Financial Data and Key Metrics Changes - The second quarter adjusted EBITDA increased by 12% compared to the first quarter, reaching $1,980,000,000, or $2,000,000,000 when excluding transaction costs of $21,000,000 [4][7] - Net income attributable to ONEOK totaled $841,000,000, or $1.34 per share, representing a more than 30% increase compared to the first quarter [7] - The company ended the second quarter with $97,000,000 in cash and no borrowings under its $3,500,000,000 credit facility, having reduced senior notes by nearly $600,000,000 during the quarter [8] Business Line Data and Key Metrics Changes - Natural Gas Liquids (NGL) raw feed throughput volumes increased by 18% compared to the first quarter, with Rocky Mountain Region volumes averaging nearly 470,000 barrels per day, a record for the region [12][13] - Refined product volumes increased sequentially as seasonal demand picked up, with diesel and aviation fuel volumes remaining strong [16] - Natural gas processing volumes increased by 9% in the Mid Continent region compared to the first quarter, reflecting resilience in producer activity [21] Market Data and Key Metrics Changes - The company is monitoring 2026 market dynamics closely while executing its growth strategy, with a focus on high return organic projects [5][9] - The Permian Basin continues to be a key area of strategic growth, with the company reaching 1,600,000,000 cubic feet per day in July [19] - The overall decrease in crude volumes compared to 2025 was primarily due to low margin exchange volumes, which have significantly lower rates than wellhead gathering or long haul shipments [18] Company Strategy and Development Direction - The company announced a final investment decision on a new natural gas processing plant in the Permian's Delaware Basin, expanding its presence in a key strategic area [5][6] - ONEOK remains focused on capital allocation discipline and is committed to investing in infrastructure that strengthens energy security and resilience [10][24] - The company expects to realize approximately $250,000,000 of synergies in 2025, with significant additional contributions expected in 2026 [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the energy sector, supported by domestic and global demand for U.S. energy [4][5] - The outlook for 2026 adjusted EBITDA is expected to be adjusted downward by approximately 2% or $200,000,000 due to current commodity prices and resulting spread differentials [9] - Management highlighted the importance of safety, integrity, and responsibility in operations, with a commitment to sustainability [25] Other Important Information - The company expects to benefit from more than $1,300,000,000 in lower cash taxes over the next five years due to recent tax legislation [10] - The company is actively engaged in discussions with over 30 different parties regarding industrial demand related to data centers and AI [35] Q&A Session Summary Question: Can you provide more color on the 2026 outlook and how much growth is hardwired by contractual volumes? - Management acknowledged the volatility in the market and noted that the 2026 outlook was adjusted down by around 2% due to spread differentials and producer activity [29][32] Question: Can you elaborate on the natural gas business and its performance? - Management indicated that the natural gas business is performing well, with ongoing integration of EnLink assets leading to significant opportunities [36][37] Question: What specific opportunities are driving synergy capture? - Management highlighted the connection of NGL assets to refining products assets as a key driver for increased volume and reduced costs [41][43] Question: Can you discuss the performance of BridgeTex and its outlook? - Management noted that increasing volumes on BridgeTex are expected as it connects to the East Houston facility, enhancing value through integrated operations [60][62] Question: How is the commercialization progress for the Texas City terminal? - Management reported strong interest in the Texas City terminal due to its premium location, with rates in line with estimated economics [50][52] Question: What is the current status of the Elk Creek pipeline expansion? - Management confirmed that the Elk Creek pipeline expansion is completed, with a capacity of over 400,000 barrels per day [78] Question: Can you provide an update on the new processing plant in the Permian? - Management stated that the new processing plant will include infrastructure for CO2 treatment and is expected to enhance overall economics [100][101]

