WELLINGTON, Fla., July 24, 2025 /PRNewswire/ -- Strathmore Capital, Inc. ("Strathmore" or "we"), a long-term shareholder of Tejon Ranch Co. (NYSE:TRC) ("Tejon"), today issued the following letter urging Tejon's Board of Directors to Enable CEO Matthew Walker to Significantly Reduce G&A and Prioritize Free Cash Flow Production.Dear Tejon Ranch Board of Directors,Strathmore Capital, a long-term TRC shareholder, commends CEO Matthew Walker's recent decision to appoint an existing employee as interim CFO, a pru ...

Financial Performance - Net sales reached $10.1 billion, while Operating EBITDA amounted to $703 million [7] - The company received approximately $2.4 billion in cash from the Diamond Infrastructure Solutions partnership, with a potential additional $600 million expected in the second half of 2025 [7] - A final judgment ruling awarded the company approximately $1.2 billion from the NOVA litigation, with cash inflow anticipated in the second half of 2025 [7] Cost Savings and Divestitures - The company announced two divestitures totaling approximately $250 million, at an operating EBITDA multiple of approximately 10x [7] - In-year cost savings are increasing to approximately $400 million, as part of a $1 billion program [7] Capital Allocation - A 50% dividend reduction was announced to prioritize a balanced capital allocation framework [7] - 2025 CapEx is being reduced to approximately $2.5 billion, which is approximately $1 billion lower than original plans [34] Segment Performance - Packaging & Specialty Plastics reported Op EBIT of $632 million, with margins up 1,130 bps YoY [9] - Industrial Intermediates & Infrastructure reported Op EBIT of $192 million, with margins up 680 bps YoY [18] - Performance Materials & Coatings reported Op EBIT of $6 million, with margins up 60 bps YoY [20] Outlook - 3Q25 Net Sales are expected to be ~$10.2B [29]

Financial Performance - In Q2 2025, the company reported net sales of $2,714 million, representing a 4.2% increase compared to Q2 2024 [1][3] - Organic sales growth was 3.4%, outperforming the global Light Vehicle Production (LVP) increase of 2.7% [4] - Operating income rose by 20% to $247 million, while adjusted operating income increased by 14% to $251 million [3][4] - The operating margin improved to 9.1%, and the adjusted operating margin was 9.3% [3][4] - Diluted earnings per share (EPS) increased by 27% to $2.16, with adjusted diluted EPS rising by 18% to $2.21 [1][3] Guidance and Future Outlook - The company expects around 3% organic sales growth for the full year 2025, with an adjusted operating margin target of approximately 10-10.5% [1][9] - Operating cash flow is projected to be around $1.2 billion for the year [1] - The company anticipates improved sales performance in China in the second half of 2025 due to a record number of new product launches [4][6] Cost Management and Efficiency - The company successfully executed cost reduction measures, resulting in a 5% decrease in total headcount [4][7] - Approximately 80% of tariff costs were recovered in Q2 2025, with expectations to recover most of the remaining costs later in the year [7] - The leverage ratio was reported at 1.3x, below the target limit of 1.5x [4] Shareholder Returns - A dividend of $0.70 per share was paid, and 0.5 million shares were repurchased and retired [4] - The company announced a new share repurchase program of up to $2.5 billion until the end of 2029 and a 21% increase in the dividend to $0.85 per share for the third quarter [8]

