Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, while fleet utilization was 65% [5][6] - Manufactured Products operating income doubled to $24.7 million with a 16% operating income margin on a 9% revenue increase. Order intake was $208 million, with a backlog of $568 million [8] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, maintaining a 14% operating income margin [9] - AdTech operating income rose 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of 131 floating rigs [6] - The company anticipates a decrease in revenue for OPG in Q4 2025 due to the absence of large-scale international projects [10] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The company sees growth opportunities in various markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - Management expects revenue to decrease in Q4 2025, with consolidated EBITDA projected between $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, expecting significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, CFO, plans to retire on January 1, with Mike Sumrold introduced as the new Senior Vice President of Finance [15] Q&A Session Summary Question: Advantages of Ocean Intervention II for simultaneous autonomous survey operations - Management highlighted the efficiency of performing more tasks with fewer resources, reducing costs and time while improving data quality through simultaneous data gathering [18][19] Question: Market outlook for Subsea Robotics in Brazil - Management expressed optimism about the robust market in Brazil, with significant opportunities and an expectation of increasing market share [20][21][22] Question: Growth expectations for AdTech business - Management noted that AdTech is low in capital intensity and is expected to grow significantly, with increasing international opportunities due to rising defense spending [23][25] Question: Revenue expectations for manufactured products in Q4 - Management clarified that while revenue may decline, operating income is expected to increase due to improved pricing and backlog execution [32][34] Question: Cadence of AdTech growth in 2026 - Management indicated that growth in AdTech will ramp up throughout 2026, driven by new projects and increased contractor onboarding [35][36]

Financial Data and Key Metrics Changes - Hexcel generated $456 million in sales and adjusted diluted EPS of $0.37 in Q3 2025, unchanged year over year, reflecting challenging conditions due to slower seasonal sales and continued destocking by commercial OEMs [10][24] - Gross margin for Q3 2025 was 21.9%, down from 23.3% in Q3 2024, impacted by tariffs and inventory reduction actions [10][26] - Adjusted operating income in Q3 was $44.8 million, or 9.8% of sales, compared to $52.9 million, or 11.6% of sales in the prior year [28] Business Line Data and Key Metrics Changes - Commercial aerospace sales were $274.2 million, a decline of 7.3% year over year, primarily due to destocking on the Airbus A350 program [11][24] - Sales for defense, space, and other segments totaled $182 million, an increase of 11.7% on a constant currency basis, driven by strong demand across various platforms [12][25] - Other commercial aerospace sales increased by 9.3% year over year, led by regional jets [11][24] Market Data and Key Metrics Changes - The backlog for commercial aircraft has grown from 13,000 units before the pandemic to over 15,000 today, indicating strong demand [6][7] - Air traffic has recovered to pre-pandemic levels, supporting the outlook for increased production rates in the aerospace sector [6][7] - The company expects to exit 2025 fully aligned with commercial aircraft build rates, positioning for growth in 2026 and beyond [7][35] Company Strategy and Development Direction - Hexcel's strategic focus remains on advanced material science, particularly in the aerospace and defense markets, as it navigates a dynamic environment [5][6] - The company is committed to driving productivity through automation, digitalization, and robotics, while also managing costs and realizing price gains [16][17] - Hexcel plans to return excess cash to stockholders, as demonstrated by a new $600 million share repurchase program [21][37] Management's Comments on Operating Environment and Future Outlook - Management expressed growing confidence in a sustained ramp-up in production based on customer discussions and actions, despite a slow recovery from the pandemic [6][7] - The company anticipates strong free cash flow generation, forecasting over $1 billion in cumulative free cash flow from 2025 to 2028 [17][37] - Management acknowledged the impact of tariffs and ongoing destocking but remains optimistic about future growth driven by increased production rates [14][32] Other Important Information - The divestiture of the Neumarkt, Austria plant was completed, which will not contribute to sales in Q4 2025 or beyond [14][33] - The company is managing headcount closely, with expectations to begin hiring again in early 2026 as production rates increase [15][17] - The company has not repurchased any stock during Q3 2025 but plans to utilize cash generation to repay borrowings from the accelerated share repurchase program [31] Q&A Session Summary Question: Can you talk about the $500 million growth related to manufacturer production rates? - Management indicated that the long-term contract with Airbus for the A350 provides a foundation for capital investments, but inflation has impacted margins [42] Question: What should be the debt or interest costs for 2026 in light of the ASR? - Management suggested that debt will decrease rapidly after the first quarter, with an estimated interest rate of about 5.5% [44] Question: Can margins be higher if commercial aero revenue is higher than in 2024? - Management confirmed that margins can increase, but there is work to offset natural inflation [57] Question: How does the company plan to manage potential continued destocking? - Management plans to lag hiring in response to demand and utilize inventory as a cushion for unexpected demand spikes [59] Question: Is there an opportunity to recapture incremental tariff costs in the future? - Management noted that there are provisions to recover some costs, particularly for export or military use, and they are working on shifting foreign supply to domestic sources [76] Question: How big is the inventory cushion currently? - Management indicated that inventory levels have been running high, with a current cushion of about 90 days, aiming to reduce it to a steady state of 70 days [81]

