Financial Performance - Q2 2025 - Sales reached $706 million, slightly down from $708.4 million in Q2 2024[13] - Gross profit increased to $93.1 million, compared to $82.9 million in Q2 2024, with a margin of 13.2% versus 11.7%[13] - Adjusted EBITDA was $62.8 million, up from $50.9 million in Q2 2024, resulting in a margin of 8.9% compared to 7.2%[13] - Net loss was $1.4 million, a significant improvement from the $76.2 million loss in Q2 2024[13] Financial Performance - First Half 2025 - Sales totaled $1.373 billion, a slight decrease from $1.3848 billion in the first half of 2024[13] - Gross profit increased to $170.2 million from $144.6 million, with a margin increase from 10.4% to 12.4%[13] - Adjusted EBITDA rose to $121.5 million from $80.3 million, with a margin increase from 5.8% to 8.8%[13] - Net income was $0.2 million, a substantial improvement from a loss of $107.9 million in the first half of 2024[13] Cash Flow and Liquidity - Free cash flow was negative $23.4 million for Q2 2025, nearly the same as negative $23.3 million in Q2 2024[22] - Net cash used in operating activities was $15.6 million in Q2 2025, compared to $12 million in Q2 2024[22] Strategic Initiatives and Outlook - The company reaffirms its focus on achieving double-digit EBITDA margins, ROIC, and strong free cash flow generation[27] - Full year 2025 sales guidance is between $2.7 billion and $2.8 billion[43] - Adjusted EBITDA guidance for FY 2025 is between $220 million and $250 million[43]

2Q25 Conference Call August 1, 2025 00 2Q25 – HIGHLIGHTS | | Business diversification and | Quarterly growth of 5% in | Solid cash and gross debt | | --- | --- | --- | --- | | | an assertive commercial | adjusted EBITDA in 2Q25, reaching | management resulted in | | | strategy generate resilience | | further deleveraging in the | | | and solid performance | R$ 2.6 billion | quarter | | | EBITDA growth in all segments | Adjusted EBITDA margin of 23.5% | Indicator reached 3.24x, down 9 | | | except mining due ...

Core Insights - Escalade, Inc. reported a net sales decrease of 13.1% year-over-year for Q2 2025, totaling $54.3 million, attributed to softer market demand and delayed shipments due to tariff volatility, although there were market share gains in the safety category [2][8] - The company achieved a gross margin of 24.7%, an increase of 56 basis points from the previous year, driven by lower fixed costs and reduced inventory handling costs, despite facing tariff-related costs [3][9] - EBITDA decreased to $3.9 million from $5.8 million in the prior year, reflecting lower net sales and non-recurring executive transition expenses [4][9] Financial Performance - Net income for Q2 2025 was $1.8 million, or $0.13 per diluted share, down from $2.8 million, or $0.20 per diluted share in Q2 2024 [9][18] - Operating income fell to $2.6 million compared to $4.5 million in the same quarter last year [9][18] - Cash flow from operations remained stable at $13.3 million, reflecting reduced profitability offset by working capital improvements [5] Debt and Cash Position - Total debt decreased by 49.0% to $22.0 million from $43.2 million year-over-year [6][9] - As of June 30, 2025, the company had cash and equivalents of $10.4 million and $48.5 million available on its revolving credit facility [6][9] - The net debt to trailing twelve-month EBITDA ratio improved to 0.5x from 1.7x a year earlier [6][9] Dividend and Shareholder Returns - Escalade declared a quarterly dividend of $0.15 per share, payable on October 13, 2025 [7][9] - The company repurchased approximately $0.8 million of shares during the second quarter [10] Management Commentary - The CEO highlighted the company's focus on operational efficiency and cost structure improvements, despite challenges in consumer demand and unfavorable weather impacting outdoor product sales [8][10] - The management is committed to enhancing supply chain efficiency and implementing targeted price increases to mitigate tariff impacts [10]

Financial Performance - The largest publicly-traded crypto exchange in the US reported revenue below analyst estimates [1] - The largest publicly-traded crypto exchange in the US reported adjusted EBITDA below analyst estimates [1]

