Financial Data and Key Metrics Changes - The company achieved a 2.5% increase in revenue for Q1 2025, totaling $229.8 million compared to the same period last year [5][11] - Net income attributable to stockholders rose by 4.6% to $40.4 million, or $0.66 per diluted share [5][12] - Adjusted EBITDA grew by 6.4% to a record $150.3 million, driven by strong performance in the Energy Storage segment [5][12] Business Line Data and Key Metrics Changes - Electricity segment revenues decreased by 5.8% to $180.2 million due to curtailments in California and Nevada [11][13] - Product segment revenues increased by 27.9% to $31.8 million, supported by a strong backlog [11][13] - Energy Storage segment revenues surged nearly 120% in Q1, primarily due to new facilities and strong merchant prices [11][14] Market Data and Key Metrics Changes - The gross margin for the electricity segment fell to 33.5% from 39% year-over-year, impacted by lower revenues from curtailments [11][15] - The Energy Storage segment reported a gross margin of 30.6%, a significant improvement from 7.5% in Q1 2024 [11][16] - The product segment's gross margin improved to 22.3% from 14.8% last year, reflecting better profitability [11][15] Company Strategy and Development Direction - The company plans to acquire the 20 megawatt Blue Mountain geothermal power plant for $88 million, with upgrades expected to add 3.5 megawatts by 2027 [7][8] - A restructuring of the electricity segment management is underway to enhance operational efficiency and focus on drilling and exploration activities [24][76] - The company aims to reach a generating capacity target of 2.6 to 2.8 gigawatts by the end of 2028, supported by geothermal development and energy storage expansion [28][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the geothermal business growth potential, citing easing project permitting timelines and strong demand for renewable energy [7][30] - The company is actively monitoring tariff impacts and is engaging with suppliers to mitigate potential disruptions [9][10] - Despite uncertainties in the regulatory environment, management believes the energy storage market will continue to grow [40][73] Other Important Information - The company declared a quarterly dividend of $0.12 per share, expected to be paid in the upcoming quarters [21] - Total expected capital expenditure for 2025 has increased to $597 million, primarily due to geothermal and storage projects [20] Q&A Session Summary Question: Impact of storage project development pipeline on tariffs - Management indicated that they are exploring multiple alternatives for battery acquisition and are prepared for potential tariff impacts [36][39] Question: Effect of tariffs on geothermal costs - Management confirmed that the impact of tariffs on geothermal CapEx is not material, as most costs are incurred in the U.S. [42] Question: EGS technology implementation timing and opportunities - Management noted that EGS technology could enhance existing plants and expand development opportunities, but technological challenges remain [44] Question: Regulatory changes to expedite geothermal development - Management highlighted a new executive order aimed at speeding up permitting processes for geothermal projects on federal land [48][49] Question: Updated view on gross margins for storage and electricity segments - Management expects storage margins to be at the higher end of 20% and product segment margins to improve to 21% [50] Question: Parameters on expected EBITDA contribution from Blue Mountain acquisition - Management stated that the asset's EBITDA multiple is expected to improve significantly post-upgrade and new PPA negotiations [53][55] Question: Update on PPA pricing and negotiations - Management reported that PPA pricing remains high, with ongoing negotiations expected to yield favorable outcomes [57] Question: Exploration activities and partnerships - Management confirmed increased exploration activities and partnerships with Schlumberger to enhance project development efficiency [64][66]

Financial Data and Key Metrics Changes - The second quarter of fiscal 2025 saw a net income of $136.9 million or $2.11 per common unit, compared to $110.3 million or $1.71 per common unit in the prior year, marking a significant increase [12] - Adjusted EBITDA increased by $28 million or 19.1% to $175 million compared to the prior year [12][16] - Retail propane gallons sold were 162 million, a 15.5% increase from the previous year, driven by cooler temperatures and recent acquisitions [12][16] Business Line Data and Key Metrics Changes - Propane volumes increased by 15.5% year-over-year, with the highest volume delivered in January 2025 since 2018 [8][12] - Average daily renewable natural gas (RNG) injection improved from the first quarter but was slightly down compared to the previous year due to cold temperatures affecting production [9] - The company made significant progress in integrating a propane business acquired for approximately $53 million, exceeding