Financial Performance - Boise Cascade's Q2 2025 sales were $1.7 billion, a decrease of 3% compared to Q2 2024[6] - Net income for Q2 2025 was $62.0 million, or $1.64 per share, compared to $112.3 million, or $2.84 per share, in Q2 2024[6] - Adjusted EBITDA for Q2 2025 was $119.0 million, a decrease of 34% compared to $181.2 million in Q2 2024[8] Segment Performance - Building Materials Distribution (BMD) sales were $1.6149 billion in Q2 2025, down from $1.6552 billion in Q2 2024[8] - Wood Products sales were $447.2 million in Q2 2025, down from $489.8 million in Q2 2024[8] - BMD Adjusted EBITDA was $91.8 million in Q2 2025, compared to $97.1 million in Q2 2024[8] - Wood Products Adjusted EBITDA was $37.3 million in Q2 2025, compared to $95.1 million in Q2 2024[8] Capital Allocation - Capital expenditures year-to-date (YTD) 2025 totaled $132 million, with $70 million allocated to Wood Products and $62 million to BMD[25] - Share repurchases YTD July 2025 amounted to approximately $96 million[25] Outlook for Q3 2025 - Wood Products Adjusted EBITDA is projected to be $20 - $30 million[26] - BMD Adjusted EBITDA is projected to be $70 - $80 million[26] - Total Company Adjusted EBITDA is projected to be $80 - $100 million, net of approximately $10 million of estimated unallocated corporate costs[26]

Financial Data and Key Metrics Changes - The company reported adjusted EPS of $6.36 per share or $117 million for Q2 2025, a decrease from $6.78 per share or $132.3 million in Q2 2024, reflecting a $15.3 million decline in adjusted net income primarily due to increased operating costs and lower dividend income [10][11][14] - Total operating costs increased by $24.7 million, driven by a higher average number of vessels in the fleet, while net finance costs rose by $3.6 million [10][11] - Adjusted EBITDA decreased by 0.5% to $176 million compared to $176.8 million in Q2 2024 [12] Business Line Data and Key Metrics Changes - The company added approximately $113 million to its contracted revenue backlog, bringing the total to $3.6 billion with a 3.8-year average charter duration [8][13] - Contracted charter coverage stands at 99% for 2025 and 88% for 2026, indicating strong revenue visibility [8][13] - The drybulk segment experienced seasonal firming, but broader weakness persists due to deflationary conditions in China [9] Market Data and Key Metrics Changes - The U.S. economy remains stable, with consumer demand for foreign goods continuing, which is expected to improve trade flows as inventories normalize [6][7] - Geopolitical tensions, particularly in Ukraine and Gaza, have not led to new disruptions in global shipping routes [7] Company Strategy and Development Direction - The company is maintaining a disciplined approach to capital allocation, avoiding speculative orders in the feeder segment where pricing is disconnected from long-term fundamentals [7] - The focus remains on operational excellence and value creation for shareholders, with a strong balance sheet and cash generation capacity to support strategic priorities [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainties around global trade are subsiding, with clarity on tariffs improving [5][6] - The company is cautious about capital deployment, particularly in light of potential stock market corrections that could impact shipping companies [22][23] Other Important Information - As of June 30, 2025, net debt stood at $224 million, with a net debt to adjusted EBITDA ratio of 0.3 times [14] - The company declared a dividend of $0.85 per share and has $94.3 million remaining under its share repurchase program [14] Q&A Session Summary Question: Charter market and demand outlook - The market is stable with demand for ships, but the pace of forward fixing has slowed [18][20] Question: Capital allocation and buyback strategy - The buyback has been paused due to stock appreciation, which could lead to short-term trading rather than long-term shareholder value [21][22] Question: Operating costs and future rate expectations - Current operating costs may normalize as the year progresses, following a spike due to bulk orders [24] Question: Expectations for feeder ships and order book - A shortage of ships could provide a tailwind, but long-term contracts for feeders are challenging due to market dynamics [29][30] Question: Newbuild addition and delivery management - The recent newbuild was secured through a strong relationship with the yard, allowing for prompt delivery [31][32]