Financial Data and Key Metrics Changes - Hexcel generated $456 million in sales and adjusted diluted EPS of $0.37 in Q3 2025, unchanged year over year, reflecting challenges due to slower seasonal sales and continued destocking by commercial OEMs [8][23] - Gross margin for Q3 was 21.9%, down from 23.3% in Q3 2024, impacted by tariffs and inventory reduction actions [8][24] - Adjusted operating income was $44.8 million, or 9.8% of sales, compared to $52.9 million, or 11.6% in the prior year [26] Business Line Data and Key Metrics Changes - Commercial aerospace sales were $274.2 million, a decline of 7.3% year over year, primarily due to destocking on the Airbus A350 program [9][23] - Sales for defense, space, and other segments totaled $182 million, an increase of 11.7% on a constant currency basis, driven by strong demand across various platforms [10][24] - Other commercial aerospace sales increased by 9.3% year over year, led by regional jets [9][24] Market Data and Key Metrics Changes - The backlog for commercial aircraft has grown from 13,000 units before the pandemic to over 15,000 today, indicating strong demand [4] - Air traffic has recovered to pre-pandemic levels, supporting the outlook for increased production rates in the aerospace sector [4][5] - The company expects to exit 2025 aligned with commercial aircraft build rates, positioning for growth in 2026 and beyond [5][33] Company Strategy and Development Direction - Hexcel's strategic focus remains on advanced material science, particularly in the aerospace and defense markets, as the company navigates a dynamic environment [3][4] - The company is committed to cost reduction actions and streamlining operations, including the divestiture of non-core assets [12][13] - Hexcel plans to generate over $1 billion in cumulative free cash flow from 2025 to 2028, supporting investments in innovation and shareholder returns [16][35] Management's Comments on Operating Environment and Future Outlook - Management expressed growing confidence in a sustained ramp-up in production rates based on customer discussions and supply chain improvements [4][5] - The company anticipates lingering destocking in Q4 2025 but expects to align with customer build rates moving into 2026 [11][30] - Management highlighted the importance of operational leverage and margin expansion as production rates increase [15][25] Other Important Information - The company announced a $600 million share repurchase program and a $350 million accelerated share repurchase program, reflecting confidence in future growth [19][35] - Management confirmed a disciplined financial policy targeting a leverage ratio of 1.5 to 2 times debt/EBITDA [21][29] - The divestment of the Neumarkt, Austria plant will impact future sales, as it generated approximately $10 million per quarter [31] Q&A Session Summary Question: Can you discuss the $500 million growth expected at manufacturer production rates? - Management noted that the long-term contract with Airbus for the A350 provides a foundation for capital investments, but inflation has impacted margins, which are expected to recover as production rates increase [39] Question: What should be expected for debt or interest costs in 2026? - Management indicated that interest costs should be significantly lower than $50 million as debt decreases rapidly after the first quarter [41] Question: Can margins be higher in 2026 if commercial aerospace revenue increases? - Management confirmed that margins can improve as production rates increase, driving operating leverage [51] Question: How is the company managing potential destocking? - The company is managing inventory levels and hiring cautiously, using existing inventory to cushion unexpected demand spikes [53] Question: What is the outlook for European defense spending? - Management highlighted strong growth in European defense spending, with expectations for continued increases in production rates for programs like the Rafale and CH-53K [73][74]

