3Q25 Earnings Presentation November 6, 2025 INDEX DISCLAIMER This presentation contains forward-looking statements that can be identified using forward-looking words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," among others. Forward-looking statements appear in several places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our manag ...

Core Insights - Farmer Brothers Coffee Co. reported a net loss of $4 million for the first quarter of fiscal 2026, an improvement from a net loss of $5 million in the same period last year [8][14] - Net sales decreased by 4.1% year-over-year to $81.6 million, down from $85.1 million [8][14] - The gross margin decreased by 400 basis points year-over-year to 39.7%, compared to 43.9% in the first quarter of fiscal 2025 [8][14] Financial Performance - Adjusted EBITDA remained flat at $1.4 million for the first quarter of fiscal 2026, consistent with the previous year [8][14] - Operating expenses were reduced to $35.6 million, or 43.6% of net sales, down from $40.1 million, or 47.2% of net sales, in the first quarter of fiscal 2025 [8][14] - The company achieved a gross profit of $32.4 million in the first quarter of fiscal 2026, compared to $37.3 million in the same quarter of fiscal 2025 [8][14] Operational Highlights - The company realized a nearly $4 million improvement in sales, general, and administrative (SG&A) expenses compared to the first quarter of fiscal 2025 [8] - Farmer Brothers announced a partnership with Eurest to open 50 Sum>One Coffee Roasters-branded cafes across the country [8] - The company emphasized its focus on driving top-line revenue and customer growth in fiscal 2026 [3][8] Balance Sheet and Liquidity - As of September 30, 2025, Farmer Brothers had $3.8 million in unrestricted cash and cash equivalents, with an additional $31.2 million available under its revolving credit facility [5][8] - Total current assets amounted to $87.3 million, while total liabilities were reported at $118.8 million [16][17] Market Position - Farmer Brothers Coffee Co. is a national coffee roaster and distributor, serving a diverse range of customers including independent restaurants, foodservice operators, and large institutional buyers [9] - The company's product lines include organic, Direct Trade, and sustainably produced coffee, as well as tea and culinary products [9]

Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDAre was $319 million, a decrease of 3.3% year-over-year, while adjusted FFO per share was $0.35, down 2.8% compared to Q3 2024 [4][5] - Year-to-date, adjusted EBITDAre and adjusted FFO per share increased by 2.2% and 60 basis points, respectively, compared to 2024 [4] - Comparable hotel total RevPAR improved by 80 basis points compared to Q3 2024, driven by better-than-expected transient demand and higher rates [5][6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin declined by 50 basis points year-over-year to 23.9%, primarily due to increased wages and benefits [5][24] - Transient revenue grew by 2%, with double-digit growth at resort properties, particularly in Maui, San Francisco, New York, and Miami [6][21] - Group room revenue decreased approximately 5% year-over-year, attributed to renovation disruptions and the Jewish holiday calendar shift [7][22] Market Data and Key Metrics Changes - Maui experienced a 20% RevPAR growth, driven by increased occupancy and strong out-of-room spending [6][7] - Total group revenue pace in Maui is up 13% for 2026, indicating continued recovery momentum [7] - San Francisco's total group revenue pace for 2026 is up over 20%, with group rate pacing up 10% [56] Company Strategy and Development Direction - The company is focusing on capital allocation decisions that enhance long-term shareholder value, including transformational renovations and strategic asset sales [10][11] - A second agreement with Marriott for transformational renovations at four properties is expected to enhance long-term performance [11] - The company aims to leverage its investment-grade balance sheet and diversified portfolio to outperform in the current environment [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued recovery of leisure travel and the affluent consumer's prioritization of premium experiences [58] - The company raised its full-year 2025 guidance for comparable hotel RevPAR and total RevPAR to approximately 3% and 3.4%, respectively, reflecting strong performance [15][24] - Management noted that the bifurcation of the consumer market is likely to benefit upper-upscale and luxury hotels [16] Other Important Information - The company collected $5 million in business interruption proceeds for Hurricanes Helene and Milton, totaling $24 million for the year [9] - Capital expenditure guidance for 2025 is set at $605-$640 million, including significant investments for redevelopment and repositioning projects [13][26] - The company has a strong liquidity position with $2.2 billion available, facilitating strategic capital allocation decisions [27] Q&A Session Summary Question: Can we expect more asset trading in the market based on current