Financial Data and Key Metrics Changes - The reported third quarter earnings per share (EPS) was $0.86 compared to $1.56 in the third quarter of 2024, reflecting a significant decline [10] - Adjusted EPS was $2.27 in the third quarter versus $2.29 in the prior year, indicating a slight decrease [10] - Adjusted segment earnings before interest and taxes (EBIT) was $924 million in the quarter compared to $559 million last year, showing strong operational performance [10][11] - The adjusted leverage ratio was 2.2 times at the end of the third quarter, reflecting the impact of acquisition debt from Viterra [17] Business Line Data and Key Metrics Changes - Soybean processing and refining results improved across all regions due to higher margins and the addition of Viterra's South American assets [10][11] - Softseed processing and refining results were driven by higher average margins and the addition of Viterra's softseed capabilities [11] - Grain merchandising and milling saw higher results in wheat milling and ocean freight, partially offset by lower results in global wheat and corn merchandising [12] Market Data and Key Metrics Changes - In North America, higher processing results were offset by lower results in refining, while in South America, results were higher in processing and refining [10][11] - European processing results improved, particularly in biodiesel, while refining results were slightly down [11] - The global supply and demand environment has become less volatile, contributing to improved performance [15] Company Strategy and Development Direction - The company is focused on integrating Viterra and leveraging the combined platform to enhance operational efficiency and capture synergies [4][6] - The strategic alignment along the end-to-end value chain operating model aims to improve agility, transparency, and collaboration [4][6] - The company anticipates capturing significant synergies from the Viterra integration, with expectations for a meaningful impact in 2026 [39][41] Management's Comments on Operating Environment and Future Outlook - Management noted a high degree of complexity in the marketplace, with farmers and end consumers remaining largely spot [21] - The company expects full year 2025 adjusted EPS in the range of $7.30-$7.60, reflecting ongoing macro trade and biofuel policy uncertainty [7][20] - Management expressed confidence in the company's ability to adapt to shifting trade flows and maintain operational efficiency [21][22] Other Important Information - The company generated approximately $1.2 billion of adjusted funds from operations year-to-date, with $900 million of discretionary cash flow available after capital expenditures [15] - The company repurchased 6.7 million shares for $545 million, indicating a commitment to returning value to shareholders [16][70] Q&A Session Summary Question: Clarity on biofuel policy and soybean oil margins - Management expects clarity on the Renewable Volume Obligation (RVO) by year-end or early next year, with improvements in soybean oil margins anticipated by early 2026 [25][27] Question: Stability of earnings in the new combined grain business - The combined grain business offers more stability in earnings due to enhanced storage capabilities and origination strengths from Viterra [28][30] Question: Impact of Viterra on EPS and EBIT - Viterra's integration is expected to be mildly dilutive to EPS for the year, but early indications show strong contributions from both legacy Bunge and Viterra operations [33][36] Question: Timing of synergy capture from Viterra - Significant synergy capture is expected in 2026, with some benefits anticipated in Q4 2025 [39][40] Question: Opportunities and risks in Argentina post-Viterra - The company is now more balanced globally, allowing it to mitigate risks associated with Argentina's volatility while capitalizing on its origination and processing capabilities [79] Question: Supply and demand dynamics in Australia - A large crop is expected in Australia, with opportunities for increased exports and competitive positioning in global markets [86][88] Question: Future capital projects and investment opportunities - The company does not foresee large capital projects from Viterra but will continue to evaluate opportunities for growth and consolidation in the industry [95][96]

Financial Data and Key Metrics Changes - Comparable Hotels' total revenue was $365 million for the quarter, down approximately 1% year-over-year, and $1.1 billion year-to-date, also down about 1% [23] - Comparable Hotels' adjusted hotel EBITDA was approximately $129 million for the quarter, down about 7% year-over-year, and $375 million year-to-date, down 6% [23][24] - Comparable Hotels' RevPAR was $124, down 1.8%, with ADR at $163, down 0.6%, and occupancy at 76%, down 1.2% compared to the same quarter in 2023 [24][6] Business Line Data and Key Metrics Changes - Transient leisure demand remained resilient, while group business targeted by property teams helped offset slightly softer midweek business transient [6] - Weekend occupancy was strong at 81%, but weekday occupancy declined, contributing to overall portfolio occupancy declines [28] - Group business mix improved by 