Core Insights - The company anticipates fourth-quarter revenues between $100 million and $105 million, primarily driven by a decline in the consumer category and a sequential decrease in industrial revenues [1][19] - The industrial business is expected to show strong growth, with revenues up nearly 20% for 2025, benefiting from trends like electrification and grid modernization [1][11] - The consumer category, particularly appliances, has seen a significant slowdown, with orders down about 40% in Q3 compared to the first half of the year [3][19] Financial Performance - Third-quarter revenues increased by 3% sequentially to $100 million, with industrial and communications segments showing strength [15] - Non-GAAP gross margin for Q3 was 55.1%, down 70 basis points from the prior quarter due to higher input costs [16] - The company generated $30 million in cash from operations in Q3 and expects to return nearly $150 million to shareholders through buybacks and dividends this year [7][18] Market Trends - The company is capitalizing on opportunities in the data center market, particularly through collaboration with NVIDIA on 800-volt DC power architecture [4][8] - There is strong interest in GaN-based solutions, which are expected to drive market growth in high power micro DC to DC converter architectures [6][10] - The appliance market is facing challenges due to tariffs and stagnant home sales in the U.S. and China, leading to revenue volatility [2][3] Strategic Focus - The company plans to realign its R&D and go-to-market strategies to focus more on data center, automotive, and high power markets [13][33] - There is an emphasis on adapting organizational processes to increase ROI on R&D spending while maintaining a strong core business [12][33] - The company expects to see a rebound in consumer business growth in 2026 as preloaded inventory clears out and demand stabilizes [25][50] Product Development - The company is advancing its GaN technology for applications in data centers and automotive markets, with expectations for product releases in 2026 and 2027 [10][40] - Recent design wins in the automotive sector, particularly for electric vehicles, indicate a growing market presence [5][59] - The company is also seeing traction in the inverter emergency power supply market, which is expected to contribute to revenue growth [6][58]

While investors are chasing Advanced Micro Devices Inc (NASDAQ:AMD) and Rivian Automotive Inc (NASDAQ:RIVN) on today's trending stock tickers list, Amazon.com Inc's (NASDAQ:AMZN) portfolio shows a clear favorite — and it's not the one leading the AI rally. In its latest third quarter 13F filing, Amazon revealed it sold out of both AMD and IonQ Inc (NYSE:IONQ) — while keeping a massive 94% of its $2.46 billion equity portfolio parked in RIVN stock.Track RIVN stock hereAmazon's EV ObsessionAmazon's third quar ...

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net production of 137,000 boe per day, with 78% being oil, remaining roughly flat quarter over quarter [12] - Adjusted EBITDAX was $338 million, and free cash flow before changes in working capital was $231 million, indicating strong cash flow generation [12] - The company raised $400 million to refinance Berry's debt ahead of the merger, demonstrating financial agility [13] - Net leverage stood at 0.6 times, with total liquidity exceeding $1.1 billion, showcasing a robust balance sheet [14] - The company increased its dividend by 5%, reflecting confidence in its business and cash generation [15] Business Line Data and Key Metrics Changes - The exploration and production (E&P) business continues to perform well, with a revised annual base decline assumption of 8%-13%, down from 10%-15% [4][12] - The carbon capture and storage (CCS) business is advancing, with the first CO2 injection expected in early 2026 at the Elk Hills project [6][8] Market Data and Key Metrics Changes - California's energy and regulatory environment is improving, with new legislation supporting oil and gas permitting and extending the Cap and Invest program through 2045 [3][4] - The California Public Utilities Commission estimates that power capacity needs to double by 2035 to meet demand, indicating a significant opportunity for the company [8][10] Company Strategy and Development Direction - The company is focused on disciplined growth, operational efficiency, and capital allocation to enhance shareholder value [15][19] - The merger with Berry Corporation is expected to create meaningful synergies and enhance operational scale [5][17] - The company aims to play a leading role in California's energy transition, focusing on clean, reliable power solutions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position in California's energy revival, citing improved regulatory frameworks and strong production performance [3][4] - The company anticipates continued stable production and lower costs in Q4 2025, with a modest increase in capital spending [16][17] - The preliminary 2026 plan includes hedging two-thirds of expected production at a Brent floor price of $64 per barrel, ensuring cash flow stability [17] Other Important Information - The company has seven Class VI permits under active review with the EPA, aiming to expand its statewide storage network for CCS [8] - The company is exploring partnerships to develop carbon management solutions and enhance its power generation capabilities [11][60] Q&A Session Summary Question: Can you discuss the MOU with Capital Power and the next steps for the PPA? - Management noted that the market is heating up with more opportunities, and they are focused on building a hub to serve data centers and the grid at scale [23][24] Question: What is driving the improvement in PDP decline rates? - The improvement is attributed to owning high-quality conventional assets and effective management practices, including injection and surveillance technologies [28][29] Question: Can you elaborate on the decarbonized power opportunity in Kern County? - Management highlighted the potential for retrofitting existing power plants for CCS and the ability to connect these plants with storage sites, creating a decarbonized power hub [34][35] Question: How does the company plan to ramp up production for gas assets? - The focus will primarily be on oil production, with natural gas being a secondary priority depending on market demand and capital allocation [68][69] Question: What is the capital plan for 2026? - The preliminary plan includes running four rigs with a capital expenditure of $280 million-$300 million, focusing on workovers and sidetracks [72][74]