American Airlines Group Inc. THIRD RTER GIAL ULIS October 23, 2025 d by operating activities less net cash used in investing activities, adjusted for (1) net purchases or sales of short-term investments and (2) chan d of this presentation. The company is unable to reconcile forward-looking free cash flow to GAAP as the nature or amount of items that impact net cash 2 Third-quarter 2025 results met our financial commitments les debt. finance and operating lease liabilities and pension obligations Record thir ...

Core Viewpoint - American Airlines Group Inc. reported its third-quarter 2025 financial results, highlighting strong revenue performance and a focus on cost management and balance sheet strengthening, with optimism for future growth in 2026 and beyond [1]. Revenue Performance - The company generated third-quarter revenue of $13.7 billion, with year-over-year unit revenues improving throughout the quarter, particularly in September, which saw positive unit revenue growth [2]. - Premium unit revenue growth continues to outperform main cabin revenue growth [2]. Strategic Priorities - American Airlines aims to fully restore its share of indirect revenue impacted by previous sales strategies by the end of the year and plans to expand its share beyond historical levels, which is expected to create significant value [3]. Loyalty Program and Credit Card Performance - The AAdvantage® loyalty program saw a 7% year-over-year increase in active accounts, and spending on co-branded credit cards rose by 9% year-over-year [4]. - The company is preparing for an exclusive partnership with Citi starting in January 2026 [4]. Customer Experience Enhancements - American Airlines is enhancing the travel experience by opening new Flagship® lounges and expanding Admirals Club® lounges, alongside improvements in onboard services and partnerships with Lavazza and Champagne Bollinger [5]. Operational Performance - The airline maintained resilient operations despite challenges from significant weather events and FAA technology outages, thanks to investments in technology and operating systems [6]. Balance Sheet and Liquidity - As of the end of the third quarter, the company reported total debt of $36.8 billion and net debt of $29.9 billion, with a goal to reduce total debt to below $35 billion by the end of 2027 [7]. - The company had $10.3 billion in total available liquidity, including cash, short-term investments, and undrawn credit facilities [7]. Financial Guidance - For the fourth quarter of 2025, adjusted earnings per diluted share are expected to be between $0.45 and $0.75, with full-year adjusted EPS projected between $0.65 and $0.95 [8][9]. - The company anticipates full-year free cash flow exceeding $1 billion [8].

