Core Insights - ABN AMRO reported a net profit of EUR 617 million for Q3 2025, with a return on equity of 9.5% [4][10] - The bank's acquisition of Hauck Aufhäuser Lampe (HAL) contributed positively to profits, adding EUR 26 million [4] - The acquisition of NIBC is expected to enhance profitability and generate a return on invested capital of around 18% [11] Financial Performance - Net interest income increased by EUR 48 million to EUR 1,580 million compared to the previous quarter [6] - Fee income rose, with HAL contributing approximately EUR 50 million [6] - Operating income decreased by 4% year-on-year to EUR 2,169 million [17] Cost Management - The bank reduced its workforce by 700 FTEs in Q3 2025, contributing to cost discipline [7] - Operating expenses increased by 6% to EUR 1,409 million, with personnel expenses rising by 10% [18] Market Position - ABN AMRO's market share in Dutch mortgage origination increased to 19%, with a mortgage portfolio growth of EUR 2.1 billion [5] - The housing market in the Netherlands remains strong, with prices stabilizing after earlier increases [3] Strategic Developments - The acquisition of NIBC is aligned with ABN AMRO's strategy for profitable growth and optimizing capital allocation [9] - The bank plans to focus on its core mortgage brands and discontinue the Moneyou brand [12] Capital Position - The CET1 ratio stood at 14.8% at the end of Q3 2025, with a share buyback of EUR 250 million completed in September [10][13] - The impact of the NIBC acquisition on the CET1 ratio is expected to be approximately 70 basis points at closing [11]

Summary of Fortive's Earnings Call Company Overview - **Company**: Fortive - **Industry**: Advanced Industrial Technology - **Recent Changes**: Fortive has undergone a spinoff of Raliant, simplifying its structure and enhancing its financial profile [2][4] Key Financial Highlights - **Revenue**: Over $4 billion, with a core growth rate of approximately 4% over the last five years [3] - **Profitability**: Gross margins at 65% and EBITDA margins nearing 30% [3] - **Free Cash Flow**: Nearly $1 billion generated annually, with a net income to free cash flow conversion exceeding 100% [4] - **Share Repurchase**: $1 billion in share repurchases in Q3, representing 6% of fully diluted outstanding shares [9] Strategic Focus Fortive Accelerator Strategy 1. **Faster, Profitable Organic Growth**: Aiming to accelerate innovation and enhance customer value through new products and commercial acceleration [5][6] 2. **Disciplined Capital Allocation**: Focus on organic growth investments, with a preference for small, strategic M&A opportunities rather than large transformational deals [6][7] 3. **Building Investor Trust**: Commitment to clear communication and meeting expectations consistently [9][10] Market Trends and Opportunities - **Favorable Trends**: Benefiting from electrification, industrial reshoring, data center expansion, aging demographics, and a $1 trillion deferred maintenance backlog in U.S. infrastructure [4] - **Healthcare Sector**: Anticipated growth driven by aging demographics and a shortage of healthcare providers [30][31] Business Segments Fluke Business - **Growth Strategy**: Focus on product innovation, particularly in data centers, EV charging infrastructure, and solar installations [19][20] - **Recurring Revenue**: Currently at 15%, with plans to enhance service plans and software components [20] Software and Asset Lifecycle Businesses - **Performance**: Growing faster than the fleet average, with significant potential for future growth [25] - **Expansion Plans**: Targeting markets in Western Europe, Australia, New Zealand, and Canada for growth [27] Challenges and Market Conditions - **Macro Environment**: Initial challenges due to tariff dynamics and healthcare policy uncertainties, but conditions are stabilizing [16][17][29] - **Healthcare Equipment Demand**: Improving after a period of tightness, with hospitals beginning to place more capital equipment orders [29][30] Financial Outlook - **Margin Expansion**: Confidence in achieving 50 to 100 basis points of adjusted EBITDA margin expansion annually, supported by operating leverage and cost discipline [34][35] - **Investment Focus**: Targeted investments in high-growth areas, particularly in India, where double-digit growth was observed in Q3 [37][38] Conclusion Fortive is positioned for growth with a strong financial profile and a clear strategy focused on organic growth, disciplined capital allocation, and building investor trust. The company is leveraging favorable market trends and addressing challenges effectively to enhance shareholder value.

