Financial Data and Key Metrics Changes - The company reported sales of over $3.6 billion, which was relatively flat year over year, excluding foreign exchange impacts [22] - Adjusted operating margin was strong at 10.3%, despite a $15 million or 40 basis point net tariff headwind [23][25] - Free cash flow increased by 71% year over year to $507 million [23][25] - The company increased its full year sales guidance to a range of $14 billion to $14.4 billion, up from previous guidance of $13.6 billion to $14.2 billion [26] - Adjusted EPS is projected to be in the range of $4.45 to $4.65, an 8% increase from prior guidance [29] Business Line Data and Key Metrics Changes - Light vehicle e product sales increased by 31% year over year, driven by strong growth in Europe and Asia [22][24] - Organic sales were relatively flat year over year, with a decline in the commercial vehicle battery and charging systems segment impacting overall performance [8][22] - The company secured multiple new business awards across its portfolio, indicating strong demand for efficient powertrain technology [20] Market Data and Key Metrics Changes - The company expects a full year market assumption to be down 0.5% to 2.5%, an improvement from previous estimates of down 2% to 4% [28] - The guidance now assumes a full year sales benefit of $140 million from foreign currencies, a significant increase from prior estimates [27] Company Strategy and Development Direction - The company is focused on a balanced capital allocation approach, returning over $130 million to shareholders through dividends and share repurchases [9][33] - The Board approved a 55% increase in the quarterly cash dividend and an increase in share repurchase authorization to $1 billion, reflecting confidence in long-term cash generation [9][30] - The company aims to continue investing both organically and inorganically to support growth, with a disciplined approach to M&A opportunities [17][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term earnings power of the business, citing strong operational performance and cost controls [20][34] - The company anticipates continued outperformance of market production by 100 to 150 basis points [34] - Management acknowledged headwinds from the battery business but remains optimistic about long-term growth in that segment [102] Other Important Information - The company highlighted strong award activity in both foundational and e products, indicating robust demand for its technologies [10][20] - The company has returned over $3.5 billion to shareholders since 2020, demonstrating a commitment to shareholder value [16] Q&A Session Summary Question: Organic growth outlook and tariff impacts - Management noted that organic sales were impacted by lower battery sales, primarily in North America, and expected a full year headwind from the battery segment [38][40] Question: Capital allocation and cash levels - Management confirmed a liquidity target of 20% of sales and indicated that cash levels are currently higher, allowing for continued shareholder returns [45] Question: Margin conversion and guidance - Management explained that the strong conversion of sales to income is due to effective cost controls and productivity improvements [58][60] Question: Path to positive organic growth in foundational segments - Management expressed optimism about outgrowing the market in combustion and e products, citing increased RFQ activity and new program wins [62][64] Question: Battery business outlook and restructuring actions - Management indicated that the battery business is slightly EBITDA positive and cash flow breakeven, with actions taken to manage volatility [102] Question: Performance of PowerDrive segment - Management highlighted strong first half performance and indicated that the focus remains on outgrowing industry production while converting growth into income [104][106]

Financial Data and Key Metrics Changes - Net sales decreased by 5% to $4.2 billion, driven by lower organic sales and commodity deflation, partially offset by growth from acquisitions [19][20] - Gross profit was $1.3 billion, a decrease of 11% compared to the prior year, with a gross margin of 30.7%, down 20 basis points [21] - Adjusted EBITDA was $506 million, down 24%, with an adjusted EBITDA margin of 12%, down 300 basis points from the prior year [22] Business Line Data and Key Metrics Changes - Multifamily sales declined by 23%, while single-family sales decreased by 9%, attributed to lower starts activity and value per start [20] - Repair and remodel increased by 3%, driven by strength in the Mid Atlantic and South Central regions [20] - The company invested over $35 million in value-added solutions, including opening a new millwork location in Florida and upgrading plants in seven states [7][8] Market Data and Key Metrics Changes - Single-family starts are expected to decrease through year-end due to builders managing construction pace amid affordability concerns [9] - Multifamily remains muted due to higher input and financing costs, but it