Core Viewpoint - Constellium SE reported solid financial results for Q1 2025 despite ongoing demand weakness in most end markets, with a focus on cost reduction and operational performance [2][3][4] Financial Performance - Q1 2025 shipments totaled 372 thousand metric tons, a decrease of 2% compared to Q1 2024 [4][43] - Revenue for Q1 2025 was $1.979 billion, representing a 5% increase from $1.880 billion in Q1 2024 [3][6] - Net income increased to $38 million in Q1 2025 from $22 million in Q1 2024 [3][14] - Adjusted EBITDA rose to $186 million in Q1 2025, up from $146 million in Q1 2024 [3][6] Segment Performance - Aerospace & Transportation (A&T) segment reported Adjusted EBITDA of $75 million, down 14% from $87 million in Q1 2024, with shipments decreasing by 11% [7] - Packaging & Automotive Rolled Products (P&ARP) segment saw Adjusted EBITDA increase by 25% to $60 million, with shipments up 2% [8] - Automotive Structures & Industry (AS&I) segment's Adjusted EBITDA fell 50% to $16 million, with shipments down 12% [9] Cash Flow and Capital Management - Cash from operations was $58 million, while Free Cash Flow was negative at $(3) million [15][16] - The company repurchased 1.4 million shares for $15 million during the quarter [5][17] - Leverage ratio stood at 3.3x as of March 31, 2025 [5] Outlook - The company maintains its guidance for 2025, expecting Adjusted EBITDA between $600 million and $630 million, and Free Cash Flow exceeding $120 million [2][20] - Long-term targets include Adjusted EBITDA of $900 million and Free Cash Flow of $300 million by 2028 [20]

Financial Performance - Revenue for Q1 2025 was $135.2 million[13], a decrease compared to $143.1 million in Q4 2024 and $136.9 million in Q1 2024[13] - Adjusted EBITDA for Q1 2025 was $15.5 million with an 11.4% margin[13], down from $21.9 million and 15.3% in Q4 2024, but higher than $10.9 million and 8.0% in Q1 2024[13] - Free Cash Flow for Q1 2025 was $3.4 million[6], significantly lower than the $27.3 million in Q4 2024 and $5.5 million in Q1 2024[13] - Net income for Q1 2025 was $0.6 million, compared to $5.8 million in Q4 2024 and a loss of $(0.8) million in Q1 2024[13] Segment Highlights - High-Specification Rigs revenue reached $87.5 million in Q1 2025[16], a 10% increase year-over-year[21], with Adjusted EBITDA of $17.4 million and a 19.9% margin[19] - Processing Solutions & Ancillary Services revenue was $30.5 million in Q1 2025[23], with Adjusted EBITDA of $5.6 million and an 18.4% margin[24] - Wireline Services revenue was $17.2 million in Q1 2025[30], with an Adjusted EBITDA loss of $(2.3) million and a -13.4% margin[31], impacted by weather conditions[32] Capital Allocation - $1.3 million of Free Cash Flow was returned to shareholders in Q1 2025[6], representing 45% of Free Cash Flow returned since the program's inception in Q3 2023[6] - A total of 3,325,800 shares have been repurchased since the program's inception at an average price of $10.37 per share, representing 15% of outstanding shares[6] Liquidity - The company maintains a strong balance sheet with $104.4 million of liquidity, including $40.3 million of cash on hand at the end of Q1 2025[14]

Q1 2025 Highlights - Average daily production reached 135.0 Mboe/d, showing a 2.4% increase QoQ and a 13.0% increase YoY[5] - Adjusted EBITDA hit a record $434.7 million, up 12.3% YoY and 6.9% QoQ[5] - Free Cash Flow surged 151.4% YoY, driven by XCL asset contribution and record production[5] - Shareholder returns totaled approximately $57 million in Q1, through stock repurchases and dividends[5] Operations & Investment Activity - Uinta volumes increased by approximately 15% sequentially and 18% on an Mboe/day basis[5] - NOG closed $4.8 million in Ground Game deals in Q1, adding over 1,000 net acres and ~1.1 net wells[5] - A 2,275 net acre acquisition in Upton County, Texas, was completed for $61.7 million[5] - Net elections increased 35% compared to 2024's quarterly average[23] Financial Position - Net Debt to LQA Adjusted EBITDA ratio improved to 1.32x, a decrease of 0.15x QoQ[5] - Over $900 million in available liquidity at quarter-end[5] Guidance - The company anticipates annual production between 130,000 and 135,000 Boe/day[40] - Total budgeted capital expenditures are projected to be between $1.05 billion and $1.2 billion[40]