50 basis points to 15%, indicating a strategic focus on this segment [30] Market Data and Key Metrics Changes - Comparable Hotels' RevPAR declined approximately 3% in October 2025 compared to October 2024, impacted by the government shutdown [7][28] - The portfolio continues to outperform the industry, with STR reporting RevPAR of $102, ADR of $160, and average occupancy of 63% for the first nine months of the year [24] Company Strategy and Development Direction - The company is focusing on capital allocation by selectively selling assets and redeploying proceeds to buy back stock, while also investing in future developments to ensure portfolio relevance [5][9] - Transitioning Marriott-managed hotels to franchise agreements is expected to unlock operational synergies and enhance cash flow [8][80] - The company aims to maintain a balanced approach between acquisitions and share repurchases, ensuring long-term portfolio relevance while capitalizing on short-term market opportunities [12][62] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic uncertainty and government travel pullbacks have impacted performance, overall demand remains resilient [5][19] - The company anticipates benefiting from pent-up demand following the government shutdown and is optimistic about future performance [28][72] - The outlook for 2025 has been adjusted to reflect potential negative impacts from prolonged economic uncertainty, with expected net income between $162 million and $175 million [35][36] Other Important Information - The company has completed the sale of three hotels for a total of $37 million and has four more under contract for approximately $36 million [10] - Capital expenditures for the year are expected to be between $80 and $90 million, with major renovations planned for approximately $20 million of hotels [17] - The company continues to pay attractive dividends, with distributions totaling approximately $57 million in the third quarter, representing an annual yield of approximately 8.6% [18] Q&A Session Summary Question: How has the full-time employee count shifted over the quarter and its impact on cost improvements? - Management indicated that labor management adjustments have led to improved efficiency, allowing for flexibility in FTE counts based on occupancy changes [41][42] Question: How much of the guidance change is attributed to the government shutdown? - Approximately two-thirds of the guidance change is related to the government shutdown, with the remainder attributed to underlying fundamentals [50][51] Question: What strategies are in place to fill the gap in government travel demand? - The company is focusing on building additional base business through group segments and maximizing market share [67] Question: What are the updated thoughts on the mix shift with corporate occupancy and leisure? - Recent performance indicates greater strength in leisure demand compared to midweek corporate, with expectations for recovery in corporate demand post-government shutdown [70][72] Question: Can you discuss the expected disruption during the transition of Marriott-managed hotels? - Transitioning to franchise agreements is anticipated to unlock value and improve operational performance, with some disruption expected during the changeover [80]

Financial Data and Key Metrics Changes - Comparable Hotels' total revenue was $365 million for the quarter and $1.1 billion year-to-date, both down approximately 1% compared to the same periods in 2023 [23] - Comparable Hotels adjusted hotel EBITDA was approximately $129 million for the quarter and $375 million year-to-date, down approximately 7% and 6% respectively compared to the same periods in 2023 [23][24] - Comparable Hotels' RevPAR was $124, down 1.8%, ADR was $163, down only 0.6%, and occupancy was 76%, down 1.2% compared to the third quarter of 2023 [24] Business Line Data and Key Metrics Changes - Transient leisure demand remained resilient, while group business targeted by property teams helped offset slightly softer midweek business transient [6] - Weekend occupancy was strong at 81%, but declined 120 basis points, while weekday occupancy declined 160 basis points [28] - Group business mix improved 50 basis points to 15%, continuing to be a focus area for property teams [30] Market Data and Key Metrics Changes - Comparable Hotels' RevPAR declined by approximately 3% in October 2025 compared to October 2024, impacted by the government shutdown [7][28] - STR reports industry-wide RevPAR of $102, ADR of $160, and average occupancy of 63% for the first nine months of the year, highlighting the relative strength of the company's portfolio [24] Company Strategy and Development Direction - The company is focusing on capital allocation by selectively selling assets and redeploying proceeds to buy back its own stock [5][9] - Transitioning Marriott-managed hotels to franchise agreements to consolidate management and realize operational synergies [8][80] - Entered into agreements for the development of three hotels in key markets, including Anchorage, Alaska, and Las Vegas, Nevada [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that supply growth is below historical norms, and overall demand remains