Financial Data and Key Metrics Changes - Consolidated net sales decreased by 10.8% in Q1, with organic net sales declining by 17.3% excluding Olive and June [39][40] - Gross profit margin decreased by 160 basis points to 47.1%, primarily due to a shift towards lower price alternatives and elevated retail trade expenses [43] - GAAP operating loss for the quarter was $407 million, primarily due to noncash impairment charges [45] - Non-GAAP adjusted EPS was $0.41 compared to $0.99 in the same period last year [46] Business Line Data and Key Metrics Changes - Home and Outdoor segment net sales declined by 10.3%, with approximately 6.7 percentage points of the decline driven by tariff-related disruption [41] - Beauty and Wellness segment net sales declined by 11.3%, with approximately 9.7 percentage points of the decline driven by tariff-related disruption [42] - OXO brand gained share and extended its leadership in kitchen utensils, while Hydro Flask saw growth driven by expanded distribution [21][22] Market Data and Key Metrics Changes - U.S. point of sale unit growth was seen in eight out of eleven key brands in Q1 [19] - Average price compression of 3% to 4% was noted in the U.S. business, indicating a trend of consumers trading down [18] - Strong category growth was observed in prestige hair liquids, air purifiers, and thermometry, with DTC revenue growth of 9% year over year [20] Company Strategy and Development Direction - The company is focusing on five key priorities: restoring confidence, improving go-to-market effectiveness, refocusing on innovation, leveraging brand strengths, and reinvigorating company culture [11][12][15] - A strategic shift towards supply chain diversification and dual sourcing is being implemented to mitigate tariff impacts [35][53] - The company plans to implement average price increases across its portfolio in the range of 7% to 10% [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q1 results were below expectations due to greater-than-expected tariff-related disruptions [17] - The macro environment remains uncertain with geopolitical friction and shifting consumer behavior impacting demand [16] - The company expects continued tariff-related disruptions into Q2 but believes these impacts are largely transitory [30] Other Important Information - The company ended Q1 with total debt of $871 million, a decrease of $46 million compared to the previous quarter [47] - Free cash flow for Q1 was strong at $45 million compared to $16 million in the same period last year [20] - The company is not providing a full-year outlook due to ongoing uncertainties related to tariffs and consumer demand [49] Q&A Session Summary Question: Pricing plans and elasticity considerations - The company plans to implement price increases of 7% to 10% across its portfolio, with individual items seeing increases up to 15% [60] - Conservative elasticity assumptions are being made due to the challenging environment [62] Question: Gross margins and SG&A interplay for Q2 - Gross margins are expected to be slightly worse than Q1, but year-over-year improvement is anticipated [66] - SG&A ratio is expected to normalize to approximately 37% to 38% for the remaining three quarters of the fiscal year [51] Question: Long-term earnings power and headwinds - The company acknowledges significant impacts from direct import business and tariff changes, affecting Q1 and Q2 results [75] - The cadence of results is expected to improve in the second half of the year due to pricing actions and stabilization of retail inventory [76] Question: Retail distribution gains and self-base consolidation - The company is expanding distribution in Walmart, particularly for blood pressure monitors, and expects benefits in the second half [93]

Chevron is reducing local and regional business units in favor of a more centralized model to improve performance and cut as much as $3 billion of costs by 2026 https://t.co/tPoXDk5v16 ...

Core Insights - PPL Corporation is implementing cost reduction strategies to enhance its financial position and support future growth in clean energy technologies [1][2] Cost Reduction and Financial Performance - PPL's cost-reduction efforts are crucial for improving profit margins while maintaining reliability and safety in electricity delivery, which helps sustain customer satisfaction [2] - The company achieved approximately $130 million in operation and maintenance (O&M) savings in 2024 compared to a 2021 baseline, with targets of at least $150 million in 2025 and $175 million by 2026 [3][8] - In Q1 2025, PPL reduced other O&M expenses by nearly 4.5% year-over-year, primarily through smart grid technology and data science [3][8] Customer Impact - By lowering operational expenses, PPL can offer more competitive pricing, enhancing customer satisfaction and loyalty [4] Earnings Estimates - The Zacks Consensus Estimate indicates a 7.69% increase in earnings per share for 2025 and a 7.97% increase for 2026 [7][9] Stock Performance - PPL is trading at a premium with a forward 12-month price-to-earnings ratio of 17.78X, compared to the industry average of 14.68X [10] - Over the past six months, PPL's shares have increased by 4.7%, while the industry has seen an 8.9% growth [12]

Core Insights - United Parcel Service (UPS) is facing significant challenges due to high labor costs and a decline in parcel volumes, impacting its bottom line [1][2] - The company is implementing cost-cutting measures, including offering buyouts to full-time delivery drivers for the first time in its history [2][11] Cost-Cutting Measures - UPS plans to reduce its workforce by 20,000, which is about 4% of its global workforce, and close 73 facilities to streamline operations [3][11] - Compensation and benefits expenses increased by 2.1% year-over-year in 2024, but are expected to decrease by 2.6% in 2025 [3] Impact of Customer Relationships - UPS has decided to reduce business with its largest customer, Amazon, by more than 50% by June 2026, as Amazon was not considered a profitable customer [4][11] Industry Context - FedEx, a competitor, is also cutting costs, including laying off over 480 employees and implementing initiatives like DRIVE, which is expected to yield significant savings [5][6] - UPS shares have declined over 24% in the past year, underperforming its industry [9] Valuation and Earnings Estimates - UPS trades at a 12-month forward price-to-earnings ratio of 13.91X, which is considered expensive compared to industrial levels [10] - The Zacks Consensus Estimate for UPS' earnings for 2025 and 2026 has been revised downward over the past 30 days [13]