is still considered an appealing and profitable business [10] - The company anticipates a headwind to sales of $400 million to $500 million in multifamily and a headwind to EBITDA of less than $200 million [26] Company Strategy and Development Direction - The company focuses on three key areas: customer service, operational excellence, and disciplined capital allocation [5][6] - The transition to a single ERP system is expected to unlock further growth opportunities and efficiencies [6] - The company remains committed to pursuing higher return opportunities through acquisitions, with a focus on expanding value-added product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging market environment but emphasizes the importance of operational discipline and customer service [4][7] - The company expects net sales for Q3 to be between $3.65 billion and $3.95 billion, reflecting a weaker than normal building season [28] - The full-year guidance for net sales is projected to be between $14.8 billion and $15.6 billion, with adjusted EBITDA expected to be between $1.5 billion and $1.7 billion [26] Other Important Information - The company completed a $750 million offering of senior unsecured notes to pay down the balance on its ABL [24] - Capital expenditures for the quarter were $86 million, with $61 million allocated to acquisitions and $391 million used for share repurchases [25] - The company has a net debt to adjusted EBITDA ratio of approximately 2.3x, indicating a comfortable leverage position [24] Q&A Session Summary Question: How is the company strengthening its competitive position in a disappointing starts environment? - The company focuses on improving on-time and in-full performance, enhancing integrations with builders, and leveraging technology to optimize the build process [34][36] Question: What drove the sequential improvement in gross margins in Q2? - The improvement was attributed to better-than-expected performance in multifamily and repair and remodel segments, despite ongoing pressures [41][42] Question: What is the outlook for gross margins in Q3 and the second half of the year? - The company expects sequential normalization or declines in margins due to the competitive landscape and softer starts environment [43] Question: How does the company view the impact of Canadian lumber tariffs on its forecast? - The company has factored in the duties and believes the impact will be minimal in 2025, with lumber prices remaining stable [62] Question: What are the main drivers of the sequential change from Q2 to Q3? - The main drivers include a weakening start environment, continued normalization of multifamily, and commodity deflation [70][71] Question: How is the ERP rollout progressing? - The ERP system went live on July 1, with ongoing support and adjustments being made to address initial challenges [106][107]

Footnote Q2 2025 Earnings Presentation P E T E R J A C K S O N , C E O P E T E B E C K M A N N , C F O J u l y 3 1 , 2 0 2 5 Safe Harbor & Non-GAAP Financial Measures Cautionary Notice Statements in this presentation and the schedules hereto that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may ...

Obsidian Energy Ltd. Corporate Presentation July 2025 TSX:/NYSE American: OBE O V E R V I E W ADVISORY This presentation should be read in conjunction with the Company's unaudited interim consolidated financial statements and MD&A for the three and six months ended June 30, 2025. All dollar amounts contained in this presentation are expressed in millions of Canadian dollars unless otherwise indicated. Certain financial measures included in this presentation do not have a standardized meaning prescribed by I ...

Financial Data and Key Metrics Changes - Total income increased compared to the previous quarter, with commercial net interest income (NII) supported by the repricing of customer deposits and continued volume growth, which almost fully compensated for the impact of the lower ECB deposit facility rate and a stronger euro [1][2] - Fee income grew significantly by 12% year on year, with expectations for continued growth [1][2] - Total risk costs were €299 million this quarter, or 17 basis points of average customer lending, which is below the through-the-cycle average [12] Business Line Data and Key Metrics Changes - Net core lending rose by €15.4 billion, driven by record growth in retail lending, which increased by over €11 billion [2][3] - Wholesale Banking also saw growth in net core lending, primarily driven by working capital solutions and short-term trade finance [3] - Fee growth in wholesale banking reached a quarterly record of $360 million, driven by strong fee income in lending, daily banking, and trade finance [7] Market Data and Key Metrics Changes - The retail banking business recorded strong commercial momentum, with core deposits increasing by more than €6 billion this quarter [3] - The demand for long-term corporate loans remained subdued due to ongoing economic uncertainty, particularly in Germany [3][22] Company Strategy and Development Direction - The company aims to allocate more capital towards the more profitable retail banking business, with a target of 55% retail and 45% wholesale by 2027 [5][6] - The strategy includes diversifying services offered to existing customers and targeting specific customer segments such as Gen Z and affluent clients [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in generating continued commercial growth despite geopolitical and macroeconomic turmoil, with expectations for commercial NII to grow in the second half of the year [16] - The company expects to deliver a healthy return on equity of around 12.5% in 2025, supported by improved profitability outlook [17] Other Important Information - The interim dividend for 2025 is set at $0.35 per share, continuing the company's track record of providing attractive returns to shareholders [15] - The company is investing in digitalization and operational efficiencies to manage costs effectively, with a focus on enhancing customer acquisition and tech platform scaling [11] Q&A Session Summary Question: FX sensitivity and revenue/cost mix disclosure - Management acknowledged the impact of an 8% reduction in the U.S. dollar against the euro, which had a €37 million negative impact on NII and an overall impact of around $60 million to $70 million on total revenue [25][26] Question: Corporate loan demand and future outlook - Management noted that while there was some growth in the wholesale bank, long-term loan demand remains muted, and it is too early to predict changes in this trend [22][23] Question: Commercial NII trends and guidance - Management confirmed that the underlying trends in commercial NII are satisfactory, with expectations for a 2.5% to 5% quarter-on-quarter improvement in Q4 [30][38] Question: Deposit strategy and M&A focus - Management indicated that there were no major deposit campaigns in Q2, and the focus is on diversifying services and targeting specific customer segments rather than pursuing M&A aggressively [43][46] Question: Liability margin guidance - Management stated that the liability margin is expected to stabilize around 100 basis points, with the end of the German campaign contributing to this stability [109][111] Question: ROE guidance and factors influencing it - Management explained that the improved ROE outlook is driven by a combination of higher fee intensity and operating within the lower end of cost guidance [119]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $7.7 billion, consistent with Q2 2024, impacted by strategic divestitures of approximately $200 million in revenue [6][10] - Earnings before tax (EBT) increased by 4%, net income also increased by 4%, and earnings per share rose by 5% compared to 2024 [7] - Gross profit increased to $1.3 billion, with a gross profit margin of 16.9%, marking the eighth consecutive quarter of stable gross margin [8][9] - Selling, general and administrative expenses as a percentage of gross profit improved to 69.9%, a 30 basis point improvement [9] Business Line Data and Key Metrics Changes - North American retail automotive service and parts gross profit increased by 9%, with same-store service and parts revenue up by 7% [13] - Premier Truck Group sold 5,339 new and used units, with new units up 4% and used units down 8%, but used truck grosses increased over 50% [17] - Penske Transportation Solutions (PTS) revenue was $2.8 billion, with full-service revenue and contracts increasing by 4% [19] Market Data and Key Metrics Changes - In the U.K., new vehicle sales declined by 16% due to macroeconomic challenges and reduced incentives [21] - Same-store used units in the U.K. declined by 23%, attributed to the realignment of used-only dealerships [22] - In Australia, three Porsche dealerships generated $128 million in revenue, with a nearly one-to-one used-to-new ratio [24] Company Strategy and Development Direction - The company emphasizes diversification, with 61% of revenue from North America, 29% from the U.K., and 10% from other international markets [10] - The company is focused on capital allocation, with a disciplined approach to share buybacks and dividends, having increased dividends by 4.8% [29][30] - The acquisition of a Ferrari dealership in Modena, Italy, aligns with the company's strategy to enhance its premium brand presence [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of the business and the benefits from recent trade agreements [9][10] - The company anticipates improvements in used vehicle sourcing due to increasing lease returns starting in 2026 [12] - Management noted that the operating environment in the U.K. remains challenging due to inflation and interest rates impacting consumer affordability [21] Other Important Information - The company generated $472 million in cash flow from operations for the first half of 2025, with EBITDA over $1.5 billion on a trailing twelve-month basis [28] - The company has a backlog of $350 million for 2025 delivery in its commercial vehicle and power systems business [27] - The company has returned over $2.5 billion