Core Viewpoint - The company announced a change in the use of part of the funds raised from the issuance of convertible bonds, reallocating 155 million yuan to a new project focused on the research and manufacturing of optoelectronic semiconductor materials [2][3] Fund Allocation - The company plans to redirect 155 million yuan of the unused funds from the original project, which was aimed at the localization of key raw materials for optoelectronic semiconductor materials, to a new project for the "Optoelectronic Semiconductor Materials R&D Manufacturing Center" [2] - This change represents 17.03% of the total raised funds amounting to 910 million yuan [2] Project Details - The original project had a cumulative investment progress of 6.29% as of September 30, 2025, and was managed by Dinglong (Xiantao) New Materials Co., Ltd. [2] - The new project will be managed by Hubei Dinglong Holdings Co., Ltd., located west of the current factory in Wuhan, with a total investment of 288.18 million yuan and a construction period of three years [2] - The new project aims to establish a nine-story R&D manufacturing center, with production capabilities including 4,000 tons of prepolymer, 200 tons of microsphere foaming, 400,000 large silicon wafer polishing pads, 30 tons of alumina abrasives, and 50 tons of zinc oxide abrasives annually [2] Strategic Considerations - The change in project funding is aimed at optimizing resource allocation, prioritizing the development of advantageous businesses, and aligning with the company's current urgent needs and development strategy [3]

Financial Data and Key Metrics Changes - BioMarin reported an 11% year-over-year increase in total revenues, leading to an updated full-year 2025 total revenue guidance of $3.15 billion, reflecting double-digit growth [5][11][14] - The company’s cash and investments balance reached approximately $2 billion at the end of Q3 2025, with operating cash flow of $369 million for the quarter and $728 million year-to-date [5][14] - Non-GAAP diluted earnings per share guidance was updated to between $3.50 and $3.60, with non-GAAP operating margin guidance revised to between 26% and 27% [14][15] Business Line Data and Key Metrics Changes - The enzyme therapies business unit achieved 8% year-to-date growth, with PALYNZIQ driving over 20% growth [11][17] - VOXZOGO, the treatment for achondroplasia, is expected to generate over $900 million in revenue for 2025, representing a 25% growth at the midpoint of guidance [7][11] - VOXZOGO revenue increased by 24% year-to-date compared to 2024, with a 15% growth in Q3 alone [11][18] Market Data and Key Metrics Changes - Approximately 75% of year-to-date VOXZOGO revenue was generated outside the U.S., indicating strong international demand [19][20] - The company is expanding its global footprint, with VOXZOGO now available in 55 countries, and anticipates significant growth opportunities as it penetrates new markets [18][19] Company Strategy and Development Direction - BioMarin is focusing on strategic investments in enzyme therapies and skeletal conditions, while divesting from non-core assets like ROCTAVIAN [9][10] - The company is preparing for the launch of VOXZOGO's second indication for hypochondroplasia, with pivotal data expected in the first half of 2026 [8][21] - BioMarin aims to enhance its business development strategy by pursuing early-stage collaborations and phase III assets to drive growth [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving record commercial results for the full year, despite competitive pressures and market dynamics [5][10] - The company acknowledged the uncertainty surrounding potential competition for VOXZOGO, leading to a range of revenue scenarios for 2027 [15][33] - Management emphasized the importance of maintaining strong patient adherence and expanding the prescriber base to sustain growth [20][69] Other Important Information - BioMarin announced a $221 million charge for acquired in-process research and development related to the Enzyme Pharma acquisition, impacting both GAAP and non-GAAP financials [12][13] - The company is advancing its pipeline with multiple data readouts and regulatory milestones expected in the coming quarters [30][31] Q&A Session Summary Question: Can you elaborate on the 2027 guidance and the changes since it was initially issued? - Management indicated that the original $4 billion 2027 outlook was reassessed due to potential VOXZOGO competition and other market dynamics, leading to a range of estimates rather than a specific forecast [33][34][35] Question: Why were VOXZOGO sales down quarter-over-quarter? - Management attributed the decline to timing shifts in larger orders and reaffirmed the total VOXZOGO revenue range for the year, emphasizing steady patient additions across all markets [39][41][42] Question: What is the strategy for business development given the focus on VOXZOGO? - Management highlighted the importance of business development as a priority, with ongoing efforts to pursue deals that could enhance the company's portfolio [43][44] Question: What are the expectations for the upcoming BMN-333 data? - Management indicated that they are looking for significant increases in exposure levels compared to VOXZOGO to demonstrate clinical superiority [53][54] Question: Can you provide insights on the long-term growth targets and cash flow expectations? - Management confirmed that the target for 40% non-GAAP operating margins remains, but acknowledged that it is dependent on top-line performance [59][60]

