Financial Data and Key Metrics Changes - Precision Drilling reported adjusted EBITDA of $126 million for Q4 2025, compared to $121 million in Q4 2024, reflecting a year-over-year increase [4] - The company recorded a net loss of $42 million in Q4 2025, which included non-cash charges of $67 million for decommissioning drilling rigs and $17 million for drill pipe, while net income would have been positive $42 million without these charges [5] - The net debt to adjusted EBITDA ratio improved to 1.2 times, with a reduction in debt by CAD 101 million during the year [2][13] Business Line Data and Key Metrics Changes - In Canada, drilling activity averaged 66 active rigs, an increase of 1 rig from Q4 2024, with daily operating margins reported at CAD 14,132, down from CAD 14,559 in Q4 2024 [5] - In the U.S., the average active rig count was 37, an increase of three rigs from the prior year, with daily operating margins of $8,754, slightly up from $8,700 in Q3 2025 [6] - The CMP segment reported adjusted EBITDA of CAD 17 million, up from CAD 16 million in the prior year, driven by increased well servicing demand in Canada [8] Market Data and Key Metrics Changes - Internationally, Precision averaged seven active rigs, down from eight in the prior year, with international day rates averaging $53,505, an 8% increase from the previous year [6][7] - The Canadian market outlook remains solid, supported by commodity prices and increased LNG and crude takeaway capacity, while the U.S. market is expected to remain flat with pockets of growth [20] Company Strategy and Development Direction - The company aims to drive revenue growth and deepen customer relationships, focusing on performance and efficiency to differentiate itself in the market [15][19] - Precision is investing in rig upgrades and digital technologies to enhance operational performance and customer service [18] - The company is exploring international growth opportunities, including a memorandum of understanding (MOU) in Argentina to provide idle rigs and digital technology [21][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market's medium to long-term outlook, despite short-term volatility due to weather and commodity prices [20] - The U.S. market is expected to remain flat, but there are opportunities for modest growth driven by performance differentiation [20] - The company plans to continue its focus on financial discipline and shareholder returns, with a target to increase free cash flow allocated to shareholders up to 50% [12][60] Other Important Information - Capital expenditures for 2025 were CAD 263 million, with CAD 156 million for sustaining and infrastructure and CAD 107 million for upgrades [9] - The company expects to incur $2 million in one-time charges related to rig reactivations in Q1 2026 [10] Q&A Session Summary Question: Context around the rig demobilization in Kuwait - Precision has six rigs in Kuwait, with four active and two idle, looking for opportunities to reactivate the idle rigs [25][26] Question: Potential upside in the U.S. rig count - Management indicated that growth opportunities in the U.S. are driven by performance and efficiency, with active discussions in multiple basins [31][32] Question: Guidance on U.S. margins for Q1 - The guidance for U.S. margins is $8,000-$9,000 per day, with mixed pricing trends across operating segments [38][39] Question: Details on the MOU in Argentina - The MOU aims to explore opportunities in Argentina with an established partner, focusing on performance and technology [42][43] Question: Impact of customer changes on Canadian demand - Management noted no significant change in demand despite individual customer adjustments, with strong activity levels in the Canadian market [50][51] Question: Rig upgrade capital allocation - A portion of the $63 million earmarked for upgrades is committed, with opportunities identified in Canada and the U.S. [62][64]

