Financial Performance - Q3 2025 revenue reached $1.137 billion, a 10% increase compared to $1.030 billion in Q3 2024[32] - Organic constant currency (CC) revenue growth was 9%, driven by a 20% increase in U S Farm Animal and a 9% increase in U S Pet Health[9, 12] - Adjusted EBITDA for Q3 2025 was $198 million, up 21% from $163 million in Q3 2024[34] - Adjusted earnings per share (EPS) increased by 46% to $0 19, compared to $0 13 in Q3 2024[34] Innovation and Portfolio - Year-to-date (YTD) innovation revenue contribution was $655 million, with the 2025 target raised to $840-$880 million[9, 15] - Innovation sales target raised to deliver an incremental $840-$880 million, compared to $275 million in 2024[14, 15] Financial Guidance and Outlook - The company is increasing expected organic CC revenue growth to 6%-6 5%, with adjusted EBITDA of $880-$900 million and adjusted EPS of $0 91-$0 94 for 2025[10] - Full year revenue guidance is $4 645 - $4 670 billion, expecting 6%-6 5% organic CC growth[54] - The company expects an end-of-year net leverage ratio of 3 7x-3 8x[9, 41] Debt and Capital Allocation - Net debt decreased by $153 million in Q3 2025[41] - Refinanced $2 1 billion Term Loan B, extending maturity and lowering the cost of debt[9, 51]

Technology & Innovation - Beyond Tech 通过精确和专注的方式，将 Bitcoin L1 连接到数十条链 [1] - Beyond Tech 的创新在于理解，而非速度 [1] - Beyond Tech 每次只处理一个区块、一座桥和一个验证 [1] Company Philosophy - Beyond Tech 注重精通而非受挫，每次修复都带来清晰 [1] - Beyond Tech 的目标是超越 [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $118.8 million, a slight increase from $118.6 million in the previous year, marking an important inflection point after consecutive declines [4][16] - Adjusted EBITDA for the quarter was a gain of $200,000, an improvement from a loss of $6.4 million in the prior year, driven by gross margin expansion and disciplined cost management [19] - Gross margin improved to approximately 42.8% from 29.7% in the prior year, reflecting direct material cost savings and improved operational efficiencies [17][19] Business Line Data and Key Metrics Changes - Direct-to-consumer net revenue was $67.2 million, down 5.1% year-over-year, with showroom revenue increasing by 6.5% to $22 million despite fewer stores [16][17] - Wholesale revenue grew by 7.9% to $51.5 million, driven by the Rejuvenate 2.0 launch and expansion with Mattress Firm [17][20] - E-commerce revenue decreased by 9.8% but showed signs of improvement following a website refresh [10][17] Market Data and Key Metrics Changes - The company is on track to reach 12,000 slots in Mattress Firm by March 2026, representing approximately $20 million in incremental revenue this year and an anticipated $70 million next year [11][20] - The overall market appears to be stabilizing, with expectations of flattish results in the category, indicating a potential bottoming out [22][24] Company Strategy and Development Direction - The company is focused on innovation, marketing, and strategic partnerships, with a strong emphasis on the Rejuvenate 2.0 product line and expanding retail partnerships [7][12] - The restructuring program initiated in August 2024 has led to reduced fixed costs and improved operational efficiency, with expected annual savings of $25-$30 million [6][20] - The company aims to maintain gross margins above 40% while continuing to invest in showroom expansion and innovation [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, despite acknowledging challenges in the broader market [7][24] - The company reiterated its full-year guidance, expecting revenue between $465 million and $485 million and adjusted EBITDA between break-even and $10 million positive [14][20] Other Important Information - The company is engaged in ongoing discussions regarding strategic alternatives, including potential mergers or sales, but will not comment further during the call [15] - Cash and cash equivalents at the end of September were $32.4 million, up from $29 million at the end of 2024, indicating improved liquidity [19][20] Q&A Session Summary Question: What are the encouraging signs in the industry overall? - Management noted that while the market showed signs of improvement around Labor Day, the latter part of September was mixed and soft, but they are encouraged by the performance in October [22][24] Question: Can you discuss margin opportunities for 2026? - Management indicated that gross margins are expected to remain around 40%, with efficiencies from restructuring efforts contributing positively [25][31] Question: How much of the improvement in wholesale was driven by Mattress Firm slots? - The Mattress Firm launch initially hurt productivity due to increased slots, but overall productivity has held steady, which is encouraging [36] Question: What is the long-term e-commerce opportunity for Purple? - Management remains bullish on e-commerce, noting improvements following a website refresh and ongoing efforts to enhance the channel's performance [33] Question: How is showroom profitability trending? - 76% of showrooms were profitable in Q3, up from 56% the previous year, indicating positive progress in this channel [34]