to shareholders through dividends and share repurchases over the last four years [29] Q&A Session Summary Question: Can you quantify the moving pieces affecting unit sales in the U.S. and the U.K.? - Management noted approximately $200 million in revenue loss due to divestitures and store closures, impacting new and used vehicle units sold [40][41] Question: What about the impact of mobility credits in the U.K.? - Management indicated that mobility credits were slowed down by certain brands, but expect recovery in the current quarter [44] Question: How do you see GPU trajectory and adjustments from OEMs regarding warranty claims? - Management stated that warranty claims are not seeing adjustments from OEMs, but customer demand remains strong [88] Question: What is the outlook for capital allocation with the additional cash flow? - Management indicated that the additional cash flow provides more opportunities for capital allocation, including share buybacks and acquisitions [111] Question: Is the $1.5 billion acquisition target still realistic? - Management suggested that while the target may not be realistic for 2025, they remain focused on acquisitions and organic growth [120][123]

Financial Data and Key Metrics Changes - The company reported same property NOI growth exceeding 7%, with base rent contributing 4.5% [10][19] - Full year growth outlook for same property NOI, core operating earnings, and NAREIT FFO has been raised due to strong performance [8][19] - NAREIT FFO range increased by $0.06 per share at the midpoint, representing full year growth of more than 7% [19][21] Business Line Data and Key Metrics Changes - The company achieved record low shop move outs and sustained robust leasing activity with strong rent growth [6][10] - Cash rent spreads of 10% and GAAP rent spreads of nearly 20% were achieved for both new and renewal leasing [11][19] - The S and O pipeline represents $38 million of incremental base rent, with a lease to commenced occupancy spread of 260 basis points [11][12] Market Data and Key Metrics Changes - The company successfully acquired five shopping centers in South Orange County, California for $357 million, enhancing its presence in a supply-constrained market [6][14] - The acquisition portfolio is 97% leased and includes over 600,000 square feet of high-quality retail GLA [13][14] Company Strategy and Development Direction - The company is focused on high-quality grocery-anchored shopping centers in desirable suburban trade areas, emphasizing essential retail offerings [9][10] - The ongoing commitment to corporate responsibility is highlighted as a foundational strategy [7] - The company plans to continue capitalizing on persistent demand for its shopping centers and is optimistic about future growth opportunities [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the operating fundamentals and the ability to sustain growth into 2026 and beyond [9][19] - The company is raising its earnings guidance based on strong first-half performance and greater conviction about the remainder of the year [18][19] - Management noted that the current year lease commencements are largely derisked, allowing for continued growth momentum [12][19] Other Important Information - The company has a strong balance sheet with low leverage and dependable access to low-cost capital, enabling it to pursue strategic growth opportunities [9][21] - The company has successfully executed a $400 million bond offering, demonstrating a clear cost of capital advantage [21] Q&A Session Summary Question: Contribution from various components into the second half for same store NOI cadence - Management indicated that base rent will continue to be the largest contributor, but there may be a slight increase in uncollectible lease income in the second half [24][26] Question: Shift away from occupancy into other components of same property NOI growth - Management confirmed that while peak leased occupancy is being reached, there is still room for growth in commenced occupancy, which will positively impact NOI [31][34] Question: State property NOI growth algorithm and contractual rent steps - Management highlighted that redevelopments are expected to positively impact same property NOI growth, with continued strong contractual rent steps [32][34] Question: Health of tenants and turnover rates - Management reported strong tenant health with a retention rate of about 77%, attributing this to supply constraints and productive stores [76][78] Question: Credit loss assumptions for 2025 - Management narrowed the credit loss guidance due to increased clarity on bankruptcy outcomes, indicating a positive outlook for tenant health [85][86] Question: Development opportunities and retailer discussions - Management confirmed ongoing discussions with national retailers about new developments, with a bullish outlook on finding attractive opportunities [48][49] Question: Future acquisition strategies and portfolio cap rates - Management noted that there is strong demand for grocery-anchored assets, with cap rates remaining stable in the low fives to low sixes [71][72]