Core Insights - The company reported third quarter earnings and is experiencing positive momentum in its business operations [1] - The company is on track to achieve 2% to 3% operational revenue growth, excluding Indore, with expectations for continued positive momentum into 2026 [2] - The company has successfully delivered 5 out of 6 positive pipeline readouts in the first half of the year, indicating strong execution against strategic priorities [2] - The company is committed to capital allocation priorities, planning to return over $1 billion to shareholders, which includes $500 million in share repurchases this year [3]

Financial Data and Key Metrics Changes - Q3 2025 revenue reached $341.1 million, slightly above expectations, driven by higher average day rates and improved utilization [4][32] - Gross margin for Q3 was 48%, exceeding guidance by 200 basis points, although it decreased from 50% in Q2 [4][33] - Free cash flow generated in Q3 was $83 million, bringing total free cash flow for the first nine months of 2025 to nearly $275 million [5][37] - Net loss for Q3 was $806,000, impacted by a $27.1 million charge related to early debt extinguishment [32] Business Line Data and Key Metrics Changes - Production support, comprising roughly 50% of operations, remains steady and is supported by current commodity prices [10] - EPCI and offshore construction segments are seeing increased demand, with backlog converting into vessel demand [12][36] - Average day rates for Q3 were $22,798, a 2% decrease from Q2, while utilization improved from 76.4% to 78.5% [32][33] Market Data and Key Metrics Changes - The offshore vessel market is expected to see a recovery in drilling activity towards the end of 2026, with increasing demand for offshore projects [9][10] - Day rates in Europe faced pressure, particularly in the U.K., while the Middle East saw strengthening demand and day rates [25][28] - The Americas experienced improvements in day rates and utilization, particularly in the Caribbean and Brazil [28] Company Strategy and Development Direction - The company is focused on capital allocation, with a $500 million share repurchase authorization in place, but did not repurchase shares in the last quarter due to competing priorities [7][16] - M&A opportunities are being explored, with the company open to leveraging its balance sheet for strategic acquisitions [8][17] - The long-term outlook for the offshore vessel industry remains positive, with expectations of tight vessel supply supporting pricing power [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term fundamentals of the offshore vessel market, despite short-term headwinds [31] - There is confidence in the recovery of drilling activity, with expectations for increased demand in 2026 and beyond [10][24] - The company is well-positioned to generate free cash flow and drive shareholder value through strategic capital deployment [6][41] Other Important Information - The company successfully refinanced its debt, resulting in a more favorable capital structure with no payments due until 2030 [38] - Dry dock costs for 2025 are projected to be $105 million, with a slight decrease from previous estimates [39] - Capital expenditures for 2025 are expected to be around $30 million, down from earlier forecasts [40] Q&A Session Summary Question: Market outlook for 2026 and pricing leverage - Management expects a quicker recovery in pricing due to increased activity in FPSOs and EPCI, alongside vessel attrition [45] Question: Capital allocation strategy - The lack of share repurchases suggests potential M&A opportunities are being pursued, although specific details were not disclosed [46][47] Question: Guidance for 2026 and regional exposure - Guidance was provided earlier due to increased confidence, with Africa and Asia having more exposure to open capacity [51][56] Question: Customer confidence in energy policy - Customers appear more confident in their plans and are starting to move forward with projects, indicating a positive outlook [64][66] Question: Contract duration and market conditions - The average duration of contracts signed reflects current market conditions, aiming to maintain utilization while avoiding overcommitment [68][70] Question: New build fleet and attrition expectations - The current new build activity is limited, and attrition is expected to outpace new supply, maintaining a favorable market position [74][75] Question: Preference for asset types in M&A - The company prefers large PSVs and medium to large anchor handlers for potential acquisitions, focusing on the Americas [79]