Core Viewpoint - Precision Drilling Corporation reported its third quarter 2025 results, highlighting a resilient performance despite a challenging North American drilling market, with a focus on shareholder returns and fleet investments to meet customer demand [2][4][10]. Financial Highlights - Revenue for Q3 2025 was $462 million, a 3% decrease from $477 million in Q3 2024, outperforming industry declines of 15% in Canada and 7% in the U.S. [7][18]. - Adjusted EBITDA was $118 million, down 17.4% from $142 million in Q3 2024, impacted by higher operating costs and share-based compensation [7][18]. - Net earnings attributable to shareholders were a loss of $7 million, compared to a profit of $39 million in Q3 2024, primarily due to increased deferred income tax expenses [7][18]. - Cash provided by operations was $76 million, enabling the company to repay $10 million of debt and repurchase $9 million of common shares [7][18]. - Capital expenditures for Q3 2025 were $69 million, with a revised 2025 capital budget increased to $260 million from $240 million [7][18]. Operational Highlights - The company operated 68 drilling rigs in Canada, with strong demand for Super Triple and Super Single rig classes, expecting near full utilization during the winter season [6][10]. - U.S. activity increased by over 10% year-over-year, with 39 active rigs compared to 30 in Q1 2025, driven by strength in natural gas basins [8][26]. - International operations averaged seven active rigs, generating stable free cash flow [9][27]. Market Positioning - Precision's favorable positioning in U.S. natural gas and Canadian heavy oil markets, combined with technical expertise, has allowed the company to capture opportunities for capital deployment [4][10]. - The company plans to allocate 35% to 45% of free cash flow to share repurchases, having already repurchased $54 million in shares year-to-date [11][23]. Strategic Outlook - The company anticipates strong demand for its North American Super Series rigs, with expectations for winter drilling activity to meet or exceed last year's levels [25][29]. - In the U.S., the natural gas rig count has increased approximately 20% year-to-date, reflecting positive customer sentiment towards LNG off-take and AI demand [26][29]. - Internationally, the company maintains long-term contracts for its rigs, with expectations for stable operations through 2027 and 2028 [27][29].

Core Thesis - ONEOK, Inc. is viewed positively due to its stable cash flows, long-term contracts, and operational resilience in the midstream energy sector [1][5] Company Overview - ONEOK, Inc. operates as a midstream energy company, focusing on gathering, processing, transporting, and storing natural gas, NGLs, crude oil, and refined products [2] - The company’s business model relies on long-term, fixed-fee contracts, which provide stability against commodity price fluctuations [2] Segment Analysis - The largest segment for ONEOK is NGLs, which processes raw mixtures into ethane, propane, and butane, but it has the lowest operating margin at approximately 18% due to domestic pricing and input costs [2] - The refined products and crude oil segment, enhanced by the Magellan Midstream acquisition, has margins near 40% and is characterized by heavy regulation and high replication costs, indicating a strong competitive advantage [3] Competitive Advantages - ONEOK benefits from significant barriers to entry due to its scale, extensive pipeline network, and capital-intensive infrastructure [4] - The company has a substantial amount of debt; however, it generates strong free cash flow and has a history of dividend growth, currently offering a dividend yield near 6% [4] Market Position and Outlook - The company is positioned well in a volatile energy sector, with ongoing infrastructure projects and growth in LNG exports, making it a stable, cash-generative business [5] - Despite some skepticism in the midstream sector, ONEOK's operational resilience and reliable free cash flow make it an attractive option for income-focused investors [5][7]

Core Insights - Orbia Advance Corporation reported third quarter 2025 revenues of $1.97 billion, a 4% increase from the previous year, with EBITDA of $295 million, reflecting a 2% increase [2][5][6] - The company is focused on strengthening market positions, cost reduction, and cash generation despite subdued demand in certain sectors [4][34] Financial Performance - Net sales for Q3 2025 were $1,966 million, up 4% from $1,887 million in Q3 2024 [5][6] - Cost of sales increased by 5% to $1,533 million, while selling, general and administrative expenses decreased by 1% to $303 million [5][9] - Operating income rose to $130 million, a 4% increase year-over-year, while EBITDA margin slightly decreased to 15.0% [5][10] - The company reported a net loss of $120 million for the quarter, compared to a net income of $86 million in the same quarter last year [7][14] Business Group Performance - **Polymer Solutions**: Revenues increased by 2% to $647 million, but EBITDA decreased by 13% to $78 million due to lower resin pricing and higher ethane costs [18][19] - **Building & Infrastructure**: Revenues also rose by 2% to $647 million, with EBITDA decreasing by 3% to $76 million, impacted by restructuring costs [21][22] - **Precision Agriculture**: This segment saw an 11% increase in revenues to $257 million and a 28% increase in EBITDA to $30 million, driven by strong demand in Brazil and the U.S. [24][25] - **Connectivity Solutions**: Revenues grew by 8% to $253 million, with EBITDA increasing by 36% to $42 million, supported by strong volume growth [27][28] - **Fluor & Energy Materials**: Revenues increased by 3% to $227 million, but EBITDA decreased by 3% to $64 million due to higher input costs [30][31] Cash Flow and Debt Management - Operating cash flow for the quarter was $271 million, a decrease of 4% from the previous year, while free cash flow improved by 1% to $144 million [15][32] - Net debt increased to $3,910 million, with a net debt-to-EBITDA ratio of 3.85x, down from 3.98x in the previous quarter [16][31] Outlook - The company reaffirms its full-year 2025 Adjusted EBITDA guidance in the range of $1,100 million to $1,200 million, likely falling in the lower half of the range [34] - Capital expenditures are projected to be approximately $400 million, focusing on safety and operational integrity [35]