Financial Data and Key Metrics Changes - Third-quarter revenues increased by 3% sequentially to $119 million, with non-GAAP earnings of $0.36 per diluted share [17][18] - Non-GAAP gross margin for Q3 was 55.1%, down 70 basis points from the prior quarter due to higher input costs [18] - Cash flow from operations was $30 million for the quarter, with a projected free cash flow of over $80 million for the year [9][19] Business Line Data and Key Metrics Changes - Industrial revenues were up high single digits, driven by high-voltage DC transmission and growth in metering and automotive [17] - Consumer revenues decreased by mid-single digits, primarily due to softness in major appliances [17] - The revenue mix for the quarter was 42% industrial, 34% consumer, 13% computer, and 11% communications [18] Market Data and Key Metrics Changes - The appliance sector saw orders down about 40% in Q3 compared to the first half of the year, attributed to tariffs and stagnant home sales [4][6] - Industrial business revenues increased nearly 20% for the first three quarters of 2025, capitalizing on trends like electrification and grid modernization [6][9] - The company expects Q4 revenues to be between $100-$105 million, with a significant decline in consumer revenues [6][19] Company Strategy and Development Direction - The company is focusing on data center, automotive, and high-power markets, reallocating R&D and go-to-market resources accordingly [14][33] - Collaboration with NVIDIA on 800-volt DC power architecture is a strategic move to enhance efficiency in data centers [10][11] - The company aims to drive shareholder value by growing cash flow while maintaining disciplined spending [15] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in orders and weaker distribution sell-through, particularly in the appliance sector, but expects a recovery in 2026 [4][26] - The CEO emphasized the importance of adapting the organization to better match market needs and increase ROI on R&D spending [13][15] - Management expressed confidence in the long-term growth potential of the appliance business despite current challenges [30] Other Important Information - The board declared a $0.005 per share dividend increase effective in Q1 of 2026, with nearly $150 million returned to stockholders through buybacks and dividends this year [9][19] - The company expects non-GAAP gross margin for Q4 to be between 53.5% and 54% [20] Q&A Session Summary Question: Can you elaborate on the consumer business outlook? - Management acknowledged the decline in appliances and expects a bounce back in 2026 as preloaded inventory clears out [25][26] Question: Will there be a change in market approach focusing on data center, automotive, and high power? - Management confirmed a shift in focus towards these markets, reallocating resources while still investing in the core business [33] Question: What is the outlook for the PC market and potential opportunities? - The key opportunity lies in GaN penetration in notebooks, with ongoing design activity [62] Question: How is the traction in the automotive sector? - Management highlighted successful design wins in heavy vehicles and passenger cars, indicating a strong future potential [64][68]

Core Insights - Johnson Controls International plc reported strong fourth-quarter results, with adjusted earnings per share of $1.26, surpassing the analyst consensus estimate of $1.20 [1] - The company achieved quarterly revenue of $6.44 billion, exceeding the forecast of $6.32 billion [1] Quarterly Metrics - Orders increased by 7% year-over-year, driven by strong demand in the Americas, which offset weakness in China [2] - Fourth-quarter sales rose by 3%, with organic sales up by 4%; for the entire year, sales increased by 3% and organic sales climbed by 6% [2] Financial Performance - Johnson Controls experienced double-digit EPS growth and reported a record backlog of $15 billion, reflecting a 13% increase [3] - Adjusted gross profit for the quarter rose by 4% to $2.365 billion, with adjusted gross margin expanding to 36.7% from 36.3% year-over-year [3] Sales Across Geographies - In the Americas, quarterly sales reached $4.325 billion, a 1% year-over-year increase, with organic sales up by 3% [4] - EMEA sales for the quarter were $1.3 billion, marking a 13% increase compared to the previous year [4] - APAC sales declined by 3% year-over-year to $780 million, primarily due to lower volumes in China [5] Outlook - The company anticipates first-quarter adjusted EPS of 83 cents, slightly above the analyst estimate of 82 cents [6] - For fiscal 2026, Johnson Controls projects adjusted EPS of $4.55, significantly higher than the $3.74 analyst estimate, driven by increasing needs in data center cooling and decarbonization [6] - Johnson Controls shares rose by 8.95% to $120.95 following the earnings report [6]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a 6% increase in sales, with segment margins expanding by 100 basis points and adjusted EPS rising by 17% [8][24] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [8][24] - The company ended the quarter with approximately $400 million in available