Financial Performance - Net earnings per share increased by 171% year-on-year to $0.76[13] - Attributable EBITDA increased by 57% year-on-year to $2.02 billion[13] - Free cash flow increased significantly by 233% year-on-year to $1.5 billion[13] - Operating cash flow increased by 105% year-on-year to $2.4 billion[13] - Revenues increased 13% from Q2 2025 and 23% from Q3 2024, reaching $4.1 billion[24] Production and Costs - Gold production was 829,000 ounces in Q3 2025, a 4% increase compared to Q2 2025 but a 12% decrease compared to Q3 2024[20] - Gold AISC decreased by 9% from Q2 2025 to $1,538/oz[20] - Copper production was 55,000 tonnes in Q3 2025, a 7% decrease compared to Q2 2025 but a 15% increase compared to Q3 2024[20] - Copper AISC increased by 8% from Q2 2025 to $3.14/lb[20] Capital Allocation - The quarterly dividend was $0.175 per share[13] - Share buybacks in Q3 2025 amounted to $589 million[13] - Non-core asset sales year-to-date reached $2.6 billion[13]

Financial Data and Key Metrics Changes - The company reported a record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24] - The debt to EBITDA ratio for the quarter is 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - In the liquids segment, mainline volumes reached a record average of 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - The gas transmission segment experienced strong performance due to favorable contracting and rate case outcomes, contributing to overall growth [25] - The gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on commitments [8][9] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][32] - The company is positioned to add over 60 BCF of new natural gas storage capacity adjacent to major LNG centers in North America [18][19] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][32] - The focus remains on brownfield, highly strategic projects that are economically viable and supported by underlying energy fundamentals [28][31] - The company is actively pursuing opportunities in gas distribution and storage, particularly in response to power demand and data center growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26] - The company anticipates continued strong performance despite headwinds from higher interest rates and tight differentials [27] - Management highlighted the importance of strategic positioning in the growing North American storage market to support LNG capacity and power demand growth [19][20] Other Important Information - The company has sanctioned expansions of gas storage facilities to support LNG buildout along the U.S. Gulf Coast [9][17] - The company is advancing a joint venture with Oxy to develop the Pelican CO2 hub in Louisiana, which will provide transportation and sequestration for 2.3 million tons of CO2 per year [9][15] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an acceleration in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Management indicated that permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand and a favorable environment are driving the expedited timing for expanded egress to Canadian producers [48][49] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project pipeline supporting growth [55][56] Question: Customer conversations regarding gas storage in Western Canada - Management highlighted strong customer interest in gas storage expansions, with significant contracts already signed for new capacity [70][72] Question: Managing cost risk in power generation projects - Management emphasized prudent capital management and strong contractor relationships to mitigate cost risks in competitive markets [78][80]

Financial Data and Key Metrics Changes - The company reported record third quarter adjusted EBITDA, driven by contributions from U.S. gas utilities and organic growth in gas transmission [7][24] - Adjusted EBITDA increased by $66 million compared to Q3 2024, while EPS decreased from $0.55 to $0.46 due to seasonal lower EBITDA in Q3 [24][26] - Debt to EBITDA ratio stands at 4.8 times, remaining within the target leverage range of 4.5 to 5 times [7][26] Business Line Data and Key Metrics Changes - Liquids segment achieved record mainline volumes of approximately 3.1 million barrels per day, reflecting strong demand for Canadian crude [10][11] - Gas transmission experienced strong performance with favorable contracting outcomes and contributions from new projects [25] - Gas distribution segment benefited from a full quarter contribution from Enbridge Gas North Carolina and quick-turn capital projects in Ohio [25][21] Market Data and Key Metrics Changes - The company added $3 billion in new growth capital to its secured capital program, showcasing continued execution on growth commitments [8][29] - The North American energy landscape is evolving with increased demand driven by LNG development, power generation, and data centers [31][70] Company Strategy and Development Direction - The company aims for 5% growth through the end of the decade, supported by $35 billion in secured capital [31][26] - Focus on brownfield projects that are capital efficient and strategically aligned with energy fundamentals [29][31] - The company is positioned to capitalize on the growing demand for natural gas and renewable energy projects [22][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA