Financial Data and Key Metrics Changes - The reported fourth quarter earnings per share (EPS) was $0.49, a significant decrease from $4.36 in the fourth quarter of 2024, impacted by unfavorable mark-to-market timing differences and notable items related to pension plan settlements and integration costs [10][11] - Adjusted EPS for the fourth quarter was $1.99, down from $2.13 in the prior year, while adjusted segment earnings before interest and taxes (EBIT) rose to $756 million from $546 million year-over-year [11][14] - Net interest expense increased to $176 million compared to the previous year, reflecting the addition of Viterra [14] Business Line Data and Key Metrics Changes - In the soybean processing and refining segment, results improved due to higher processing and refining outcomes in Argentina and Brazil, despite lower results in North America [11] - The soft seed processing and refining segment saw higher results driven by better average processing margins and the addition of Viterra's assets [12] - Grain merchandising and milling segment results improved due to global wheat and barley performance, although lower results were noted in global corn and ocean freight [13] Market Data and Key Metrics Changes - The environment remains complex with geopolitical tensions and trade flow uncertainties affecting farmer and consumer behavior [9] - The company expects full year 2026 adjusted EPS in the range of $7.50-$8, reflecting limited forward visibility particularly regarding U.S. biofuel policy [9][18] Company Strategy and Development Direction - The company is focused on integrating Viterra to enhance operational efficiency and connectivity across its global platform, aiming to unlock synergies in origination, merchandising, processing, and distribution [5][6] - The strategic investment in large greenfield projects continues, navigating trade flows and geopolitical volatility while connecting farmers to market demand [8][20] - The company emphasizes continuous improvement and resilience, positioning itself to deliver value in various market environments [20][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complexity of the current environment, with limited visibility on future conditions, particularly regarding biofuel policy [9][18] - The company remains optimistic about its capabilities to adapt and succeed, leveraging the integration of Viterra to enhance its market position [20][21] Other Important Information - The company generated over $1.7 billion in adjusted funds from operations, with approximately $1.25 billion of discretionary cash flow available after capital expenditures [14][15] - The adjusted return on invested capital (ROIC) was reported at 8.1%, with an adjusted leverage ratio of 1.9 times at the end of the fourth quarter [16] Q&A Session Summary Question: Impact of RVO on margins and guidance - Management indicated that current guidance does not factor in potential changes from the Renewable Volume Obligation (RVO), but improvements in U.S. curves suggest a positive outlook [24][25] Question: Earnings cadence for the year - The company anticipates a first half to second half earnings split of approximately 30/70, with a lighter first half compared to historical trends [27][28] Question: Clarification on guidance methodology - Management confirmed that the same approach to guidance based on forward curves was used, with adjustments for market conditions expected once the RVO is finalized [34][35] Question: Potential for crush margins to replicate past performance - Management acknowledged the potential for improved margins due to increased capacity and favorable biofuel policies, but refrained from making specific predictions [39][40] Question: Synergies from Viterra integration - The company expects to realize approximately $190 million in synergies in 2026, ahead of schedule, with a run rate of around $220 million by year-end [51][52] Question: EPS guidance and segment performance - Management provided a breakdown of expected EBIT contributions by segment, with soy processing and refining expected to account for about 50% of total EBIT [87][88]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported adjusted operating income of $688 million or $4.61 per diluted share, with a year-end adjusted book value per share increasing by 11% to $37.87 [4][11] - In the fourth quarter, adjusted operating income was $179 million or $1.23 per diluted share, compared to $1.09 per diluted share in the same period last year [11][12] - Adjusted return on equity for the fourth quarter was 13.5% [6][11] Business Line Data