Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [26] - Adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million in the prior year period [27] - Consolidated Core EBITDA of $316.9 million grew by over 50% from a year ago, reaching its highest level in two years [7][27] - Core EBITDA margin expanded to 14.9%, reflecting improvements year-over-year and sequentially [7] Business Line Data and Key Metrics Changes - North American Steel Group generated Adjusted EBITDA of $293.9 million for the quarter, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [27][28] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with Adjusted EBITDA increasing by 75% to $39.6 million [28][29] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [30][31] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [12] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [13] - The commercial segment of the DMI grew by 57%, while institutional projects increased by 37% [13] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a $150 million annualized run rate EBITDA benefit by the end of Fiscal 2026 [19][22] - Recent acquisitions of CPMP and Foley Products are expected to enhance CMC's commercial portfolio and financial profile [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb new supply in the market due to stable demand and lower imports [43] - The company anticipates a modest decline in consolidated Core EBITDA in Q2 due to seasonal trends, but expects contributions from the precast business to offset some of this decline [36] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [15] Other Important Information - CMC's cash and cash equivalents totaled $3 billion, including proceeds from a senior notes offering [32] - The effective tax rate for the first quarter was 3.1%, with expectations of a full-year rate between 5% and 10% for Fiscal 2026 [34][35] - Capital spending for Fiscal 2026 is anticipated to be approximately $625 million, with significant investments in the Steel West Virginia micromill [35] Q&A Session Summary Question: Insights on CPMP and Foley acquisitions - Management noted positive surprises and cultural affinity observed post-acquisition, with confidence in achieving synergies [40][41] Question: Outlook on North American metal margins - Management indicated that while new supply is expected, current demand levels should absorb it, and margins are anticipated to remain stable [43][44] Question: Seasonal impacts on volumes - Management expects typical seasonal declines of 5%-10% in Q2, despite stronger than expected volumes in Q1 [50][51] Question: Update on West Virginia mill ramp-up - The hot commissioning for the West Virginia mill is set to begin in June, with expectations of ramping up operations over the following 12 months [52][54] Question: Outlook for the precast business - Management expects the precast business to contribute about $30 million of EBITDA in Q2, reflecting seasonal impacts [60] Question: Counterparty risk in fabrication business - Management clarified that while counterparty risk has not increased, they are taking steps to reduce risks associated with long-term fixed-price contracts [72][74] Question: Impact of CBAM on European pricing - Management anticipates that the CBAM will positively impact pricing over the course of 2026, with gradual effects expected [76][79]

Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [21] - Adjusted earnings were $206.2 million, or $1.84 per diluted share, compared to $86.9 million and $0.76 per diluted share in the prior year [22] - Consolidated core EBITDA reached $316.9 million, a 52% increase from $208.7 million in the prior year [22] - Core EBITDA margin expanded to 14.9%, reflecting growth both year-over-year and sequentially [5] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of $293.9 million, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [22] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with adjusted EBITDA increasing by 75% to $39.6 million [23] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [24] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [10] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [11] - The commercial segment of the DMI grew by 57%, while institutional projects increased by 37% [11] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a permanent improvement in margins and cash flows [16] - Recent acquisitions of CPMP and Foley Products are expected to enhance CMC's commercial portfolio and financial profile [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive market conditions, with stable demand and limited imports contributing to strong performance [5] - The company anticipates modest declines in consolidated core EBITDA for the second quarter due to seasonal trends, but expects contributions from the precast businesses to offset this [31] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [12] Other Important Information - CMC's effective tax rate was 3.1% in the first quarter, with expectations of a full-year rate between 5% and 10% for fiscal 2026 [29] - The company plans to spend approximately $625 million in capital expenditures for fiscal 2026, focusing on growth investments and completing the Steel West Virginia micromill [30] Q&A Session Summary Question: Insights on CPMP and Foley acquisitions - Management noted positive cultural fit and integration potential, with confidence in achieving synergies [36] Question: North American metal margins outlook - Management expects margins to remain stable, with demand absorbing new supply entering the market [38] Question: Seasonal impacts on volumes - Typical seasonal decline of 5%-10% is expected in the second quarter, despite stronger than anticipated first-quarter volumes [42] Question: Precast business seasonality - The precast business is expected to follow overall seasonal trends, contributing about $30 million of EBITDA in the second quarter [46] Question: Scrap optimization benefits - Scrap optimization initiatives have significantly improved margins, with ongoing efforts to enhance quality and reduce costs [50]