Financial Data and Key Metrics Changes - The company reported a net income attributable to PRA of $42 million or $1.08 in diluted earnings per share, which includes a $30 million after-tax gain from the sale of equity interest in RCB [36] - Adjusted EBITDA grew 20% this quarter, reflecting strong cash collections growth and disciplined expense management [37] - The net leverage ratio, defined as net debt to adjusted EBITDA, was 2.81 times as of June 30, operating within the long-term target of two to three times [37] Business Line Data and Key Metrics Changes - The company purchased $347 million of portfolios during the quarter, with $199 million in The Americas and $147 million in Europe [27] - Cash collections for the quarter were $536 million, up 13% from the prior year, driven by higher portfolio purchases and investments in the US legal channel [29] - The legal cash collections in the US grew 24% year over year to $119 million, indicating the effectiveness of investments in the legal channel [30] Market Data and Key Metrics Changes - The company’s ERC (Expected Remaining Collections) reached a record $8.3 billion at the end of Q2, up 22% year over year and 6% sequentially [28] - The purchase price multiple for the Americas Core was 2.14 times, while Europe Core was 1.82 times, reflecting an upward trend in purchase price multiples [27] Company Strategy and Development Direction - The company is focused on three core strategic pillars: optimizing investments, operational execution, and managing expenses [15] - There is a strong emphasis on transforming the US business, leveraging learnings from the successful European operations [10][15] - The company plans to modernize its US technology platform and restructure operations to enhance accountability and decision-making [20][21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong foundation of the company and the potential for significant transformation to drive shareholder value [15][41] - The outlook for portfolio supply remains elevated in the US and stable in Europe, with expectations for continued cash collections growth [28][40] - Management acknowledged the need for ongoing improvements in operational efficiency and cost management [23][24] Other Important Information - The company has no debt maturities until November 2027, providing financial flexibility for growth and transformation initiatives [38] - A total of $10 million of stock was repurchased during the quarter, with plans to evaluate further repurchases as debt covenants allow [39] Q&A Session Summary Question: Insights on US supply and opportunity - Management noted that the buying environment in the US is elevated, with strong seller relationships and opportunities to expand into new asset classes [46][48] Question: Long-term outlook for the legal channel - The legal channel is not the primary focus but will be utilized when necessary, with a sophisticated analysis to maximize value [50][52] Question: Drivers of collections overperformance - The overperformance was attributed to strong operational initiatives and a favorable consumer position in various markets [60][61] Question: Details on US restructuring - The restructuring aims to create a more empowered US operational team, focusing on speed and accountability for cash performance [64][65] Question: Purchase price multiples and market competitiveness - The fluctuation in purchase price multiples is influenced by mix and demand-supply variables, with a focus on maximizing returns rather than just chasing volumes [66][67]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenues of $732 million, a 9.7% increase compared to the prior period, driven by a 13.5% increase in rental revenue [20][8] - Diluted earnings per share were reported at $3.33, benefiting from new aircraft deliveries and significant insurance proceeds [8] - The net benefit from Russia insurance settlements was $344 million in Q2, with an additional $60 million expected in Q3, leading to a total recovery of 104% of the initial write-off [9][27] Business Line Data and Key Metrics Changes - The company purchased 12 new aircraft, adding approximately $890 million in flight equipment, and sold four aircraft for $126 million in proceeds [9][22] - The weighted average fleet age increased slightly to 4.8 years, while fleet utilization remained at 100% [9] - The sales pipeline is currently valued at $1.4 billion, with a projected total of $1.5 billion in aircraft sales for 2025 [10][23] Market Data and Key Metrics Changes - Commercial aircraft demand remains robust, with strong lease rates and high extension activity noted [12][19] - The company anticipates around $600 million in aircraft deliveries for Q3 2025, with a total expected delivery range of $3 billion to $3.5 billion for the year [10][11] - Global passenger traffic is expanding at approximately 5% year-to-date, according to IATA data [16] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet while considering opportunities to return