Core Viewpoint - Bill Ackman, a prominent investor, focuses on concentrated investments in high-quality businesses, with his hedge fund, Pershing Square Capital Management, having a strong track record over the past two decades [1] Company Overview - As of December 31, Pershing Square held 11 positions, with one company representing 12% of the fund, making it the third-largest holding despite Ackman selling shares over several quarters [2] - Chipotle Mexican Grill (CMG) has shown significant stock performance, with shares increasing by 183% over the past five years, although they have declined by 17% in 2025 [2][8] Financial Performance - Chipotle has consistently generated positive free cash flow (FCF), reporting a cumulative FCF of $3.6 billion from 2021 to 2024, which has been partly used for share buybacks [3] - The company maintains a strong balance sheet, with more current assets than liabilities and no debt, allowing it to earn interest income rather than incur interest expenses [4] Competitive Position - Ackman values high barriers to entry in the restaurant industry, noting that while competition is fierce, replicating Chipotle's success is extremely challenging [5] Investment Strategy - Ackman sold approximately 17 million shares of Chipotle in 2024, likely due to high valuation rather than company quality, as the stock traded at an average forward P/E ratio of 51.2 [6][7] - Despite the sales, Pershing Square retained a significant position in Chipotle, indicating continued bullish sentiment, especially with the stock down 27% from its all-time high [8] Market Conditions - Chipotle experienced a 0.4% decline in same-store sales in Q1, attributed to weaker consumer spending, though the leadership remains optimistic about the company's long-term potential [9] - The stock is currently trading at a more reasonable forward P/E ratio of 41.3, suggesting a potential opportunity for investors to consider dollar-cost averaging into Chipotle shares [10]

