Financial Data and Key Metrics Changes - EBITDA increased by 6.5% with continued margin expansion [7] - Revenue per hectoliter growth accelerated by 4.9% compared to last year [7] - Overall revenue increased by 3% this quarter versus last year [10] - Underlying EPS grew by 8.7% in U.S. Dollar terms and 17.4% in constant currency [10][25] - Free cash flow increased by $5 billion compared to last year [26] - Net debt to EBITDA ratio improved to 3.27 times from 3.42 times year over year [27] Business Line Data and Key Metrics Changes - Non-alcohol beer portfolio revenues increased by 33% [8] - In the U.S., Michelob Ultra and Busch Light were the top two volume share gainers in the industry [12] - In Brazil, revenue declined by 1.9% due to volume performance [13] - In Colombia, record high volumes drove high single-digit top and bottom line growth [13] - In Europe, volumes were flat, but revenue grew due to premiumization [14] Market Data and Key Metrics Changes - Volumes declined by 1.9% globally, impacted by soft industry performance in China and Brazil [9] - In China, revenue declined by 6.2% with underperformance in volumes [16] - Revenue increased in 70% of markets, with top and bottom line growth across four of five operating regions [11] Company Strategy and Development Direction - The company continues to invest in mega brands and platforms, with $3.6 billion invested in sales and marketing in the first half of the year [17] - Focus on premiumization and innovation to drive growth in the beer category [20] - The company aims to optimize its business and improve margins through disciplined revenue management and operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth of the industry despite short-term volume challenges [36] - The company expects to deliver on its 2025 outlook of 4% to 8% EBITDA growth [29] - Management highlighted the importance of consumer confidence and economic recovery in driving future growth [56] Other Important Information - The company is focusing on digital platforms to enhance consumer engagement and drive new consumption occasions [22] - The company is committed to increasing investments in mega brands and expanding its non-alcohol beer portfolio [21] Q&A Session Summary Question: Concerns about volume growth and long-term outlook - Management acknowledged the volume decline but emphasized the strength of their global footprint and consistent performance in other KPIs [36][37] Question: Margin improvement sustainability - Management indicated that margin improvements are expected to be sustainable, driven by operational efficiencies and disciplined cost management [39][40] Question: Key learnings from U.S. market performance - Management highlighted the importance of consistent long-term planning and strategic investments in brands to drive growth [46][47] Question: Consumer slowdown in Mexico and Brazil - Management noted that while there are challenges, underlying demand remains strong, and they are monitoring consumer confidence closely [54][56] Question: On-premise channel performance in China - Management reported that the on-premise channel remains weak, but there is growth in the off-premise channel, presenting opportunities for improvement [62] Question: Future marketing opportunities with FIFA 2026 - Management expressed optimism about leveraging major events like FIFA 2026 to drive category growth and brand momentum [88][90]

Core Viewpoint - Ashland reported a significant decline in revenue and adjusted EBITDA for Q3 FY2025, falling short of analysts' expectations, with management signaling caution due to ongoing market softness and macroeconomic uncertainty [1][15][17] Financial Performance - Revenue for Q3 FY2025 was $463 million, missing consensus estimates by $13.6 million, and down 14.9% year-over-year from $544 million [2][5] - Non-GAAP EPS from continuing operations was $1.04, below the $1.20 consensus and down 30.2% from $1.49 in Q3 FY2024 [2][12] - Adjusted EBITDA was $113 million, a decrease of 18.7% from $139 million in the prior year [2][12] - Ongoing free cash flow was $108 million, down from $112 million in Q3 FY2024 [2][11] Business Overview and Strategic Focus - Ashland operates in various markets including pharmaceuticals, personal care, coatings, and industrial materials, focusing on performance-enhancing ingredients [3] - The company is engaged in portfolio optimization, emphasizing high-value specialty offerings and operational efficiency [4][17] Segment Performance - Life Sciences segment saw a 17% decline in sales, but a 4% organic increase in pharmaceutical applications [6] - Personal Care revenue declined 16%, with a 27.9% Adjusted EBITDA margin despite lower sales [7] - Specialty Additives experienced a 13% sales drop, with Adjusted EBITDA falling 32% to $26 million [8][9] - Intermediates segment reported a sales decline, with Adjusted EBITDA down 22% [10] Cost Management and Restructuring - The company completed a $30 million restructuring program, expecting an additional $7.5 million in cost savings in Q4 [13] - A $60 million manufacturing optimization effort is underway to improve margins [13] Outlook - Management revised full-year guidance, projecting sales between $1.825 billion and $1.850 billion, and adjusted EBITDA between $400 million and $410 million [15][16] - The company anticipates a stronger Q4, driven by cost savings from restructuring [15] - Key focus areas include organic volume stabilization, margin control, and inventory management [16][17]

