Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.31, down from $3.02 in the prior year quarter, which included a $2.32 per share gain from the sale of Eviosys. Adjusted earnings per share were $1.74, up 9% from $1.59 in the prior year quarter [3][4] - Net sales increased by 8% compared to the prior year quarter, driven by a 3% increase in global beverage can volumes, $189 million from higher raw material cost pass-through, and $58 million from favorable foreign exchange [4] - Record adjusted EBITDA of almost $2.1 billion was achieved for the year, compared to $1.9 billion in 2024, with record free cash flow of $1,146 million compared to $814 million in 2024 [4][5] Business Line Data and Key Metrics Changes - Segment income for the quarter was $420 million, slightly down from $428 million in the prior year, with strong performance in European beverage offset by lower volumes in transit packaging [4] - North American beverage volumes were up slightly more than 1% in the quarter, with North American gains of 2.5% offset by a 3% decline in Brazil. For the full year, North American volumes were flat, while Brazil was down 3% [8][9] - European beverage volumes increased by 10% in the fourth quarter, generating record segment income, more than double what it was a few years ago [9] Market Data and Key Metrics Changes - Sales unit volumes across Asian operations were down 3% in the fourth quarter due to the border conflict between Cambodia and Thailand, with expectations for commercial adjustments to drive volume growth in 2026 [10] - The North American tin plate business benefited from 5% food can volume growth, offsetting softness in steel aerosols during the fourth quarter [11] Company Strategy and Development Direction - The company aims to maintain a net leverage target of 2.5 times, achieved at the end of September 2025, down from 2.7 times at the end of 2024. The focus remains on compounding earnings, investing in the business, and returning excess cash to shareholders [5][6] - The company is committed to responsibly investing to support partners' growth needs while maintaining a growing dividend and disciplined share repurchases [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving North American volume gains of 2%-3% in 2026, despite inflation and startup costs impacting income [19][21] - The company remains positive about Brazil's long-term prospects, despite current economic challenges, and expects to see a return to growth in the coming years [38] Other Important Information - The company plans to invest approximately $550 million in capital spending to support growth objectives, including capacity expansions and facility upgrades in Brazil, Greece, and Spain [7] - The adjusted earnings guidance for the full year includes net interest expense of approximately $350 million-$360 million and a full-year tax rate of approximately 25% [7] Q&A Session Summary Question: Outlook for America's EBIT and European volume growth - Management expects America's EBIT to be down slightly due to ongoing inflationary impacts and startup costs in Brazil, while European volume growth is projected at 4%-5% [19][21] Question: Drivers of volume growth in North America and Europe - Key drivers include beer growth in Europe and strong performance in flavored alcohols and sparkling water in North America, with the World Cup expected to boost demand [25][26] Question: Free cash flow growth expectations - Management believes a sustainable free cash flow number of around $1 billion is reasonable, with potential for growth aligned with volume increases [28] Question: Demand outlook in January and February - January was impacted by weather, but February is expected to recover lost volume [70][72] Question: Impact of startup costs in Brazil, Greece, and Spain - Most startup costs are expected to be second-half weighted, with hiring and training beginning in Q2 [106] Question: Growth potential in Asia - Management sees significant growth potential in Asia, with a low-cost structure allowing for commercial adjustments to drive business growth [64] Question: Capacity utilization in North America - Capacity in North America is tight, and management does not foresee the need for new capacity in the next couple of years [46][82]

Financial Data and Key Metrics Changes - Earnings per share for the quarter were $1.31, down from $3.02 in the prior year quarter, which included a $2.32 per share gain from the sale of Eviosys. Adjusted earnings per share were $1.74, up 9% from $1.59 in the prior year quarter [2][3] - Net sales increased by 8% compared to the prior year quarter, driven by a 3% increase in global beverage can volumes, $189 million from higher raw material costs, and $58 million from favorable foreign exchange [3] - Record adjusted EBITDA of almost $2.1 billion was achieved for the year, compared to $1.9 billion in 2024, with record free cash flow of $1,146 million compared to $814 million in 2024 [3][4] Business Line Data and Key Metrics Changes - Segment income for the quarter was $420 million, slightly down from $428 million in the prior year, with strong performance in European beverage offset by lower volumes in transit packaging [3] - North American beverage volumes were up slightly by 1% in the quarter, while full-year volumes were flat, and Brazil experienced a 3% decline [6][7] - European beverage volumes increased by 10% in the fourth quarter, contributing to record segment income, more than double what it was a few years ago [8] Market Data and Key Metrics Changes - Sales unit volumes across Asian operations were down 3% in the fourth quarter due to the border conflict between Cambodia and Thailand, with expectations for commercial adjustments to drive volume growth in 2026 [9] - North American tin plate businesses benefited from 5% food can volume growth, with income in other categories up 80% against an easy prior year comparison [10] Company Strategy and Development Direction - The company aims to maintain a net leverage target of 2.5 times, achieved at the end of September 2025, down from 2.7 times at the end of 2024 [4] - The company is committed to returning excess cash to shareholders, with $191 million of shares repurchased in the fourth quarter and a total of $625 million returned to shareholders for the year [4] - Future investments will focus on capacity expansions and facility upgrades in Brazil, Greece, and Spain, with a projected