Core Insights - Klépierre reported strong growth in the first half of 2025, driven by solid leasing momentum and increased retailer sales and footfall, particularly in Q2 [2][5][14] Financial Performance - EBITDA increased by 6.0% year-on-year, with net current cash flow up 5.3% year-on-year, reaching between €2.65 and €2.70 per share for the full year [3][14] - EPRA NTA rose by 4.6% over six months to €34.3 per share, with a total accounting return of 10.2% year-to-date [3][8] - Net rental income grew by 5.3% year-on-year, supported by a like-for-like growth of 3.5% and acquisitions completed in 2024 [7][11] Market Dynamics - Footfall increased by 4.0% in Q2 and 2.5% in the first half, while like-for-like retailer sales rose by 4.5% in Q2 and 3.5% in the first half, significantly outpacing national retail sales indices [3][5][4] - The financial occupancy rate improved to 97.0%, up 80 basis points year-on-year, with a rental uplift of 4.1% [4][6] Capital Management - Klépierre raised €505 million in new financing at a competitive yield of 2.85%, maintaining a strong credit profile with a net-debt-to-EBITDA ratio of 6.8x and an interest coverage ratio of 7.3x [9][10] - The average cost of debt was reported at 1.8%, with a Loan-to-Value ratio of 35.3% [10] Strategic Initiatives - The company successfully completed the first phase of the Odysseum extension in Montpellier, France, with a yield on cost of 9%, and initiated a new extension project at Le Gru in Turin, Italy, with a projected yield on cost of 10% [12][11] - Klépierre closed or signed disposals totaling €155 million, achieving 12% above appraisal values with a blended net initial yield of 5.5% [13] Outlook - The company revised its full-year guidance upwards, expecting continued growth in like-for-like net rental income and a 5% increase in EBITDA for 2025 [14]

Financial Performance - The company reported net sales of $4.2 billion, with a 2% increase in organic sales, driven by aerospace coatings, protective and marine coatings, and packaging coatings [8][9] - The quarterly segment EBITDA margin was 20.3%, and adjusted earnings per diluted share were $2.22 [9] - The company repurchased approximately $150 million of stock during the quarter, totaling $540 million year-to-date, and raised its quarterly dividend per share by 4% [9][19] Business Segment Performance - In the Global Architectural Coatings segment, positive selling prices were offset by lower volumes and the impact of a divestiture, with organic sales growth in the Nordic region and the UK, but lower demand in Eastern Europe [10][11] - The Performance Coatings segment saw a 6% increase in organic sales, with aerospace delivering high single-digit percentage organic sales growth [11][12] - Protective and Marine Coatings achieved double-digit percentage organic sales growth, marking the ninth consecutive quarter of positive year-over-year sales volume growth [13][14] - The Industrial Coatings segment's sales volumes were flat, with selling prices declining by 1% due to index-based customer contracts [15][16] Market Performance - Organic growth was delivered in both the United States and Latin America, while demand in Europe was tepid and some softening was noted in Asia [9][10] - The company expects project-related spending in Mexico to improve in the second half of the year, with organic growth in Mexico projected to be modestly up to mid-single digits [10][90] Company Strategy and Industry Competition - The company is focused on leveraging its technology advantage in the Performance Coatings segment, particularly in aerospace and protective and marine coatings [21][22] - The company anticipates continued growth in the aerospace sector, with high single-digit to double-digit growth expected for the foreseeable future [80] - The company is committed to driving shareholder value through disciplined capital allocation and a strong balance sheet [20][23] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the dynamic macro environment, with expectations for sales and earnings growth momentum in the second half of the year [20][22] - The company is monitoring tariff situations and plans to react accordingly with pricing actions to mitigate financial impacts [20][21] - Management expects to achieve a mid-single-digit percentage increase in EPS for the third quarter and a low double-digit percentage increase for the fourth quarter [22] Other Important Information - The company retired €300 million of debt during the quarter and has another €600 million of euro debt maturing in the fourth quarter [19][20] - The company is investing in both operational and capital expenditures in aerospace to support future growth [11][80] Q&A Session Summary Question: Global Architectural Coatings segment performance - Management noted that Eastern Europe did not recover as expected, impacting margins, while Mexico showed signs of retail recovery [28][30] Question: Volume growth expectations for Q3 and Q4 - Management expects low single-digit