performance? - Management indicated they will be opportunistic with capital allocation regarding dispositions and acquisitions, highlighting successful asset sales this year [33][34] Question: How are you selecting hotels and markets for investment? - The company screens assets to determine capital allocation, focusing on transformational renovations that reposition properties for better performance [42][44] Question: What are the expectations for group booking pace in 2026? - Group revenue pace for 2026 is up 5%, with strong performance expected in key markets like San Francisco and Maui [49][56] Question: How is the company managing wage and benefits increases? - Wage rate growth is expected to be lower in 2026, with New York being the only major market with upcoming labor contract negotiations [82] Question: What are the tailwinds for growth potential in 2026? - The absence of major storms on the Gulf Coast and strong performance from properties like The Don CeSar are expected to contribute positively to growth [88][90]

Financial Data and Key Metrics Changes - Adjusted EBITDAre for Q3 2025 was $319 million, a decrease of 3.3% year-over-year, while adjusted FFO per share was $0.35, down 2.8% compared to Q3 2024 [4] - Year-to-date, adjusted EBITDAre and adjusted FFO per share were up 2.2% and 60 basis points, respectively, compared to 2024 [4] - Comparable hotel total RevPAR improved by 80 basis points compared to Q3 2024, driven by better-than-expected transient demand and higher rates [5] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin for Q3 declined by 50 basis points year-over-year to 23.9%, primarily due to increased expenses in wages and benefits [5][23] - Transient revenue grew by 2%, with double-digit growth at resort properties, particularly in Maui, San Francisco, New York, and Miami [5][20] - F&B revenue was flat, with outlet revenue growth offset by declines in banquet and catering revenue [18] Market Data and Key Metrics Changes - Maui experienced a 20% RevPAR growth driven by increased occupancy and strong out-of-room spending [6] - Business transient revenue was down 2% in Q3, primarily due to a reduction in government room nights [21] - Total group revenue pace for 2026 is up 13% for Maui, indicating continued recovery momentum [6][41] Company Strategy and Development Direction - The company is focusing on capital allocation decisions that enhance long-term shareholder value, including transformational renovations and strategic asset sales [30][32] - A second agreement with Marriott for transformational renovations at four properties is expected to enhance long-term performance [11] - The company anticipates continued outperformance in upper-upscale and luxury hotels due to its diversified portfolio and ongoing reinvestment [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of leisure travel and the affluent consumer's prioritization of premium experiences [47] - The company raised its full-year 2025 guidance for comparable hotel RevPAR and total RevPAR to approximately 3% and 3.4%, respectively, reflecting strong performance [16][24] - Management noted that the bifurcation of the consumer market is likely to benefit the company due to its higher-end properties [17] Other Important Information - The company collected $5 million in business interruption proceeds for Hurricanes Helene and Milton, totaling $24 million for the year [9] - Capital expenditure guidance for 2025 is set at $605-$640 million, including significant investments for redevelopment and repositioning projects [13] - The company has a strong balance sheet with $2.2 billion in total available liquidity and a leverage ratio of 2.8 times [26] Q&A Session Summary Question: Can we expect more asset trading in the market based on current observations? - Management indicated they will be opportunistic with capital allocation regarding dispositions and acquisitions, highlighting successful asset sales this year [30] Question: How are you selecting hotels and markets for investment? - The company screens assets to determine where to invest capital, focusing on transformational renovations that provide clear returns [35] Question: What is the outlook for group bookings in 2026? - Group revenue pace for 2026 is up 5%, with strong performance expected in key markets like San Francisco and Washington, D.C. [46] Question: What is driving the growth in out-of-room spending? - Increased spending on amenities such as spa and golf, along with successful repositioning of outlets, is driving growth in out-of-room spending [50] Question: What are the expectations for wage and benefits increases in 2026? - Wage rate growth is expected to be lower in 2026, with New York being the only major market with upcoming labor contract negotiations [57]