Financial Data and Key Metrics Changes - Total second quarter revenues reached $224.7 million, reflecting a 2.9% increase on a core basis, with foreign currency contributing 0.9% and divestitures and discontinued products impacting by 6.6% [11][12] - Adjusted EBITDA was $48.7 million, representing a margin of 21.7%, an improvement of 470 basis points from the first quarter [17] - Adjusted net income and adjusted earnings per share were $22.6 million and $0.10, respectively, compared to $9.4 million and $0.04 in the prior quarter [18] Business Line Data and Key Metrics Changes - Food safety segment revenues were $165.6 million, with core revenue growth of 4.1%, driven by strong performance in indicator testing and culture media product categories [12] - Animal safety segment revenues were $59.1 million, with core revenue growth approximately flat compared to the prior year, although biosecurity products saw solid growth [13] - The global genomics business experienced core revenue growth of 6%, with strong performance in the bovine market [14] Market Data and Key Metrics Changes - Core revenue growth in the Latham region was high single digits, while the U.S. and Canada region saw mid-single-digit growth [15] - The APAC region experienced low single-digit core growth, led by pathogen detection products, while the EMEA region had a low single-digit decline [16] - Gross margin improved to 47.5%, a sequential increase of 210 basis points, primarily due to volume and lower tariff costs [17] Company Strategy and Development Direction - The company is focused on stabilizing and strengthening its core business, with a transformation aimed at improving top-line growth and profitability [4] - A rigorous process-oriented approach to commercial excellence is being implemented, emphasizing operational planning and data-driven decisions [5] - The leadership team has been strengthened with experienced operators to drive growth and innovation [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming macroeconomic and execution-related headwinds, with a positive outlook for the year [4][10] - The company raised its full-year guidance for fiscal 2026, expecting revenues between $845 million and $855 million and adjusted EBITDA of approximately $175 million [19] - Management acknowledged the challenges in the operating environment but believes they are solvable or transitory [10] Other Important Information - The company is in the process of divesting its global genomics business, which is expected to simplify operations and enhance margins [20][21] - Cost structure improvements implemented in the second quarter are expected to deliver approximately $20 million in annualized savings [4] Q&A Session Summary Question: Discussion on the new management team and its impact - Management highlighted the recruitment of top-tier talent with experience in diagnostics and life sciences, emphasizing the importance of operational excellence and alignment within the team [28][29] Question: Concerns about growth and margin expectations for H2 - Management indicated a conservative approach to guidance, focusing on sustainable performance and the need for the new team to settle in [38][39] Question: One-time revenue tailwinds in the quarter - A $2 million insecticide tailwind was noted in the animal safety segment, but no other significant one-time revenues were reported [42] Question: Changes in the commercial organization leading to improved forecasts - The focus on basics and driving simplicity, along with a new weekly forecasting process, has improved organizational alignment and performance [48][49] Question: Confidence in the Petrifilm manufacturing process - Management expressed confidence in the Petrifilm project, stating that production testing is progressing well and remains on track for the November 2027 timeline [51][52]

Financial Data and Key Metrics Changes - Enerpac's Q1 Fiscal 2026 revenue was $144 million, a decrease of 1% year-over-year [6] - Adjusted EBITDA was $32.4 million, representing a margin of 22.4%, with adjusted earnings per share at $0.36 compared to $0.40 in the previous year [9][10] - Gross profit margin was 50.7%, consistent with previous quarters, but impacted by higher tariff-driven costs [8][9] Business Line Data and Key Metrics Changes - In the Industrial Tools and Services (IT&S) segment, product sales grew 4% organically, while IT&S sales declined 3% [4][6] - Standard product revenue increased by low single digits, with heavy-lifting technology business experiencing double-digit growth [6] - Service revenue declined by 26%, primarily in the EMEA region, particularly the U.K. [6][7] Market Data and Key Metrics Changes - Revenue in the Americas grew by 5%, driven by an 8% increase in product revenue [7] - EMEA revenue declined by 10%, with product revenue growing 5% but service revenue declining significantly [7][8] - APAC revenue decreased by 8%, affected by a decline in heavy-lifting technology business and political uncertainties in Southeast Asia [8] Company Strategy and Development Direction - The company is focused on growth through investments in innovation and expanding sales capabilities in key markets like India and Australia [12][13] - Enerpac is enhancing its e-commerce capabilities and implementing a new technology platform to improve user experience and marketing tools [13] - The company is targeting growth in power generation and infrastructure sectors, with significant contract wins in bridge and tunnel projects [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook for the year, supported by strong order growth across all geographic regions [12] - The company anticipates organic revenue growth of 1%-4% and adjusted EBITDA growth of 6% at the midpoint for Fiscal 2026 [11] - Management acknowledged challenges in the service business but remains optimistic about future growth and margin expansion [22][24] Other Important Information - The company reported a strong balance sheet with net debt of $49 million and total liquidity of $539 million [10] - Enerpac repurchased $15 million of stock in the first quarter while maintaining capacity for strategic M&A [10][57] - A leadership change in investor relations was announced, with the current CFO becoming the main point of contact until a replacement is found [17] Q&A Session Summary Question: What caused the sharp decline in service revenue this quarter? - Management noted disappointment in service revenue performance, primarily due to market contraction in the U.K. and ongoing consolidation in the oil and gas sector [22][24] Question: Can you elaborate on changes being made in services to capture higher value business? - Management discussed transitioning from an agent-based model to a direct model to enhance customer relationships and margins, along with investments in field service capabilities [26][27] Question: What is the pricing strategy heading into 2026? - A small, low single-digit price increase was implemented in December, with ongoing efforts to offset tariff impacts and maintain margins [28][47] Question: How does the backlog look compared to a normalized basis? - Management indicated that while Enerpac is not a backlog-heavy business, there has been an uptick in backlog driven by strong order activity [40] Question: What is the outlook for M&A activity? - Management expressed optimism about increased M&A activity and is actively evaluating several opportunities while maintaining a disciplined approach [57]