and Key Metrics Changes - New insurance written for the fourth quarter was $14 billion, up 2% sequentially and 8% year-over-year [12] - The primary insurance in force reached $273 billion in the fourth quarter, up $1 billion from the third quarter and $4 billion year-over-year [13] - Total net premiums earned were $246 million, flat year-over-year [13][14] Market Data and Key Metrics Changes - Persistency was 80% in the fourth quarter, down 3 points sequentially and 2 points year-over-year [12] - The risk-weighted average FICO score in the insurance in-force portfolio was 746, with a risk-weighted average loan-to-value ratio of 93% [7] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, supporting existing policyholders, and investing in business growth while returning excess capital to shareholders [8][9] - The company plans to return approximately $500 million to shareholders in 2026, supported by a strong capital position and effective risk management [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain macro environment and highlighted strong long-term housing demand driven by demographic tailwinds [22] - The company remains engaged with policymakers regarding housing affordability and supply constraints, indicating a proactive approach to evolving regulatory environments [31][32] Other Important Information - The company maintained operating expenses at $217 million for the full year, with an expense ratio of 24% in the fourth quarter [18] - The PMIER sufficiency ratio was 162%, providing significant financial flexibility [19] Q&A Session Summary Question: Sensitivities to capital return goal for 2026 - Management is confident in delivering $500 million back to shareholders but will evaluate market dynamics and business performance throughout the year [25][26] Question: Regulatory environment and potential FHA re-rate cut - Management is actively engaged with policymakers and is monitoring discussions around affordability and inventory challenges [30][31] Question: Mortgage market assumptions for 2026 - The company anticipates a 10%-15% increase in the mortgage insurance market from 2025 to 2026, based on external forecasts [34][35] Question: Trends in default rates - Management expects new delinquencies to moderate, with a focus on the aging of book years contributing to delinquencies [39] Question: Credit performance of new book years - Recent book years are performing in line with pricing expectations, with no significant negative variations noted [44][45] Question: Expense management and technology investment - The company has kept expenses flat and continues to invest in technology to drive efficiencies [53][54] Question: Reinsurance transactions and pricing trends - The company has secured favorable terms in recent reinsurance transactions, with attachment points generally around 3% and detachment points around 7% [56][57]

Financial Data and Key Metrics Changes - The reported fourth quarter earnings per share (EPS) was $0.49, a significant decrease from $4.36 in the fourth quarter of 2024, impacted by unfavorable mark-to-market timing differences and notable items related to pension plan settlements and integration costs [8][9] - Adjusted EPS for the fourth quarter was $1.99, down from $2.13 in the prior year, while adjusted segment earnings before interest and taxes (EBIT) rose to $756 million from $546 million year-over-year [9][12] - Net interest expense increased to $176 million compared to the previous year, reflecting the addition of Viterra [12] Business Line Data and Key Metrics Changes - In the soybean processing and refining segment, results improved due to higher processing and refining outcomes in Argentina and Brazil, despite lower results in North America [9][10] - The soft seed processing and refining segment saw higher results driven by better processing margins and the addition of Viterra's assets [10] - Grain merchandising and milling segment results improved due to global wheat and barley performance, offset by lower results in corn and ocean freight [11] Market Data and Key Metrics Changes - The environment remains complex with geopolitical tensions and trade flow uncertainties affecting farmer and consumer behavior [7] - The company expects full year 2026 adjusted EPS in the range of $7.50-$8, reflecting limited forward visibility particularly regarding U.S. biofuel policy [7][16] Company Strategy and Development Direction - The completion of the Viterra combination is seen as a major milestone, enhancing connectivity and information flow across the organization, which is expected to unlock durable