Core Insights - Minerva Foods reported record financial results for the third quarter of 2025, with free cash flow reaching R$ 2.5 billion, the highest level recorded in a single quarter [2][11] - The company achieved net revenue of R$ 15.5 billion, marking an 82.5% increase year over year and an 11.5% increase compared to the previous quarter [3][5] - Net leverage decreased to 2.5x, the lowest level since 2022, indicating improved financial stability [2][5] Financial Performance - Free cash flow for the third quarter of 2025 was R$ 2.5 billion, contributing to a total of R$ 10.9 billion since 2018 [2] - Consolidated net revenue for the quarter was R$ 15.5 billion, with a total of R$ 51.3 billion over the last 12 months, reflecting a 73.9% increase year over year [3] - EBITDA for the third quarter was R$ 1.4 billion, with an EBITDA margin of 8.9%, up 70.8% year over year [4] Operational Highlights - Consolidated gross revenue reached R$ 16.3 billion, an increase of 80.1% compared to the same period in 2024, with exports accounting for 61% of the total [5] - Sales volume grew by 10% and revenue increased by 11% compared to the previous quarter, leading to a lower SG&A-to-revenue ratio of 9.3% [6] - The integration of new assets progressed consistently, contributing to solid operational and financial results [6] Capital Structure - The company exercised 5,847,096 subscription bonuses from a capital increase, totaling R$ 30.2 million, with R$ 969.3 million in remaining subscription bonuses expected to strengthen capital structure [7] - Minerva Foods announced the repurchase and cancellation of USD 75.7 million related to the 2031 Bond, totaling approximately R$ 402.6 million [8]

Core Viewpoint - Axon Enterprise's stock experienced a significant decline following its Q3 earnings report, with a notable drop of 12.1% during trading, and a peak decline of 20.7% at market open, primarily due to earnings missing analyst expectations despite revenue exceeding forecasts [1][3]. Financial Performance - Axon reported non-GAAP adjusted earnings per share of $1.17 on revenue of $710.64 million, surpassing Wall Street's revenue target by approximately $5.8 million, but falling short of earnings expectations by $0.37 [3]. - The company achieved a year-over-year revenue growth of 30.6% in Q3, although weaker-than-expected margins have led to a sell-off in the stock [3][6]. Future Guidance - For Q4, Axon is projecting revenue between $750 million and $755 million, which would lead to an estimated full-year revenue of approximately $2.74 billion, exceeding the average Wall Street analyst target of $2.72 billion [4]. - However, the guidance for adjusted EBITDA between $178 million and $182 million has not met investor expectations, contributing to the stock's decline [4]. Acquisition Announcement - Axon announced its intention to acquire Carbyne, a public-safety technology specialist, for $625 million, with the deal expected to close in the first quarter of the following year [5].

Financial Data and Key Metrics Changes - Targa Resources reported adjusted EBITDA for Q3 2025 at $1.275 billion, representing a 19% increase year-over-year and a 10% sequential increase [16] - The company expects full-year 2025 adjusted EBITDA to be around the top end of the guidance range of $4.65 billion to $4.85 billion [16] - At the end of Q3, Targa had $2.3 billion of available liquidity and a pro forma consolidated leverage ratio of approximately 3.6 times, within the long-term target range of three to four times [16] Business Line Data and Key Metrics Changes - Permian natural gas inlet volumes averaged a record 6.6 billion cubic feet per day in Q3, an 11% increase year-over-year [9] - NGL volumes increased by approximately 180,000 barrels per day compared to the previous year, driven by growth in the Permian [4] - NGL pipeline transportation volumes averaged a record 1.02 million barrels per day, and fractionation volumes averaged 1.13 million barrels per day in Q3 [11][12] Market Data and Key Metrics Changes - The company noted that October volumes were impacted by producer shut-ins due to low commodity prices and storms, but these volumes have largely returned [9] - The outlook for NGL supply growth in Targa's system remains strong, supported by ongoing projects and expansions [12] Company Strategy and Development Direction - Targa is focused on executing large capital projects while investing in high-return projects to transform into a large investment-grade integrated NGL infrastructure company [7] - The company announced several new growth projects, including the Speedway NGL transportation expansion and the Yeti gas processing plant [5] - Targa aims to grow adjusted EBITDA, increase common dividends per share, reduce share count, and generate significant free cash flow while maintaining a strong investment-grade balance sheet [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued Permian volume growth, supported by customer forecasts and commercial success [6] - The company anticipates a durable increase in free cash flow, even in a strong growth environment [7] - Management acknowledged some conservatism in Q4 guidance due to potential headwinds from shut-ins and maintenance on natural gas pipes [50] Other Important Information - Targa plans to recommend an increase in the annual common dividend to $5 per share, a 25% increase from the previous level [16] - The company repurchased $156 million in common shares during Q3, bringing year-to-date repurchases to $642 million [16] Q&A Session Summary Question: How have things unfolded versus original expectations for 2025? - Management indicated that volumes have largely materialized consistent with or better than initial forecasts, driving record Permian NGL transportation and fractionation volumes [22] Question: What is the medium-term outlook for growth in the Permian? - Management expressed confidence in continued growth based on producer forecasts and the company's strong position in the market [25] Question: Why invest in infrastructure now instead of leveraging third-party NGL infrastructure? - Management emphasized the importance of being capital-efficient and de-risking investments by ensuring flowing volumes before new projects come online [44] Question: What are the anticipated bottlenecks in the Permian? - Management noted that residue takeaway is currently tight, but new pipelines coming online in late 2026 will alleviate some of these issues [45] Question: How does the company view the competitive landscape in the Permian? - Management acknowledged the competitive nature of the market but highlighted Targa's strong operational capabilities and established relationships with producers [102]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q3 2025 amounted to $322 million, representing a 16% year-on-year increase, primarily driven by Rincon de Aranda, steady shale oil growth, higher B2B sales, and contributions from the PP6 wind farm [3][9] - Capex surged 183% year-on-year to $332 million, with $170 million allocated to the development of Rincon de Aranda [3][10] - Gross debt decreased by 16% since December 2024, reaching nearly $1.8 billion, while net debt rose to $874 million, reflecting a net leverage ratio of 1.3 times [10][11] Business Line Data and Key Metrics Changes - Oil and gas adjusted EBITDA was $171 million in Q3, a 40% year-on-year increase, driven by Rincon de Aranda, increased exports, and strong industrial demand [4][5] - Total production averaged nearly 100,000 barrels of oil equivalent per day, a 14% increase year-on-year, led by Rincon de Aranda and Sierra Chata [5][6] - Gas sales remained steady year-on-year at 14 million cubic meters per day, with an 8% increase from Q2, primarily due to seasonality [7][8] Market Data and Key Metrics Changes - Crude oil prices averaged $61 per barrel in Q3, a 15% decrease from the previous year, but hedging helped mitigate the price drop [5][6] - Gas prices averaged $4.4 per million Btu, remaining flat year-on-year, supported by fuel cell procurement for the Loma Lata Power Plant [8][9] - Exports increased by 146% year-on-year to 1.2 million cubic meters per day, driven by low hydro conditions and increased demand from Chile [8][9] Company Strategy and Development Direction - The company plans to ramp up production at Rincon de Aranda to 20,000 barrels of oil equivalent per day by the end of 2025, with a target of 45,000 barrels per day by 2027 [6][7] - The strategy includes leveraging idle capacity and installing additional temporary facilities to support growth [6][7] - The company aims to stabilize lifting costs at $5 per barrel, aligning with industry peers, with the central processing facility playing a crucial role [7][8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals, demonstrated by a share repurchase of 1.5% of the company's share capital [2][3] - The outlook for Q4 2025 anticipates oil production between 18,000 and 19,000 barrels per day, primarily driven by Rincon de Aranda [12][13] - Management expects a 10-15% improvement in EBITDA for the generation segment in 2026 due to new regulatory frameworks [34][35] Other Important Information - The company generated $6 million in free cash flow in Q3, marking the peak in EBITDA and sales for the year [10][11] - The company is actively managing its debt profile, extending the average life to 5.6 years and reducing near-term maturities [11][12] - The company is exploring opportunities in the LNG market, with expected incremental EBITDA of around $140 million per year once fully operational [103][104] Q&A Session Summary Question: What is the expected total oil production evolution in Q4? - Management expects total oil production to be between 18,000 and 19,000 barrels per day in Q4 2025 [12][13] Question: How do you expect lifting costs to evolve during 2026? - Lifting costs for oil are expected to decrease from $10 to around $9.19 per barrel, driving overall lifting costs down to approximately $6.2 per barrel equivalent [19][20] Question: What is the outlook for the gas market during the summer season? - The company has a take-or-pay clause in contracts that aligns with real demand, and associated gas will influence the spot market [23][24] Question: What are the expectations for EBITDA in the generation segment considering new regulations? - EBITDA for the generation segment is expected to improve by at least 15% next year due to new regulations [34][35] Question: What is the forecast for CapEx and leverage in 2026? - CapEx for 2026 is expected to be around $1 billion-$1.1 billion, with a stable net leverage ratio around 1.1-1.3 times [36][39] Question: What is the current state of the payment days in gas from Narsa? - Payment delays have improved significantly, now averaging around 20 days [115][116]