Core Insights - Plexus Corp. reported strong financial results for the fiscal fourth quarter and fiscal year ended September 27, 2025, with revenue of $1.058 billion and diluted EPS of $1.87, exceeding guidance [5][7] - The company provided guidance for the fiscal first quarter of 2026, expecting revenue between $1.050 billion and $1.090 billion, with diluted EPS projected between $1.40 and $1.55 [5][7] Financial Performance - Fiscal Q4 2025 revenue was $1.058 billion, with a GAAP operating margin of 5.0% and diluted EPS of $1.87 [5][9] - For fiscal year 2025, total revenue reached $4.033 billion, maintaining a GAAP operating margin of 5.0% and diluted EPS of $6.26 [5][9] - Non-GAAP results for Q4 2025 showed an operating margin of 5.8% and diluted EPS of $2.14, excluding stock-based compensation [5][9] Cash Flow and Share Repurchase - The company generated free cash flow of $97 million in Q4 2025 and $154 million for the entire fiscal year [6][14] - Plexus repurchased $21.5 million of its shares at an average price of $134.07 per share, with $85 million remaining under its current repurchase authorization [6][8] Operational Highlights - Plexus secured 28 manufacturing programs in Q4 2025, representing $274 million in annualized revenue when fully ramped [6][7] - The company achieved a return on invested capital (ROIC) of 14.6% for fiscal 2025, exceeding its weighted average cost of capital by 570 basis points [8][13] Market Sector Performance - In Q4 2025, revenue by market sector included Aerospace/Defense at $173 million (16%), Healthcare/Life Sciences at $424 million (40%), and Industrial at $461 million (44%) [10][11] - The top 10 customers accounted for 49% of revenue in Q4 2025, consistent with the previous quarter [10]

Core Viewpoint - United Airlines is experiencing renewed investor interest following a 7.8% stock rally, driven by improving fundamentals and strong forward guidance, alongside favorable macroeconomic trends [3][4]. Financial Performance - United Airlines reported a 6.6% increase in available seat miles in the U.S. and Canada, and a 5.3% increase internationally, indicating strong demand for travel despite economic uncertainties [7]. - The company's premium seating footprint reached a record high, enhancing revenue per seat and margin potential [8]. - Aircraft fuel costs decreased by 11.4% year-over-year, contributing positively to the company's bottom line [9]. - Free cash flow (FCF) rose to $3.4 billion, a 6.7% increase from the previous year, allowing for shareholder returns through stock buybacks [10]. Stock Valuation and Forecast - The current stock price is $98.30, with a 12-month price target of $124.93, indicating a potential upside of 27.09% [12]. - The stock trades at a P/E ratio of 10x, below the transportation industry's average of 15x, suggesting significant upside potential [13]. - Analysts have set price targets as high as $135, indicating a potential upside of 37% from current levels [14]. Market Trends and Outlook - The strengthening dollar enhances domestic purchasing power, making travel more attractive for U.S. consumers, which could drive further momentum in airline stocks [5]. - With steady demand, improving margins, and upward guidance, United Airlines appears undervalued relative to its growth outlook [15]. - Continued strong cash flows and shareholder rewards through buybacks position the company favorably for long-term appreciation [16].