Financial Performance - Q1 2025 - Revenue for Q1 2025 was $632 million[9], compared to $676 million in Q1 2024[16] and $657 million in Q4 2024[16] - Non-GAAP gross margin was 10.1%[9], slightly down from 10.4% in Q4 2024[16] but up from 10.0% in Q1 2024[16] - Non-GAAP operating margin was 4.6%[9], compared to 4.9% in Q1 2024[16] and 5.1% in Q4 2024[16] - Non-GAAP EPS was $0.52[9], compared to $0.55 in Q1 2024[16] and $0.61 in Q4 2024[16] Sector Performance - Semi-Cap sector revenue was $195 million, representing 32% of total revenue[18], up 18% year-over-year[11] - Aerospace & Defense (A&D) sector revenue was $137 million, representing 22% of total revenue[18], up 15% year-over-year[11] Cash Flow and Balance Sheet - Free cash flow generated in Q1 2025 was $27 million[11], and over $140 million in the last 12 months[14] - The company has $80 million net cash positive[14] - Cash balance is $355 million[28] - The company repurchased $8 million in shares[28] Q2 2025 Guidance - Net sales are expected to be between $615 million and $665 million[31] - Non-GAAP gross margin is expected to be between 10.2% and 10.4%[31] - Non-GAAP operating margin is expected to be between 4.8% and 4.9%[31] - Diluted EPS (non-GAAP) is expected to be between $0.52 and $0.58[31]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $359 million, an increase of 12% compared to the prior quarter [14] - Net income totaled $10 million or $0.09 per diluted share, compared to a net loss of $17 million or $0.17 per diluted share for the fourth quarter of 2024 [15] - Adjusted EBITDA was $73 million, representing 20% of revenue and an increase of 38% compared to the prior quarter [15] - Free cash flow was $22 million, with net cash provided by operating activities at $55 million [15] - Capital expenditures for the first quarter were $39 million, with a full-year CapEx guidance of $295 million to $345 million, down from previous guidance [17] Business Line Data and Key Metrics Changes - The company operates seven Tier four DGB dual fuel fleets, with two under long-term contracts, and four Force fleets in the field, with a fifth expected to be deployed under contract this year [6][7] - Approximately 75% of the fleet is now utilizing next-generation services, which includes Tier four DGB dual fuel and electric offerings [6] Market Data and Key Metrics Changes - The company anticipates operating between 13 and 14 fleets in the second quarter, a reduction from the 14 to 15 fleets operated in the first quarter [12] - The Permian Basin is expected to see a downtick in fleet activity, with projections of running 75 to 85 fleets in June, down from approximately 85 to 90 today [52][54] Company Strategy and Development Direction - ProPetro's strategy focuses on capital-efficient asset investments, disciplined M&A, and transitioning to electric fleets, which are expected to yield durable returns [5][10] - The company is positioning its Pro Power offering to capitalize on the growing demand for reliable, low-emission power solutions [9][10] - The capital allocation strategy emphasizes balancing investments in share repurchases, fleet conversion, and Pro Power investments while maintaining a strong balance sheet [19][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the near-term outlook is unclear due to recent declines in oil prices influenced by tariffs and production increases [12] - The company remains confident in its ability to generate free cash flow and maximize long-term value for shareholders despite market volatility [12][20] Other Important Information - ProPetro has retired approximately 13 million shares, representing about 11% of its outstanding common stock since the inception of the share repurchase program [18] - The company has secured letters of intent for approximately 75 megawatts of long-term Pro Power service capacity with two operators in the Permian Basin [9] Q&A Session Summary Question: Focus on Pro Power opportunities - Management confirmed that while the initial focus is on the Permian Basin, they are open to opportunities outside the basin as they grow [25][27] Question: Changes in fleet operation numbers - The reduction in fleet numbers is attributed to both customer activity reductions and the company's choice to avoid low pricing, with a focus on maintaining operational efficiency [28][30] Question: Pricing for pressure pumping equipment - Management noted that contracted pricing remains steady, while spot pricing is more fluid, with some competitors pricing unsustainably low [39][42] Question: Capital allocation framework - The power business and Force Electric offering are prioritized due to known returns, with ongoing flexibility to allocate capital across various opportunities [44][48] Question: Future fleet builds and returns on power generation - Management expects to transition to more electric fleets at a rate of one to two per year, with anticipated returns on power generation assets around four-year paybacks [71][74]

Q1 2025 Update April 29th, 2025 Table of Contents Executive Summary p.03 | Key Highlights | p.04 | | --- | --- | | Financial Summary | p.06 | | MAUs & Subscribers | p.13 | | Product & Platform | p.16 | | Outlook | p.19 | Financial Statements 2 p.22 Executive Summary We are pleased with our performance in Q1, as nearly all of our KPIs were in-line to ahead of guidance. The business added 3 million MAU during the quarter, in-line with our expectations for a seasonally small quarter, while Subscriber net addit ...

Core Viewpoint - Charter Communications Inc. is positioned as a strong competitor in the cable industry, demonstrating resilience through improved cash flow and subscriber retention strategies despite facing challenges from competitors and market conditions [1][5]. Financial Performance - Charter's revenue increased by 0.4%, exceeding estimates by $70 million, while EBITDA rose by 5% with a 180 basis points expansion in EBITDA margins to 42%, surpassing expectations by 80 basis points [2]. - The company reported a normalized loss of approximately 150,000 subscribers in fiscal 2024, with improvements noted in broadband and video subscriber losses compared to the first quarter of 2024 [5]. Subscriber Dynamics - Charter's broadband subscriber losses improved to 55,000 from 72,000 in the previous quarter, while video subscribers declined by 167,000 compared to a larger loss of 392,000 in the first quarter [5]. - The company is offering promotional pricing for broadband at $40 per month, while the average revenue per user (ARPU) for residential broadband subscribers is $130, compared to Comcast's $170 [4]. Market Strategy - Charter's video offerings now include OTT packages priced at $80 per month, and the company is focusing on upselling additional services despite industry-wide pricing pressures [3]. - The company has resumed stock repurchases following the Liberty Broadband acquisition vote, indicating confidence in its financial position [5]. Future Outlook - Horan projects that Charter will achieve a free cash flow per share increase of four times by 2030, with a projected free cash flow yield of approximately 27% [6][7]. - The company plans to maintain a capital expenditure of around $12 billion for fiscal 2025, decreasing to $8 billion by 2028 [6].