resilient despite policy uncertainty and expense pressure [5] - The company anticipates benefiting from pent-up demand once the government reopens, following the recent shutdown [28][52] - The outlook for 2025 reflects potential negative impacts from prolonged economic uncertainty and the government shutdown, with expected net income between $162 million and $175 million [35][36] Other Important Information - The company has completed the sale of three hotels for a total of $37 million and has four hotels under contract for sale for approximately $36 million [10] - Total payroll per occupied room was $40 for the quarter, up less than 2%, with reductions in contract labor [31] - The company paid distributions totaling approximately $57 million during the third quarter, representing an annual yield of approximately 8.6% [18] Q&A Session Summary Question: Inquiry on expense reductions and full-time employee count - Management indicated that improvements in wages and payroll were largely driven by adjusting labor to occupancy declines, with flexibility in FTE counts [41][42] Question: Acquisition strategy and portfolio shift - The company clarified that the AC brand is positioned in the upscale segment, and the focus on this brand is driven by operational efficiency and strong margins [44][45] Question: Impact of government shutdown on guidance - Management estimated that two-thirds of the guidance change was related to the government shutdown, with expectations of a rebound in demand post-shutdown [50][52] Question: Strategy for filling gaps in government travel - The team has pivoted to build additional base business through group segments and will continue to explore other demand opportunities [67] Question: Development deals versus acquisitions - The company aims to balance development deals with share repurchases, targeting strong returns while maintaining portfolio relevance [60][62]

Financial Data and Key Metrics Changes - In Q3 2025, production averaged 18,163 barrels of oil equivalent (BOE) per day, with a 65% oil cut, bringing year-to-date production to 17,373 BOE per day [6][9] - Adjusted EBITDA for the quarter was $41.6 million, while adjusted net income was $3.8 million; however, GAAP net income reported a loss of $1.3 million [9] - Cash capital expenditures (CapEx) for the quarter totaled $31.8 million, funded within operating cash flows, with total debt at $114 million and net debt at $108 million, resulting in a net debt to adjusted annualized EBITDA ratio of 0.65 times [9][10] Business Line Data and Key Metrics Changes - The company successfully completed two Vitesse-operated wells, which exceeded initial production expectations and were completed approximately 15% under budget [6][9] - The company has over 2 million net lateral feet of development remaining, translating to more than 200 net two-mile equivalent wells [5] Market Data and Key Metrics Changes - Approximately 60% of remaining oil production for 2025 is hedged at nearly $70 per barrel, with under half of remaining natural gas production hedged at a weighted average floor of $3.73 and ceiling of $5.85 per MMBtu [7][8] Company Strategy and Development Direction - The company is focused on disciplined capital allocation and has increased production and capital expenditure guidance for 2025 due to advancements in technology and successful well completions [4][5] - The strategy of acquiring acreage outside the core of the Bakken is yielding returns comparable to those seen in the core area, as drilling activity progresses into these regions [4] Management's Comments on Operating Environment and Future Outlook - Management noted that the oil industry is highly cyclical, and the company's long-duration assets and low leverage position it to be opportunistic during market disruptions [5] - The company is evaluating a 2026 and 2027 operated program, which will depend on oil prices and capital expenditures from partners [22][29] Other Important Information - The board declared a fourth-quarter dividend at an annual rate of $2.25 per share, reflecting the company's commitment to capital allocation [5] Q&A Session Summary Question: What percentage of the program involves three- and four-mile laterals? - Approximately half of the AFEs received this year have been extended laterals, with no one-mile laterals seen this year [14] Question: What is the outlook on the acquisition market? - The market is competitive, but the company remains disciplined in its approach to acquisitions, having closed a couple of deals in Q3 [17] Question: What is the line of sight on operated inventory opportunities for 2026? - The company has around 15 net undeveloped locations from the Lucero acquisition and is evaluating the best ways to drill these [22] Question: How does the cost structure for Q3 compare to Q2? - Q3 is a better indicator of the run rate for G&A and LOE, with expectations for slightly lower costs going forward [24][25] Question: How is the credit environment affecting producers' 2026 budgets? - Operators are primarily influenced by oil prices and consolidation trends rather than the interest rate environment [28][29] Question: What are the company's thoughts on gas opportunities in different basins? - The company is looking for gas assets at the right price, with a focus on the Bakken first, while the M&A market remains active [31]