Financial Data and Key Metrics Changes - Reported revenue for Q4 2025 was $712 million, normalized to approximately $660 million when excluding a $52 million benefit from an additional operating week, representing a decline of $24 million or 3.5% year-over-year [12][13] - Adjusted EBITDA for Q4 was $65 million, with an adjusted margin of 9.1%, down from 11.8% in the same quarter last year [16][20] - Full-year effective tax rate for 2025 was 9.2%, with an expected range of 25-30% for 2026 [15][16] Business Line Data and Key Metrics Changes - Rental revenue decreased by $18 million, while direct sales revenue fell by $5 million, contributing to the overall revenue decline [12][13] - Business retention measured in revenue dollars was 91.8% at the end of Q4, flat compared to the previous quarter [13] Market Data and Key Metrics Changes - The normalized revenue impact from churn or lost business was approximately $60 million compared to the same quarter in the prior year [12][13] - The company plans to stabilize revenue by implementing strategic pricing and increasing penetration with existing customers [20][67] Company Strategy and Development Direction - The company has initiated a multi-year business transformation plan focusing on commercial excellence, operational excellence, and asset and network optimization [4][18] - The transformation plan aims to generate run-rate operating cost savings of at least $75 million by the end of 2026 [18][19] - The company is committed to improving customer service quality and operational efficiency to drive sustainable growth [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformation plan, emphasizing that 2026 will mark the beginning of a stronger, more resilient company [22][24] - The company anticipates revenue for fiscal 2026 to be flat to down 2% compared to normalized fiscal 2025 revenue, with adjusted EBITDA expected to range from $285 million to $315 million [19][20] Other Important Information - The company generated $31 million in operating cash flow and $16 million in free cash flow during the quarter, reflecting improvements over the previous quarter [17] - Net debt at the end of the fiscal quarter was $1.34 billion, with no debt maturities until 2028 [17] Q&A Session Summary Question: Regarding the cultural transformation and team readiness - Management acknowledged the importance of culture in the transformation and expressed confidence in having the right team in place to execute the strategic transformation [26][32] Question: Financial framework for mid to long term growth - Management indicated that more details about financial performance beyond 2026 would be available as the company executes its plans in the early quarters of 2026 [33] Question: Logistics and network rationalization - Management clarified that the focus is on optimizing existing plants before making decisions about consolidating capacity in certain regions [35][36] Question: Free cash flow guidance for fiscal 2026 - Management provided details on the assumptions behind the $50-$60 million free cash flow guidance, including capital expenditures and working capital considerations [46][51] Question: Employee engagement and turnover trends - Management recognized the challenges faced by employees and emphasized the need to improve engagement levels as part of the transformation [78][81] Question: Strategic pricing initiatives - Management highlighted the differences in the new pricing strategy, focusing on aligning service quality with pricing decisions to reduce churn and improve customer retention [70][86]