Core Viewpoint - Lockheed Martin reported a significant earnings beat, but the market's reaction has been tepid, raising questions about the sustainability of its growth and future guidance [2][11]. Financial Performance - Lockheed Martin reported Q1 earnings of $7.28 per share on sales of $18 billion, exceeding Wall Street's expectations of $6.31 per share and $17.8 billion in sales, representing a 15% earnings surprise [2][4]. - Year-over-year sales growth was modest at 4%, while earnings grew by 14% due to improved gross profit margins, which reached nearly 13% [4][5]. - Operating cash flow decreased to $1.4 billion, and free cash flow fell from $1.3 billion in Q1 2024 to $955 million in Q1 2025, indicating a concerning cash generation issue [5][12]. Business Segment Analysis - Sales increased in three of Lockheed Martin's four main business segments, with the missiles and fire control segment showing the strongest performance at $3.4 billion in sales and a 13.8% operating profit margin, up 340 basis points year over year [6]. - The aeronautics segment, responsible for F-16 and F-35 production, experienced the weakest growth at only 3%, with profit margins improving minimally by 30 basis points to 10.2% [7]. Future Guidance - For 2025, management projects revenue between $73.75 billion and $74.75 billion, aligning closely with Wall Street's consensus of $74.27 billion [9]. - Expected earnings for the year are projected to be between $27 and $27.30 per share, slightly below the consensus estimate of $27.22, indicating a potential earnings miss [10][11]. Cash Flow Outlook - Despite the disappointing Q1 free cash flow, Lockheed anticipates a rebound, projecting free cash flow between $6.6 billion and $6.8 billion for the year, which would represent a 26% growth rate [12][13]. - If the company meets its free cash flow target, it would be trading at approximately 16.2 times the current-year free cash flow, which is considered reasonable for a defense stock expected to grow profits at nearly 13% annually [13][14].

Core Insights - The Magnificent Seven (Mag 7) tech stocks, including NVIDIA, Apple, Alphabet, Amazon, Meta, Microsoft, and Tesla, are facing pressure due to trade tensions, AI disruptions, and fluctuating demand [1] - The Roundhill Magnificent Seven ETF (MAGS) has declined by 16.7% year-to-date, with Tesla experiencing the most significant drop at 31.6% [2] Group 1: Netflix Performance - Netflix shares have increased by 23.7% year-to-date, outperforming the Mag 7 stocks [2][10] - The company reported strong Q1 2025 results, surpassing earnings estimates but slightly missing revenue targets [2] - Analysts have raised Netflix's earnings estimates for the upcoming quarter, with the June quarter estimate now at $7.05 per share, up from $6.22 [3] Group 2: Tesla Performance - Tesla reported disappointing Q1 2025 results, missing both earnings and revenue estimates, yet shares rose over 5% in after-hours trading due to CEO Elon Musk's optimistic outlook [4] - There has been no change in earnings estimates for Tesla in the past week, but seven out of ten analysts have lowered their estimates over the past month, with the June quarter estimate now at 57 cents, down from 63 cents [5] Group 3: Financial Metrics - Netflix's free cash flow (FCF) reached $2.661 billion in Q1, a 24.5% increase year-over-year and 93% from the previous quarter, with an FCF margin of 25.2% [7] - Tesla's forward price-to-earnings (P/E) ratio is 99.34X, while Netflix's is significantly lower at 44.77X, indicating that Netflix may be undervalued compared to Tesla [9][11] Group 4: Investment Opportunities - Investors interested in Netflix can consider ETFs that focus on the stock, such as T-Rex 2X Long NFLX Daily Target ETF and Direxion Daily NFLX Bull 2X Shares NFXL [12] - Other ETFs with significant Netflix exposure include MicroSectors FANG+ ETN, Invesco Next Gen Media and Gaming ETF, and First Trust Dow Jones Internet Index Fund [13]