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded revenues of $16.7 billion, a decrease of 7% operationally compared to the same period last year, primarily driven by a decline in COVID products [23] - Reported diluted earnings per share (EPS) was $0.62, while adjusted diluted EPS was $0.87, exceeding expectations due to strong gross margin and cost management performance [24] - Adjusted gross margin for Q3 was approximately 76%, reflecting product mix and strong cost management [25] Business Line Data and Key Metrics Changes - Non-COVID product performance grew 4% operationally compared to the same period last year, with solid contributions from ELIQUIS, the VYNDAQEL family, and NURTEC [23][24] - The VYNDAQEL family achieved 7% year-over-year global operational growth, while NURTEC led the oral CGRP class in primary care penetration in the U.S. [14][15] - PADCEV achieved 13% year-over-year global operational growth, establishing itself as a standard of care for patients with locally advanced metastatic urothelial cancer [15] Market Data and Key Metrics Changes - In international markets, the company achieved 40% growth in total patients on treatment for the VYNDAQEL family [15] - The vaccines portfolio, particularly the PREVNAR family, saw 17% year-over-year international operational growth [16] - The company expects the lung cancer market to reach approximately $70 billion by 2023, with strong growth in its lung cancer portfolio [12] Company Strategy and Development Direction - The company is focused on strategic investments in innovation and growth, highlighted by the proposed acquisition of Metsera and the licensing agreement with 3SBio [6][8] - The company aims to enhance its R&D pipeline and commercial capabilities, particularly in the high-growth therapeutic area of obesity [8] - The recent agreement with the U.S. Government aims to lower prescription drug costs while allowing the company to focus on business and innovation [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to deliver value for patients and shareholders, despite challenges in the COVID product line [5] - The company raised its adjusted diluted EPS guidance for the full year 2025, reflecting strong performance and efficient cost structure [33] - Management noted that the agreement with the U.S. Government will have a diluted impact on the 2026 financial outlook but does not affect the 2025 guidance [32] Other Important Information - The company expects to achieve $1.5 billion in savings from the manufacturing optimization program by the end of 2027 [26] - Total adjusted operating expenses for Q3 were $7 billion, an increase of 21% operationally compared to last year, largely due to acquired in-process R&D expenses from the 3SBio transaction [28] - The company plans to continue investing in key products and markets to offset losses from upcoming LOEs [25] Q&A Session Summary Question: Insights on VYNDAMAX performance amid competition - Management acknowledged new competition but emphasized VYNDAMAX's unique benefits and strong market access, noting that volume growth was offset by gross-to-net headwinds [40][41] Question: Legal process regarding Metsera acquisition - Management refrained from discussing specific legal timelines but reiterated their belief that Novo's acquisition attempt is anti-competitive [47][49] Question: Plans if Metsera acquisition does not proceed - Management indicated ongoing efforts to identify potential acquisition candidates across therapeutic areas, emphasizing a proactive approach to business development [51][53] Question: Impact of manufacturing investments under the MFN agreement - Management highlighted the importance of investing in U.S. production while also improving operational cost efficiencies [59][61] Question: Clarification on PAXLOVID pricing dynamics - Management noted no significant change in pricing but acknowledged variations in channel mix affecting sales [76] Question: Guidance on COVID-19 sales for the year - Management expressed cautious optimism regarding COVID-19 sales, noting potential spikes in utilization due to future waves of the virus [88]

Financial Data and Key Metrics Changes - For Q3 2025, the company recorded revenues of $16.7 billion, a decrease of 7% operationally compared to the same period last year, primarily driven by a decline in COVID products, particularly Paxlovid [20][21] - Reported diluted earnings per share (EPS) was $0.62, while adjusted diluted EPS was $0.87, exceeding expectations due to strong gross margin and cost management performance [21][24] - Adjusted gross margin for Q3 was approximately 76%, reflecting product mix and strong cost management within the manufacturing footprint [22] Business Line Data and Key Metrics Changes - The non-COVID product performance was solid, growing 4% operationally compared to the same period last year, with strong contributions from Eliquis, the Vyndaqel family, and Nurtec [20][21] - The Vyndaqel family achieved 7% year-over-year global operational growth, while Padcev saw 13% year-over-year global operational