Financial Data and Key Metrics Changes - Full year 2025 revenue was $3.2 billion, reflecting growth of 8.7% year-over-year, driven primarily by the acquisition of Parker and strong international expansion [21] - Adjusted EBITDA for the full year was $913 million, $31 million higher than the prior year [21] - Fourth quarter consolidated revenue was $798 million, a decrease of $21 million or 2.5% sequentially, primarily due to the divestiture of Quail Tools [21][22] - Adjusted EBITDA for the fourth quarter totaled $222 million, representing an EBITDA margin of 27.8%, down 110 basis points sequentially [22] Business Line Data and Key Metrics Changes - International drilling revenue was $424 million, growth of $17 million or 4.1% sequentially, with EBITDA for the segment increasing to $131 million [23][24] - U.S. drilling revenue for the fourth quarter was $241 million, reflecting a 3.7% sequential decline, while EBITDA totaled $93 million, a decrease of 1% [25] - The drilling solutions segment generated revenue of $108 million in the fourth quarter, with EBITDA of $41 million, resulting in an EBITDA margin of 38.3% [28] Market Data and Key Metrics Changes - The average daily rig margin for international drilling was $17,630, which decreased sequentially by $301 [24] - The gas-directed industry rig count in the Lower 48 increased by more than 20% in 2025, with Nabors' gas rig count increasing by 50% [10] - The average rig count in international drilling increased by 4 rigs to 93.3, exceeding expectations [24] Company Strategy and Development Direction - The company aims to focus on performance excellence in the Lower 48 rig market and expand in the international drilling market [6][7] - The commitment to innovative technology and multi-year contracts is expected to enhance operational efficiencies and capabilities [7] - The integration of Parker Wellbore is progressing well, with expectations to generate at least $70 million of EBITDA in 2026 from retained Parker businesses [36] Management's Comments on Operating Environment and Future Outlook - Management noted that oil prices were in a downward trend in the second half of 2025, but recent events could lead to price increases [8] - The outlook for natural gas remains positive, with expectations for increased LNG exports and domestic consumption [10] - Management expressed confidence in the company's ability to maintain momentum despite market uncertainties, particularly in the Lower 48 [51] Other Important Information - The company reduced net debt by $554 million, significantly de-risking its capital structure and reducing annualized cash interest expense by approximately $45 million [5] - Adjusted free cash flow for the fourth quarter was $132 million, driving full-year adjusted free cash flow to approximately $117 million [39] - The company expects to generate free cash flow outside SANAD and is committed to further debt reduction [18] Q&A Session Summary Question: Lower 48 outlook and rig count increase - Management indicated that the rig count is currently at 66, with a focus on public operators and longer laterals, which are well-suited for Nabors' PACE-X rigs [48][50] Question: Updates on Saudi Arabia operations - Management expressed confidence in the timelines for reactivating rigs and new builds in Saudi Arabia, noting a positive signal from Aramco's actions [58][60] Question: Activity in Mexico and additional rigs - Management confirmed discussions about additional rigs in Mexico, focusing on making existing rigs profitable first [65] Question: Capital expenditures and SANAD program - Management clarified that the expected capital expenditures for SANAD new builds would be around $360 million to $380 million for 2026, with a focus on maintaining cash flow [66][67]

Core Insights - Core Natural Resources reported a net loss of $79.0 million, or ($1.54) per diluted share, in Q4 2025, despite generating revenues of $1.042 billion [1][3] - The company generated net cash provided by operating activities of $107.3 million and free cash flow of $27.0 million during the same quarter [1][2] - Core returned $26.8 million to stockholders in Q4 2025, totaling $245.1 million for the year [1][2] Operational Performance - The high calorific value thermal coal segment sold 7.8 million tons in Q4 2025, a 9% increase from Q3, with realized coal revenue per ton sold at $58.11 [1][2] - In the metallurgical segment, coking coal sales were 2.0 million tons, with realized coal revenue per ton sold at $114.25 [1][2] - The Powder River Basin segment reported sales volumes of 12.6 million tons, with realized coal revenue per ton sold increasing to $14.21 [1][2] Financial and Liquidity Update - As of December 31, 2025, Core had total liquidity of $948.9 million, including $432.2 million in cash [2][3] - The company announced a capital return framework targeting the return of around 75% of free cash flow to stockholders, primarily through share repurchases and a quarterly dividend of $0.10 per share [1][2] - Core has invested a total of $224.3 million to repurchase 3.1 million shares, representing approximately 6% of total shares outstanding [1][2] Market Dynamics - U.S. utility coal consumption increased by an estimated 45 million tons, or around 12%, in 2025, driven by robust power demand growth [2][3] - Global metallurgical coal markets are stabilizing, with premium low-vol coal prices in Queensland rising by approximately 25% to $250 per metric ton [2][3] - Core anticipates continued demand growth for thermal coal in the U.S. and a favorable long-term outlook for high-quality coking coals due to infrastructure investments in Southeast Asia [2][3] 2026 Guidance - Core expects to sell between 85.6 million to 91.4 million tons of coal in 2026, with specific targets for coking, high calorific value thermal, and Powder River Basin segments [2][3] - The company projects cash costs of coal sold per ton for metallurgical coal to be between $88.00 and $94.00, and for high calorific value thermal coal between $38.00 and $39.50 [2][3] - Capital expenditures for 2026 are estimated to be between $325 million and $375 million [2][3]