synergies over time [4][5] - The company is focused on navigating trade flows and geopolitical volatility while connecting farmers to end market demand across food, feed, and fuel [6] - Continuous improvement and portfolio optimization are emphasized as part of the company's transformation journey [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the complex operating environment with limited visibility, particularly regarding U.S. biofuel policy, but expresses confidence in the company's ability to deliver value [7][19] - The company is optimistic about the capabilities built through the Viterra integration, which is expected to enhance customer service and risk management [18][19] Other Important Information - The company generated over $1.7 billion of adjusted funds from operations, with approximately $1.25 billion of discretionary cash flow available after capital expenditures [12][13] - The adjusted leverage ratio was 1.9 times at the end of the fourth quarter, reflecting the impact of acquisition debt from Viterra [14] Q&A Session Summary Question: Impact of RVO on margins and guidance - Management indicated that the outlook does not assume any changes from the Renewable Volume Obligation (RVO) but noted improvements in U.S. curves driven by RVO expectations [21][23] Question: Earnings cadence for the year - The company expects a first half to second half earnings split of approximately 30/70, with a lighter first half compared to typical seasonality [26][27] Question: Guidance methodology - The company confirmed that it uses the same approach for guidance based on forward curves and market conditions, without making speculative adjustments [33][34] Question: Synergies from Viterra integration - Management expects to realize about $190 million in synergies in 2026, ahead of schedule, with a run rate of approximately $220 million by year-end [50][51] Question: Biofuel policy and market opportunities - Management expressed optimism about the potential for biofuel policy to drive demand, although no significant contributions are included in the current forecast [94][96]

Financial Data and Key Metrics Changes - Santander reported a record annual profit of EUR 14.1 billion for 2025, marking a 12% year-over-year increase, and 15% excluding Argentina [3][4] - The annual dividend per share grew by 14%, reflecting strong shareholder value creation [4] - The CET1 ratio reached an all-time high of 13.5%, up 70 basis points from the previous year, indicating strong capital generation [13][30] Business Line Data and Key Metrics Changes - Retail profit increased by 9% year-on-year, with a cost-to-income ratio of 39% [8][9] - Consumer business net interest income (NII) grew by 5% year-on-year, while group NII, excluding Argentina, increased by 3% [5][6] - Wealth profit surged by 27% in 2025, driven by strong commercial activity and double-digit fee growth [11] - Payments volume rose by 9%, with PagoNxt EBITDA margin exceeding 34% [11] Market Data and Key Metrics Changes - The customer base expanded by 8 million to 180 million, showcasing strong market penetration [3] - The U.S. market is highlighted as a key growth area, with profits growing over 30% from 2023 to 2025 [15][16] Company Strategy and Development Direction - The acquisition of Webster Financial Corporation is a strategic move to enhance Santander's U.S. operations, aiming for a return on tangible equity (ROTE) of 18% by 2028 [17][22] - The focus remains on improving efficiency and profitability through the "One Transformation" initiative, which emphasizes simplification and automation [7][8] - The company aims to maintain a disciplined approach to capital allocation while pursuing growth opportunities in key markets [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a ROTE exceeding 20% by 2028, driven by the integration of Webster and ongoing transformation efforts [34] - The U.S. market is viewed as attractive due to its growth potential and favorable regulatory environment, with expectations for continued value creation [33][34] - The company anticipates mid-single-digit revenue growth in 2026, with double-digit growth including M&A impacts [35] Other Important Information - A new share buyback program of up to EUR 5 billion was approved, with 65% of the acquisition price for Webster to be paid in cash [13][19] - The integration of Webster is expected to yield approximately $800 million in cost synergies, with a focus on operational efficiencies [27][40] Q&A Session Summary Question: Can you provide more details on the EUR 800 million cost synergies? - Management highlighted