full-year free cash flow of approximately $900 million after $550 million of capital spending [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance, highlighting a strong balance sheet and substantial free cash generation, positioning the company to consistently deliver value to shareholders [11] - The outlook for North American beverage volumes is expected to grow by 2%-3% in 2026, but this may be offset by inflation and startup costs [19] - European beverage growth is anticipated to be strong, with management suggesting a potential volume growth of 4%-5% for the year [21] Other Important Information - The company has maintained a focus on responsible investment to support partners' growth while ensuring dividends grow over time [10] - Management noted that the demand for beverage cans is expected to continue growing globally, with a focus on balancing customer growth objectives with fair value returns [119] Q&A Session Summary Question: Outlook for America's EBIT and European volume growth - Management expects America's EBIT to be down slightly due to ongoing inflationary impacts and startup costs in Brazil, while European beverage growth could be penciled in at 4%-5% [19][21] Question: Drivers of volume growth in North America and Europe - Key drivers include beer growth in Europe and strong performance in energy and flavored alcohols in North America, with the World Cup expected to boost demand [25] Question: Free cash flow sustainability - Management indicated that a free cash flow of around $1 billion seems reasonable and sustainable, with expectations for growth in line with volume [27] Question: Demand and capacity utilization in North America - Management noted that capacity in North America is tight, with no immediate need for new capacity, and they are focused on generating cash flow [45][81] Question: Impact of startup costs in Brazil, Greece, and Spain - Most startup costs are expected to be second-half weighted, with hiring and training occurring in Q2 [108] Question: Growth potential in Asia - Management expressed confidence in the growth potential in Asia, emphasizing a low-cost structure and the ability to make commercial adjustments to drive growth [63] Question: Demand for food cans and market share - The company expects to grow above market in food cans, particularly in the pet food segment, which is growing faster than human food [75]

Financial Data and Key Metrics Changes - Q4 revenue reached $5.9 billion, representing a 7% increase and 3.9% organic growth, while full-year revenue was a record $21.8 billion, up 7.7% and 2.9% organic [4][5] - Adjusted diluted EPS for Q4 was $3.96, with a full-year record of $14.40, reflecting a 9.6% growth, including a two-point impact from tariffs [5][17] - Adjusted gross margin for Q4 was 54.2%, and adjusted operating margin was 25.8%, with a full-year adjusted gross margin of 54.7% and operating margin of 25% [16][17] Business Line Data and Key Metrics Changes - New BD achieved strong organic growth of 4.9% in Q4, with significant contributions from various segments [4] - BD Interventional experienced high single-digit growth, driven by double-digit growth in PureWick and advanced tissue regeneration [7][14] - Pharma systems saw high single-digit growth in biologics, offset by lower vaccine demand, which constitutes about 20% of pharma systems revenue [15][23] Market Data and Key Metrics Changes - The biosciences business showed sequential improvement in sales in the U.S. and EMEA, led by demand for the new FACSDiscover platform [7][15] - Research funding in biosciences remained subdued, impacting growth, while diagnostic solutions returned to positive growth due to recovering BD BACTEC utilization [7][15] - China is expected to decline in the mid-teens due to government policies, impacting growth by about 100 basis points [23][51] Company Strategy and Development Direction - The company is focused on accelerating its strategy as it transitions into new BD, emphasizing commercial excellence and innovation [10][20] - A two-year $200 million cost-out program has been initiated to address stranded corporate costs, with approximately half expected this year [12] - The company plans to enhance its capital allocation strategy, prioritizing internal investment, share repurchases, and a reliable dividend [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term mid-single digit growth despite transitory market dynamics expected to continue into fiscal 2026 [9][24] - The company is taking a prudent approach to guidance, incorporating updated views on the operating environment, particularly regarding vaccines and China [31][32] - Management highlighted the importance of BD Excellence in driving margin expansion and cash generation, with expectations for continued strong performance [20][56] Other Important Information - The company announced its 54th consecutive year of dividend increases and returned $2.2 billion to shareholders, including a $1 billion share buyback [5][17] - The Waters transaction is seen as a significant strategic opportunity to unlock value for investors, with expected closure around the end of Q1 2026 [18][27] Q&A Session All Questions and Answers Question: How does the guidance for new BD reflect conservatism? - Management emphasized a prudent approach to guidance, incorporating macro dynamics and not assuming improvements in the operating environment [31][32] Question: What are the expectations for Q1 compared to the full year? - Q1 guidance reflects full-year headwinds, with expectations for growth to step up in Q2 and Q3, which are anticipated to be the strongest quarters [36][37] Question: Why not be more aggressive in returning capital to shareholders? - Management stated the focus remains on cash generation and disciplined capital allocation, with plans for significant share buybacks post-Waters transaction [41][42] Question: What was the organic growth in China for Q4? - China experienced high single-digit organic growth in Q4, with a cautious outlook due to volume-based procurement policies [51] Question: Can new BD grow EPS double digits? - Management expressed confidence in the new BD's ability to achieve high single-digit EPS growth, supported by strong cash generation and margin expansion [55][56]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [5][20] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or 32.4% margin [5][6] - The company is raising