performance expectations [10] Market Data and Key Metrics Changes - Average wholesale propane prices for the quarter were $0.90 per gallon, a 7.2% increase compared to the prior year [15] - U.S. propane inventories were 44.1 million barrels, 15% lower than March 2024 levels, indicating strong seasonal demand [14] Company Strategy and Development Direction - The long-term strategic growth plan focuses on growing the core propane business and investing in lower carbon renewable energy alternatives while maintaining balance sheet flexibility [11] - The company launched an At the Market (ATM) equity sales program to raise up to $100 million for opportunistic growth and debt repayment [10][11] - The partnership with NASCAR as the official propane partner highlights the company's commitment to sustainability and community engagement [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating commodity cycles and managing propane supply effectively [28] - The propane M&A landscape has changed, with fewer buyers, presenting opportunities for Suburban Propane to acquire quality businesses [31][33] - Regulatory developments regarding renewable natural gas production tax credits are being monitored, with expectations for improved credit values in the future [18][36] Other Important Information - The quarterly distribution was declared at $0.325 per common unit, with a strong coverage ratio of 2.17 times [20] - The company is well-positioned to meet energy needs and innovate in lower carbon renewable energy markets [25][37] Q&A Session Summary Question: How is Suburban positioning itself for the non-heating season and next heating season? - Management indicated strong supply management capabilities and relationships with suppliers, expecting higher propane inventory levels to influence pricing [28][29] Question: What is Suburban's view on the propane M&A landscape? - The company sees a promising future for propane and is well-positioned to acquire quality businesses due to fewer buyers in the market [31][33] Question: What are the expectations regarding federal and state regulations for renewable energy? - Management anticipates regulatory changes that will positively impact credit values for renewable natural gas, with a focus on operational excellence [34][36]

Financial Data and Key Metrics Changes - The second quarter of fiscal 2025 saw a net income of $136.9 million or $2.11 per common unit, compared to $110.3 million or $1.71 per common unit in the prior year, marking a significant increase [12] - Adjusted EBITDA for the quarter was $175 million, an increase of $28 million or 19.1% compared to the prior year [12][14] - Retail propane gallons sold increased by 15.5% to 162 million gallons, primarily due to cooler temperatures and contributions from recent acquisitions [12][14] Business Line Data and Key Metrics Changes - Propane volumes increased by 15.5% compared to the prior year's second quarter, with the highest volume delivered in January 2025 since 2018 [7][12] - Renewable natural gas (RNG) operations saw average daily injection improve from the first quarter, although it was slightly down from the prior year's second quarter due to cold temperatures affecting production [8][9] Market Data and Key Metrics Changes - Average wholesale propane prices for the quarter were $0.90 per gallon, a 7.2% increase compared to the prior year [14] - U.S. propane inventories were 15% lower than March 2024 levels, contributing to price volatility in the market [14][23] Company Strategy and Development Direction - The long-term strategic growth plan focuses on growing the core propane business and investing in lower carbon renewable energy alternatives while maintaining balance sheet flexibility [11][25] - The company is actively pursuing opportunistic growth through acquisitions, with a strong pipeline of opportunities emerging as the market stabilizes [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the propane market's volatility and highlighted the importance of strong supplier relationships [28][29] - The company is optimistic about the future of propane as a reliable energy source and is well-positioned to capitalize on new market opportunities [33][34] Other Important Information - The company launched an At the Market (ATM) equity sales program to raise up to $100 million, with net proceeds of $8.8 million used to repay debt [10][11] - A quarterly distribution of $0.325 per common unit was declared, with a coverage ratio of 2.17 times for the trailing twelve months [20] Q&A Session Summary Question: How is Suburban positioning itself ahead of the non-heating season? - Management indicated that they have strong supply management practices and expect higher propane inventory levels to influence pricing [28][29] Question: What is Suburban's view on the propane M&A landscape? - The company noted a reduced number of buyers in the market, presenting a favorable opportunity for Suburban to pursue quality acquisitions [31][34] Question: What are the expectations regarding renewable energy regulations? - Management discussed the potential for improved credit values in the environmental attribute markets and emphasized operational excellence in their RNG platform [35][36]