Core Insights - The company reported solid financial results for Q3 2025, generating $2.7 billion in revenue and $638 million in adjusted EBITDA, with an adjusted EBITDA margin of 24% despite challenging market conditions [5][20][21] - The roofing segment faced a uniquely quiet storm season, impacting demand, while the insulation business experienced weakening residential trends [6][7][10] - The company remains focused on disciplined capital allocation, returning over $700 million to shareholders and maintaining a commitment to return $2 billion over 2025 and 2026 [6][23] Financial Performance - Revenue for Q3 decreased by 3% year-over-year due to lower volumes, but adjusted EBITDA remained strong at $638 million [20][21] - The company achieved an adjusted earnings per diluted share of $3.67 for the quarter [21] - Free cash flow for Q3 was $752 million, up from $558 million in the same period last year, reflecting disciplined working capital management [22] Market Conditions - The roofing market was impacted by the absence of named storms in the U.S. for the first time in a decade, leading to lower demand [7][25] - The insulation business saw a 7% revenue decline primarily due to lower demand for residential products and the sale of the building materials business in China [27] - The doors segment experienced a 5% revenue decline, attributed to slower discretionary spending and weaker new construction activity [29] Strategic Initiatives - The company is investing in operational efficiencies and expanding capacity, including a new plant in Alabama for roofing products [12][14] - The contractor network has grown by about 9% since the beginning of the year, reflecting the company's strong commercial position [13] - The company is on track to achieve $125 million in enterprise cost synergies from the doors business integration [30][15] Outlook - For Q4, the company anticipates revenue to decline mid to high teens compared to the prior year, with adjusted EBITDA margins expected to be around 16% to 18% [34][40] - The roofing segment is expected to see a high 20% decline in shipments due to lower storm activity and inventory management [35] - The insulation business is projected to decline high single digits in revenue, primarily due to lower demand in North America [38]

Core Insights - Grocery Outlet Holding Corp. reported mixed results for Q3 2025, with net sales missing estimates but showing a year-over-year increase, while earnings exceeded estimates but declined from the previous year [1][3][9] Financial Performance - Adjusted earnings were 21 cents per share, beating the Zacks Consensus Estimate of 19 cents but down from 28 cents in the same quarter last year [3][9] - Net sales reached $1,168.2 million, falling short of the Zacks Consensus Estimate of $1,182 million, but reflecting a 5.4% year-over-year growth [3][9] - Comparable-store sales increased by 1.2%, supported by a 1.8% rise in transactions, but fell short of the anticipated 2% growth [4][9] Margin and Cost Analysis - Gross profit grew by 3% year over year to $355.1 million, with a gross margin contraction of 70 basis points to 30.4% [5][9] - SG&A expenses rose by 8.7% to $331 million, representing 28.3% of net sales, primarily due to new store costs and higher incentive compensation [6][9] - Adjusted EBITDA was $66.7 million, down 7.7% year over year, with the margin decreasing by 80 basis points to 5.7% [6][9] Store Expansion and Initiatives - The company added 13 new stores and closed two, bringing the total to 563 stores across 16 states, with plans to open 37 net new stores in 2025 [7][9] - A store refresh program was launched in select pilot stores, with plans to expand to 20 stores by year-end 2025 and at least 150 stores by the end of 2026 [8][9] Financial Health - At the end of the quarter, Grocery Outlet had cash and cash equivalents of $52.1 million, long-term debt of $481.5 million, and stockholders' equity of $1,198.6 million [9][10] - The company maintained a net leverage ratio of 1.8x adjusted EBITDA and had $175 million remaining borrowing capacity under its revolving credit facility [10][9] 2025 Outlook - The company revised its fiscal 2025 guidance, expecting net sales between $4.70 billion and $4.72 billion, and comparable-store sales growth of 0.6-0.9% [11][9] - Adjusted EBITDA is projected in the range of $258 million to $262 million, with adjusted earnings expected between 78 cents and 80 cents per share [12][9] - For Q4 2025, comparable-store sales growth is anticipated to be flat to 1%, with adjusted earnings projected between 21 cents and 23 cents per share [13][9] Market Performance - Grocery Outlet's shares fell 10% in after-hours trading following the earnings report, and the stock has declined 30.4% over the past three months compared to a 7.4% decline in the industry [2][14]