Industry Trend - Technology, economics, and human ingenuity are converging towards affordable, clean energy [1] - Innovation needs to outpace climate impacts to achieve a sustainable future [1]

I'm James Manyika, Senior Vice President at Google and Alphabet. I'm delighted to have this conversation with Mohamed El-Erian, president of Queens College of Cambridge and Michael Spence, Nobel laureate economist. Mohamed and Mike, wonderful to spend time with you as always.What do you see as the potential for AI to impact the economy. So, James, the way I try to describe it to people is to use what has been called, the new electricity. It enables a whole set of existing needs that are not being met. It in ...

Financial Data and Key Metrics Changes - Graphic Packaging's sales for Q3 2025 were $2.2 billion, with adjusted EBITDA of $383 million and an adjusted EBITDA margin of 17.5% [5][10] - Adjusted EPS for the quarter was reported at $0.58 [5] - Year-on-year volume was down 2%, but the company outperformed most markets served [10][14] Business Line Data and Key Metrics Changes - The innovation platform contributed approximately $52 million, roughly 2% of sales, helping to outperform challenges in volumetric performance [35] - Food and household products remained steady, while beverage and food service showed weakness [13][18] - Health and beauty, primarily a European business, continued to perform solidly [13] Market Data and Key Metrics Changes - The consumer market has bifurcated, with upper-income consumers spending differently and lower-income consumers cutting back due to rising food prices [9][10] - Grocery volumes have been impacted, with CPG customers timing purchases to manage cash, leading to less predictable order flows [10][14] - The recycled and unbleached packaging markets are in good balance, but there is unusual competitive pressure from bleached packaging producers [10][11] Company Strategy and Development Direction - The Waco facility is a critical investment that enhances supply chain efficiency and reduces waste, expected to provide a competitive advantage for decades [7][8] - The company is transitioning from Vision 2025 to Vision 2030, focusing on free cash flow generation [5][8] - Graphic Packaging aims to leverage its innovation capabilities to open new markets and maintain a strong position in the packaging industry [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Waco facility's ramp-up, expecting it to contribute $80 million to EBITDA in 2026 [37][90] - The company is focused on controlling costs and inventory to protect margins amid a challenging consumer packaging environment [24][25] - Management acknowledged the unpredictability of demand but emphasized the strength of their business model and competitive advantages [28][29] Other Important Information - The company repurchased approximately 6.8 million shares year-to-date, reducing shares outstanding by 2.3% in 2025 [23] - Capital spending is expected to decline significantly to approximately 5% of sales, which will drive cash flow inflection [27][28] Q&A Session Summary Question: Did the end markets track as expected in Q3? - Management clarified that there was no share loss; customer purchasing patterns affected volumetric performance, with innovation helping to outperform challenges [35][36] Question: Confidence in Waco's EBITDA contribution for next year? - Management expressed high confidence in Waco's ramp-up delivering the expected $80 million contribution [37] Question: Opportunities for productivity improvement? - Management highlighted the focus on controlling costs and optimizing operations to enhance productivity and efficiency [41][46] Question: Trends in the food service market? - Management noted that fast casual dining is under pressure, while quick service restaurants are performing better, with innovation expected to drive growth [50][51] Question: Impact of competitive price pressure on SBS and CUK? - Management stated that they have not lost market share and emphasized the cost advantages of coated recycled paperboard over bleached alternatives [60][61] Question: Clarification on Waco's start-up costs? - Management indicated that the start-up costs of $65 million-$75 million are primarily operating costs incurred during the ramp-up phase, with a portion expected to carry into 2026 [67][80]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.8 billion, down 3% year-over-year, with gross profit dollars decreasing by 5% and gross margin slightly lower at 25.1% [18][19] - Reported and adjusted operating income were $249 million and $254 million respectively, with a