Government Policy & Energy Transition - Brazil plans to establish a mechanism leveraging oil revenues to fund the nation's energy transition [1] - The initiative balances Brazil's green ambitions with its increasing fossil fuel production [1]

Core Insights - Caterpillar Inc. (CAT) reported a mixed performance in Q3 2025, returning to revenue growth after six quarters of decline, with revenues reaching approximately $17.6 billion, a 9.5% year-over-year increase, driven by strong volume growth across all segments [1][4][7] - The company faced rising costs due to tariffs, which pressured earnings, resulting in a 4% decline in adjusted operating profit to $3.05 billion and a decrease in adjusted operating margin to 17.5% from 20% [5][9] - CAT shares have gained 8.6% following the results, and the company has seen a 57% year-to-date increase, outperforming the industry [1][2] Financial Performance - Q3 revenues reached a record $17.6 billion, supported by a 10% increase in sales volume and a favorable currency impact of 1%, though partially offset by a 1.3% unfavorable price realization [4][7] - Cost of sales increased by 16% year-over-year, primarily due to higher manufacturing costs linked to tariffs [5][9] - Operating cash flow for the first nine months of 2025 was $8.15 billion, down from $8.64 billion in the prior year, with a backlog of $39.9 billion at the end of the quarter [8] Future Outlook - Caterpillar expects 2025 revenues to be "modestly" higher than in 2024, with net incremental tariffs projected between $1.6 billion and $1.75 billion [9][10] - The company maintains its revenue projection at $42-$72 billion, with anticipated margins between 10% and 22% [10] - Earnings estimates for CAT have been revised upward for both 2025 and 2026, despite a projected 16.26% decline in earnings for 2025 [13][14] Industry Context - The broader U.S. manufacturing sector has been contracting, with the ISM Manufacturing Index below 50 for eight consecutive months, indicating ongoing challenges [18] - Competitors such as Terex and Komatsu reported mixed results, with Terex showing a 14.4% revenue increase driven by acquisitions, while Komatsu's revenues declined year-over-year [16][17] Valuation and Investment Considerations - CAT is currently trading at a forward 12-month P/E of 26.87X, higher than the industry average of 24.57X, indicating a premium valuation [19] - The long-term growth outlook for Caterpillar is supported by expected increases in U.S. infrastructure spending and demand for mining equipment due to energy transition trends [21][22] - Investors are advised to exercise caution due to the premium valuation and projected earnings decline, while existing shareholders may benefit from the company's long-term demand prospects [23]

Financial Data and Key Metrics Changes - The company achieved an adjusted EBITDA of $12 billion, a 28% increase over the second quarter of 2025 [10] - Net income, excluding one-time items, reached $5.2 billion, marking a 28% increase over the previous quarter [10] - Operating cash flow closed at $9.9 billion, up 31% from the second quarter [10] - Free cash flow was $5 billion, a 44% increase from the second quarter [10] - The company approved a payment of BRL 12.2 billion in dividends [10] Business Line Data and Key Metrics Changes - Oil and gas production increased by 8% in the quarter, with a 17% growth over the last 12 months [11] - Pre-salt production reached 2.56 million barrels of oil equivalent, supported by a 4% efficiency increase [5] - Domestic sales of oil products increased by 5%, with diesel sales growing by 12% compared to the previous quarter [7] - The refinery FUT closed the quarter at 94%, producing high-value-added derivatives [7] Market Data and Key Metrics Changes - The company exported around 800,000 barrels of oil per day, with total exports surpassing 1 million barrels per day when including byproducts [7] - Brent prices rose by 2% in the quarter, although they fell by $11 per barrel over the past year [11] Company Strategy and Development Direction - The company is focused on increasing oil production and improving operational efficiency, with a long-term perspective on investments rather than short-term dividends [14] - Key projects in the refining segment are advancing, with significant savings achieved compared to reference budgets [6] - The company aims to enhance Brazilian self-sufficiency and contribute to energy security and emission reduction through its investments [7] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the challenging scenario due to the drop in Brent prices but emphasized the strong operational performance in the third quarter [4] - The company is confident in meeting its investment guidance and maintaining a focus on efficiency and cost management [16] - Management expressed optimism about future production capacity increases without additional costs, particularly in the Búzios field [22][23] Other