in the upper half of the guidance range of $19.4 billion to $20 billion [26][31] - Positive rate settlements in gas distribution are expected to enhance revenue and support continued investment [21][26] - The company is optimistic about the future growth potential in the renewable energy sector, particularly in solar projects [22][97] Other Important Information - The company has sanctioned expansions in gas storage to meet increasing LNG-related demand, adding over 60 Bcf of new natural gas storage capacity [18][19] - The management team is focused on maintaining a disciplined capital allocation strategy while pursuing growth opportunities [28][29] Q&A Session Summary Question: Acceleration in gas distribution and storage - Management noted an increase in commercial activity across various regions, particularly in Ohio and Utah, driven by data center demand and power generation [34][35] Question: Construction timeline for Line 5 - Permitting for the Wisconsin Reboot and Michigan tunnel is regaining momentum, with completion expected in 2027 [42][43] Question: Mainline optimization phase two - Management confirmed that customer demand is driving the expedited timing for expanded egress to Canadian producers [48][49] Question: Growth outlook and capital sequencing - Management expressed confidence in maintaining capital spending between $9 billion and $10 billion, with a strong project backlog supporting growth [55][56] Question: Renewable energy portfolio - The company is well-positioned in the solar market, with strong customer demand and several projects in development [96][97]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $28.9 million for Q3 2025, an increase of approximately 20% compared to the previous year [4][11] - Adjusted EBITDA margin increased from 15.7% to 17.1%, reflecting a 22% increase in shipping days and a 13% decrease in voyage expenses on a per-day basis [11][12] - GAAP net income for Q3 was $12.2 million, or $0.19 per diluted share, while adjusted net income was $11.2 million, or $0.17 per diluted share [12][13] - The company ended the quarter with approximately $94 million in unrestricted cash and total debt of approximately $386 million [7][13] Business Line Data and Key Metrics Changes - The company achieved TCE rates averaging $15,559 per day, a premium of approximately 10% over the average market rates for Panamax, Supermax, and Handy Size vessels [4][11] - Vessel operating expenses increased by approximately 57% year over year, primarily due to the acquisition of the SSI fleet [12] - Total general and administrative expenses increased by 64%, from $6 million to approximately $9.8 million, mainly due to the consolidation of technical management operations [12] Market Data and Key Metrics Changes - Near-term dry bulk fundamentals remain constructive, with expected agricultural shipments from the U.S. to China supporting U.S. Gulf markets [7] - The company has booked 4,210 shipping days for Q4 2025, generating a TCE of $17,107 per day [8] Company Strategy and Development Direction - The company is focused on improving fleet efficiency and emissions performance, with ongoing fleet renewal strategies [6] - Expansion of integrated service platforms is a priority, with new operations commencing at various ports [5] - The company aims to maintain a disciplined approach to capital allocation, prioritizing investments in fleet and organic growth opportunities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium-term setup due to limited effective supply growth and regulatory constraints [7] - The CEO announced retirement effective January 1, 2026, with the COO expected to lead the company into its next chapter [8][9] Other Important Information - The company repurchased approximately 600,000 shares for a total of approximately $3 million and declared a $0.05 quarterly dividend [6][15] Q&A Session Summary Question: Mads, can you highlight your top three priorities going forward? - Mads emphasized continuity in strategy, focusing on customer growth, logistics, and fleet expansion when opportunities arise [22][23] Question: What do you expect the premium to the index to be in Q4? - Mads indicated that while Q4 is not fully booked, there is an expectation for premiums to align with typical levels seen in the business [24][25] Question: Can you discuss your fleet renewal program in the context of asset values? - Mads noted a pragmatic approach to fleet renewal, emphasizing the importance of maintaining a non-shrinking fleet while being selective about new acquisitions [26][27]