decrease in operating margin impacting earnings per share [18][23] - Year-to-date net sales were approximately $5.5 billion, down 3% versus the prior year, while gross profit dollars grew by 4% and gross margin increased to 25.6% [24][25] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions segment saw net sales up 1% with operating income up 9%, achieving a 17.4% operating income margin [20] - Food and Industrial Ingredients LATAM reported a net sales decrease of 6%, with operating income at $116 million and a margin of 19.8% [21] - Food and Industrial Ingredients U.S./Canada experienced a 7% decline in net sales, with operating income down 18% to $81 million due to production challenges at the Argo plant [22] Market Data and Key Metrics Changes - The U.S. market for sweeteners saw a notable drop in demand in July and August, recovering in September, while LATAM faced challenges due to inflation and interest rates impacting consumer spending [41][42] - The brewing industry in LATAM experienced a significant decline, attributed to cooler weather and strategic customer mix adjustments [6][11] Company Strategy and Development Direction - The company is focused on driving profitable growth in the Texture and Healthful Solutions segment, emphasizing clean label ingredients and solutions [12][13] - Innovation remains a key pillar, with a focus on integrated solutions and cost-effective ingredient alternatives to help customers maintain quality while reducing costs [14][15] - Operational excellence initiatives are aimed at maximizing asset utilization and achieving significant cost savings, with a target of over $55 million in run rate savings by 2025 [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified business portfolio despite recent challenges, anticipating operating income growth for the full year [5][28] - The outlook for 2025 includes expectations for flat to low single-digit net sales, with adjusted operating income projected to increase in the low to mid-single digits [27][29] - The company is closely monitoring macroeconomic conditions, particularly in LATAM, where inflation and interest rates are affecting consumer behavior [41][102] Other Important Information - The company has repurchased $134 million of outstanding shares, exceeding its target, and has increased the share repurchase target for 2025 to $200 million [32][108] - A new share repurchase program has been authorized for up to 8 million shares over the next three years, reflecting confidence in future growth [32][108] Q&A Session Summary Question: Demand environment and stabilization signs - Management noted that inflation and high interest rates in LATAM are impacting consumer spending, with a forecasted GDP growth of only 0.5% in Mexico and 2% in Brazil [41][42] Question: Texture and Healthful Solutions segment outlook - The segment is benefiting from a diverse customer base and strong demand for clean label solutions, with expectations for continued growth [46][48] Question: Volume impact from macro weakening and specific events - Approximately 40% of the revenue decline in LATAM was due to soft brewing volumes, while 12 million of the 18 million decline in U.S./Canada was attributed to the Argo plant issues [60][61] Question: Price-cost dynamics into 2026 - Management anticipates inflationary pressures on input costs will prolong customer commitments, with a cautious outlook for contracting in 2026 [64][65] Question: Impact of proposed taxation in Mexico - The proposed sweetness tax is expected to have an initial impact on consumer behavior, but historical trends suggest consumers may adjust over time [75][78]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $1.8 billion, down 3% year-over-year, with gross profit dollars decreasing by 5% and gross margins slightly lower at 25.1% [16][18] - Reported and adjusted operating income were $249 million and $254 million, respectively [16] - Year-to-date cash from operations was $539 million, with capital expenditures net of disposals at $298 million [21][22] Business Line Data and Key Metrics Changes - Texture and Healthful Solutions net sales increased by 1%, driven by a 4% sales volume growth [16][17] - Food and Industrial Ingredients LATAM reported a net sales decrease of 6%, primarily due to weaker brewing demand and macroeconomic conditions [17][18] - Food and Industrial Ingredients U.S./Canada net sales declined by 7%, with a 5% decline in sales volume attributed to production challenges at the Argo plant [17][18] Market Data and Key Metrics Changes - LATAM market showed signs of weakening demand due to higher inflation and interest rates impacting consumer spending [9][10] - In the U.S., demand for sweeteners decreased in July and August but recovered in September [27][28] Company Strategy and Development Direction - The company is focused on driving profitable growth, particularly in