Armstrong World Industries (AWI) Q1 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Theresa Womble - Vice President of Investor Relations & Corporate CommunicationsVic Grizzle - President & CEOChris Calzaretta - Senior VP & CFOZack Pacheco - Equity Research AssociateKeith Hughes - Managing DirectorPhilip Ng - Managing DirectorAdam Baumgarten - Managing DirectorStephen Kim - Senior Managing Director Conference Call Participants Charles Perron-Piché - AnalystRafe Jadrosich - Managing Direct ...

Group 1 - Technip Energies has been awarded a Detailed Engineering Design contract by Larsen & Toubro Limited for the North Field Production Sustainability Offshore Compression Project of QatarEnergy LNG [1][2] - The contract involves the design of two offshore compression complexes, including large offshore platforms and associated structures [2] - The contract is classified as "significant," representing revenue between €50 million and €250 million, recorded in Q1 2025 [3] Group 2 - Technip Energies is a global technology and engineering company with expertise in LNG, hydrogen, and sustainable chemistry [4] - The company generated revenues of €6.9 billion in 2024 and operates in 34 countries with over 17,000 employees [5]

Core Insights - The market for remote management solutions in heating networks and Building Management Systems (BMS) is experiencing strong growth due to energy transition, urbanization, decarbonization, and rising energy costs [2][4][8] - LACROIX is well-positioned to capitalize on this growth with its IIoT solutions and has seen significant sales acceleration in its HVAC segment, which recorded a CAGR of 10% from 2021 to 2024 [4][6] - The BACS decree mandates the automation of commercial buildings starting January 1, 2025, but only 15% of buildings were equipped by 2024, indicating a significant market opportunity [3] Industry Overview - The number of district heating networks in France has doubled over the past decade, exceeding 1,000 networks in 2023, with over 50,000 substations [2] - The HVAC segment is a critical part of LACROIX's Environment activity, which integrates technological synergies to enhance service offerings [5][8] Company Positioning - LACROIX's end-to-end solutions and recognized service model make it a trusted partner for major operators like ENGIE Solutions and DALKIA [6] - The company aims for international development as a strategic pillar of its 2027 roadmap, leveraging its subsidiaries in Italy and Spain [7][8] - LACROIX's revenue reached €636 million in 2024, and it is ranked among the top 50 worldwide and top 10 European EMS [10]

Core Viewpoint - Houston American Energy Corp. (HUSA) has successfully obtained shareholder approval for the acquisition of Abundia Global Impact Group (AGIG), with over 90% of votes in favor, marking a strategic move to diversify its portfolio and enhance its presence in the renewable energy sector [2][3]. Group 1: Acquisition Details - The acquisition of AGIG, a company focused on converting waste into high-value fuels and chemicals, is expected to close by the end of the second quarter of 2025 [3][4]. - HUSA's CEO, Peter Longo, emphasized that this acquisition positions the company within the multi-billion-dollar renewable energy market and provides a platform for future value generation [4]. Group 2: Company and AGIG Overview - HUSA is an independent oil and gas company primarily engaged in the development, exploration, acquisition, and production of natural gas and crude oil, with significant operations in the U.S. Permian Basin and the Louisiana U.S. Gulf Coast region [5]. - AGIG aims to facilitate a decarbonized future by converting plastic and certified biomass waste into renewable fuels and chemicals, with plans to build its first advanced plastic recycling facility in Cedar Port, Texas [6].

Core Insights - Star Royalties Ltd. has provided an update on Green Star Royalties Ltd.'s royalty portfolio and corporate strategy, highlighting the challenges faced in the carbon markets and the decision to terminate future capital commitments to the CarbonNOW program [1][3][4]. Carbon Markets Update - North American carbon markets are experiencing significant headwinds, leading to reduced carbon credit pricing and demand due to factors such as the U.S. withdrawal from the Paris Agreement and economic uncertainties [2]. - A key carbon credit offtaker has announced solvency issues, further impacting market conditions [2]. Green Star's Strategic Decisions - Green Star's management has reassessed the economic feasibility of its assets, resulting in the termination of commitments to the CarbonNOW program due to elevated risks and a deteriorating return profile [3][6]. - The decision was unanimously supported by joint-venture partners, with a focus on reallocating capital to high-quality, cash-flowing royalties in decarbonization projects [4][6]. Portfolio Updates - Green Star has acquired gross revenue royalties from NativState LLC on Improved Forest Management projects, actively engaging with brokers to monetize carbon offsets [8][10]. - The company is exploring various monetization strategies, including long-term offtakes and direct sales [10]. Project Highlights - Project ACR 912 and Project ACR 913 involve sustainably managed forestland in Arkansas, with expected carbon offset issuances by the end of 2025 [12][13]. - The Elizabeth Metis Settlement Forest Carbon Project is set to complete baseline inventory measurement by late 2025, with carbon credit issuance anticipated by 2027 [18]. - The Lac Seul First Nation Forest Carbon Project currently lacks a viable path for carbon credit generation, with future updates pending [19]. Corporate Strategy - Star Royalties aims for an 80% focus on precious metals and 20% on green initiatives, including carbon credits and cleantech [20]. - Green Star, 46% owned by Star Royalties, was established to provide exposure to carbon markets and ESG themes, with a focus on cash-flowing opportunities [21][22]. - The company remains optimistic about future value creation despite current market challenges, believing in the royalty model's fit for carbon markets [22][23]. Mining Portfolio Outlook - The mining royalty portfolio outlook has improved, with rising gold prices exceeding US$3,300/oz, and the Copperstone Gold Project expected to generate significant cash flows upon resuming production in mid-2026 [23][24]. - The company anticipates several de-risking events and milestones across its mining assets, aiming to close the valuation gap with its market capitalization [27].