Important Information - The company celebrated the hiring of 850 technical employees and approximately 570 new graduates to expand operations [9] - The FPSO Almirante Tamandaré reached a record instantaneous flow rate of 270,000 barrels of oil per day [22] Q&A Session Summary Question: Contribution of inflation to FPSO results and Capex constraints for 2026 - Management stated that Capex is not increasing due to inflation, and investments are being accelerated without raising project budgets [27][28] Question: Concerns regarding Braskem's financial situation - Management noted that Braskem has its own governance and no proposals are currently on the table for discussion [26] Question: Potential reduction in Capex in the midterm - Management indicated that while there may be a reduction in Capex in the future, it is not expected for the next year [31] Question: Sustainability of production levels above nominal capacity - Management clarified that production peaks are temporary and based on reservoir characteristics [46] Question: Decision-making process for leasing vs. owning FPSOs - Management explained that decisions are based on technical assessments and market conditions, with no preference for one model over the other [42] Question: Updates on the ethanol market and liquid natural gas - Management confirmed ongoing negotiations regarding ethanol and expressed interest in participating in future auctions for reserve capacity [48][63]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The margin for the quarter was 58%, consistent with the prior year, and up 1% over the last 12 months [26][27] Business Line Data and Key Metrics Changes - Infrastructure and renewable power raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][20] - Real estate business saw approximately $23 billion in property sales, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [7][8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion in new nuclear power reactors positions the company at the forefront of clean energy initiatives [18] - The company aims to double its business by 2030, with plans to expand product offerings and diversify its investor base [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing, and client service capabilities, enhancing overall value [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Corporate direct lending outlook - Management remains cautious about direct lending due to competition but sees strong opportunities in credit related to real assets and infrastructure [60][61] Question: Private equity fund outlook amidst market backdrop - The company is optimistic about its private equity fund due to its focus on essential assets and consistent performance across market cycles [72][75] Question: Broadening the client base for fundraising - The company has dedicated teams targeting small and medium-sized institutions, family offices, and insurance institutions, leading to significant growth [79][80]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion [7][24] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The private equity business launched its seventh vintage, focusing on essential service businesses, with expectations for it to be the largest fund ever [18][75] - The real estate business sold approximately $23 billion of properties, representing $10 billion of equity value over the past 12 months [21] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest since 2021 [8] - The demand for electricity is increasing at an unprecedented rate, driven by electrification trends and the surge in electricity demand from data centers [16][17] Company Strategy and Development Direction - The company is launching an AI Infrastructure Fund to capture opportunities in AI-related infrastructure investments, estimated to exceed $7 trillion over the next decade [14] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company plans to double its business by 2030, with fee-related earnings reaching $5.8 billion and fee-bearing capital reaching $1.2 trillion [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong fundraising momentum and expects 2026 to exceed 2025 levels [37][38] - The company is well-positioned to meet the increasing demand for power solutions, leveraging its renewable power business [17][23] - Management highlighted the importance of operational improvement as a key driver of value creation in the current economic environment [73] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The acquisition of the remaining 26% in Oaktree Capital Management is expected to close in the first half of 2026, enhancing the company's credit capabilities [9][32] Q&A Session Summary Question: Fundraising momentum and management fee growth outlook for 2026 - Management expects fundraising to exceed 2024 levels and anticipates strong growth in management fees driven by new acquisitions and fundraising [37][38] Question: Credit business fee rate and growth aspirations - The elevated fee rate was driven by a mix shift and one-off transaction fees, with a positive trend expected in the credit business [42][43] Question: Integration benefits from acquiring Oaktree - The acquisition will allow for operational synergies, improved marketing capabilities, and enhanced client service [49][52] Question: Retail market momentum and distribution strategy - The company is seeing robust momentum in the retail market and is focused on building relationships with key stakeholders to capture growth opportunities [55][56] Question: Private equity outlook amidst market backdrop - The private equity business is expected to perform well due to its focus on essential assets and operational improvement, differentiating it from peers [73][75]

Financial Data and Key Metrics Changes - Quarterly fee-related earnings grew 17% year-over-year to $754 million, while distributable earnings increased 7% to $661 million [5][25] - Fee-bearing capital reached $581 billion, an 8% increase year-over-year, driven by record fundraising [5][24] - The company raised $30 billion in the third quarter, bringing total inflows over the past 12 months to more than $100 billion, marking the highest pace of organic fundraising ever [6][27] Business Line Data and Key Metrics Changes - The infrastructure and renewable power franchise raised $30 billion, deployed $30 billion, and monetized over $10 billion at approximately 20% returns over the past 12 months [11] - The company is launching an AI Infrastructure Fund, anticipating AI-related infrastructure investments to exceed $7 trillion over the next decade [13] - In the private equity business, the company launched its seventh vintage of its flagship strategy, focusing on essential service businesses [18][19] Market Data and Key Metrics Changes - Global M&A volumes increased nearly 25% year-over-year, with $1 trillion in announced deals in the third quarter, the highest level since 2021 [6][7] - The company noted improving transaction conditions and a resilient global economy despite trade uncertainties [6][7] Company Strategy and Development Direction - The company aims to double its business by 2030, with plans to expand product offerings and diversify its investor base [30][31] - A landmark partnership with the U.S. government to construct $80 billion of new nuclear power reactors was announced, positioning the company at the center of clean baseload power development [18] - The company is focused on capturing opportunities in AI infrastructure, energy transition, and essential real assets, aligning with global trends of digitalization, decarbonization, and deglobalization [23][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong fundraising year for 2026, expecting to exceed 2025 levels [34][35] - The company anticipates continued growth in fee-related earnings driven by acquisitions and new fundraising initiatives [36] - Management highlighted a solid balance sheet and a strong liquidity position, with $2.6 billion in liquidity at quarter-end [31][32] Other Important Information - The company declared a quarterly dividend of $43.75 per share, payable on December 31 to shareholders of record as of November 28 [32] - The company is actively monetizing stabilized assets, selling approximately $23 billion of properties over the past 12 months [20][22] Q&A Session Summary Question: Fundraising momentum into 2026 - Management expects fundraising in 2026 to exceed 2025 levels, driven by infrastructure and private equity flagships [34][35] Question: Credit business fee rates - The elevated fee rate in the credit business was driven by a mix shift and one-off transaction fees, with a positive trend expected [37][39] Question: Oaktree acquisition benefits - The acquisition of Oaktree will unlock operational synergies, enhance marketing capabilities, and improve client service [42][44] Question: Retail market momentum - The company is seeing robust momentum in the retail market, with new product launches expected to drive growth [45][46] Question: Corporate direct lending outlook - Management noted that while competition in corporate lending is intensifying, private credit remains a significant and growing component of global finance [49][52] Question: Private equity fundraising outlook - The company is optimistic about raising its largest private equity fund ever, focusing on essential assets that generate consistent results [56][57]

November 7, 2025 Greg Ebel President & CEO Pat Murray EVP & CFO Legal notice Forward Looking Information This presentation includes certain forward-looking statements and information (FLI) to provide potential investors and shareholders of Enbridge Inc. (Enbridge or the Company) with information about Enbridge and its subsidiaries and affiliates, including management's assessment of their future plans and operations, which FLI may not be appropriate for other purposes. FLI is typically identified by words s ...