Texture and Healthful Solutions, with an emphasis on clean-label ingredients [11][12] - Innovation remains a key pillar, with ongoing development of cost-effective ingredient solutions to help customers maintain quality while reducing costs [12][13] - Operational excellence initiatives are expected to yield significant savings, with a target of over $55 million in run-rate savings by the end of 2025 [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the diversified business portfolio despite recent challenges, anticipating operating income growth for the full year [4][5] - The outlook for 2025 includes expectations for net sales to be flat to down low single digits, with adjusted operating income expected to increase low to mid-single digits [22][23] Other Important Information - The company has authorized a new share repurchase program of up to eight million shares over the next three years, reflecting confidence in future growth [25][60] - The effective tax rate for 2025 is projected to be between 25.5% and 26.5% [23] Q&A Session Summary Question: Demand environment and stabilization signs - Management noted that inflation and high interest rates in LATAM are impacting consumer spending, with GDP growth forecasts for Mexico and Brazil being low [27][28] Question: Texture and Healthful Solutions segment outlook - The outlook change is driven by a diverse customer base and strong demand in food service and private label sectors [29][30] Question: Volume impacts from macro weakening and company-specific events - Approximately 12 million of the decline in U.S. Canada F&I was attributed to Argo plant issues, with the remainder related to market weakness [31][34] Question: Fourth-quarter contracting season and price-cost dynamics - Management anticipates that contracting will be influenced by inflationary pressures and higher input costs, with a cautious outlook for 2026 [37][38] Question: LATAM market and taxation impacts - The proposed sweetness tax in Mexico is expected to impact consumer behavior, but management believes the company is well-positioned to adapt [41][44] Question: Share repurchase strategy - The company plans to exceed $200 million in share repurchases in 2025, with a healthy cash balance supporting this strategy [60][61]

Financial Data and Key Metrics Changes - Total revenues reached approximately €1,800,000,000, reflecting a 7.4% year-over-year growth with flat deliveries [17] - EBIT exceeded €500,000,000, indicating strong profitability [17] - Industrial free cash flow was €365,000,000, showcasing solid business performance [17][27] - The company revised its guidance upward, exceeding the original profitability target for 2026 by one year [17][27] Business Line Data and Key Metrics Changes - The product mix and personalization were key drivers of revenue and profitability growth, with shipments in line with the previous year [20] - Personalizations accounted for approximately 20% of total revenues from cars and spare parts, particularly relevant for the U-ninety XS family and the Guro Sangue [23] - The company experienced a significant changeover of models, with the SF90 family and the ROMA phased out, and new models like the August Testarossa family and the Amalfi set to launch [22] Market Data and Key Metrics Changes - The U.S. market showed normalization after tariff adjustments, with tariffs reduced from 25% to 15% [66] - The company noted that the business in the U.S. proceeds as usual, with no significant changes in consumer behavior despite concerns about residual values [66] Company Strategy and Development Direction - Ferrari aims for €9,000,000,000 in revenues by the end of the decade, with a 40% EBITDA margin and a 30% EBIT margin [4] - The company is focusing on a diversified product strategy, planning to offer an average of four new models per year across different powertrains from 2026 to 2030 [5] - The company has recalibrated its powertrain offering to 40% ICE, 40% hybrid, and 20% electric, adapting to market dynamics and client preferences [6][7] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains uncertain and volatile, but the company is committed to a six-year growth plan with focus and discipline [12] - Management expressed confidence in maintaining pricing power through continuous innovation and product differentiation [43][44] - The company has achieved a 30% reduction in Scope one and Scope two emissions and aims for a 10x reduction by 2030 [12][13] Other Important Information - The company is investing in infrastructure, including a new facility capable of manufacturing three powertrains, to support its flexible approach to product development [9] - The order book extends well into 2027, indicating strong demand for new models [16] Q&A Session Summary Question: Impact of mix on Q4 performance - Management noted that the mix impact in the second half of the year