Core Viewpoint - FedEx Corporation's shares fell 5.96% in after-market trading due to concerns over volatile global demand and uncertainty regarding U.S. trade policies, particularly with China, despite reporting strong fourth-quarter fiscal 2025 results [1][9]. Financial Performance - FedEx's quarterly earnings of $6.07 per share exceeded the Zacks Consensus Estimate of $5.93, marking a 12.2% year-over-year improvement [2]. - Revenues reached $22.2 billion, surpassing the Zacks Consensus Estimate of $21.7 billion and reflecting a 0.5% increase from the previous year [2]. - Operating income increased by 15% to $1.79 billion, with operating margin rising to 8.1% from 7% year-over-year [3]. Cost Management - The quarterly results benefited from cost reductions due to the DRIVE program, increased volume at Federal Express, and higher base yield across transportation segments [3]. - Operating expenses decreased by 1% to $20.4 billion [4]. Segment Performance - FedEx Express segment revenues grew 1% year-over-year to $18.9 billion, supported by cost reductions and increased export volume [7]. - FedEx Freight revenues fell 4% year-over-year to $2.29 billion, impacted by lower fuel surcharges and increased costs [8]. Shareholder Returns - FedEx returned approximately $4.3 billion to shareholders in fiscal 2025, including $3 billion in share repurchases and $1.3 billion in dividends [12]. - The company plans to continue its robust share repurchase program and has announced a 5% dividend increase [15]. Future Outlook - For the first quarter of fiscal 2026, FedEx anticipates revenue growth of flat to 2% year-over-year, with diluted EPS expected between $2.90 and $3.50 [13]. - For the full year, FedEx expects permanent cost reductions of $1 billion from transformation programs and plans capital spending of $4.5 billion focused on efficiency improvements [14].

Core Viewpoint - SiriusXM Holdings is currently facing challenges with a declining subscriber base and falling revenues, but it has a turnaround plan that focuses on cost reduction and revenue growth opportunities, suggesting potential for future investment returns [1][2][12]. Group 1: Subscriber and Revenue Trends - The subscriber base peaked in 2019, with a loss of approximately 303,000 self-pay subscribers in Q1 2025 [1]. - Revenue has decreased by about 3% year-over-year in 2024 [1]. - The company aims to grow free cash flow to approximately $1.5 billion annually, which would represent a 50% increase from current levels [7]. Group 2: Cost Reduction Initiatives - SiriusXM has successfully reduced sales and marketing expenses by 19% and product and technology costs by 15% year-over-year in the first quarter [4]. - The company achieved about $350 million in gross savings between 2023 and 2024, with a target of $200 million in run rate savings by the end of 2025 [5]. Group 3: Revenue Growth Opportunities - SiriusXM is exploring new subscription models, including a three-year dealer-sold subscription option, which has garnered strong interest [8]. - The company is also focusing on boosting non-vehicle subscriptions through bundles, such as a new offering combining SiriusXM's All Access and Fox Nation for $11.99 per month [9]. - Advertising is identified as a significant growth opportunity, with the potential to develop into a billion-dollar revenue stream, as the company has launched a free ad-supported version of its service in select new vehicles [10][11]. Group 4: Valuation and Investment Potential - SiriusXM's stock trades at just over seven times forward earnings, indicating a low valuation despite strong profitability and expected free cash flow growth [12]. - The company offers a dividend yield of about 5%, which is well covered by earnings, and has initiated stock buybacks to enhance total returns [12].

Financial Performance - FY2025 - Net sales reached $55 billion, a 06% increase per day, driven by acquisitions [5] - Gross margin was 312%, down 110 bps [5] - Net income was $1155 million, a decrease of 582% [5] - Adjusted EBITDA was $5009 million, down 186% [5] - Free cash flow was $3361 million, representing 67% of Adjusted EBITDA [5] Financial Performance - Q4 FY2025 - Net sales were $13 billion, down 41% per day [6] - Gross margin was 312%, down 70 bps [6] - Net income was $261 million, a decrease of 537% [6] - Adjusted EBITDA was $1098 million, down 251% [6] - Free cash flow was $1834 million, representing 167% of Adjusted EBITDA [6] Cost Reduction and Capital Structure - Implemented $55 million of annualized cost reductions during FY25, with full quarterly run rate expected in Q1 FY26 [5, 6] - Share repurchases amounted to 349K shares for $264 million during Q425 [22] - $1920 million repurchase authorization remaining as of April 30, 2025 [22] Q1 FY26 Expectations - Net sales are expected to be down low to mid single digits in total, and down mid to high single digits organically [24] - Gross margin is expected to be approximately 312% [24] - GAAP net income is projected to be between $51 million and $53 million [24] - Adjusted EBITDA is expected to range from $132 million to $137 million, with an Adjusted EBITDA margin of 95% to 98% [24]