Financial Data and Key Metrics Changes - Q3 sales were $463 million, down 15% year over year, including a $53 million impact from portfolio optimization, with organic sales declining 5% primarily due to lower volumes [14][8] - Adjusted EBITDA was $113 million, down 19% year over year or 10% excluding portfolio actions, with adjusted EBITDA margins at 24.4%, down 120 basis points [15][8] - Adjusted EPS, excluding acquisition amortization, was $1.04, down 30% from the prior year, with a noncash goodwill impairment of $6 million recorded [16][8] Business Line Data and Key Metrics Changes - Life Sciences sales were $162 million, down 17% year over year, primarily due to portfolio optimization initiatives, with organic sales declining just 1% [18][9] - Personal Care sales were $147 million, down 16% year over year, driven by portfolio optimization actions, with organic sales declining 6% [24][9] - Specialty Additives sales declined 13% to $131 million, with organic sales and volumes both down 11% [29][9] Market Data and Key Metrics Changes - Life Sciences maintained strong margins of 33% for the second consecutive quarter despite a mixed demand environment [9][10] - Intermediates faced a challenging supply-demand landscape, particularly in Europe, with sales down to $33 million from $36 million year over year [21][9] - Personal Care showed early signs of recovery, particularly in biofunctional actives, with sales up double digits supported by a robust commercial pipeline [25][9] Company Strategy and Development Direction - The company completed its portfolio optimization and restructuring program ahead of schedule, focusing on cost savings and operational efficiency [12][11] - The strategic imperative is to drive consistent operations at higher utilization rates while balancing cost actions with strategic reinvestment [33][12] - The company aims to expand its reach in underpenetrated markets and drive differentiation through innovation [12][11] Management's Comments on Operating Environment and Future Outlook - Management noted that while the external environment remains uncertain, the company is executing with discipline and focus, positioning for long-term resilient performance [12][11] - The company expects full-year fiscal 2025 sales of approximately $1.825 billion to $1.85 billion and adjusted EBITDA in the range of $400 million to $410 million [45][12] - Management highlighted that demand patterns remain mixed, with pharma steady and personal care showing encouraging signs of recovery [42][12] Other Important Information - The company generated nearly 100% free cash flow conversion in the quarter, demonstrating the strength of its underlying business [15][8] - Liquidity at quarter end was over $800 million, with net leverage at 2.9 times, providing flexibility for strategic investments [17][8] - The company is actively monitoring tariff-related uncertainties but does not anticipate a material direct impact on fiscal year 2025 results [43][12] Q&A Session Summary Question: Insights on fiscal year 2026 outlook and demand recovery - Management indicated that while they are not providing guidance for fiscal year 2026, they see stable demand in personal care and pharma, with potential upside in specialty additives depending on market conditions [50][51] Question: Clarification on cost savings from restructuring and network optimization - Management confirmed that incremental savings in fiscal year 2026 should be in the range of $55 million to $60 million year over year, with restructuring actions completed [74][75] Question: Stability in personal care markets and customer feedback - Management noted stability in mass brands and some variability in the prestige segment, with positive traction observed in Asia and Europe [66][67]

Group 1 - The JPMorgan U.S. Quality Factor ETF (NYSEARCA: JQUA) is a passive ETF designed to track the JP Morgan US Quality Factor Index, which utilizes a proprietary definition of quality based on three styles [1] - The ETF aims to provide investors with exposure to high-quality U.S. companies, focusing on factors such as profitability, earnings stability, and low financial leverage [1] Group 2 - The article emphasizes the importance of rigorous risk management and a long-term perspective on value creation in investment strategies [1] - The authors highlight their expertise in quantitative research, financial modeling, and equity valuation, which supports their analysis of market trends and corporate earnings [1]

earnings conference call third quarter fiscal 2025 July 30, 2025 O Regulation G: Adjusted Results the information presented herein regarding certain uncudited adjusted results does not conform to generally accepted accounting principles in the United Srates (U.S. GAAP) should not be construed as an affernative to the reported results determined in accordance with U.S. GAAP. Ashland has included this non-GAAP information to assis in understranding the operating performance of the company ond its reportable s ...