that the synergies will come from significant overhead reductions and technology integrations, with a focus on eliminating duplicative structures [37][39][40] Question: Why is the expected ROTE for the U.S. set at 15%? - Management explained that the 15% ROTE aligns with their capital hierarchy and reflects the strong performance of the U.S. operations over the past five years [38][44] Question: What has changed regarding the West Coast market? - The acquisition of Webster allows Santander to operate as a full-service retail commercial bank in the Northeast, which was not feasible previously [49][50] Question: What are the implications of the 140 basis points impact on capital? - The capital impact from the acquisition will primarily come from cash payments, with additional adjustments for deferred tax assets and risk-weighted assets [52] Question: Will new shares be issued for the Webster acquisition? - Yes, 35% of the acquisition consideration will be paid in new shares, while a EUR 5 billion share buyback program will also be initiated [62][63]

Financial Data and Key Metrics Changes - The company reported a record quarterly profit, achieving EUR 14.1 billion in 2025, with a year-over-year profit increase of 12%, and 15% excluding Argentina [1][2] - Revenue grew by 4% in constant euros, with fee income up 9% in constant euros, while expenses decreased by 1% in absolute terms [2] - The cost of risk ended the year at 1.15%, aligning with guidance for 2025, and the return on tangible equity (ROTE) increased from 8.1% to 16.3% [1][2][9] Business Line Data and Key Metrics Changes - The Corporate and Investment Banking (CIB), Wealth, and Payments segments experienced strong revenue growth, driven by fee increases and network effects [3][8] - The consumer business saw net interest income (NII) rise by 5% year-on-year, while group NII, excluding Argentina, grew by 3% [3][6] - Wealth profit increased by 27% in 2025, supported by strong commercial activity and double-digit fee growth [8] Market Data and Key Metrics Changes - The customer base grew by 8 million to 180 million, indicating strong customer activity across all business lines [1] - The company maintained a fully loaded CET1 ratio of 13.5%, well above the target range of 12-13% [10][28] Company Strategy and Development Direction - The company is focused on "One Transformation," aiming to simplify products and improve efficiency, which has resulted in a cost-to-income ratio of 39% [5][6] - The acquisition of Webster is expected to enhance the U.S. operations, aiming for an ROTCE of 18% by 2028, and is seen as a strategic move to strengthen the retail and commercial banking presence in the U.S. [14][18][29] - The company plans to maintain a commitment to at least EUR 10 billion in share buybacks for 2025 and 2026, while also pursuing bolt-on acquisitions [9][28] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market, highlighting its attractiveness and potential for growth, with expectations of achieving a ROTE in excess of 20% by 2028 [30][31] - The integration of TSB and Webster is expected to provide significant operational synergies and enhance profitability [31][32] - The company anticipates mid-single-digit revenue growth in 2026, with double-digit growth including M&A, and profits expected to rise in constant euros [32][60] Other Important Information - The company completed the disposal of Santander Polska, generating around 95 basis points of capital, which will be used for share buybacks and acquisitions [10][11] - The integration of Webster is projected to yield approximately $800 million in cost synergies, with a focus on operational efficiencies and technology integration [23][39] Q&A Session Summary Question: Can you provide more details on the $800 million cost synergies? - Management explained that the synergies are derived from significant overhead reductions and technology integrations, with a focus on eliminating duplicative structures [35][38] Question: What is the rationale behind the 15% ROIC target? - Management stated that the target aligns with the company's capital hierarchy and reflects a consistent approach to shareholder value creation [41][42] Question: How does the acquisition of Webster change the strategy in the U.S. market? - The acquisition allows the company to operate as a full-service retail commercial bank in the Northeast, enhancing its competitive position and profitability [46][48] Question: What are the expected impacts from the Polish sale and TSB integration? - Management indicated that the sale of Poland and the integration of TSB will lead to improved profitability and operational leverage in 2027 [60][61] Question: Are new shares being issued for the Webster acquisition? - Yes, 35% of the acquisition consideration will be paid in new shares, while a share buyback program is also being initiated [61][62]