growth [12][13] - The vaccines portfolio, particularly the Prevnar family, achieved 17% year-over-year international operational growth [15] Market Data and Key Metrics Changes - In international markets, the company achieved 40% growth in total patients on treatment for the Vyndaqel family [12] - The U.S. market saw double-digit demand growth for the Vyndaqel family, reflecting strong diagnostic efforts and broad access [12][13] - The company experienced a year-over-year decline in the U.S. for Prevnar 20, attributed to delayed government bulk orders [15][16] Company Strategy and Development Direction - The company is focused on strategic investments in future innovation and growth, highlighted by the proposed acquisition of MedSera and the licensing agreement with 3SBio [4][5] - The company aims to enhance its R&D pipeline and commercial capabilities, particularly in the cardiometabolic area and oncology [6][8] - The recent agreement with the U.S. government is expected to lower prescription drug costs and provide clarity for future investments [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to deliver value for patients and shareholders, despite challenges in the COVID product line [4][18] - The company raised its adjusted diluted EPS guidance for the full year 2025, reflecting strong performance and improved cost structure [30] - Management noted that the agreement with the U.S. government will not impact 2025 guidance but may have a diluted effect on 2026 financial outlook [29] Other Important Information - The company expects to achieve $1.5 billion in savings from the manufacturing optimization program by the end of 2027 [23][25] - The MedSera acquisition is expected to be funded through a mix of available cash and debt, with anticipated dilution to adjusted EPS in 2026 [26][27] - The company plans to continue investing in R&D and business development to enhance its product portfolio and pipeline [30] Q&A Session Summary Question: Comments on Vyndamax performance amid competition - Management acknowledged new competition but emphasized Vyndamax's unique benefits and strong market share, despite some gross-to-net headwinds impacting net sales [32][35] Question: Legal process regarding MedSera acquisition - Management stated that it is difficult to comment on the timing of legal proceedings but reiterated the belief that Novo's acquisition attempt is anti-competitive [38][39] Question: Plans if MedSera acquisition does not proceed - Management indicated that the company has significant resources and will continue to pursue business development opportunities across therapeutic areas [39][40] Question: Impact of manufacturing investments under the MFN agreement - Management highlighted the importance of both manufacturing investments and operational cost efficiencies, indicating that both will be prioritized [42][43] Question: Guidance for total COVID-19 sales - Management acknowledged the uncertainty in COVID-19 sales but reiterated confidence in achieving the overall revenue guidance range [49] Question: Pricing dynamics for GLP-1 medications - Management acknowledged that competition may drive prices down but indicated that their calculations for the MedSera acquisition took potential pricing declines into account [51] Question: Delay in initiation of pivotal trial for pneumococcal program - Management explained that the timing of the trial initiation is contingent on FDA alignment and that they are coordinating pediatric and adult studies [52][53]

Financial Data and Key Metrics Changes - Total sales grew by 1.4% to $1.4 billion, driven by M&A contributions of 7.9% and pricing of 0.3%, partially offset by a volume decline of 6.7% [8][12] - Adjusted EBITDA margin was reported at 19.8%, down 100 basis points compared to the previous year [14] - Adjusted earnings per diluted share decreased to $5.36 from $5.68 year-over-year [15] Business Line Data and Key Metrics Changes - Installation services segment sales totaled $858.3 million, up 0.2%, with M&A contributing 11% but offset by a 10.4% decline in volume [12][13] - Specialty distribution sales grew by 1.4% to $608.9 million, driven by acquisitions of 2.3% and pricing of 1.2%, despite a 2.1% volume decline [13] - Adjusted gross profit for the quarter was 30.1%, compared to 30.7% last year [14] Market Data and Key Metrics Changes - The residential new construction market remains weak, with expectations of low double-digit declines for the year, while heavy commercial projects are expected to remain strong [9][17] - The company anticipates that commercial and industrial same-branch sales will be flattish, with some potential upside in multifamily due to improving backlogs [17][40] Company Strategy and Development Direction - The company is focused on M&A as a primary capital allocation strategy, with recent acquisitions expected to deliver $35 million-$40 million in annual run rate synergies over the next two years [7][16] - The total addressable market has expanded to approximately $90 billion, with a clear strategy for continued growth both organically and through M&A [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite macroeconomic challenges, emphasizing a diversified business