Core Viewpoint - Allied Properties Real Estate Investment Trust reported encouraging operational results for Q2 2025, with slight increases in leased area, stable average net rent, accelerated non-core property sales, and progress in balance-sheet management [1]. Operations - Allied's portfolio includes three urban workspace formats: Allied Heritage, Allied Modern, and Allied Flex, with strengthened utilization and demand in Q2 2025. The occupied area was 84.9% and leased area was 87.2% at the end of the quarter [2]. - A total of 588,373 square feet of Gross Leasable Area (GLA) was leased in Q2, with 546,437 square feet from the rental portfolio and 41,936 square feet from the development portfolio [3]. - The average in-place net rent per occupied square foot was $25.32, reflecting a 1.0% increase from the previous year. Renewals accounted for 54% of leases maturing in the quarter [4]. Portfolio Optimization and Non-Core Property Sales - The company is finalizing a large multi-city development pipeline initiated in 2012, with significant progress on properties like 150 West Georgia and KING Toronto [5]. - Allied sold seven non-core properties for $229 million last year and plans to sell additional non-core properties for at least $300 million this year to strengthen its balance sheet [7][8]. - In Q2, Allied closed the sale of a non-core property in Edmonton and has nine non-core properties under contract for approximately $200 million [8]. Balance-Sheet Management - As of the end of Q2, Allied had $120 million drawn on its $800 million unsecured revolving operating facility, with expectations to have no draws by year-end [10]. - The company is committed to maintaining access to debt capital markets and managing its balance sheet effectively [10]. Outlook - Management anticipates steady demand for urban workspace and expects Same Asset NOI growth of approximately 2% in 2025, despite a projected contraction in FFO and AFFO per unit by about 4% due to higher interest costs from acquisitions [11]. - Specific operating goals for year-end 2025 include achieving at least 90% occupied and leased area and selling non-core properties at or above IFRS value [12][15]. Financial Measures - For Q2 2025, rental revenue was $145.045 million, a decrease of 1.2% from $146.750 million in Q2 2024. Operating income was $79.950 million, down 3.0% from the previous year [13]. - The net income (loss) for Q2 2025 was $(94.740) million, compared to $28.062 million in Q2 2024, reflecting a significant decline [25]. - Total assets decreased to $10.416 billion from $10.981 billion year-over-year, a reduction of 5.1% [16].

Core Insights - The recent share price corrections and valuation compression of Fair Isaac Corporation (NYSE: FICO) are driven more by sentiment shifts rather than financials or fundamentals [1] Financial Analysis - The focus on Fair Isaac Corporation's financials and fundamentals is not the primary driver of its recent stock performance [1] Market Trends - There has been a notable sentiment shift affecting the valuation of Fair Isaac Corporation, indicating broader market trends influencing investor behavior [1]

Group 1 - The article expresses reservations about international diversification through passive ETFs, particularly those focusing on developed markets excluding the US [1] - The Franklin International Core Dividend Tilt Index ETF (NYSEARCA: DIVI) is highlighted as one of the few ETFs in this category [1] - The author has extensive experience in quantitative research, financial modeling, and risk management, emphasizing a focus on equity valuation and market trends [1] Group 2 - The author, a former Vice President at Barclays, has led teams in model validation and stress testing, showcasing expertise in both fundamental and technical analysis [1] - The research approach combines rigorous risk management with a long-term perspective on value creation, with a focus on macroeconomic trends and corporate earnings [1] - The goal is to provide actionable investment ideas for those seeking to outperform the market [1]

Core Insights - The Fidelity MSCI Information Technology Index ETF (NYSEARCA: FTEC) tracks the MSCI USA IMI Information Technology 25/50 Index, sharing similar drawbacks with VGT [1] Company Analysis - The company has a focus on equity valuation, market trends, and portfolio optimization to identify high-growth investment opportunities [1] - The investment strategy combines rigorous risk management with a long-term perspective on value creation, emphasizing macroeconomic trends, corporate earnings, and financial statement analysis [1]

Financial Performance - Total company revenues for 2Q25 reached $5704 million, a 21% increase year-over-year[6, 10] - Same store revenues increased by 7% in the U S and 6% in the U K[10] - Total same store parts & service gross profit increased 14% year-over-year[10] - Diluted EPS from continuing operations was $1077, a 6% increase year-over-year, and adjusted diluted EPS was $1152, an 18% increase year-over-year[10] - Adjusted free cash flow was $267 million year-to-date[20] Strategic Initiatives - The company largely completed the U K restructuring plan, with additional cost-saving activities continuing in 2025[10, 11, 12] - During 2025, the company repurchased 04 million shares at an average price of $41662 for $167 million[10, 21] - Acquired revenues since the beginning of 2021 totaled $88 billion[20] Portfolio Optimization - Acquisitions in 2025 YTD amounted to $04 billion involving 9 franchises[21, 22] - Dispositions in 2025 YTD totaled $470 million[21] - Three luxury dealerships were acquired with expected annual revenues of $330 million[22]