Financial Performance - Revenue reached $3.4 billion[8], while the company experienced a consolidated segment loss of $439 million[44], impacted by a $653 million charge related to the Santos litigation[45] - Adjusted EBITDA was $161 million[44] and diluted adjusted EPS was $0.68[44] - New awards totaled $3.3 billion[9], with 99% being reimbursable[9] - Backlog reached $28.2 billion[10], with 82% being reimbursable[10] Segment Results - Urban Solutions reported a segment profit of $61 million[17], with new awards of $1.8 billion[17] and a backlog of $20.5 billion[14, 17], representing 73% of the total backlog[17] - Energy Solutions experienced a segment loss of $533 million[30], including the $653 million court ruling related to the Santos project[30], with new awards of $222 million[30] and a backlog of $5.121 billion[28] - Mission Solutions reported a segment profit of $34 million[38], with new awards of $1.3 billion[38] and a backlog of $2.6 billion[36, 38] NuScale Investment - A major monetization milestone was achieved with the conversion of the remaining 111 million shares[7] - Monetization of Class A shares is expected to begin in November and finish in the second quarter of 2026[7] Outlook - The company expects 2025 new awards to reach $13 billion[57] - The company anticipates operating cash flow between $250 to $300 million[54] - The company projects adjusted EBITDA between $510 to $540 million and adjusted EPS between $2.10 to $2.25[56]

Financial Data and Key Metrics Changes - In Q3 2025, adjusted gross profit grew by 15.2% year-over-year, with adjusted basic EPS reaching BRL 6.90 per share, up 37% year-to-date [3][5] - Adjusted net income increased by 18% year-over-year, driven by pricing policy adjustments, strategic use of client deposits, and a lower effective tax rate [5][6] - Consolidated ROE expanded by 8 percentage points year-over-year to 24%, while financial services ROE from continuing operations increased to 33% [6][10] Business Line Data and Key Metrics Changes - Total revenue and income grew by 16% year-over-year, reaching BRL 3.6 billion, with adjusted gross profit from continuing operations at BRL 1.6 billion, growing 12% year-over-year [6][7] - The payments business for MSMBs saw an active client base growth of 17% year-over-year, reaching 4.7 million clients, with MSMB TPV growing 11% year-over-year to BRL 126 billion [7][8] - The banking operation's active client base increased by 22% year-over-year to 3.5 million clients, with client deposits growing by 32% year-over-year [8][9] Market Data and Key Metrics Changes - The average daily deposit base increased by 40% year-over-year, with time deposits now accounting for 84% of total deposits [9] - The total credit portfolio grew by 27% sequentially, reaching BRL 2.3 billion, with NPLs over 90 days at 5.03% [10][11] Company Strategy and Development Direction - The company aims to return excess capital through buybacks or dividends when immediate investment opportunities are not available, having returned 74% of identified excess capital to investors [4] - The focus remains on enhancing the value proposition to clients, evolving product offerings, and scaling credit [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but expressed confidence in the company's ability to deliver consistent value to clients and shareholders [3][5] - The company expects gradual deceleration in TPV growth due to industry dynamics and a weaker macro environment, but remains focused on profitability rather than market share at any cost [34][35] Other Important Information - The effective tax rate was reported at 15.3% in Q4, down from 18.6% in Q3 2024, with expectations for mid to high teens in the long term [14][99] - The company is experiencing operational leverage and efficiency gains, particularly in customer service and logistics, but does not expect current cost levels to be the new normal [68][70] Q&A Session Summary Question: On prepayment business spreads and sustainability - Management indicated that they are not at all-time high spreads and that earnings growth will be driven by credit portfolio growth and operational efficiency [17][26] Question: Competitive environment and pricing trends - Management noted that while there are new entrants in the market, overall players remain rational, and they do not expect significant pressure on spreads [32][36] Question: Organizational redesign progress - Management reported significant progress in transitioning to a fully functional organization, enhancing strategy and client offerings [43][44] Question: Credit portfolio maturity and cost of risk - Management expects cost of risk to remain in the mid-teens, with NPLs projected to grow as the portfolio matures [47][50] Question: Revenue composition changes - Management explained that the movements between transaction revenue and financial income are due to rebalancing and the flexibility of their bundled offerings [51][52] Question: Asset quality and specific client issues - Management clarified that a specific client issue had a minor impact on NPLs, which has since normalized [73][74] Question: Future guidance and tax rate expectations - Management plans to reassess long-term guidance after evaluating year-end performance, with an effective tax rate expected to remain in the mid to high teens [95][99]