Core Insights - Sonoco Products Company has transformed into a more sustainable packaging company following the acquisition of Eviosys, enhancing its sustainability footprint and global reach [1][2] Group 1: Sustainability Initiatives - The acquisition of Eviosys adds 6,300 employees and 45 facilities across Europe, the Middle East, and Africa, positioning Sonoco as a global leader in metal and fiber packaging [2] - Sonoco aims to reduce Scope 1 and 2 greenhouse gas emissions by 25% by 2030 from a 2020 baseline, supported by investments in renewable energy and energy efficiency [3] - In 2024, Sonoco implemented 27 sustainability projects, achieving a 9.6% reduction in energy use, surpassing its 8% goal for 2030 [4] Group 2: Emission Reductions and Achievements - Eviosys achieved a 26.3% reduction in Scope 1 and 2 emissions from its 2020 baseline in 2024 and received an EcoVadis Platinum rating for environmental performance [5] - The integration of energy-efficient technologies is expected to reduce natural gas usage by 60% and eliminate solvent emissions [5] Group 3: Product Innovations - Sonoco's packaging innovations include the Rigid Paper Container and lightweight steel aerosols, which enhance recyclability and reduce carbon emissions [6] - Eviosys' Ecopeel and Horizon products have been recognized for their sustainable design, cutting carbon emissions by 20% and enhancing recyclability [6] Group 4: Corporate Vision and Recognition - Sonoco's mission, "Better Packaging. Better Life.", drives its commitment to sustainability and innovation across its global operations [7] - The company has been recognized as one of America's Most Trustworthy and Responsible Companies by Newsweek in 2025 [8]

Financial Performance & Guidance - Q2 2025 revenue reached $432 million, a 31% decrease compared to Q2 2024[10, 29, 30] - Adjusted EBITDA for Q2 2025 was -$30 million[10, 29, 30] - The company lowered FY25 revenue guidance to $2.6 billion - $2.8 billion, with a midpoint of $2700 million[10, 36, 39] - FY25 Adjusted EBITDA guidance was also lowered to $0 - $20 million, with a midpoint of $10 million[36, 43] - The company anticipates an adjusted gross profit margin of 10-12% for FY25[37, 41] - The company expects H2 FY'25 revenue split to be approximately 35% in Q3 and 65% in Q4[37] Backlog & Pipeline - Backlog as of March 31, 2025, was approximately $4.9 billion[10, 21, 45] - The company's pipeline as of March 31, 2025, was approximately $22 billion[10, 21] - H2 FY25 backlog is $1.9 billion, and future years backlog is $3.0 billion[21] - Annual Recurring Revenue (ARR) as of March 31, 2025, was $110 million[10] Tariffs & Strategy - The company paused certain US project execution and order intake due to US tariff uncertainty[10, 13, 39, 45] - The company believes current tariff levels are unsustainable and expects an eventual US-China trade deal to ease tariffs[13] - The company has a robust liquidity position of over $1 billion to navigate the current environment[10, 45]

Core Viewpoint - Georgia Power is advancing the construction of new battery energy storage systems (BESS) across multiple counties in Georgia to enhance the reliability and resiliency of the electric grid as the state grows [1][4]. Group 1: Project Details - Construction is underway for 765 megawatts (MW) of new BESS projects in Bibb, Lowndes, Floyd, and Cherokee counties, authorized by the Georgia Public Service Commission [1]. - The Hammond Battery Facility, a 57.5 MW BESS, will store excess energy for use during peak demand periods and is expected to be operational by November 2026 [2][6]. - The McGrau Ford Battery Facility in Cherokee County will consist of two phases totaling 530 MW, with projected operation dates in October 2026 and September 2026 [3][6]. Group 2: Benefits and Strategic Importance - BESS projects support the reliability and resilience of the electric system while enhancing the value of renewable energy resources like solar [4]. - The Robins BESS (128 MW) and Moody BESS (49.5 MW) projects are strategically co-located with existing solar facilities, allowing for efficient use of infrastructure and expedited deployment [5][6]. - The integration of BESS is crucial for accommodating the variability of renewable energy sources and meeting capacity needs [5]. Group 3: Future Developments - Georgia Power plans to procure an additional 1,000 MW of BESS through competitive bidding processes in the coming years [7]. - A 13 MW demonstration project is in development at Fort Stewart Army Installation, showcasing the company's commitment to expanding battery storage capabilities [7]. - The 2025 Integrated Resource Plan includes enhancements to customer-sited generation resources, aiming to secure an initial 50 MW of capacity through a new Customer-Sited Solar Plus Storage Pilot [8].