capital to shareholders [14][29] - The cancellation of the A350 freighter order frees up over $1 billion in future capital commitments, allowing for more disciplined aircraft purchases [13][29] - The company aims to continue maximizing available capital through aircraft sales while maintaining a disciplined approach to new aircraft orders [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding airline profitability due to declining fuel prices and a weaker U.S. dollar benefiting international carriers [15][18] - There is a positive outlook for the airline industry despite geopolitical uncertainties, with management noting strong conversations with customers [14][17] - The company expects portfolio yields to trend higher due to strong lease rates and the roll-off of lower-yielding leases [19][20] Other Important Information - The company will now report maintenance revenue as a separate line item for clarity, with maintenance revenue up $16 million in the quarter [20][21] - Interest expense rose by approximately $19 million year-over-year, driven by an increase in the composite cost of funds [24][25] - The company maintains a strong liquidity position with $7.9 billion in cash and $31 billion in unencumbered assets [29] Q&A Session Summary Question: Update on lease expirations and yield improvement - Management confirmed that the guidance for a 150 to 200 basis point improvement in yield remains valid, tracking as expected [35][36] Question: Capital allocation strategy - Management indicated that buybacks are attractive, but maintaining a strong balance sheet is a priority [39] Question: Demand from airline customers and tariff impacts - Management noted no significant change in passenger aircraft demand, but some caution in the cargo markets due to tariffs [80] Question: Production stability from OEMs - Management reported reasonable production stability from Boeing and Airbus, with no significant changes in delivery projections [72][73] Question: Expectations for end of lease revenue - Management expects similar levels of end of lease revenue in 2026 as in 2025, depending on market conditions [55] Question: Aircraft sales expectations for 2026 - Management targets $1.5 billion in aircraft sales for 2025 and anticipates maintaining that level in subsequent years [51][52]

Financial Performance - Q2 2025 - Loews Corporation's net income was $391 million, or $1.87 per share, compared to $369 million, or $1.67 per share in Q2 2024[14] - The company repurchased 3.0 million shares at a cost of $260 million since March 31, 2025[14] - Book value per share increased to $84.42 as of June 30, 2025, from $79.49 as of December 31, 2024[14] - Dividends from subsidiaries totaled $189 million in Q2 2025[14] - The parent company held $3.4 billion in cash and investments as of June 30, 2025[8, 14] Subsidiary Performance - Q2 2025 - CNA's net income attributable to Loews was $274 million, down from $291 million year-over-year[15, 27] - Boardwalk's net income attributable to Loews increased to $88 million from $70 million year-over-year[15, 30] - Loews Hotels' net income attributable to Loews decreased to $28 million from $35 million year-over-year[15, 32] CNA Financial Highlights - CNA's net written premiums increased to $2.846 billion in Q2 2025 from $2.674 billion in Q2 2024[27] - CNA's underlying combined ratio was 91.7% in Q2 2025, compared to 91.6% in Q2 2024[27] Boardwalk Pipeline Highlights - Boardwalk's operating revenue increased to $534 million in Q2 2025 from $477 million in Q2 2024[30] - Boardwalk's EBITDA was $274 million in Q2 2025, compared to $240 million in Q2 2024[30] Loews Hotels & Co Highlights - Loews Hotels & Co's revenue increased to $254 million in Q2 2025 from $251 million in Q2 2024[32] - Loews Hotels & Co's Adjusted EBITDA was $109 million in Q2 2025, compared to $98 million in Q2 2024[32]

Financial Data and Key Metrics Changes - Revenue increased by 9.5% year over year and 16.6% sequentially, reaching $556.9 million [5][15] - Operating profit rose approximately 50% compared to both the previous quarter and the same quarter last year [5] - Net income was $51.6 million, compared to $34.4 million in the previous year, with diluted earnings per share at $6.42 versus $4.11 [18] Business Line Data and Key Metrics Changes - Factory Built Housing segment net revenue was $535.7 million, up 17% from the prior quarter, driven by a 14.7% increase in homes sold and a 1.9% increase in average revenue per home sold [15][16] - Financial Services segment net revenue increased by 8.2% to $21.2 million, attributed to higher insurance premium rates [16][18] - Consolidated gross margin improved to 23.3%, up 160 basis points