Highlights - **American International Group (AIG)**: Expected to benefit from strategic business de-risking and acquisitions, with a consensus estimate for 2026 earnings indicating a 10.7% year-over-year increase [19][20] - **Prudential Financial (PRU)**: Positioned for growth through its asset-based businesses and strategic initiatives, with a projected core adjusted operating EPS growth of 5% to 8% through 2027 [23][24] - **Markel Group (MKL)**: Aims to double its insurance operations to achieve $10 billion in annual premiums, targeting a $1 billion annual underwriting profit [26][27] - **Principal Financial Group (PFG)**: Continues to leverage its strong position in retirement and long-term savings, with a consensus estimate for 2026 earnings indicating a 13.4% year-over-year increase [30][31] - **Everest Group (EG)**: Set to benefit from product diversification and international expansion, with a consensus estimate for 2026 earnings indicating a 24.1% year-over-year increase [34][35]

Core Insights - ManpowerGroup's (MAN) revenue growth is driven by its specialized workforce solutions and services globally, supported by a strong pricing and cost control strategy [1][3] - The company faces challenges from a sluggish macroeconomic environment in Europe and North America, as well as risks from foreign currency exchange rate fluctuations [2][8] Financial Performance - In Q3 2025, MAN reported earnings of $0.83 per share, exceeding the Zacks Consensus Estimate by 1.2%, although this represents a 35.7% decrease from the same quarter last year [3][12] - Total revenues for the same period were $4.63 billion, slightly beating consensus estimates and reflecting a year-over-year increase of 2.3% [3][12] Business Strategy - MAN's diversified business model, which includes recruitment, training, outsourcing, and consulting services, helps mitigate concentration risks and enhances global outreach [4] - The company is investing significantly in technology and digitalization, improving productivity through cloud-based applications and enhanced technology infrastructure [5] Shareholder Returns - MAN has consistently paid dividends over the past four years, with amounts of $145.8 million in 2024, $144.3 million in 2023, $136.6 million in 2022, and $144.3 million in 2021, alongside share repurchases totaling $140 million in 2024 [6] Liquidity and Financial Health - As of Q3 2025, MAN's current ratio was 1, indicating an improvement from the previous quarter's 0.98, although it remains below the industry average of 1.33 [7] Market Challenges - The company anticipates a 0.6% decline in organic revenues for 2025 due to a hesitant hiring environment in Europe and North America, exacerbated by France's political uncertainties [8] - MAN is also facing significant competition in the staffing industry, which pressures profitability and innovation, as clients increasingly develop in-house manpower resources using AI tools [10]

Core Viewpoint - Eaton plans to separate its Vehicle and eMobility segments into an independent, publicly traded company, enhancing focus on its core Electrical and Aerospace businesses and aligning with its 2030 growth strategy [1][2]. Group 1: Separation Details - The separation is expected to be completed by the end of the first quarter of 2027, pending legal and regulatory approvals, and will be tax-free for Eaton shareholders for U.S. federal income tax purposes [7]. - This move follows Eaton's previous divestitures of Lighting in 2020 and Hydraulics in 2021, and is anticipated to be immediately accretive to Eaton's organic growth and operating margin [4]. Group 2: Strategic Focus - Post-separation, Eaton will prioritize capital allocation towards higher-growth, higher-margin businesses, enhancing its ability to adapt to market dynamics and deliver consistent returns [3][8]. - The Mobility Group will gain flexibility to pursue growth opportunities in markets for heavy-, medium-, and light-duty trucks, passenger vehicles, and off-highway vehicles [6]. Group 3: Business Overview - The Mobility segment provides critical engineered solutions for power management in vehicles, holding a leading position in commercial truck transmissions and clutches in the Americas, as well as high-voltage EV fuses globally [5]. - Eaton's recent acquisitions, including Ultra PCS and the announced acquisition of Boyd Thermal, strengthen its portfolio to capitalize on demand in data centers, utilities, and the aerospace sector [3].