has been slightly better than anticipated, mainly due to strong personalization [38] Question: Pricing power and future expectations - Management expressed confidence that pricing power will continue, driven by innovation and product enhancements [43][44] Question: Hybrid vehicle share and delivery figures - The reduction in hybrid vehicle offerings is linked to model changes, and initial deliveries of the F80 are expected to be limited in Q4 [48][49] Question: Demand for new models - Demand for the Amalfi is strong, with a significant portion of new clients coming to the brand [56] Question: Margin stability amidst investments - Management emphasized the importance of continuous innovation to maintain long-term margin stability, despite necessary investments [88][90]

Financial Data and Key Metrics Changes - The company is experiencing a challenging environment with a projected decline in full-year volumes, specifically around 4% in Advanced Materials (AM) and 2% in AFP [10][11] - Cost reduction efforts have been significant, with $75 million achieved this year and a target of $100 million for the next year [12][76] - The company anticipates a utilization tailwind of $50-$75 million depending on volume growth in the upcoming year [12][56] Business Line Data and Key Metrics Changes - The Advanced Materials segment is expected to see a decline of approximately 4% for the full year, while AFP is projected to decline by around 2% [10][11] - The fibers business is facing cyclical challenges, particularly in textiles, which have seen a significant headwind due to tariffs and market conditions [34][49] - The company is optimistic about the ARPET capacity conversion, expecting a significant increase in volume and revenue from this initiative [19][20] Market Data and Key Metrics Changes - Consumer durable demand is projected to be 5-15% below 2019 levels, impacting the overall market dynamics [29] - The company is seeing a mixed impact from trade regulations, with tariffs providing some protection to margins in North America [43][44] - The North American market remains attractive due to higher margins, but demand has been affected by the ongoing manufacturing recession [42][44] Company Strategy and Development Direction - The company is focusing on innovation as a core part of its strategy, particularly in the circular polyester methanolysis plant and other specialty products [13][84] - There is an emphasis on aggressive cost management alongside innovation to navigate the current market challenges [12][84] - The company is exploring opportunities for portfolio optimization and potential M&A to enhance its competitive position [84][85] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the chaotic market conditions and the difficulty in predicting demand trends due to inventory levels and consumer behavior [72][74] - There is cautious optimism regarding a potential recovery in demand, particularly in the first quarter of the next year [25][74] - The company is committed to maintaining cash flow and dividend stability while navigating the current economic environment [67][76] Other Important Information - The company has completed $50 million in buybacks in addition to its dividend in Q3, maintaining a disciplined approach to capital allocation [51][76] - The management has indicated that the headcount reduction of 7% is part of a broader strategy to enhance productivity and competitiveness [76][78] Q&A Session Summary Question: Can you help with the bridge to 2026? - Management discussed the importance of considering full-year EBIT and the impact of cost savings and asset utilization on future earnings growth [6][8] Question: What is the status of the ARPET capacity conversion? - Management confirmed that the Kingsport plant is running well, with expectations for a 30% capacity expansion and strong customer interest in ARPET [17][19] Question: How should earnings ramp from Q4 to Q1? - Management indicated that the asset utilization headwind will turn into a tailwind, with expectations for improved demand in Q1 [22][25] Question: What is the outlook for CI earnings next year? - Management noted that while the market is currently loose, there are signs of capacity rationalization that could improve earnings in the future [42][43] Question: Are there structural supply issues in China affecting earnings? - Management clarified that while there are competitive pressures, the majority of challenges are cyclical rather than structural [48][50] Question: What is the status of the Pepsi contract? - Management explained that the restructuring of the Pepsi contract is aimed at pulling forward volume to next year, reflecting strong interest in ARPET [40][41] Question: Will the company continue its streak of annual dividend increases? - Management expressed confidence in maintaining the dividend, supported by strong cash flow [66][67]