Core Insights - Exponent, Inc. reported flat revenues for Q2 2025 but exceeded expectations, driven by growth in dispute-related activities in construction, automotive, and medical device sectors [2][4] - The company is optimistic about early-stage work in digital health, AI usability, and distributed energy systems, indicating significant growth potential [2][3] Financial Results - Total revenues for Q2 2025 increased by 1% to $142.0 million compared to $140.5 million in Q2 2024, while revenues before reimbursements were approximately flat at $132.9 million [4] - Net income decreased to $26.6 million, or $0.52 per diluted share, down from $29.2 million, or $0.57 per diluted share in Q2 2024 [5] - EBITDA for Q2 2025 decreased to $37.0 million, representing 27.8% of revenues before reimbursements, compared to $39.9 million, or 30.2% in Q2 2024 [6] Year-to-Date Financial Performance - For the first half of 2025, total revenues increased by 1% to $287.5 million, while revenues before reimbursements were approximately flat at $270.3 million [7] - Net income for the first half of 2025 was $53.2 million, or $1.03 per diluted share, down from $59.4 million, or $1.15 per diluted share in the same period of 2024 [8] - EBITDA for the first half of 2025 decreased to $74.5 million, or 27.6% of revenues before reimbursements, compared to $80.1 million, or 29.7% in the first half of 2024 [9] Business Segments - The engineering and other scientific segment accounted for 85% of revenues before reimbursements in Q2 2025, with a 1% increase in revenues driven by demand in construction, automotive, and medical device sectors [11] - The environmental and health segment represented 15% of revenues before reimbursements in Q2 2025, with a 4% decrease in revenues due to lower activity in life sciences and chemical regulatory services [12] Business Outlook - The company is optimistic about market opportunities and expects growth in the second half of 2025, maintaining its full-year guidance [13] - Exponent anticipates mid-single-digit growth in revenues before reimbursements and EBITDA to be between 26.75% and 27.75% of revenues before reimbursements for the full fiscal year 2025 [16]

Financial Data and Key Metrics Changes - In the second quarter, the company generated $284 million of EBITDA, an 11% year-over-year increase driven by higher gathering and processing volumes, which set new company records [6] - Free cash flow after dividends reached $82 million, representing a nearly 90% increase compared to the previous year [7] - The company reduced its leverage to 2.8 times as of June 30 [7] Business Line Data and Key Metrics Changes - The company invested $45 million in gathering, compression, water, and joint venture projects during the second quarter, bringing year-to-date capital investment to $82 million, which is 45% of the updated 2025 capital budget [4] - The compression reuse program has realized over $50 million in savings, with future savings estimates increased from $60 million to over $85 million [5] Market Data and Key Metrics Changes - The company is uniquely positioned to connect low-cost production to LNG facilities along the Gulf Coast, while also maintaining optionality to connect to local markets [10] - The company expects project announcements in Appalachia to accelerate due to regulatory support, particularly in West Virginia [10] Company Strategy and Development Direction - The company continues to execute its organic growth plan, focusing on predictable earnings and capital efficiency, which allows for attractive dividends, debt reduction, and share repurchases [11] - The company is exploring opportunities to build infrastructure to meet growing demand in the Northeast, particularly in West Virginia [25] Management's Comments on Operating Environment and Future Outlook - Management does not expect to be a material cash taxpayer through at least 2028, benefiting from recent tax legislation [9][32] - The company is actively looking for opportunities in the asset market, particularly bolt-on acquisitions around its current asset base [37] Other Important Information - The company has made significant progress on its capital projects and is focusing on low-pressure gathering and water connections to set up the 2026 development plan [4] Q&A Session Summary Question: Opportunities for AM in basin demand - Management indicated that AM could build infrastructure to meet growing demand, leveraging its large footprint in West Virginia and Ohio [14] Question: Capital allocation strategy - Management stated that the 50% allocation to buybacks is a long-term target, with flexibility based on market conditions [16][18] Question: In-basin demand opportunities related to recent announcements - Management noted that West Virginia's microgrid bill could create significant opportunities for AM, particularly in data center supply [24] Question: Clearwater facility lawsuit update - Management stated there is no new information regarding the lawsuit, which is pending a decision from the Colorado Supreme Court [27] Question: Processing capacity and potential new plant - Management indicated that there is still room to run processing plants above nameplate capacity, with no immediate need for additional processing capacity [30] Question: Long-term cash tax expectations - Management reiterated that they do not expect to be a full cash taxpayer for at least five years, benefiting from recent tax legislation [32] Question: Inorganic opportunities in the asset market - Management confirmed they are continuously looking for bolt-on acquisition opportunities but have no immediate plans to announce [37]