growth in volumes for the second half of the year, with confidence in share gains [33][34] Question: Outlook for Performance Coatings and Refinish - Refinish is expected to be soft in Q3, with a return to normalization in Q4, while Protective and Marine Coatings are anticipated to continue strong growth [36][38] Question: Raw material inflation compared to peers - Management explained that raw material inflation is influenced by the company's significant purchases in Mexico and specific material costs like epoxy [44][45] Question: Buyback activity and M&A considerations - Management confirmed ongoing buyback activity and indicated that any M&A would be small and not materially affect cash allocation [47][50] Question: Share gains and margin impacts - Management indicated that share gains would improve net margins through fixed cost leverage and manufacturing efficiencies [77] Question: Aerospace growth outlook - Management anticipates high single-digit to double-digit growth in aerospace, supported by strong forecasts from industry CEOs [80] Question: Mexico architectural market outlook - Management expressed confidence in project spending recovery in Mexico, with expectations for modest growth in the second half of the year [88][90]

Financial Data and Key Metrics Changes - The company reported a record GAAP net income of $1,300,000,000 for Q2 2025, with earnings per share (EPS) of $7.09, reflecting strong execution and demand for assets [6][15] - Adjusted net income was $502,000,000, with adjusted EPS of $2.83, leading to an increase in full-year adjusted EPS guidance to approximately $11.6 [6][20] - The liquidity position remains strong, with total sources of liquidity at approximately $22,000,000,000, including $2,700,000,000 in cash [19] Business Line Data and Key Metrics Changes - The company achieved a 99% utilization rate and a 97% extension rate in Q2, indicating strong demand for both wide-body and narrow-body aircraft [7][8] - Lease agreements were signed with 12 different carriers for narrow-body aircraft, and 30 extensions were completed with new leases signed at higher rates than previous ones [9][8] - The company continues to see robust demand for spare engines, with a portfolio of over 1,200 spare engines, 90% of which are new technology [10] Market Data and Key Metrics Changes - Global passenger traffic is growing, particularly in APAC and the Middle East, while domestic traffic in the US has declined [7] - The company noted that international traffic growth is outpacing domestic growth, demonstrating resilience in long-haul demand [7] Company Strategy and Development Direction - The company is focused on capital deployment, having spent approximately $3,000,000,000 on new equipment and over $1,000,000,000 on stock repurchases year-to-date [13] - A partnership with Air France KLM aims to expand engine leasing capabilities and support for customers [11][12] - The company is confident in its ability to capitalize on opportunities as OEMs ramp up deliveries in the coming years [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook, citing strong performance and increased full-year guidance [21][22] - The impact of tariffs on the business has been minimal, with hopes for a return to a zero-for-zero tariff regime [55][56] - Management emphasized the importance of disciplined capital allocation and the potential for growth in the aviation leasing industry [78][79] Other Important Information - The company expects to spend another $3,000,000,000 on new equipment through 2025 and has $800,000,000 in share repurchase authorizations outstanding [13][20] - The average cost of debt remained stable at 4.1% [19] Q&A Session Summary Question: Size of the partnership with Air France KLM and capital allocation - Management indicated that the partnership opens up a broader customer base for the engine business, with initial growth expected to be small but long-term in nature [24][25] - Capital allocation includes over $1,000,000,000 for share buybacks and $3,000,000,000 for aircraft purchases, with attractive opportunities anticipated in the engine and leasing markets [26][27] Question: Outlook for leasing expenses - Leasing expenses have been lower due to high extension rates, which are expected to continue trending at lower levels [28][30] Question: CapEx expectations and potential for higher sale leasebacks - Current CapEx projections are based on contracted orders, with potential for additional opportunities as OEMs increase delivery rates [34][36] Question: Impact of Azul's bankruptcy - Minimal impact is expected from Azul's bankruptcy, as the company is fully provisioned for the restructuring [88][89] Question: Demand for spare engines and market dynamics - The company noted that the demand for spare engines remains strong, with reports of young aircraft being parted out primarily for engine harvesting [90][91] Question: Sale leaseback opportunities - Management clarified that they are unlikely to compete in open bid transactions, focusing instead on unique bilateral deals [96][97]