Core Insights - Eaton has completed the acquisition of Ultra PCS Limited for $1.55 billion, enhancing its aerospace systems portfolio for both military and civilian aircraft [1][2] - Ultra PCS is expected to generate approximately $240 million in sales by 2025, contributing positively to Eaton's Aerospace sector growth [2] Company Overview - Eaton is an intelligent power management company focused on sustainability and improving quality of life, with nearly $25 billion in revenues projected for 2024 [3][4] - The company operates in various markets including aerospace, and aims to address global challenges in power management through electrification and digitalization [3]

Industry Overview - The Zacks Retail – Restaurants industry is facing challenges due to a tough macroeconomic environment, high costs, and declining traffic, making it difficult for restaurants to maintain margins as labor and food costs fluctuate unpredictably [1][4] - Despite these challenges, the industry is benefiting from partnerships with delivery channels and digital platforms, which are expected to drive growth [1][6] Current Trends - U.S. restaurant visits are declining as consumers prioritize essential spending over dining out, particularly affecting lower and middle-income households [3] - Elevated labor costs and volatile food input costs are compressing margins, forcing operators to absorb higher costs and resulting in tighter margins and slower earnings growth [4] - Many restaurant chains are increasing promotions and discounts to defend traffic, which may stabilize short-term sales but could dilute average checks and pressure margins [5] Growth Drivers - Digital innovation and partnerships with delivery services like DoorDash and Uber Eats are crucial for driving incremental sales [6] - The rise in off-premise sales, including delivery and takeout, is acting as a key catalyst for the industry, with many operators testing ghost kitchens and enhancing curbside services [7] Industry Performance - The Zacks Restaurant industry is ranked 210, placing it in the bottom 14% of over 244 Zacks industries, indicating dull near-term prospects [8] - Over the past year, the industry has underperformed the S&P 500, declining 3.2% compared to the S&P 500's rise of 13.6% [10] Valuation Metrics - The industry is currently trading at a forward 12-month P/E of 24.46X, which is higher than the S&P 500's 22.81X but below the sector's 25.05X [13] Company Highlights - **Brinker International, Inc. (EAT)**: The company is benefiting from increased menu pricing and effective marketing strategies, with anticipated sales and earnings growth of 6.5% and 15.1% respectively for fiscal 2026 [16][17] - **BJ's Restaurants, Inc. (BJRI)**: The company is focused on growing traffic and enhancing operational efficiency, with expected sales and earnings growth of 2.4% and 3.3% respectively for 2026 [20][21] - **Chipotle Mexican Grill, Inc. (CMG)**: The company is reinforcing long-term growth through high-quality ingredients and digital innovation, although it has seen a decline of 29.3% in shares over the past year, with projected sales and earnings growth of 9.4% and 3.4% respectively for 2026 [24][25]

Core Insights - Mar Vista U.S. Quality Premier Strategy reported a return of +1.80% net-of-fees in Q4 2025, underperforming the Russell 1000® Index (+2.41%) and the S&P 500® Index (+2.65%) [1] - The U.S. equity market showed strong momentum in 2025, marking its third consecutive year of double-digit gains, with a notable recovery from a bear market dip in April [1] - The market leadership has narrowed, with mega-cap stocks and AI-driven companies dominating, but signs of broader market participation began to emerge in Q4 2025 [1] Company Insights - Mettler-Toledo International Inc. (NYSE:MTD) closed at $1,460.63 per share on January 16, 2026, with a one-month return of 3.41% and a 52-week gain of 12.75% [2] - Mettler-Toledo reported sales of $1.03 billion in Q3 2025, reflecting an 8% year-over-year increase, and has a market capitalization of $30.088 billion [4] - The company is well-positioned to benefit from global trends in automation, digitalization, and nearshoring, projecting mid single-digit revenue growth and low teens EPS growth through 2030 [3] Investment Sentiment - Mettler-Toledo is not among the top 30 most popular stocks among hedge funds, with 49 hedge fund portfolios holding its stock at the end of Q3 2025, up from 40 in the previous quarter [4] - While Mettler-Toledo is recognized for its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]