Financial Data and Key Metrics Changes - Adjusted EBITDA improved by 9% year-over-year to $660 million despite lower aggregate shipments [8][14] - Adjusted EBITDA margin expanded by 260 basis points, and cash gross profit per ton increased by 13% [7][19] - Year-to-date cash gross profit per ton reached $11.25, over 50% higher than three years ago [19] Business Line Data and Key Metrics Changes - Aggregate shipments were impacted by an estimated 2 to 3 million tons due to extreme weather conditions [9][22] - Freight-adjusted average selling prices improved by 5%, with mix-adjusted prices up by 8% [10][19] - Residential construction activity remains weak, accounting for about 20% of shipments, but multifamily starts are showing signs of improvement [11][12] Market Data and Key Metrics Changes - Public infrastructure contract awards in Vulcan markets increased by over 20% year-over-year [13][37] - Data center activity is a bright spot, with discussions on projects totaling over $35 billion [13][72] - Private non-residential construction is beginning to recover, with positive trends in data centers and warehouses [12][56] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy: improving organic profitability and adding strategic assets [8][19] - Continued investment in maintenance and growth capital expenditures is expected to reach approximately $700 million for the full year [18][45] - The company aims to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA for the year [18][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year due to improving weather conditions and strong backlogs [24][72] - The company is optimistic about the recovery in private non-residential demand and the acceleration of public infrastructure spending [12][37] - Management noted that the underlying demand is improving, which supports the reaffirmation of full-year guidance [24][14] Other Important Information - Free cash flow on a trailing twelve-month basis surpassed $1 billion, enabling disciplined capital allocation [15][109] - The company reclassified $550 million of commercial paper borrowings from long-term to short-term debt [16][17] - The company is actively discussing potential M&A opportunities to enhance growth [110][111] Q&A Session Summary Question: What gives confidence in reaffirming EBITDA guidance despite a tough first half? - Management highlighted strong pricing and unit margins despite volume declines, indicating quality earnings [22][23] Question: Are project timelines stretching or improving? - Management noted that project timelines are improving, with increased bookings and backlogs across all end markets except single-family housing [30][31] Question: How is the infrastructure spending trend? - Management confirmed that infrastructure spending is strong, with significant increases in contract awards and bookings [36][37] Question: What is the outlook for capital expenditures? - Management expects full-year capital expenditures to be around $700 million, lower than the initial guidance due to weather impacts [45][18] Question: How will pricing be affected in 2026? - Management anticipates strong visibility in highway work and potential pricing growth, especially if private demand improves [106][107] Question: What is the expected free cash flow baseline moving forward? - Management indicated that the new baseline for free cash flow is around $1 billion, which may influence capital allocation strategies [109][110]

Financial Performance - Same Property NOI increased by 33% for the three months ended June 30, 2025, reaching $144104 million, compared to $139512 million in 2024[88] - Same Property NOI increased by 32% for the six months ended June 30, 2025, reaching $287903 million, compared to $279038 million in 2024[88] - Net income attributable to common shareholders was $110318 million for the three months ended June 30, 2025, compared to a loss of $48638 million in 2024[88] - Net income attributable to common shareholders was $134048 million for the six months ended June 30, 2025, compared to a loss of $34482 million in 2024[88] - NAREIT FFO attributable to common shareholders was $111499 million for the three months ended June 30, 2025, compared to $115541 million in 2024[90] - NAREIT FFO attributable to common shareholders was $231816 million for the six months ended June 30, 2025, compared to $226559 million in 2024[90] - Adjusted EBITDA annualized reached $590690 million[93] Portfolio and Transactions - YTD 2025 transaction activity shows acquisitions of $4766 million at a 65% effective yield and dispositions of $2584 million at a 65% yield, resulting in net transaction activity of +$2182 million[35] - The signed-not-open (SNO) pipeline increased to $316 million, with 37% from anchor tenants and 63% from shop tenants[21] - 88% of the SNO pipeline is from the same property NOI pool, and 12% is from the non-same property NOI pool[21]