cash and net debt declined to 2.4 times compared to the prior year [24] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in Q4, with segment margin expanding by 20 basis points to 18.8% [23] - Orders grew 6% in the quarter, with a notable 9% growth in the Americas, driven by data center strength [24] - EMEA orders increased by 3%, while APAC saw a small decline of 1% due to lower systems volumes [24] Market Data and Key Metrics Changes - The backlog expanded by 13% to a record $15 billion, with system backlog growing by 14% and service backlog by 9% [24] - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [25] - APAC sales declined 3% organically, primarily due to lower volumes in China [25] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [8][27] - A proprietary business system is being implemented to enhance operational efficiency and customer-centricity [9][10] - The focus on technology innovation and sustainability is expected to drive future growth, particularly in advanced thermal management for data centers [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and achieve long-term growth commitments [30] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [29][30] - The company is focused on leveraging strengths in HVAC controls and digital solutions to capture significant opportunities [21][27] Other Important Information - The company is pursuing selective acquisitions to strengthen its portfolio while maintaining a strong balance sheet [28] - Recent leadership changes aim to enhance operational capabilities and align talent with strategic priorities [11] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with overall operating leverage expected to be in the 50s or above [33] Question: What are the opportunities for cost and portfolio improvements? - Management highlighted ongoing efforts to reduce G&A costs and improve productivity through the proprietary business system, with a vibrant acquisition pipeline [34][38] Question: Can you provide details on the $250 million benefits related to operating leverage? - Management confirmed that the operating leverage is expected to improve over time, driven by productivity and responsible cost reductions [40][41] Question: What is the outlook for orders in the first quarter? - Management noted that the health of the pipeline continues to improve, with opportunities for growth in orders despite tough comparisons [51] Question: How does the company view the content opportunity in data centers? - Management emphasized that the demand for cooling solutions is increasing due to higher power requirements from newer chips, positioning the company well in the market [66] Question: Can you elaborate on the investments in technology for the aftermarket? - Management stated that technology investments are aimed at both gaining market share and improving margin profiles by lowering service costs [69]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a 6% increase in sales, with segment margins expanding by 100 basis points and adjusted EPS rising by 17% [8][24] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [8][24] - The company ended the quarter with approximately $400 million in available cash and net debt declined to 2.4 times compared to the prior year [24] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in Q4, with segment margin expanding 20 basis points to 18.8% [23] - Orders grew 6% in the quarter, with 9% growth in the Americas, supported by strength in data centers [24] - EMEA orders increased 3%, while APAC orders saw a small decline of 1% [24] Market Data and Key Metrics Changes - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [25] - APAC sales declined 3% organically, primarily due to lower volumes in China [25] - The backlog grew 13% to a record $15 billion, with system backlog growing 14% and service backlog growing 9% [26] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [8][27] - The proprietary business system is being developed as a growth engine, focusing on customer-centric and continuous improvement [7][9] - The company aims to leverage strengths in HVAC controls and digital solutions to capture significant opportunities in decarbonization and mission-critical systems [21][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and maintain strong operational discipline [30] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [29][30] - Management highlighted the importance of technological innovation and sustainability in driving future growth [15][21] Other Important Information - The company is focused on strengthening leadership capabilities and aligning talent with strategic priorities [10] - Recent initiatives include a major announcement to provide green heat to Zurich through a waste incineration project, showcasing leadership in decarbonization [18][19] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with overall operating leverage expected to be in the 50s or above [33] Question: Can you rank the opportunities going forward, including cost and portfolio opportunities? - Management emphasized ongoing efforts to reduce G&A costs and improve productivity, with a vibrant acquisition pipeline being pursued [34][38] Question: What are the drivers behind the decline in amortization? - The decline is attributed to impairments and portfolio actions, with further reductions possible through contemplated divestitures [49][50] Question: What is the outlook for orders in the first quarter? - Management expressed confidence in the health of the pipeline and the potential for order growth despite tough comparisons [51][52] Question: Can you elaborate on the margin improvement opportunities in EMEA and APAC? - Management noted that improvements will come from a combination of pricing discipline and ongoing deployment of the business system [62] Question: How does the transition from air cooling to liquid cooling affect content opportunities? - Management stated that the need for more cooling due to newer chips will increase the demand for chillers, maintaining strong opportunities in both air and liquid cooling solutions [66][67] Question: What is the strategic investment in Excelsius and its complementarity with the CDU? - The CDU launch is aimed at capturing significant market opportunities, while Excelsius anticipates future cooling needs for upcoming chip launches [94][95] Question: How is the company addressing accountability and KPIs? - Management is in the process of establishing enterprise KPIs to enhance accountability, with some tweaks to compensation structures being considered [84][85]