Financial Data and Key Metrics Changes - The company achieved over 1 million net adds across mobility and broadband in Q4, the highest quarterly volumes in 6 years [16] - Consolidated adjusted EBITDA for Q4 was $11.9 billion, with full-year adjusted EBITDA at $50 billion, reflecting a 2.5% increase from the prior year [22] - Adjusted EPS for Q4 was $1.09, bringing the full-year total to $4.71, a growth of 2.6% from the previous year [22] - Free cash flow for the full year was $20.1 billion, anticipated to be industry-leading [23] Business Line Data and Key Metrics Changes - Postpaid phone net adds were 616,000 in Q4, the best quarter in 6 years, with consumer postpaid phone net adds of 551,000 [10][16] - Fixed Wireless Access net adds were 319,000, while Fios Internet delivered 67,000 net adds, the highest since 2020 [19] - The company continued to take share in the prepaid segment, with Q4 net adds of 109,000, marking the sixth consecutive quarter of positive growth [18] Market Data and Key Metrics Changes - The company added 125,000 fiber net additions through Frontier, representing a 29% increase over the prior year [20] - The total broadband subscriber base exceeded 16 million, including over 10.5 million fiber customers [73] - The company expects to achieve 2%-3% growth in mobility and broadband service revenue in 2026, equating to approximately $93 billion [27] Company Strategy and Development Direction - The company is focused on a transformation strategy aimed at improving efficiency and customer experience, with a goal of becoming the most efficient telecom company in the industry [8] - Plans include a significant fiber build-out, targeting 40-50 million fiber passings over the medium term, with at least 2 million added in 2026 [12][34] - The company aims to leverage AI to optimize operations and enhance customer experience, with a focus on reducing churn and improving customer lifetime value [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a network outage that impacted customer service, emphasizing the need for improvement in service quality [3] - The company is optimistic about its transformation, expecting significant improvements in performance metrics in 2026 compared to historical trends [32] - Management highlighted the importance of customer loyalty and brand trust as key drivers for future growth [9] Other Important Information - The company plans to return $25 billion to shareholders through share repurchases over the next three years, with at least $3 billion in 2026 [36] - A dividend increase of 2.5% per share was announced, marking the 20th consecutive year of dividend increases [35] - The company has reduced its workforce by 13,000 in Q4, contributing to cost transformation efforts [76] Q&A Session Questions and Answers Question: What investments are needed to drive subscriber growth? - Management indicated that subscriber growth will be driven by improved customer experience, reduced churn, and leveraging convergence opportunities, rather than relying heavily on promotions [40][45] Question: Can you elaborate on the fiber passings outlook? - Management expressed confidence in achieving the new target of 40-50 million fiber passings, citing opportunities from the Frontier acquisition and partnerships [47][51] Question: How will customer lifetime values be maintained? - Management emphasized the importance of reducing churn and improving customer experience to enhance customer lifetime values, while avoiding price increases without corresponding value [56][58] Question: What are the expectations for service revenue growth? - Management guided for flat wireless service revenue in 2026 due to prior year price increases and ongoing promotional amortization, while anticipating volume-based growth in mobility and broadband [71][72]

2025年，国际黄金价格一路狂飙，全年涨幅近70%。进入2026年，黄金仍然涨势强劲，一度突破5600美 元/盎司。在回应黄金与股票的选择时，苏德巍强调，尽管近期央行购金趋势引人关注，但就长期投资 来看，股票仍是更优选择。 地缘政治紧张局势是推动本轮金价上涨的关键驱动因素之一。谈及地缘政治事件对投资决策的影响，苏 德巍表示，当前，如何区分"噪音"和实质性发展非常重要。"媒体会放大噪音，但全球经济结构没有根 本性变化。大经济体仍需在该结构下增长和运作。" 在他看来，当前，不确定性确实高于以往，但"并不过高"。"政治言论和地缘政治可能放大不确定性， 影响投资和市场，美国政府也会在市场对不确定性作出反应的情况下，迅速调整策略。" 苏德巍建议，资本配置都应采用广泛而多元的投资组合，覆盖美国、欧洲、中国等主要市场，并平衡配 置股票与固定收益资产。针对不同年龄段投资者，他提出差异化建议：年轻人可增加权益资产配置，利 用长期复利积累财富；年长者则需更保守配置。 中国经济需加速转向消费导向 对于中国经济，他表示，中国去年达成了其设定的增长目标，这是非常积极的。他说，中国在全球经济 中具有重要地位，是一个广泛、多元且复杂的经济 ...

Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for Q4 2025, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][9] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78%, and revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [3][9][10] - Average earning assets increased by $307 million or an annualized 5.4% compared to the previous quarter, while the average yield on assets decreased by 10 basis points to 5.66% [10][12] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4][5] - Non-interest income increased to $28.3 million in Q4, with significant contributions from the insurance agency and SBA loan sales [6][13] - The company successfully resolved $22 million of non-performing loans, resulting in non-performing assets improving to 0.32% [5][12] Market Data and Key Metrics Changes - Average deposits increased by $786 million or an annualized 16.5% compared to the previous quarter, while period-end deposits increased by $182 million or an annualized 3.8% [12] - The deposit market remains competitive, with the company focusing on managing credit risk and generating top-quartile risk-adjusted returns [5][10] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, SBA, wealth management, and insurance [7][8] - A core system conversion is scheduled for Labor Day weekend of 2026, aimed at enhancing scalability and digital capabilities [8][88] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining balance sheet growth momentum and anticipates loan payoff activity will normalize compared to 2025 [8] - The company expects loans and deposits to grow in the 4%-6% range for 2026, with a core return on average assets targeted in the 1.20%-1.30% range [16] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [7][15] - The effective tax rate is projected to be approximately 29% for 2026, with ongoing exploration of opportunities to purchase additional tax credits [15][16] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the $54 million tax credit investments will reduce the effective tax rate in 2026, with benefits spread throughout the year [21][23] Question: Priorities for deployment of excess capital - Management indicated that organic growth remains the primary objective, with potential considerations for dividends and investments in insurance and wealth platforms [24][25][26] Question: Competition in deposit markets - Management acknowledged heightened competition for deposits but emphasized their strong performance in core deposits and commercial deposits [35][36] Question: Trends in the CRE market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on relationship banking [40][41] Question: Potential for loan yields to increase - Management indicated that there is potential for yields to improve as the pipeline yield increases [45] Question: Plans for geographic expansion - Management expressed interest in expanding into adjacent geographies, particularly in Long Island and the Philly suburbs [52] Question: Initiatives to decrease deposit costs - Management stated that they are still repricing downward and expect further improvements in core margin with future Fed rate cuts [87] Question: Core systems conversion timeline - Management confirmed the core systems conversion is scheduled for Labor Day weekend of 2026, aimed at enhancing operational efficiency [88][89]

Financial Data and Key Metrics Changes - Fourth quarter net income for 2025 was $102 million or $1.13 per share, while excluding special items, it was $209 million or $2.32 per share, compared to $222 million or $2.47 per share in Q4 2024 [2][3] - Fourth quarter net sales increased to $2.4 billion in 2025 from $2.1 billion in 2024, and total company EBITDA, excluding special items, rose to $486 million in 2025 from $439 million in 2024 [3][4] - Full year 2025 earnings were $888 million or $9.84 per share, up from $815 million or $9.04 per share in 2024, with total net sales for 2025 at $9 billion compared to $8.4 billion in 2024 [4][3] Business Line Data and Key Metrics Changes - The packaging segment's EBITDA, excluding special items, was $476 million in Q4 2025 with sales of $2.2 billion, resulting in a margin of 21.7%, compared to EBITDA of $426 million and sales of $2 billion in Q4 2024 [6][7] - For the full year 2025, packaging segment EBITDA was $1.83 billion with sales of $8.3 billion, achieving a margin of 22.1%, up from $1.6 billion and $7.7 billion in 2024 [7] - The paper segment's EBITDA, excluding special items, was $37 million in Q4 2025 with sales of $154 million, resulting in a margin of 24.2%, compared to $39 million and $151 million in Q4 2024 [17] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices were $0.50 per share above Q4 2024 but down $0.32 per share compared to Q3 2025, with export containerboard prices flat year-over-year [11] - Corrugated shipments per day were down 1.7% compared to last year's record Q4, although total shipments for the year were essentially flat with 2024 [12][13] - January bookings in legacy corrugated and sheet plants were up over 11%, indicating a positive trend in underlying demand [13] Company Strategy and Development Direction - The company is focused on integrating the acquired Greif operations and improving operational efficiency, with plans for gas turbine energy projects to enhance energy independence and reduce costs [10][22] - The company aims to maintain a balanced approach to capital allocation, investing in growth while returning value to shareholders through dividends and buybacks [22] - The company expects to run its mills at full capacity to meet demand, with a forecast for solid year-over-year growth in corrugated volume [23] Management's Comments on Operating Environment and Future Outlook - Management noted that demand is improving, with expectations for year-over-year growth in corrugated volume