Financial Data and Key Metrics Changes - The company reported a consolidated adjusted EBITDA growth of 26%, outpacing a 12% revenue growth in the first quarter of 2025, with a margin expansion of 190 basis points [6][21] - The net debt to adjusted EBITDA ratio was maintained at 2.9 times, with expectations to reduce leverage to a target of 2 to 2.5 times over the next twelve months [7][19] Business Line Data and Key Metrics Changes - **Construction Products**: Revenues increased by 5%, driven by the Stabola acquisition, but organic revenues declined by 6% due to lower freight revenues and divestitures [11][12] - **Engineered Structures**: Revenues increased by 23%, largely due to higher wind tower volumes and the inorganic impact from the Amaron acquisition, with adjusted segment EBITDA increasing by 90% [15][16] - **Transportation Products**: Revenues were up 6%, with adjusted segment EBITDA increasing by 13%, driven by higher tank barge volumes [17] Market Data and Key Metrics Changes - The aggregates business represented 69% of construction materials revenues, with average organic pricing up 7% year-over-year and total pricing up 10% due to the Stabola acquisition [10][12] - The company expects continued investment in U.S. infrastructure to benefit operations, with strong demand conditions in various end markets [8][9] Company Strategy and Development Direction - The company is focused on executing its strategic vision, with a commitment to reducing leverage and enhancing operational efficiency [5][7] - The integration of the Stabola acquisition is expected to contribute positively in the second quarter, with a strong outlook for construction products and engineered structures [20][23] - The company anticipates sustained demand growth in utility structures due to increased electrification and renewable energy needs [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the evolving macroeconomic environment, citing strong demand in most end markets and solid visibility from backlogs [8][9] - The company expects a strong 2025, reiterating full-year guidance with anticipated revenue of $2.9 billion and adjusted EBITDA of $570 million, reflecting a 17% and 30% increase, respectively [21][22] Other Important Information - The company reaffirmed its capital expenditure guidance of $145 to $165 million for the full year, with a focus on maintenance CapEx [20] - Free cash flow for the quarter was negative $30 million, but management expects improvement in the second half of the year [20] Q&A Session Summary Question: Can you elaborate on the wind tower contribution to sales and profit dollars in the quarter? - Management highlighted strong demand and volume growth in utility structures, with the wind tower facility ramping up effectively, contributing positively to margins [36][38] Question: What are the expectations for the construction products business moving forward? - Management indicated no surprises in the Stabola operations, with good demand and orders expected to improve significantly in the second quarter [66][71] Question: How is the company managing pricing versus volume declines in aggregates? - The company is focusing on margin rather than volume, with local decision-making to balance cost absorption and pricing strategies [92][93] Question: What is the outlook for the housing market and its impact on the business? - Management expects stabilization and a potential recovery in the housing market in the second half of the year, although not a booming market [104][105]

Financial Performance & Growth - NiSource reaffirmed its 2025 adjusted EPS guidance of $1.85-$1.89[12] - The company projects an annual adjusted EPS growth of 6%-8% from 2025-2029[9, 12] - NiSource anticipates an 8%-10% rate base growth from 2025-2029[9] - The company is targeting a 14%-16% annual FFO/Debt through 2029[9, 12] - NiSource reported Q1 2025 GAAP net income available to common shareholders of $474.8 million, compared to $344.3 million in Q1 2024, an increase of $130.5 million[26] - Adjusted net income available to common shareholders for Q1 2025 was $462.3 million, up from $382.8 million in Q1 2024, representing a $79.5 million increase[26] - Adjusted earnings per share for Q1 2025 was $0.98, compared to $0.85 in Q1 2024, a $0.13 increase[26] Capital Investments & Funding - NiSource plans a base plan capital investment of $19.4 billion from 2025-2029[9, 12] - The company has an upside 5-year capital opportunity of $2.2 billion from 2025-2029, which is not included in the base plan[29] - The capital investment funding sources are projected to be 50%-55% from cash from operations, 35%-40% from net new debt, 6%-8% from equity, and 3%-5% from minority interest contribution[31] Strategic Initiatives - NiSource aims to achieve Net Zero emissions by 2040[9, 58] - The company is focused on building a constructive regulatory foundation, including rate case filings and approvals in various states[12, 19] - NiSource is prioritizing operational excellence through AI utilization and continuous improvement initiatives[12, 16]