Core Viewpoint - Shopify Inc. reported strong fourth-quarter earnings and issued positive guidance for the first quarter, yet its shares fell over 12% intra-day, indicating market concerns despite the positive financial results [1]. Financial Performance - For the fourth quarter ended December 31, 2025, Shopify achieved adjusted earnings per share of $0.57, surpassing analyst expectations of $0.51 [2]. - Revenue for the quarter increased by 31% year over year to $3.67 billion, exceeding the consensus forecast of $3.59 billion [2]. - The company marked its eleventh consecutive quarter of revenue growth of 25% or higher, excluding logistics [2]. - Free cash flow reached $715 million during the quarter, resulting in a free cash flow margin of 19% [2]. - Gross merchandise volume (GMV) grew by 31% to $123.84 billion [2]. Future Guidance - For the first quarter of 2026, Shopify expects revenue growth in the low-thirties percentage range year over year, consistent with the fourth quarter and above analyst expectations of 25.2% growth [4]. - The company anticipates a free cash flow margin in the low-to-mid teens, slightly below the level recorded in the same period of 2025 [4].

Core Viewpoint - Lyft's stock price has significantly dropped by 14.1% following a disappointing Q4 earnings report, primarily due to lower-than-expected sales figures, despite reporting high earnings per share that are not sustainable in future quarters [1][3]. Financial Performance - Lyft's Q4 2025 sales were expected to be $1.75 billion but fell short at below $1.6 billion, while earnings per share were reported at $6.81, influenced by a one-time tax benefit [1][3]. - Gross bookings increased by 19% year-over-year, but revenue only rose by 3%, impacted by legal and regulatory issues [4]. - For the full year, gross bookings reached $18.5 billion (up 15%), revenue was $6.3 billion (up 9%), and net income was $2.8 billion, largely due to the same tax benefit affecting Q4 [4]. Cash Flow and Valuation - Lyft generated $1.1 billion in free cash flow for 2025, reflecting a 47% year-over-year growth, which is outpacing sales and bookings growth [6]. - The stock is currently valued at a 6x price-to-free cash flow ratio, with growth projected to remain in the double digits, suggesting it may be a buying opportunity [7].

Industry Overview - The long-term and post-acute care environment is characterized as supportive due to demographic trends, with the first baby boomers turning 80 in 2026, leading to increased demand for services in the sector [1] - Positive operating trends include steady occupancy, improving workforce availability, and a stable reimbursement environment [1] Company Performance - Healthcare Services Group (NASDAQ:HCSG) reported over 7% year-over-year revenue growth in 2025, generating significant free cash flow while maintaining costs within targeted ranges [2][3] - The company closed fiscal 2025 with Q4 revenue of $466.7 million and net income of $31.2 million, translating to an EPS of $0.44 [5][7] - The campus division was a notable growth driver, surpassing $100 million in revenue during the year [2][5] Financial Metrics - Cost of services was $394.6 million, representing 84.6% of revenue, benefiting from strong service execution and efficiencies [6] - SG&A expenses were $46.2 million, or 9.8% of revenue, after adjustments [6] - Cash flow from operations for Q4 was reported at $17.4 million, adjusted to $36.4 million after accounting for a decrease in payroll accrual [7] 2026 Outlook - Management projects mid-single-digit revenue growth for 2026, with Q1 revenue expected to be in the range of $460 million to $465 million [5][8] - Cost of services is targeted to be around 86%, with SG&A aimed at 9.5% to 10.5% [9] Contract and Liquidity Management - The company has upgraded contracts to improve margin visibility and collections, transitioning to service-day billing [11][12] - As of the end of 2025, the company had $203.9 million in cash and an undrawn $300 million revolving credit facility [13] Capital Allocation - The company completed a $50 million share repurchase plan ahead of schedule and plans to repurchase an additional $75 million of common stock [14][15] - Management emphasized that the liquidity position allows for pursuing organic growth, acquisitions, and share repurchases without compromising any priority [16] Long-term Strategy - The company believes its business fundamentals, contract visibility, and training platforms position it to capitalize on long-term demand trends in the markets it serves [17]