Financial Data and Key Metrics Changes - EBITDA was roughly flat in the first half of the year, with a projected growth of 8.5% for the full year, implying high teens growth in the second half [6][19] - EPS guidance was revised from 10-15% growth to 7-10% growth, with a midpoint impact of about 3 cents due to increased interest expense and accelerated depreciation [19][20] Business Line Data and Key Metrics Changes - Significant growth was observed in potato chips, while tortilla chips and pretzels were below trend, with specific brands performing variably [23][26] - Boulder Canyon brand is expected to continue strong growth, with distribution gains across both core and expansion markets [71][72] Market Data and Key Metrics Changes - Distribution gains were noted across all 30 expansion geographies, with strong retailer support from national chains [33][34] - The convenience store channel is showing improvement, with expectations to reach flattish performance by year-end [65] Company Strategy and Development Direction - The company is focused on westward expansion and infrastructure investments to support distribution gains [11][35] - Marketing strategies include increased spending in retail media and social media to support geographic expansion and brand introduction [91][92] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving productivity savings and margin expansion, with a positive outlook for the second half of the year [9][56] - The company believes the category will continue to grow, driven by household penetration and repeat purchases [107][109] Other Important Information - The company is nearing the end of its manufacturing optimization efforts, with significant productivity improvements already realized [85][87] - CapEx spending is expected to peak in 2025, with a focus on automation and efficiency improvements [21][88] Q&A Session Summary Question: What gives confidence in the EBITDA growth outlook despite flat performance in the first half? - Management cited investments in infrastructure and productivity savings as key drivers for expected growth in the second half [7][9] Question: Can you clarify the changes in EPS guidance? - EPS growth was revised down due to increased interest expenses and accelerated depreciation from higher CapEx spending [19][20] Question: What is driving the strong top-line results? - The company attributed growth to distribution gains, improved volume and value share in core markets, and investments in westward expansion [10][11] Question: How is the company addressing the performance of tortilla chips and pretzels? - Management noted that tortilla chips faced promotional overlaps, while pretzel performance varied by brand, with some brands performing well [26][27] Question: What is the outlook for the convenience store channel? - The company expects the convenience store channel to improve and reach flattish performance by year-end, supported by better product assortment [65] Question: How is the company managing supply chain and manufacturing efficiency? - The company has made significant strides in optimizing manufacturing and is now focusing on automation and efficiency improvements [85][87] Question: What is the long-term outlook for category growth? - Management remains bullish on long-term category growth, citing strong household penetration and repeat purchases as positive indicators [107][109] Question: How is the company addressing consumer interest in protein products? - The company is exploring opportunities in the protein segment while ensuring that products meet consumer taste preferences [111][112]

Core Viewpoint - Anheuser-Busch InBev reported mixed second-quarter results with a revenue growth of 3.0% to $15.004 billion and normalized EBITDA gains of 6.5%, but missed expectations on beer volumes, leading to a 9.1% decline in stock price in pre-market trading, the worst session since the COVID-19 pandemic [1][4]. Financial Performance - Revenue increased by 3.0% to $15.004 billion and normalized EBITDA rose by 6.5% with margin expansion of 116 basis points to 35.3% [1][6]. - Despite the volume challenges, the company demonstrated pricing power by growing revenues while selling less beer [6]. Volume Performance - Beer volumes declined by 1.9% year-over-year, significantly worse than the 0.3% decline forecasted by analysts [5]. - The decline in volumes was primarily driven by significant drops in China (7.4%) and Brazil (6.5%), with the company acknowledging underperformance in China and attributing Brazil's decline to tough comparisons and adverse weather conditions [6]. Market Outlook - The average target price for BUD stock is $82.67 for the next 12 months, with optimistic predictions reaching as high as $91.00 and bearish outlooks at $72.00 [7]. - All six analysts covering the stock maintain Strong Buy ratings, with no Hold or Sell recommendations [9].