Core Insights - Legrand has acquired Avtron Power Solutions, a provider of load banks and power quality solutions, expected to generate nearly $350 million in revenue in 2025 [1][3] Company Overview - Legrand is a global leader in electrical and digital building infrastructures, with a reported sales of €8.6 billion in 2024 [4] - Avtron employs 600 people and operates five sites across North America and Europe [1] Strategic Implications - The acquisition aligns with Legrand's Ambition 2030 growth strategy, aiming to reach €15 billion by 2030, focusing on energy transition and datacenter solutions [3] - Avtron will function as a stand-alone business unit within Legrand's Electrical Wiring Systems Division, maintaining its leadership under CEO David Cox [2] Market Position - The acquisition enhances Legrand's product portfolio to meet the needs of critical power provisioning in high-growth markets such as datacenters, healthcare, renewable energy, and industrial manufacturing [1][3] - Both companies share values and culture, which is expected to drive growth and innovation [3]

Core Insights - LEAG Clean Power GmbH and Fluence Energy GmbH are collaborating to construct Europe's largest battery energy storage system, a 1 GW / 4 GWh facility in Jänschwalde, Germany, highlighting their leadership in energy technology in Europe [1][3][4] - The GigaBattery Jänschwalde 1000 project aims to enhance energy transition by providing constant energy availability, integrating renewable energy sources, and stabilizing the grid [3][4] Company Overview - LEAG Clean Power GmbH is part of the LEAG Group, which is Germany's second-largest electricity producer and focuses on innovative power projects, including battery storage and renewable energy systems [7][8] - Fluence Energy, Inc. is a global leader in intelligent energy storage and optimization software, with extensive experience in delivering advanced battery storage systems across nearly 50 markets [5][8] Project Details - The GigaBattery Jänschwalde 1000 will utilize Fluence's Smartstack™ technology, designed to provide essential grid services, support energy trading, and enhance Germany's energy security [1][3][4] - The project is characterized by its four-hour storage capability, which is intended to optimize grid connection and stabilize energy supply [4] Industry Impact - The German government has reaffirmed the importance of energy storage in achieving a secure, affordable, and sustainable power system, indicating a supportive regulatory environment for such projects [3] - The collaboration between LEAG and Fluence is positioned as a significant step towards transforming the energy landscape in Germany and Europe, addressing challenges related to renewable energy availability [3][4]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Energy Storage Systems (ESS) within the Alternative Energy sector - **Context**: The global energy system is experiencing a significant transition, with the combined cost of solar and wind energy plus storage now lower than fossil fuel generation in most major markets [1][13] Core Insights - **Energy Mix Shift**: By 2024, fossil fuels will supply approximately 77% of primary energy globally, while wind and solar will account for over 12% of global electricity, a threefold increase from a decade ago. The IEA projects that non-fossil energy will surpass coal as the main electricity source by 2025 [2][20] - **Economic Drivers**: Over the past 15 years, costs for solar and batteries have decreased by around 90%. The levelized cost of electricity (LCOE) for wind/solar plus storage is now lower than new coal and gas plants in major economies [3][20] - **Policy Support**: In China, provincial incentives such as Gansu's capacity payment mechanism and Inner Mongolia's subsidy have driven internal rates of return (IRRs) for utility-scale ESS projects to approximately 28% and 15%, respectively [3][20] Growth Projections - **ESS Installation Growth**: Global ESS installations are forecasted to grow at a compound annual growth rate (CAGR) of approximately 27% from 2025 to 2030, with China expected to account for nearly half of all utility-scale additions by 2030 [4][20] - **AIDC Demand**: The demand for electricity from AI Data Centers (AIDCs) is projected to more than double to 950 TWh by 2030, significantly driving the need for ESS [4][20] Investment Opportunities - **Value Concentration**: The ESS sector's value is concentrated in batteries (48-55% of turnkey cost) and system integration (19-21% of cost). Companies like CATL, Sungrow, Kehua, Wuxi Lead, and Senior are highlighted as top picks based on their exposure to high-value segments [5][25] - **Stock Ratings and Price Targets**: Key stocks featured include: - CATL: BUY, Price Target Rmb521.00 - Wuxi Lead: BUY, Price Target Rmb76.00 - Sungrow: BUY, Price Target Rmb233.96 [6][7] Additional Insights - **Intermittency Challenges**: The rise in renewable energy usage increases intermittency challenges and grid strain, necessitating enhanced storage solutions to maintain grid stability [2][20] - **Market Fragmentation**: The market for ESS is fragmented, with significant opportunities for consolidation among system integrators and battery manufacturers [27][33] Conclusion - The energy storage sector is positioned for explosive growth driven by economic advantages, policy support, and increasing demand from emerging technologies like AI. Investors are encouraged to focus on high-value segments within the ESS value chain to capitalize on this transition [5][25]