model across residential, commercial, and industrial construction [19][20] - The company is optimistic about the future, particularly in the commercial and industrial sectors, and expects to share more insights at the upcoming Investor Day [11][18] Other Important Information - The company ended the quarter with total liquidity of $2.1 billion and total debt of $2.9 billion, with a net debt leverage ratio of 1.6x [15][16] - The company repurchased nearly 178,000 shares, returning $65.5 million to shareholders in the third quarter [9][16] Q&A Session Summary Question: Sales contribution from Progressive Roofing and full-year expectations - Progressive contributed approximately $92 million in sales for the quarter, with a revised full-year expectation of around $205 million due to project delays [24] Question: Insights on recent acquisitions and their strategic value - Recent acquisitions, including Diamond Door Products and Insulation Fabrics, are seen as strategic additions that enhance the company's distribution capabilities and product offerings [25][26] Question: Pricing pressures and guidance for insulation products - The company anticipates a $30 million headwind from pricing pressures, with a negative impact of approximately $12 million in the third quarter [34] Question: Outlook for residential and commercial markets - Management expects residential sales to remain weak, while commercial and industrial sectors show signs of stability and potential growth [40][41] Question: Competitive dynamics in the residential installation market - Increased competition is noted in slower markets, but the company maintains a strong position due to its service quality and relationships with builders [85][86] Question: Future M&A activity in the roofing sector - The company is actively pursuing M&A opportunities in the roofing space, leveraging relationships established through recent acquisitions [72][73]

前言： 作者简介： CFA，金融MBA，多年基金从业经历。2007-2017年就职兴全基金，任趋势基金经 理。2017-2024年就职浦银安盛基金，任价值投资部总经理。2024-2025年，就职国联安基金价 值投资负责人。 在《什么是价值投资者应有的气质Temperament》一文中，巴菲特论述了伯克希尔未来的接班人 需要具备一种独特的气质，"独立思考，情绪稳定，对于那些与人类和机构的行为特征相关的知识 有着极为透彻地认知"。其中 "对于那些与人类和机构的行为特征相关的知识有着极为透彻地认 知" 部分，实际上论述的是，在公司治理中，因实控人缺位而容易引发的"代理人冲突"。这同时 也是，四个过滤器理论中的第三个过滤器——"德才兼备的管理层"中论述的"德"的问题。 根据巴菲特1998年佛罗里达大学发表的演讲（以及他在不同年代的多个场合，都不厌其烦地反复 强调），在投资当中，气质（Temperament）比智商更重要。他表示，很多超高智商的人（甚至 包括诺贝尔奖得主），因为缺乏这种气质（上述三种具体表现形式），在投资中犯下了致命的愚 蠢错误。有一年股东大会上，当巴菲特先生再次强调了，在投资中，气质的重要性超过了智商 ...

Financial Data and Key Metrics Changes - For the third quarter, RevPAR was $181, representing a 6% decline over the prior year, or down 5% excluding the Royal Palm South Beach, which suspended operations for renovation [18] - Total hotel revenues were $585 million, and hotel-adjusted EBITDA came in at $141 million, translating into a hotel-adjusted EBITDA margin of 24.1% [18] - Adjusted EBITDA was $130 million, and adjusted FFO per share was $0.35 [19] Business Line Data and Key Metrics Changes - RevPAR declined 6%, with a notable drop in group demand impacting overall performance [11] - The Bonnet Creek complex in Orlando delivered nearly 3% RevPAR growth, achieving its highest third-quarter RevPAR and GOP in history [11] - Key West's Casa Marina's RevPAR index reached 110, up nearly 800 basis points year-over-year, driven by strong group demand [12] Market Data and Key Metrics Changes - In New York, RevPAR rose nearly 4%, with significant share gains across all segments [12] - San Francisco's JW Marriott Union Square delivered RevPAR growth of nearly 14%, supported by strong group and transient demand [12] - The Caribe Hilton in Puerto Rico saw Q3 RevPAR increase nearly 12%, driven by leisure demand from a local residency event [13] Company Strategy and Development Direction - The company is focused on transforming into an owner of high-quality, iconic hotels with compelling growth profiles, emphasizing capital recycling and operational excellence [5] - A strategy to divest 15 non-core hotels and concentrate ownership across 20 high-quality assets is in place, which accounts for 90% of the portfolio's value [9] - The company has invested approximately $1.4 billion in core hotels since 2018, upgrading nearly 8,000 guest rooms [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic investments made, anticipating stronger performance during the re-acceleration of the lodging cycle in 2026 [16] - The company expects a rebound in group demand and leisure transient strength, projecting mid-single-digit RevPAR growth for Q4 [12][16] - Management noted that macroeconomic uncertainties persist, particularly affecting lower-end consumers, but sees a foundation forming for future growth [17] Other Important Information - The company declared a fourth-quarter cash dividend of $0.25 per share, translating to an annualized yield of approximately 9% [20] - The company does not expect to declare a top-off dividend for 2025, preserving over $50 million for strategic initiatives [21] - Full-year RevPAR growth is now expected to be down around 2%, reflecting weaker-than-expected third-quarter results and continued softness in leisure demand [21] Q&A Session Summary Question: Expense performance in light of lower 4Q RevPAR outlook - Management discussed