Financial Data and Key Metrics Changes - Fiscal 2025 saw a sales growth of 6%, with segment margins expanding by 100 basis points and adjusted EPS increasing by 17% [6][20] - Free cash flow conversion reached 102%, reflecting disciplined execution and financial strength [6][21] - The company ended the quarter with approximately $400 million in available cash, and net debt declined to 2.4 times compared to the prior year [21] Business Line Data and Key Metrics Changes - Organic revenue grew 4% in the fourth quarter, with segment margin expanding by 20 basis points to 18.8% [20] - Orders grew 6% in the quarter, with a notable 9% growth in the Americas, supported by strength in data centers [21] - In EMEA, orders increased by 3%, while APAC saw a small decline of 1% due to decreasing systems [22] Market Data and Key Metrics Changes - The backlog expanded by 13% to a record $15 billion, with system backlog growing by 14% and service backlog by 9% [21][24] - In the Americas, sales were up 3% organically, while EMEA delivered 9% organic growth [22] - APAC experienced a 3% organic sales decline, primarily due to lower volumes in China [22] Company Strategy and Development Direction - The company is updating its long-term growth algorithm to reflect improved mid-single-digit top-line growth and double-digit adjusted EPS growth [6][24] - The proprietary business system is being developed as a growth engine, focusing on customer-centric and continuous improvement [5][8] - The company aims to leverage strengths in HVAC controls and digital solutions to capture significant opportunities in decarbonization and mission-critical systems [19][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate evolving market conditions and achieve long-term growth commitments [26] - The guidance for fiscal 2026 includes expectations for mid-single-digit organic revenue growth and approximately 100% free cash flow conversion [25][26] - Management highlighted the importance of operational efficiencies and a record backlog in supporting future growth [25][26] Other Important Information - The company is focusing on investments in organic growth, returning capital to shareholders, and pursuing selective acquisitions [24] - Recent leadership changes include the appointment of a new leader for the Americas segment to sharpen customer focus [10] Q&A Session Summary Question: Can you walk through the 50% operating leverage target for 2026? - Management indicated that EMEA and APAC will be the main drivers of margin improvement, with a comfortable outlook for operating leverage in the 50s or above [28][29] Question: What are the opportunities for cost and portfolio improvements? - Management emphasized ongoing efforts to reduce G&A costs and improve productivity through the proprietary business system, with a vibrant acquisition pipeline [31][32] Question: Can you provide more detail on the $250 million benefits from operating leverage? - Management confirmed that the operating leverage will continue to improve over time, driven by productivity and responsible cost reductions [32][34] Question: What is the outlook for orders in the first quarter? - Management noted that the health of the pipeline continues to improve, with expectations for order growth despite tough comparisons [36] Question: How will the company achieve 100% cash flow conversion? - Management highlighted strong improvements in receivable management and inventory management as key drivers for free cash flow conversion [38][39] Question: What are the targeted actions for margin improvement in EMEA and APAC? - Management stated that margin improvement will come from a combination of pricing discipline, operational efficiency, and ongoing deployment of the business system [40] Question: How does the company view the content opportunity in data centers? - Management expressed confidence in the continued demand for both air and liquid cooling solutions, emphasizing the strength of their chiller offerings [41] Question: What is the impact of technology investments on aftermarket services? - Management indicated that technology investments are driving both share gain and margin improvement by lowering costs to serve [43] Question: Can you discuss the order growth from specific verticals? - Management noted strong growth in data centers, pharmaceuticals, and advanced manufacturing as key verticals driving backlog growth [45]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Supplemental Information contains forward-looking statements and information, within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, "safe harbor" provisions of the United States Private Securities Litigation Reform ...

Abu Dhabi National Oil Company (ADNOC) has signed a 15-year sales and purchase agreement with Shell International Trading Middle East Limited for up to 1 million tons per annum (mtpa) of liquefied natural gas (LNG) from the Ruwais LNG project, marking ADNOC’s first long-term LNG deal with Shell and the eighth such offtake agreement for the facility. The agreement, signed during ADIPEC 2025, converts a prior Heads of Agreement into a definitive deal and brings ADNOC’s total contracted LNG volumes from Ruwa ...