and strong shipment volume from acquired plants [23] - The company anticipates challenges from inflationary pressures on costs, particularly in labor, energy, and materials, but expects to benefit from the Wallula reconfiguration starting in March [25] - Management expressed confidence in the operational improvements made at the Massillon and Riverville mills, which are expected to enhance efficiency and reliability [36][75] Other Important Information - Cash provided by operations reached a record $443 million in Q4, with free cash flow of $124 million after capital expenditures [19] - The company has planned annual outages in 2026, which are expected to impact earnings significantly, with estimated costs of approximately $1.39 per share [21] - The company has approximately $283 million of remaining share repurchase authority, indicating ongoing commitment to returning capital to shareholders [19] Q&A Session Summary Question: Can you provide more granularity on cost increases in the containerboard business? - Management indicated uncertainty due to seasonal weather impacts and inflationary concerns, but estimated a cost increase of about $10 per ton [28][34] Question: What is the impact of winter storms on operations? - Management noted that winter storms caused power outages and disruptions, but the mills managed to run through the challenges, although shipping was affected [30][31] Question: How are the Greif acquisition commitments being handled? - Management confirmed that they are discontinuing the purchase commitments made by Greif and will not pursue similar agreements moving forward [46] Question: What is the outlook for demand in the housing and protein markets? - Management reported improved demand across all segments, with positive consumer sentiment and GDP growth contributing to a more favorable outlook [50][51] Question: How does the company view the containerboard market compared to last year? - Management expressed a more positive outlook compared to the previous year, citing improved visibility and consumer sentiment as key factors [62]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 24% year-over-year, with EBITDA margins improving by 260 basis points to 12.3% due to cost optimization efforts [3][8] - Earnings per share rose by 140% year-over-year, driven by higher EBITDA and lower interest expenses, despite an increase in tax expenses [8] - The company reaffirmed its low-end guidance for 2026, targeting $630 million in adjusted EBITDA and $315 million in adjusted free cash flow [10][12] Business Line Data and Key Metrics Changes - In Customized Polymer Solutions, demand was flat overall, with IBC volumes up low singles and large containers down mid-single digits due to industrial softness [5][6] - Durable Metal Solutions faced pressure, particularly from chemical customers, while Sustainable Fiber Solutions saw volume declines due to North American industrial softness [6][7] - Innovative Closure Solutions experienced a high single-digit decline in volumes, but total sales remained flat due to strong price mix [7] Market Data and Key Metrics Changes - The overall industrial economy remains muted, impacting demand across various segments, particularly in fiber and steel [17] - The company noted that while conditions are still soft, there are signs of seasonality that may improve volumes in Q2 [17][18] - The mining sector in Southern Africa is showing significant growth, which may positively impact demand for certain products [25] Company Strategy and Development Direction - The company is focused on its "Build to Last" strategy, emphasizing cost optimization and capital flexibility to create shareholder value [3][4] - There is a commitment to organic growth, with capital being deployed in regions with strong business cases, particularly in Europe and Africa [25][26] - The company is transforming its commercial team to be more proactive in capturing market opportunities [18][49] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the continued muted demand environment but expresses confidence in the company's ability to manage costs and drive growth [13][17] - The company is optimistic about the potential for volume recovery in the latter half of the year, supported by ongoing commercial initiatives [49] - Management highlighted the importance of maintaining a strong balance sheet and low leverage to support future growth [4][12] Other Important Information - The company completed $130 million of its $150 million share repurchase program and announced a new $300 million share repurchase authorization [4][12] - The run rate cost optimization is currently at $65 million, with a commitment to reach $80 million-$90 million by year-end [5][10] Q&A Session Summary Question: Insights on volume performance and inventory management - Management noted that demand conditions remain muted, particularly in fiber and steel, but there are expectations for seasonal improvements in Q2 [17][18] Question: Updates on OCC and CapEx projects - Management confirmed expectations for flat OCC prices and highlighted ongoing capacity additions in various regions, particularly in Europe and Africa [25][26] Question: Volume expectations and implications for EBITDA guidance - Management expressed confidence that volumes will improve as the year progresses, supported by commercial activities and customer wins [49][51] Question: Price cost spread in fiber and polymer margins - Management indicated that the price cost spread will be more favorable in the second half of the year, with polymer margins impacted by product mix [35][36] Question: Share repurchase strategy and potential acquisitions - Management stated that capital deployment will be flexible, focusing primarily on organic growth while remaining open to strategic acquisitions [67][68]