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $1.6 billion, an increase of $235 million or 16.7% from the prior year, driven by growth in both Energy and Utility segments [17][18] - Gross profit for Q1 was approximately $171 million, an increase of $37 million or 28% from the prior year, with gross margins at 10.4% compared to 9.4% in the prior year [18][19] - Cash from operations for Q1 was $66.2 million, an increase of nearly $95 million from the prior year, marking a record for the company [23] Business Line Data and Key Metrics Changes - In the Utilities segment, gross profit was $51.6 million, up $22.1 million compared to the prior year, driven by higher revenue in gas operations and significant improvement in power delivery profitability [19][20] - The Energy segment achieved significant top-line growth, with gross profit just over $119 million for the quarter, a $15.2 million increase from the prior year, primarily due to higher revenue in Renewables [20][21] - The Utilities backlog increased by $88 million from year-end, driven by MSA and fixed backlog, while the Energy segment backlog decreased by $567 million due to timing of new solar awards [25] Market Data and Key Metrics Changes - The company noted strong demand in North American power, industrial, and energy infrastructure, positioning itself to capitalize on ongoing investments [7][9] - The company is optimistic about continued bookings throughout the year, despite potential economic and regulatory uncertainties [9][10] Company Strategy and Development Direction - The company is focused on driving higher margins and improved cash flow while maintaining safety and operational efficiency [6][16] - The management emphasized the importance of being selective in project bidding and maintaining strong communication with customers to ensure project execution [16][68] - The company is actively monitoring market conditions and is prepared to adapt to changes, with a strong balance sheet allowing for continued investment in growth opportunities [29][76] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing demand for critical infrastructure services and the ability to achieve or exceed financial goals for 2025 [16][26] - The company is closely monitoring risks related to tariffs and regulatory changes but does not expect significant impacts on operations in 2025 [8][79] - Management indicated that while there may be some delays in project signings, they have not seen major pauses from customers [33][87] Other Important Information - The company authorized a new share purchase program allowing for the purchase of up to $150 million in shares through April 2028 [24] - The effective tax rate for the quarter was 29%, expected to remain consistent for the full year [22] Q&A Session Summary Question: Concerns about prolonged economic uncertainty and project signings - Management clarified that there is no significant freeze in project signings and that customer conversations indicate a normal cadence of uncertainty [33][34] Question: Interest expense outlook - Management indicated that they do not expect a significant uptick in interest expense and will monitor trends closely [37] Question: Confidence in financial targets for 2024-2026 - Management confirmed they are on track or ahead of schedule in all metrics laid out during Analyst Day [44][45] Question: Renewable revenue targets for 2025 - Management expects to return to a normal growth cadence post-2025, with a significant portion of 2026 already booked [47] Question: Update on CEO search - The board is prioritizing finding the right candidate without a specific timeline, focusing on public company experience and acquisition integration [48] Question: Utility segment margin performance - Management expects modest growth in utilities, with potential for margin improvement if supply chain conditions improve [51] Question: Natural gas generation opportunities - Management is vetting approximately $1 billion in natural gas projects tied to data centers [53] Question: Impact of tariffs on solar projects - Management stated that tariffs have not significantly impacted their business, and they are prepared for various scenarios [79][81] Question: Timing and impact of reconciliation bill on solar projects - Management is in regular communication with customers and feels prepared for any outcome regarding the reconciliation bill [91]