its revenue guidance by $100 million at the midpoint for the full year based on year-to-date performance and foreign currency movements [5][33] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% in Q2 2025 [7][8] - Sales of Nexplanon declined 1% at constant currency in Q2, with a 5% decline in the U.S. but a 10% growth outside the U.S. [10][11] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [12][13] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [10][11] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [21][22] - Volume increased by $90 million in Q2, representing a growth of about 5.6%, driven by fertility, HEDLEMA, Emgality, and VITAMMA [22] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of long-term debt in Q2 [6][31] - Aiming for a net leverage ratio below four times by year-end and further improvements to 3.5 times or below by 2026 [6][31] - The company is committed to building Nexplanon into a billion-dollar franchise and expanding its market presence [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow of over $900 million before one-time costs in 2025 [6][41] - The company is optimistic about the growth potential of VITAMMA and expects to achieve significant access improvements by early 2026 [15][18] - Management acknowledged challenges in the U.S. market due to federal funding issues but remains confident in Nexplanon's long-term growth potential [11][53] Other Important Information - The company expects to see a modest decline in adjusted gross margin in the second half of the year but aims to land closer to the high end of the 60% to 61% range [36][39] - One-time costs related to restructuring are expected to decline, improving free cash flow conversion in the coming years [60][61] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - The company has started new telehealth and DTC campaigns and added more sales representatives, totaling over 125 in the field [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - The decline in U.S. Nexplanon sales is attributed to both purchase timing and underlying pressures, with confidence in growth despite market confusion [48][52] Question: What is the expected impact of tariffs on margins in 2026? - It is too early to speculate on tariff impacts for 2026, but the EU is the largest import exposure for the company [56][57] Question: How should we think about free cash flow conversion and one-time items? - Free cash flow should grow in line with the business, with a continued reduction in one-time costs expected [60][61] Question: What is the status of the 6219 endometriosis program? - The company has decided to discontinue the program due to lack of efficacy signals [80][82] Question: Will the FDA update the guidance for generics regarding Nexplanon? - The company is working closely with the FDA for the new labeling for the five-year indication, but the FDA will make its own assessment [82][86]

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 10% and total revenue of $413.4 million for the first quarter [11] - Adjusted EBITDA for the first quarter rose 12% to $113.8 million compared to $101.7 million in the prior year period [11] - Adjusted diluted earnings per share grew by 16% [4] - Adjusted free cash flow was $26 million, up 6% from the prior year period [5][13] - GAAP net income for the first quarter was $24.9 million, or GAAP diluted earnings per share of $0.20 [11] Business Line Data and Key Metrics Changes - Insurance Advisory Solutions (IAS) experienced organic revenue growth of 3% [11] - Underwriting Capacity and Technology Solutions (UCTS) saw organic revenue growth accelerate to 32% compared to 21% in the prior year [7] - Main Street Insurance Solutions (MIS) delivered total organic revenue growth of 10% [9] Market Data and Key Metrics Changes - The company faced a negative 3.5% impact from rate and exposure changes on renewals, compared to a positive 4.5% benefit in the prior year [6][7] - Client retention improved year over year to approximately 92% [6] Company Strategy and Development Direction - The company aims to vertically integrate across the value chain and bring innovative third-party risk capital solutions to market [8] - The introduction of the Builder Reciprocal Insurance Exchange (BRI) is a significant milestone for growth in the builder channel [8] - The company remains confident in maintaining double-digit organic growth despite macroeconomic uncertainties [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience and durability of the business model amid macroeconomic uncertainty [9] - The company expects organic revenue growth in the IAS business to be in the mid to high single-digit range for the year, with overall double-digit growth anticipated [15][16] - Management noted that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to grow over time [45][46] Other Important Information - The company was recently upgraded by S&P to a B rating, with a stable outlook from Moody's [15] - The transition to a fiduciary reporting model for cash and receivables aims to reduce volatility in cash flow from operations [12] Q&A Session Summary Question: Organic revenue outlook for the second quarter - Management acknowledged that the IAS business is running below expectations due to project-based headwinds but remains confident in the underlying fundamentals [19][20] Question: Cash flow conversion rate - Management targets a free cash flow conversion rate of 50% against adjusted EBITDA for the year, with potential to reach 65% to 70% over time [25][26] Question: Project-based work in the second quarter - Management noted an increase in new project starts in May and a strong pipeline for the balance of the month [34] Question: Strong growth in UCTS segment - The growth was driven by strong performance in homeowners programs and the introduction of a multifamily captive [36] Question: Timing of headwinds from renewal - Management indicated that timing-related headwinds from project-based work are expected to improve in the second quarter [41] Question: Market conditions in Florida - Management stated that the Florida insurance market is healthier due to tort reforms, although the cost of risk is expected to increase over time [45][46] Question: Employee benefits business - Management noted that the cautious business outlook among clients has impacted the employee benefits segment, but they expect visibility to improve as the year progresses [65][66]