Financial Data and Key Metrics Changes - In Q1 2025, consolidated revenues totaled $550.1 million, a 4.2% increase from Q1 2024 [20] - Consolidated gross profit was $20.3 million, reflecting a 53.1% increase year-over-year, with a gross profit margin of 3.7% compared to 2.5% in Q1 2024 [20] - The net loss attributable to common stock improved to $17.9 million, or a diluted loss per share of $0.20, from a net loss of $25.1 million, or $0.35 per share, in the same period last year [21] - Adjusted EBITDA was $24.2 million, approximately 20% higher than the prior year, with an adjusted EBITDA margin of 4.4%, up from 3.8% [21] Business Line Data and Key Metrics Changes - The U.S. Gas segment revenue totaled $197.7 million, a year-over-year decrease of 12.7%, with a gross profit margin declining to -7.5% from -1.8% due to weather disruptions [22][23] - The Canadian Gas segment revenue was $39.8 million, down 2.9% year-over-year, but the segment margin improved to 17.8% from 7.5% [24] - Union Electric segment revenue increased by 7.1% to $175.5 million, with core Union Electric growth of 32.7% driven by increased bid project activity [25] - Nonunion Electric segment revenue rose by 41.9% to $137.1 million, with gross profit increasing to 11.9% from 2.9% due to higher crew counts and work hours [26] Market Data and Key Metrics Changes - The U.S. Gas segment faced adverse weather conditions impacting performance, but March showed significant improvement [18] - The nonunion electrical segment benefited from strong market trends in the Sunbelt and Southeast, driven by storm damage recovery efforts [19] Company Strategy and Development Direction - The company is focused on implementing a unified business development strategy aimed at high growth pipeline development and securing new awards [10][12] - There is an emphasis on enhancing capital efficiency and improving free cash flow through better management of capital equipment and working capital [28] - The company aims to grow its customer base and expand market presence, leveraging its scale and capabilities in utility services [9][10] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate significant impacts from the global trade war or tariffs in 2025, citing a resilient business model [7][29] - The outlook for full-year 2025 remains unchanged, with expectations to deliver revenues between $2.6 billion and $2.8 billion [28][29] - Management expressed confidence in achieving a book-to-bill ratio exceeding 1.1 times for the year, supported by a strong sales pipeline [13][29] Other Important Information - The company reported a record booking quarter with new bookings totaling $1.2 billion in Q1 2025, significantly up from $221 million in Q4 2024 [13] - The backlog increased to $4.5 billion as of Q1 2025 from $3.7 billion at the end of 2024 [13] Q&A Session Summary Question: How will the company achieve the upper end of revenue guidance despite a weaker Q1 in U.S. Gas? - Management noted that the gas business experienced a slow start due to weather but recovered in March and April, with work under contract supporting the guidance [34][35] Question: What were the key findings from the strategic review? - The review highlighted the need for a fully integrated sales pipeline, improved cross-selling capabilities, cultural shifts towards growth, and alignment of KPIs with profitability goals [37][40] Question: How does the U.S. Gas segment's loss compare to expectations? - Management acknowledged that Q1 is typically slow for the gas segment due to weather, but they are working to mitigate impacts by expanding operations in warmer regions [44][45] Question: What is the expected cadence for bookings throughout the year? - Management anticipates some lumpiness in bookings, with Q2 and Q4 expected to be strong, while Q3 may be quieter [50][51] Question: Can you provide details on the new MSAs and their risk profile? - The new work involves familiar services and customers, maintaining the same risk profile as previous contracts [59][60] Question: What is the outlook for EBITDA margins? - Management expects to achieve full-year guidance without needing significant changes, as the business is on track to meet budget expectations [66][67]