Financial Data and Key Metrics Changes - For the second quarter of fiscal 2025, the company reported an NFEPS of $1.78 per share, an increase from $1.41 per share in the previous year, reflecting improved performance across various segments [22][10][12] - The fiscal 2025 NFEPS guidance has been raised by $0.10 to a revised range of $3.15 to $3.30 per share, exceeding the long-term growth target of 7% to 9% [10][12][30] Business Line Data and Key Metrics Changes - New Jersey Natural Gas showed higher utility gross margin due to a recent base rate case settlement, contributing significantly to the overall NFE [22][11] - Clean Energy Ventures reported higher NFE driven by the sale of its residential solar portfolio, which is expected to generate a net benefit of approximately $0.30 per share for fiscal 2025 [22][23] - The storage and transportation segment improved performance, particularly at Leaf River, contributing to higher revenues [22][10] Market Data and Key Metrics Changes - The company continues to see consistent customer growth in New Jersey Natural Gas, driven by new construction and system expansions, with a customer base predominantly residential [14][60] - The company has invested $254 million in New Jersey Natural Gas this year, with 46% of that CapEx providing near real-time returns [16][15] Company Strategy and Development Direction - The company emphasizes disciplined capital deployment, operational excellence, and strategic innovation across all business segments to ensure long-term sustainable growth [9][10] - The Clean Energy Ventures segment is diversifying its project pipeline, with a focus on avoiding overreliance on any single market or policy regime [19][20] - The company is proactive in managing energy affordability through various programs, including BGSS incentive programs, which have saved customers nearly $800 million over the last ten years [15][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the current macroeconomic environment, particularly regarding tariffs, is being monitored closely, with minimal expected impact on operations due to domestic sourcing of materials [26][27][29] - The company remains well-positioned for sustained long-term growth, supported by a strong balance sheet and liquidity [29][30] Other Important Information - The company plans capital expenditures ranging from $1.3 billion to $1.6 billion for fiscal 2025 and 2026, aligning with its long-term growth targets [23][24] - The adjusted funds from operations to adjusted debt ratio is projected to range between 19% to 21% for fiscal 2025, maintaining financial flexibility [24] Q&A Session Summary Question: Timing and capital requirements for Leaf River expansion - Management indicated that the total capital costs for the Leaf River expansion are estimated between $175 million to $200 million, with no finite timeline set for advancing the project [34] Question: Cost exposure to tariffs for Clean Energy Ventures - Management acknowledged the fluid situation regarding tariffs but emphasized that existing contractual protections should mitigate potential impacts on project costs [37][38] Question: Expected economics of Leaf River compared to existing caverns - Management stated that the decision to build will depend on securing appropriate returns and contracts, with a focus on ensuring a clear understanding of construction costs [47] Question: Regulatory environment and affordability initiatives - Management expressed confidence in the regulatory environment following the completion of recent rate cases and highlighted ongoing efforts to maintain affordability for customers [50][52] Question: Customer growth fundamentals - Management noted that customer growth is driven by a strong service territory with high per capita income and ongoing energy efficiency programs [60][61] Question: Focus on the Energy Master Plan - Management mentioned that comments have been submitted regarding the Energy Master Plan, with expectations of a new plan following the gubernatorial election [66]