Financial Data and Key Metrics Changes - For the fiscal year ended June 30, 2025, the company generated $38.8 million in adjusted EBITDA, an increase of $7.6 million or 24.4% compared to the prior year, primarily driven by acquisition efforts [3][10] - The net income for the quarter ended June 30, 2025, was $4.9 million on revenues of $220.6 million, representing a slight increase of 2.6% from the previous year [8][9] - Adjusted net income for the same quarter was $5.5 million, down 21.8% from $7.0 million in the prior year [9][10] - For the 12 months ended June 30, 2025, net income was $17.3 million on revenues of $902.7 million, a significant increase of 125% compared to the previous year [10] Business Line Data and Key Metrics Changes - The company completed three Greenfield acquisitions and three strategic operating partner conversions in fiscal 2025, contributing to the overall growth in adjusted EBITDA [6][7] - The acquisition of WePort in Mexico is expected to enhance the company's capabilities and support its North American footprint [7] Market Data and Key Metrics Changes - The company anticipates continued volatility in the near term due to ongoing U.S. trade negotiations and tariffs, but expects a surge in global trade once disputes are resolved [4][5] - There is a noted shift in sourcing from China to Southeast Asia and Mexico, which the company believes will benefit from the changing trade dynamics [13] Company Strategy and Development Direction - The company aims to deliver profitable growth through a combination of organic and acquisition initiatives while maintaining a strong balance sheet [5][6] - The focus is on leveraging technology and expanding the sales organization to enhance cross-selling opportunities and customer engagement [57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's prospects, emphasizing the importance of a robust North American footprint and global service partner network [62] - The company is preparing for a muted peak season due to ongoing tariff uncertainties but remains committed to supporting customers through these challenges [31] Other Important Information - The company has approximately $23 million in cash and only $20 million drawn on its $200 million credit facility, indicating a strong financial position [5] Q&A Session Summary Question: Impact of changing trade policy on business, especially in Mexico - Management noted that trade policy remains fluid, with customers navigating tariffs and supply chain challenges, but sees Mexico benefiting from these dynamics [12][13] Question: Management of business amidst import volatility - Management indicated that customers are struggling with supply chain management due to volatility, leading to inventory adjustments [15] Question: EBITDA margins and quarter performance - Management attributed lower EBITDA margins to a lack of pull-forward in the current quarter compared to previous periods [16][17] Question: Depreciation and amortization changes - Management clarified that the decrease in depreciation and amortization was due to the end of the amortization period for a previous acquisition [21][22] Question: Capacity for future acquisitions - Management expressed confidence in their ability to pursue multiple acquisitions, citing low leverage and a strong capital structure [26][28] Question: Expectations for year-end activity amidst tariff situations - Management anticipates a muted peak season but expects continued growth in Mexico and Southeast Asia as customers diversify their supply chains [30][31] Question: Target leverage for balance sheet - Management indicated a normalized target leverage of around 2.5 times, with flexibility for temporary increases for the right transactions [35] Question: Tax rate and adjustments - Management explained that the tax rate for the quarter was adjusted due to an overestimate in the prior period, resulting in a slight benefit [48][49]

Core Viewpoint - China firmly opposes the United States' call for G7 and NATO countries to impose secondary tariffs on Russian oil purchases, indicating a commitment to protect its rights and interests [1] Group 1 - China has pledged to take measures to safeguard its rights in response to the U.S. proposal [1]

Group 1 - Brazilian President Lula emphasized that "Brazil's democracy and sovereignty are not on the negotiation table" while expressing willingness for open dialogue with the U.S. [1][7] - Lula expressed pride in the Supreme Court's ruling against former President Bolsonaro, stating it upheld institutions and the rule of law, countering claims of "political persecution" [4][6] - The Supreme Court found Bolsonaro guilty of plotting a coup and sentenced him to 27 years and 3 months in prison [2][4] Group 2 - Lula criticized the U.S. for imposing high tariffs on Brazilian products, arguing that the measures are politically motivated and illogical [6][7] - The U.S. has accumulated a trade surplus of $410 billion with Brazil over the past 15 years, with nearly 75% of U.S. products entering Brazil duty-free, making the tariffs misleading [7] - A report from Brazil's Finance Ministry indicated that the U.S. tariffs could reduce Brazil's GDP by 0.2 percentage points and lead to the loss of approximately 138,000 jobs, primarily in the industrial and service sectors [9]

Group 1 - The Indian Rupee is hovering near historical lows, primarily due to increased tariffs imposed by the US on Indian goods, which is shaking investor confidence and making the Rupee one of the riskiest currencies in Asia [1][2] - Since the beginning of the year, the Indian Rupee has depreciated over 3% against the US dollar, with the exchange rate dropping from approximately 85.95 to a record low of 88.35 [1] - Foreign institutional investors have sold off Indian assets worth over 1.03 trillion Rupees since July, contributing to the depreciation of the Rupee as the demand for dollars increases when these assets are sold [1] Group 2 - The weakening of the Rupee is making imported goods more expensive, particularly oil, which India relies on for 90% of its demand, leading to increased transportation costs and rising inflation [2] - Market sentiment towards the Indian Rupee remains bearish, with expectations that the exchange rate may continue to face pressure in the short term [2] - Some experts believe that the depreciation of the Rupee does not constitute an alarm, as the central bank is allowing a gradual decline to enhance export competitiveness and mitigate the impact of US trade tariffs [2]