from the previous year [16] Market Data and Key Metrics Changes - The Southeast region experienced a slight lag in orders, with shipments slightly below the preceding quarter [8][9] - Average selling price (ASP) increased due to a shift towards multi-section homes and true price appreciation, marking a significant upward move after a period of modest declines [10][11] Company Strategy and Development Direction - The company is focused on increasing production rates to meet demand, with a record of 5,416 homes shipped this quarter [8] - An agreement to purchase American HomeStar for approximately $184 million is expected to close early in the third quarter, aimed at cost reduction and product optimization [12][13] - The ongoing share buyback program has repurchased $50 million of stock this quarter, totaling 16.6% of outstanding shares since the program's inception [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current quarter's performance but acknowledged ongoing uncertainty in future demand [7][26] - The company noted that while the Southeast region is lagging, overall order trends remain positive, and they are monitoring production levels closely [9][45] - Management highlighted the importance of legislative developments regarding manufactured housing, indicating a focus on affordable housing solutions [55][56] Other Important Information - The company reported a decrease in cash and restricted cash of $6.9 million, with cash from operating activities at $55.5 million [20] - The impact of tariffs on cost of goods sold was estimated at $700,000 for the quarter, with potential future increases if proposed tariffs are implemented [49][74] Q&A Session Summary Question: Is the level of ordering continuing thus far into fiscal Q2? - Management noted that while summer months may see a seasonal slowdown, there is a continuation of positive order trends [25][26] Question: Are there specific states in the Southeast experiencing softness? - Management clarified that Florida has been struggling, but other Southeastern states are steady, with a need to monitor production closely [27][29] Question: What is the impact of tariffs on costs? - The estimated impact of tariffs was $700,000 for Q1, with potential future costs reaching $2 million to $5.5 million per quarter if fully implemented [49][74] Question: What are the expectations for growth in Texas? - Management expressed confidence in Texas as a significant market for manufactured housing, anticipating continued growth and opportunities for value creation [105][106]

Financial Data and Key Metrics Changes - Q2 RevPAR was reported at $196, representing a 160 basis point decline year over year. Excluding the Hilton Hawaiian Village and Royal Palm South Beach, RevPAR growth would have exceeded 2% [21][22] - Total hotel revenues for the quarter were $645 million, with hotel adjusted EBITDA at $191 million, resulting in an adjusted EBITDA margin of 29.6% [21] - Adjusted EBITDA for the quarter was $183 million, and adjusted FFO per share was $0.64, both exceeding expectations [21][22] Business Line Data and Key Metrics Changes - The Bonnet Creek complex in Orlando delivered record-setting revenue for Q2, with RevPAR increasing nearly 12% year over year [12] - The Waldorf Astoria Orlando reported a 24% increase in RevPAR year over year, driven by strong demand in both group and transient segments [12] - Key West's Casa Marina Resort saw a nearly 4% year over year increase in RevPAR, with food and beverage revenue reaching a new Q2 record [15] Market Data and Key Metrics Changes - In Puerto Rico, RevPAR increased nearly 18% year over year, with Caribe Hilton outperforming its competitive set [15] - Urban markets such as New York, San Francisco, Denver, and Boston experienced solid RevPAR growth, with New York's Hilton Midtown Hotel achieving nearly a 10% increase [16] - Hawaii faced challenges with a combined RevPAR decline of approximately 12% due to weaker inbound travel, but sequential improvement is expected [17] Company Strategy and Development Direction - The company aims to dispose of 18 non-core hotels to enhance overall portfolio quality and long-term growth [9] - A comprehensive renovation project at the Royal Palm South Beach is expected to generate returns of 15% to 20% on a $103 million investment [10] - The company is focused on reshaping its portfolio through reinvestments in core assets and executing non-core asset dispositions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, expecting a significant improvement in Q4 driven by group revenue pace increasing by 18% [20] - The outlook for the back half of the year remains mixed due to ongoing uncertainties around