Financial Performance Highlights - T-Mobile's Q4 service revenue increased by 10% year-over-year to $18.7 billion, primarily driven by a 13.9% growth in postpaid service revenue [3] - Operating cash flow rose by 20% to $6.65 billion, while adjusted free cash flow reached $4.2 billion [3] - The earnings miss was attributed to $390 million in severance costs related to workforce restructuring, with a net impact of $293 million after tax [4] - Full-year 2025 core adjusted EBITDA was reported at $33.9 billion [4] Customer Growth & Operational Momentum - T-Mobile added 2.4 million total postpaid net customers in Q4, including 962,000 postpaid phone net additions [5] - The company experienced broadband expansion with 558,000 net additions, bringing total broadband customers to 9.4 million, including 8.5 million 5G broadband subscribers [5] - T-Mobile received the highest network quality ratings in five of six U.S. regions from J.D. Power for the first time [5] - Postpaid phone churn increased to 1.02%, up 10 basis points year-over-year [5] 2026 Guidance & Outlook - Management projected core adjusted EBITDA for 2026 to be between $37.0 billion and $37.5 billion, indicating a 10% growth at the midpoint [6] - Adjusted free cash flow is expected to be between $18.0 billion and $18.7 billion, with capital expenditures anticipated at approximately $10.0 billion [6] - CEO Srini Gopalan expressed confidence in the company's future growth prospects [6] Capital Returns - T-Mobile returned $3.6 billion to stockholders in Q4 through $2.5 billion in share repurchases and $1.1 billion in dividends [7] - Cumulative returns since Q3 2022 totaled $45.4 billion [7] - The board authorized a new $14.6 billion capital return program through December 2026, with the next dividend of $1.02 per share payable on March 12, 2026 [7]

Core Insights - Kyndryl Holdings, Inc. experienced a significant share price drop of nearly 57% on February 9, 2026, following the announcement of delays in filing its quarterly report and the immediate departure of key executives [1][1][1] Company Developments - Kyndryl announced it would not timely file its quarterly report for the quarter ended December 31, 2025, due to its Audit Committee reviewing cash management practices and internal controls [1][1] - The company revealed it received document requests from the SEC's Division of Enforcement related to the ongoing review by the Audit Committee [1][1] - The CFO David Wyshner and General Counsel Edward Sebold departed effective February 5, 2026, alongside the comptroller Vineet Khurana stepping down from his position [1][1] Market Reaction - The market reacted severely to the news, resulting in a loss of over $3 billion in market capitalization in a single day [1][1] - The drastic decline in share price reflects investor concerns regarding Kyndryl's financial management and internal controls, particularly in relation to its previously touted free cash flow growth [1][1]

Core Viewpoint - Kyndryl Holdings, Inc. experienced a significant drop in share price, nearly 57%, following the announcement of delays in filing its quarterly report and the immediate departure of key executives, raising concerns about the company's financial practices and internal controls [1][5]. Group 1: Company Developments - Kyndryl announced it would not timely file its quarterly report for the quarter ended December 31, 2025, due to its Audit Committee reviewing cash management practices and internal controls [4]. - The company revealed it received document requests from the SEC's Division of Enforcement related to the matters under review by the Audit Committee [4]. - The CFO, David Wyshner, and General Counsel, Edward Sebold, departed effective February 5, 2026, alongside the comptroller, Vineet Khurana, who stepped down from his position [5]. Group 2: Market Reaction - Following the announcements, Kyndryl's share price plummeted nearly 57%, resulting in a loss of over $3 billion in market capitalization in a single trading day [1][5]. - The severe market reaction has prompted Hagens Berman, a national shareholder rights law firm, to investigate whether Kyndryl misled investors regarding its financial statements and internal controls [2][6]. Group 3: Investor Concerns - Hagens Berman is investigating potential misleading assurances made by Kyndryl about its cash management practices and the sufficiency of its internal controls, particularly in light of its previous emphasis on strong free cash flow conversion [3][6]. - The firm is urging Kyndryl investors who suffered significant losses to contact them to discuss their rights [2].

Core Insights - Black Bear Value Fund reported a return of +0.2% in December 2025, resulting in a total return of -12.6% for the year, while the S&P 500 returned +0.1% in December and +17.9% for 2025 [1] - The Fund has underperformed by 10-15% over the past two years in a rising market, indicating a divergence from index performance expectations [1] - The Fund anticipates a significant rerating of its holdings as they are at the end of a capital-investment cycle, despite current market conditions not being favorable [1] Company Insights: Builders FirstSource, Inc. (NYSE:BLDR) - Builders FirstSource, Inc. experienced a one-month return of 0.27% but saw a decline of 20.10% over the last 52 weeks, closing at $124.42 per share with a market capitalization of $13.758 billion on February 6, 2026 [2] - The company faced a 28% decline in 2025 due to weakness in the housing market and pressure from new home starts, yet it is expected to generate significant free cash flow between $800 million and $1 billion in 2025, translating to a trailing yield of 7-9% [3] - The long-term investment thesis for Builders FirstSource remains intact, with expectations of higher cash flows when housing starts improve, despite potential short-term stock fluctuations [3]