Financial Data and Key Metrics Changes - The company reported net sales of $623.5 million, a 6.2% increase year-over-year, primarily driven by a price increase and positive foreign exchange impact [4][14] - Consolidated gross margin was 46.4%, slightly below the previous year, reflecting higher input costs [9][15] - Adjusted EBITDA totaled $155.3 million, a 4.5% increase year-over-year, resulting in a margin of 24.9% [10][19] - Net income was $107.4 million, or $2.58 per fully diluted share, compared to $93.5 million, or $2.21 per fully diluted share in the prior year [18] Business Line Data and Key Metrics Changes - In North America, net sales rose to $483.6 million, up 4.8% from the prior year, with a modest decline in volumes [4][14] - The OEM business experienced high single-digit volume growth, driven by Mass Timber solutions and new product introductions [5][6] - The component manufacturer business achieved low single-digit volume growth, supported by new customer wins and expanded product offerings [7] - The commercial business saw mid single-digit volume declines, while multifamily demand remained strong in certain regions [8] Market Data and Key Metrics Changes - In Europe, net sales reached $134.4 million, up 10.9% year-over-year, or 4.3% on a local currency basis, driven by increased volumes [8][14] - North American volumes were down 1.4% year-to-date, reflecting broader market conditions, including lower housing starts [5][31] Company Strategy and Development Direction - The company is undertaking strategic cost savings initiatives to align operations with evolving market demand, expecting annualized savings of at least $30 million [9][24] - The focus remains on innovation, customer service, and operational excellence to drive growth despite a challenging housing market [5][11] - The company plans to maintain an operating income margin at or above 20% and aims for EPS growth ahead of net sales growth [11][24] Management's Comments on Operating Environment and Future Outlook - Management anticipates a continued soft housing market, with U.S. housing starts expected to decline mid-single digits compared to 2024 [10][35] - The company remains optimistic about its ability to drive growth and improve profitability despite market challenges [11][24] - Management emphasized the importance of controlling costs and maintaining service quality during this downturn [9][36] Other Important Information - The company generated strong cash flow from operations of $169.5 million for the third quarter, enabling investments in capital expenditures and share repurchases [19][20] - A new share repurchase program for 2026 has been authorized, allowing for up to $150 million in repurchases [21][70] Q&A Session Summary Question: What were the organic volume declines in North America and volume growth in Europe? - The company reported a global volume decline of 1% and a North American volume decline of 1.4% year-to-date [30][31] Question: What catalysts could improve the housing market trajectory next year? - Management indicated that lower interest rates could help small to medium-sized builders, but overall market conditions are expected to remain flat [35][36] Question: How will the targeted cost savings be split between North America and Europe? - The company expects to see $6 million-$9 million in Q4, with the balance likely coming from North America [39] Question: What is the expected impact of tariffs on gross margins? - Management anticipates continued erosion in gross margins over the next couple of quarters as tariffs are fully rolled in [49] Question: How will the $30 million in annualized savings be realized? - The savings will primarily come from SG&A, with 90%+ expected to be in that category [57] Question: What are the growth opportunities in 2026 and beyond? - Management highlighted opportunities in Europe and component manufacturing as key growth areas [68][69]

Financial Data and Key Metrics Changes - Revenues decreased by 3.3%, impacted by lower hardware sales and pricing activities from the previous year [9][28] - EBITDAaL increased by 0.4% year on year, with operational optimizations contributing to growth despite revenue decline [9][28] - The company confirmed its full-year guidance, including a 2.7% expected growth in dividend per share for 2025 [10][38] Business Line Data and Key Metrics Changes - The new product portfolio, Swiss Connect, was launched, focusing on customer loyalty and increased roaming services [12][13] - Mobile postpaid net additions were 12,000, while internet net additions were 5,000, despite reduced promotional activities [22] - The FMC (Fixed Mobile Convergence) quota increased to 58.3%, indicating a positive trend in bundled product offerings [23] Market Data and Key Metrics Changes - The company experienced a softer trading environment in Q1, influenced by intentional reductions in commercial activities due to upcoming price rises [6][22] - Price increases of 1.8% for the main brand and 1.5% for the flanker brand were implemented, with expectations of positive impacts on revenue and ARPU in future quarters [15][25] Company Strategy and Development Direction - The company is positioning itself as a technology leader with the launch of 5G standalone technology, achieving 99.5% coverage in Switzerland [20][21] - The strategy includes a focus on innovation, service, and loyalty rather than solely on price promotions [54] - The company plans to delist its ADS in August 2025, which is expected to simplify operations and reduce costs [10][41] Management's Comments on Operating Environment and Future Outlook - Management noted that the competitive environment is fragile, with a need for rationalization in pricing behavior across the industry [52][54] - The company anticipates softer trading in Q2, primarily in terms of net additions, but expects revenue to benefit from price increases [60][62] - Management expressed confidence in achieving financial guidance and highlighted the importance of the new product portfolio in driving future growth [46][38] Other Important Information - The company reported a decline in non-subscription revenues, primarily due to lower hardware sales, but expects normalization in the coming quarters [30][64] - Adjusted free cash flow was reported at minus €117 million, influenced by capital expenditures and seasonal factors [29][36] Q&A Session Summary Question: Competitive environment and promotional spend - Management acknowledged that net prices in mobile have increased, and competitors have followed suit with price rises [51][52] - Promotional spend was reduced during the price increase process to avoid conflicting messages about discounts [56] Question: Trading in Q2 and hardware revenue evolution - Management confirmed that Q2 trading would be softer in terms of net additions, but revenue would benefit from price rises [60][62] - Non-subscription revenue decline is expected to normalize, with future hardware launches anticipated to improve performance [64] Question: Split of net adds and revenue phasing - Management did not provide a split of net adds by brand but indicated stability in brand dynamics [72] - Revenue decline was partially driven by hardware-related revenues, with expectations for stabilization in subsequent quarters [73]

Financial Data and Key Metrics Changes - The company reported first quarter net income of $204 million or $2.26 per share, an increase from $155 million or $1.72 per share in the same quarter of 2024 [5][6] - First quarter net sales were $2.1 billion in 2025 compared to $2 billion in 2024, with total company EBITDA, excluding special items, at $421 million in 2025 versus $333 million in 2024 [5][6] - The increase in earnings per share was driven by higher prices and mix in the Packaging segment, contributing $0.78 per share, and volume contributing $0.27 per share [6][7] Business Line Data and Key Metrics Changes - In the Packaging segment, EBITDA, excluding special items, was $409 million with sales of $2 billion, resulting in a margin of 21%, up from an EBITDA of $326 million and sales of $1.8 billion with an 18% margin in the previous year [10] - The Paper segment reported EBITDA of $40 million with sales of $154 million, yielding a 26% margin, compared to $41 million and $164 million in sales with a 25% margin in the first quarter of 2024 [17][18] Market Data and Key Metrics Changes - Domestic containerboard and corrugated products prices and mix were $0.72 per share above the first quarter of 2024, while export containerboard prices were up $0.06 per share compared to the same period [12] - Total volume and shipments per day in corrugated products plants were up 2.5% versus last year, although the Paper segment volume was lower by 7% compared to a strong first quarter of 2024 [13][18] Company Strategy and Development Direction - The company is focused on operational efficiency, cost reduction initiatives, and capital project execution to mitigate the impact of inflation [7][11] - A new state-of-the-art high-efficiency box plant in Glendale, Arizona, has been successfully started up, increasing box capacity significantly and enhancing service capabilities in key markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued economic uncertainty affecting demand but expects box shipments to be higher than the first quarter and above last year's levels [14][24] - The company is cautious about customer ordering patterns due to macroeconomic factors and trade tensions, which may impact future guidance [31][32] Other Important Information - Cash provided by operations reached a record $339 million, with free cash flow also at a record $191 million [20] - The company adjusted its planned maintenance outage schedule to manage economic uncertainty, resulting in increased planned outage expenses for the second quarter [21][22] Q&A Session Summary Question: Adjustments in guidance and forecast - Management noted that customer caution is influencing ordering patterns, leading to a more prudent approach in business [31][32] Question: Inventory and production levels - Management explained that production is being adjusted based on expected demand, with some small machines down for maintenance in May [41][42] Question: Higher prices and mix in packaging - The company effectively implemented price increases, contributing to better-than-expected results [50][52] Question: E-commerce growth and margins - E-commerce is a growing segment, but margins remain consistent as the company focuses on long-term customer relationships [56][58] Question: Rail contract rate increases - Management confirmed multiple rail increases impacting freight costs, with additional increases expected in the second quarter [70][73] Question: Capital expenditures - The company is on track with its capital expenditure guidance, with significant projects underway [72] Question: Containerboard supply and production - Management expressed confidence in meeting demand through improved productivity and potential adjustments in export volumes [144] Question: Basis weights and lightweighting trends - The company noted a general trend of decreasing basis weights, driven by customer needs and technological advancements [148][149]