tariffs, inflation, and geopolitical issues [19] - Management anticipates RevPAR growth to reaccelerate to 3% to 5% in Q4, supported by easier year-over-year comparisons [20] Other Important Information - The company has invested over $1.4 billion in its core 20 consolidated hotels since 2018, upgrading nearly 8,000 guest rooms [12] - The company is actively working to address its 2026 debt maturities, including a $1.275 billion CMBS loan on the Hilton Hawaiian Village [22] - A cash dividend of $0.25 per share was declared for Q3, translating to an annualized yield of approximately 9% [22] Q&A Session Summary Question: Guidance on revenue and expense dynamics - Management explained that the decline in revenues was offset by expense controls, with a $10 million benefit to GOP from cost-saving measures [28][30] Question: Group booking strength into 2026 - Management indicated that group booking strength is expected to remain relatively flat in 2026, with key markets like Bonnet Creek and San Diego showing strong growth [37][38] Question: Refinancing options for upcoming debt maturities - Management discussed ongoing efforts to secure capital commitments to address upcoming debt maturities, with a focus on minimizing costs [43][44] Question: Feedback on marketed assets and transaction timelines - Management acknowledged a challenging transaction environment but expressed confidence in meeting their asset sale targets of $300 million to $400 million [50][51] Question: Hawaii market dynamics and recovery - Management provided insights on the Hawaii market, noting a gradual recovery post-strike and expectations for strong performance in Q4 [59][88]

Financial Performance and Key Metrics - The company's adjusted EBITDA for the quarter was BRL 2.6 billion, a 6.6% increase compared to the previous year, with North America being the standout segment [6] - Net income reached BRL 864 million, or BRL 0.43 per share, reflecting a 14% increase year-over-year [6] - The company's leverage ratio, defined as net debt over EBITDA, ended the period at 0.85 times, significantly below the established debt policy level [7] Business Line Performance - North American operations contributed 61% of consolidated EBITDA, marking the highest share in the company's history [4] - Brazilian operations faced challenges due to excessive steel imports, with an import penetration rate of 23.4% in the first half of the year, prompting a reduction in investments in Brazil [5][6] Market Data and Key Indicators - The North American market is experiencing high steel demand, particularly from the non-residential construction sector, with order backlogs above historical levels [10][11] - In Brazil, despite good demand for steel, the market is adversely affected by high levels of imports, leading to concerns about future import records if trade defense mechanisms are not improved [12] Company Strategy and Industry Competition - The company is focusing on internationalization and geographic diversification, operating autonomously in seven countries across the Americas [4] - A strategic decision has been made to reduce future investments in Brazil while maintaining investments in North America, where the outlook is more favorable [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the lack of effective trade defense measures in Brazil, which has led to a competitive imbalance [38] - The company anticipates a resilient civil construction market in the coming months, while closely monitoring the automotive and agricultural sectors affected by high interest rates [12] Other Important Information - The company approved a dividend distribution of BRL 239 million, equating to BRL 0.12 per share, and continues its share buyback program, which has reached 68% completion [9] - The Miguel Bernier sustainable mining project is 72% complete and is expected to generate BRL 1.1 billion in annual EBITDA once fully operational [8][26] Q&A Session Summary Question: CapEx expectations and mining project details - Management indicated that an annual CapEx of BRL 5 billion to BRL 6 billion is sustainable, with a shift towards competitiveness and cost reduction projects rather than solely increasing production capacity [17][18] - The mining project is expected to generate significant incremental EBITDA, with a ramp-up planned for 2026 [26] Question: Concerns about increasing net debt and cash flow - Management acknowledged the increase in net debt but emphasized that a significant portion was allocated to shareholder returns through dividends and buybacks [35] - The company expects to generate positive cash flow in the second half of the year, which should help reduce leverage [46] Question: Strategy regarding rebar pricing and market share - Management confirmed that they are not willing to lose market share in rebar and are monitoring the competitive landscape closely [59][62] - The company believes there is room for price recovery in rebar, despite current challenges [42] Question: Future investments and structural measures in Brazil - Management is considering long-term adjustments in Brazil due to the current competitive environment and is focused on maintaining production capacity [56][58] - The company is committed to ongoing maintenance investments to ensure competitiveness [66]