Group 1 - The Indian Rupee is currently hovering near historical lows, primarily due to increased tariffs imposed by the US on Indian goods, which has shaken investor confidence and made the Rupee one of the riskiest currencies in Asia [1][2] - Since the beginning of the year, the Indian Rupee has depreciated over 3%, with the exchange rate dropping from approximately 85.95 to a record low of 88.35 against the US dollar [1] - Foreign institutional investors have sold off Indian assets worth over 1.03 trillion Rupees since July, contributing to the depreciation of the Rupee as the demand for US dollars increases [1] Group 2 - The weakening of the Rupee has made imports more expensive, particularly for oil, which India relies on for 90% of its needs, leading to increased transportation costs and rising inflation [2] - Market sentiment towards the Indian Rupee remains bearish, with expectations that the exchange rate may continue to face pressure in the short term [2] - Some experts believe that the depreciation of the Rupee does not signal a crisis, as the central bank is allowing a gradual decline to enhance export competitiveness and mitigate the impact of US trade tariffs [2]

Group 1 - The Russian government has increased import tariffs on malt beer and cider from non-friendly countries, with beer tariffs rising from €1 per liter to €1.5 per liter [1] - The tariff on cider, perry, and other sparkling beverages has been raised from 22.5% to 30% [1] - This decision is part of a broader context where the EU is preparing its 19th round of sanctions against Russia, targeting six Russian banks and energy companies, as well as payment systems, credit card networks, and cryptocurrency platforms [1] Group 2 - President Putin has requested a list of individuals from non-friendly countries who have suspended or reduced their business activities in Russia since February 22, 2022, to be compiled and updated quarterly [1]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of a small city, indicating a significant strain on global power grids [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets, making it integral to America's future power strategy [7] - The company is noted for its ability to execute large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is completely debt-free and has a cash reserve that is nearly one-third of its market capitalization, positioning it favorably compared to other energy firms burdened by debt [8] - It holds a significant equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines in the AI sector [9][10] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off-the-radar, trading at less than seven times earnings [10][11] - The company is recognized for delivering real cash flows and owning critical infrastructure, making it a compelling investment choice in the context of the AI revolution [11][12] Future Outlook - The article emphasizes the importance of being part of the AI-driven future, suggesting that companies embracing AI will thrive while those resistant to change will falter [11][12] - The potential for significant returns is highlighted, with expectations of over 100% returns within 12 to 24 months for investors who act now [15]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Economist Mohamed El-Erian warned of "significant challenges" for Xi Jinping's growth model after fresh data showed a sharp drop in US-China trade. The analysis follows a CNBC report that Chinese exports to the U.S. plunged 33% in August year-over-year, a development El-Erian said shows U.S. tariffs have begun to “bite.” China's Shipments To US Plunge 33% In August The sharp decline in U.S.-bound shipment ...

Core Insights - The U.S. government collected $31.4 billion in tariff revenues in August 2025, marking the highest monthly revenue to date for the year [1] - Total tariff revenue for 2025 has exceeded $183.6 billion, indicating a significant impact of trade duties on the economy [1] - The increase in tariff revenue is attributed to the Trump administration's efforts to maintain global duties despite legal challenges [5] Revenue Trends - Tariff revenues have shown a steady increase from $17.4 billion in April to $23.9 billion in May, reaching $28 billion in June and $29 billion in July [2] - As of early September, the U.S. has generated just over $1 billion in tariff revenue, suggesting a potential for significant revenue collection in the coming months [4] Legal and Political Context - A federal appeals court ruled that President Trump exceeded his authority in imposing tariffs through emergency powers, although this decision does not affect tariffs on steel and aluminum [5] - The Justice Department plans to appeal this ruling to the Supreme Court, with the current tariffs remaining in place until mid-October [7] - Treasury Secretary Scott Bessent expressed confidence that the administration would prevail in the Supreme Court, with projections that tariff revenue could exceed $500 billion [8] Economic Implications - The burden of tariff costs often falls on consumers, as businesses typically raise prices to offset the import taxes [8]

Core Viewpoint - Canada is reviewing tariffs imposed on Chinese electric vehicles, steel, and aluminum, following a year of significant trade tensions between Canada and China, particularly regarding canola products [1][2]. Group 1: Tariff Review and Government Actions - The Canadian government has initiated a review of the tariffs on Chinese electric vehicles, steel, and aluminum to assess the current tax rates' validity [1]. - The review is expected to officially start next month, with updates to be provided at appropriate times [1]. - Since the implementation of these tariffs, the import volume of the affected products has significantly decreased [1]. Group 2: Trade Delegation to China - A parliamentary secretary will accompany a trade delegation to China, indicating a potential shift in the Canadian government's approach to trade relations with China [2][8]. - The delegation, led by Saskatchewan Premier Scott Moe, aims to negotiate the canola import guarantee issue and foster dialogue for a closer trade relationship [3][6]. - This visit marks the first time in six years that a Canadian provincial leader has led a delegation to China [6]. Group 3: Broader Trade Implications - The Saskatchewan government is seeking to address not only canola but also tariffs on other Canadian products such as peas, pork, and seafood during the visit [6]. - The Canadian government is also taking measures to protect jobs in the canola industry and plans to announce additional support for Canadian producers [8][10]. - There is an acknowledgment from Canadian officials that there is still room for growth in trade with China, particularly in the agricultural sector [10].