aggressive asset management and cost reduction strategies, including staffing adjustments and procurement initiatives to offset lower revenue expectations [23][24] Question: Dividend strategy and cash retention - Management clarified that the decision to maintain a $0.25 dividend was to reflect a disciplined capital allocation strategy, emphasizing the importance of reinvesting in strategic initiatives [27][30] Question: Group demand outlook for 2026 - Management indicated that group pace for 2026 is expected to be flat, with strong performance anticipated in specific markets like Bonnet Creek and Boston [31][32] Question: Impact of government shutdown on demand - Management noted that the government shutdown has impacted both group and transient demand, but expressed optimism for a quick recovery once resolved [46][48] Question: Capital allocation and potential share buybacks - Management stated that while share buybacks are a consideration, the priority remains on paying down debt and reinvesting in the portfolio [55]

Financial Data and Key Metrics Changes - Q3 2025 was a record quarter for the company, with revenue increasing by 27% and adjusted EBITDA growing by 51%, both excluding the impact of the divested steel components business [4] - The adjusted EBITDA margin reached a record 21.8%, representing a 340 basis points improvement year-over-year [4] - The company ended the quarter with a leverage ratio of 2.4 times, ahead of its plan to return to a target range of 2 to 2.5 within 18 months of the Stavola acquisition [5][15] Business Line Data and Key Metrics Changes - In the Construction Products segment, Q3 revenues increased by 46% and adjusted segment EBITDA rose by 62%, with margins expanding by 300 basis points to 29.7% [8] - The aggregates business saw freight adjusted revenues increase by 28% and adjusted cash gross profit increase by 38%, with total volumes up by 18% [9] - Engineered Structures segment revenues increased by 11%, with adjusted segment EBITDA rising by 29% and margins expanding by 240 basis points to 18.3% [11] - The Transportation Products segment reported a 22% increase in inland barge revenues and a 36% increase in adjusted segment EBITDA, with margins improving by 190 basis points [12] Market Data and Key Metrics Changes - The barge backlog increased by 16% year-to-date, with production visibility extending well into the second half of 2026 [7][13] - The company anticipates a 32% year-over-year growth in adjusted EBITDA for 2025, reflecting strong contributions from the Stavola acquisition and double-digit organic expansion [7][17] Company Strategy and Development Direction - The company is focused on capital allocation to drive growth while maintaining a healthy balance sheet, with plans for potential M&A opportunities and organic investments [8][24] - The strategic alignment around businesses with durable demand fundamentals is expected to create a resilient platform for long-term growth [16] - The company is optimistic about infrastructure demand, particularly in Texas and the New York/New Jersey markets, which are expected to support future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the U.S. power market and the anticipated demand for utility structures and wind towers [20][21] - The company expects modest volume growth in Q4, assuming normal weather conditions, and is optimistic about a potential recovery in single-family housing in 2026 [19][24] - Management highlighted the importance of maintaining a flexible balance sheet to capitalize on growth opportunities while reducing leverage [46][48] Other Important Information - The company achieved a significant increase in operating cash flow, which was $161 million, up 19% year-over-year [14] - Free cash flow for the quarter was $134 million, reflecting a 25% increase year-over-year [14] Q&A Session Summary Question: Can you provide more details on the adjustments to full-year revenue and EBITDA guidance? - Management indicated that the adjustments reflect strong year-to-date performance and expectations for a good Q4, with slight revenue adjustments due to organic volume performance [30] Question: What is the outlook for the construction business regarding production downtime? - Management believes that production downtime issues are largely behind them and that they are continuously improving operations [32] Question: Can you discuss the margin outlook for engineered structures? - Management noted strong performance in both wind tower and utility structures, with ongoing improvements in capacity and demand [34][35] Question: What is the pricing outlook for aggregates as we head into 2026? - Management expressed optimism about pricing, supported by recovering volume growth and favorable infrastructure demand [41][42] Question: How will capital allocation be balanced between debt reduction and growth initiatives? - Management plans to focus on both debt reduction and pursuing bolt-on acquisitions, while also investing in organic growth opportunities [46][48] Question: What is the outlook for wind orders and production schedules? - Management is optimistic about additional wind orders and is working closely with customers to accommodate their needs [56][68]