Financial Performance - The adjusted EBITDA for the second quarter was BRL 2.6 billion, a 6.6% increase compared to the previous year, with North America being the standout segment [6] - Net income reached BRL 864 million, or BRL 0.43 per share, reflecting a 14% increase year-over-year [6] - The company's leverage ratio, net debt over EBITDA, ended at 0.85 times, significantly below the established debt policy level [8] Business Segment Performance - North American operations contributed 61% of consolidated EBITDA, marking the highest share in the company's history [4] - Brazilian operations faced challenges due to excessive steel imports, with an import penetration rate of 23.4% in the first half of the year [5] - The company plans to reduce investments in Brazil due to the unfavorable market conditions and high import levels [5][20] Market Dynamics - The North American market is experiencing high steel demand, particularly from the non-residential construction sector, with order backlogs above historical levels [10][11] - In Brazil, despite good demand for steel, the market is negatively impacted by high levels of imports, leading to concerns about future import records if trade defense mechanisms are not improved [12] - The company is closely monitoring the automotive and agricultural sectors, which are being affected by high interest rates [12] Strategic Direction - The company is committed to sustainability, achieving the lowest GHD emissions in its history at 0.85 tons of CO2 per ton of steel produced [3] - Future capital expenditures (CapEx) will be reduced, particularly in Brazil, while maintaining investments in North America to capitalize on favorable market conditions [20][22] - The company aims to balance supply and demand in North America without overextending capacity, focusing on high-value products [23][24] Management Commentary - Management expressed disappointment with the lack of effective trade defense measures in Brazil, which has led to a challenging competitive landscape [41] - The company anticipates positive cash generation in the second half of the year, with expectations for improved free cash flow [49] - Management emphasized the importance of maintaining a robust balance sheet during the current investment cycle, despite increased leverage [39] Other Important Information - The company has approved a dividend distribution of BRL 239 million, reflecting a payout ratio of 90% for the second quarter [9] - CapEx for the quarter was BRL 1.6 billion, primarily allocated to the Miguel Bernier sustainable mining project, which is 72% complete [8] - The company is executing a share buyback program, having completed 68% of the planned buybacks for the year [9] Q&A Session Summary Question: CapEx expectations and mining project details - Management discussed the sustainable mining project and its expected incremental EBITDA contribution of BRL 1.1 billion once operational [16][28] - Future CapEx levels will be reduced, particularly in Brazil, due to the lack of competitive returns in the current market [20][22] Question: Concerns about increasing net debt and cash flow - Management acknowledged the increase in net debt but emphasized that a significant portion was used for shareholder returns through dividends and buybacks [31][39] - The company expects to generate positive cash flow in the second half of the year, which should help reduce leverage [49][57] Question: Strategy for rebar market and competition - Management confirmed that Gerdau is not losing market share in the rebar segment and is focused on maintaining its competitive position despite high import levels [64][68] - The company is cautious about pricing strategies in the rebar market, given the current competitive dynamics [46][70] Question: Future investments and structural measures in Brazil - Management indicated that while investments in Brazil will be reduced, maintenance CapEx will continue to ensure competitiveness [72] - The company is exploring long-term adjustments to adapt to the current market conditions in Brazil [62][60]