Building Supply Chain Resilience: Insights into Greening Value Chains for ASEAN A Collective Intelligence Playbook 2 Building Supply Chain Resilience: Insights into Greening Value Chains for ASEAN Bank Negara Malaysia (BNM) is a statutory body, established in 1959 to oversee Malaysia's monetary and financial stability. Governed by the Central Bank of Malaysia Act 2009, BNM is responsible for formulating monetary policy, issuing currency, managing international reserves, and promoting a sound progressive fin ...

Group 1 - The company operates on a principle that emphasizes simplicity and common sense as drivers of success [1] - The hedge fund is built with a clear purpose, disciplined focus, and aims for consistent alpha generation [1] - The investment approach is fully quantitative, relying on a model that provides stock tickers and recommendations without human interference [1] Group 2 - The motto "invest first, investigate later" reflects the company's strategy of purchasing based on model suggestions before conducting further research [1] - The company discourages human influence in stock selection to ensure decisions are data-driven and free from individual bias [1]

Company Overview - AAON, Inc. is a leading producer of premium HVAC solutions, founded in 1988, and is headquartered in Tulsa, Oklahoma [3] - The company specializes in designing and manufacturing highly configurable and custom-made HVAC equipment for commercial, industrial, and data center environments [3] - AAON's products are marketed under the AAON and BASX brands, emphasizing efficiency, performance, and long-term value [3] Investor Day Event - AAON will host an Investor Day Event on June 10th, 2025, at NASDAQ MarketSite in New York, NY [1] - The event will feature a formal presentation by the CEO-designate, CFO, and other executive leadership team members, covering various topics relevant to the company and industry [1][2] - Key topics of discussion will include company and industry overview, disruptive market trends such as decarbonization and government regulations, growth strategies, data center market opportunities, capital deployment, and management's long-term outlook [2] Presentation Details - The formal presentation will take place from 9 am EDT to 12 pm EDT on June 10th [2] - Investors will have the opportunity to ask questions during the presentation, allowing for direct engagement with AAON's management team [2]

Core Insights - KBR has been awarded a second ammonia cracking technology contract by Hanwha Impact Corporation for a clean power generation facility in Korea [1][2] - The contract involves KBR providing technology licensing, proprietary engineering design, equipment, and services for a hydrogen facility with a capacity of 214 metric tons per day [2] - KBR's H2ACT® ammonia cracking technology will be utilized to produce clean hydrogen, contributing to Korea's decarbonization goals [2][3] Company Overview - KBR has a long history of ammonia technology usage, with over 260 grassroots plants established since 1944, focusing on optimizing energy efficiency and minimizing CO2 emissions [3] - The company employs approximately 38,000 people globally and operates in over 29 countries, serving customers in more than 80 countries [4] - KBR aims to deliver science, technology, and engineering solutions, ensuring consistent delivery with predictable results [4]

Industry Overview - The Zacks Oil and Gas - Field Services industry is facing a challenging outlook due to a volatile pricing environment for commodities, driven by rising trade tensions and strict capital management by upstream energy firms, which is diminishing the demand for oilfield services [1][4] - Companies in this sector must navigate the evolving landscape of energy transition to succeed, as failing to meet energy transition objectives could adversely impact their cash flow [1][6] - The industry comprises companies providing support services to exploration and production players, including manufacturing, repairing, and maintaining wells, drilling equipment, and seismic testing [3] Current Trends - The demand for oilfield services is closely tied to exploration and production activities, making companies like SLB and Halliburton susceptible to the uncertainties caused by volatile oil and gas prices, particularly due to the US-China trade war [4] - There has been a slowdown in drilling activities as upstream players prioritize stockholder returns over boosting output, leading to lower demand for oilfield services [5] - Companies must efficiently tackle the decarbonization of oil and gas operations while adopting low-carbon technologies to navigate the energy transition successfully [6] Industry Performance - The Zacks Oil and Gas - Field Services industry currently holds a Zacks Industry Rank of 149, placing it in the bottom 40% of over 250 Zacks industries, indicating a bearish outlook [7][8] - Over the past year, the industry has declined by 27.1%, significantly underperforming the S&P 500, which rose by 4.7%, and the broader Zacks Oil - Energy sector, which declined by 15.2% [10] Valuation Metrics - The industry is currently trading at an EV/EBITDA ratio of 5.45X, compared to the S&P 500's 15.53X and the sector's 4.14X, indicating a lower valuation relative to the broader market [13] - Historically, the industry has traded as high as 12.87X and as low as 1.10X over the past five years, with a median of 8.24X [13] Company Insights - Archrock's acquisition of Total Operations and Production Services significantly expands its capacity and improves margins, positioning it as a leader in electrified natural gas compression [15] - Baker Hughes has a diverse business portfolio across natural gas, LNG, and clean energy, which secures steady earnings despite operational volatility, and is expanding its global presence [18] - SLB's diversified portfolio and leadership in digital technology position it for sustained growth, even as upstream investments moderate [20] - Halliburton is focusing on key growth areas that could contribute $2.5 to $3 billion in annual revenues within the next three to five years, despite industry challenges [21]