Financial Data and Key Metrics Changes - 3M reported organic sales growth of 3.2% in Q3, marking the fourth consecutive quarter of positive organic growth across all business groups [3][4] - Operating margins increased by 170 basis points, with earnings per share rising 10% to $2.19, and free cash flow reached $1.3 billion, representing a conversion rate of 111% [4][16] - The company raised its earnings per share guidance for the year to a range of $7.95 to $8.05, reflecting strong performance in the first three quarters [4][22] Business Line Data and Key Metrics Changes - Safety and Industrial Business Group (SIBG) achieved organic sales growth of 4.1% in Q3, driven by electrical markets and industrial adhesives [18][19] - Transportation and Electronics adjusted sales accelerated to 3.6% in Q3, with significant growth in aerospace and electronics [20] - The Consumer business demonstrated resilience with 0.3% organic growth in each of the last three quarters, supported by strong demand for Filtrete filters and Scotch Tape [21] Market Data and Key Metrics Changes - Growth in China was notable, with sales up high single digits, particularly in industrial adhesives and electronics bonding solutions [14][15] - The U.S. market saw nearly 4% growth in Q3, up from 1% in the first half, driven by general industrial safety and demand for Filtrete filters [15] - Europe returned to growth in Q3, up low single digits, primarily due to strength in personal safety communication solutions [15] Company Strategy and Development Direction - The company is focusing on commercial excellence, operational efficiency, and new product development, with plans to launch over 250 new products this year [5][10] - A divestiture strategy is in place, with 2% to 3% of revenue under review for potential divestiture to focus on higher growth and higher profit potential markets [10][51] - The company aims to achieve margin expansion of 180 to 200 basis points for the year, with a long-term target of 25% by 2027 [22][47] Management's Comments on Operating Environment and Future Outlook - Management noted that macro trends remain soft but emphasized that strong execution is allowing the company to outperform the market [11][14] - The focus will be on innovating for customers, improving service, and optimizing capacity while maintaining a sense of urgency in performance culture [14][24] - The company expressed confidence in achieving updated 2025 guidance and commitments made at the investor day [24] Other Important Information - The cost of poor quality decreased to 5.7%, down 40 basis points sequentially and 150 basis points year over year [9] - The company returned $900 million to shareholders in Q3, including $400 million in dividends and $500 million in share repurchases [10][17] Q&A Session Summary Question: Insights on new product introductions and their impact - Management highlighted a greater pace and urgency in new product introductions, with 70 products launched in Q3 and a healthy pipeline of ideas [28][30] - The focus is on incremental line extensions, with expectations for more significant category innovations in the future [32][33] Question: Clarification on restructuring efforts - Management indicated that the current restructuring is a long-term, thoughtful redesign of manufacturing and distribution networks, rather than a quick fix [36][38] Question: Expectations for Q4 performance - Management noted typical seasonal drops in volume and margin from Q3 to Q4, but expressed confidence in year-over-year growth based on backlog coverage and order trends [56][58] Question: Discussion on divestitures and portfolio management - Management confirmed ongoing analysis of the portfolio, focusing on high-growth, high-margin businesses, and indicated that divestitures will be executed where clear shareholder value can be realized [50][52]

Investor Day 2025 TM Transform. Innovate. Accelerate. 2025 INVESTOR DAY 1 Welcome and Opening Remarks Ann Giancristoforo Vice President, Investor Relations 2 2 2025 INVESTOR DAY 2025 INVESTOR DAY Forward looking statements On January 15, 2025, DuPont de Nemours, Inc. ("DuPont", or after the completion of the Intended Electronics Separation, "New DuPont") announced it is targeting November 1, 2025 to complete the intended separation of its Electronics business (the "Intended Electronics Separation") by way o ...

Core Insights - The company has focused on returning to basics, emphasizing accountability, agility, and innovation to improve business performance [1] - Progress has been made in three key priorities: top line growth through innovation and commercial excellence, operational performance, and effective capital deployment [2] Product Innovation - In the first half of the year, the company launched 126 products, which is nearly equivalent to the total of 128 products launched in all of 2023 [2]

Summary of 3M FY Conference Call - September 11, 2025 Company Overview - **Company**: 3M (NYSE: MMM) - **Industry**: Multi-Industry, including Safety and Industrial, Consumer, Electronics, Automotive, and more Key Points and Arguments Leadership and Strategic Focus - The CEO, Bill Brown, emphasized a return to basics, focusing on business fundamentals, culture, accountability, agility, and innovation [3][4] - Three main priorities were outlined: top-line growth through innovation and commercial excellence, operational performance, and effective capital deployment [3][4] Product Launches and Innovation - 3M launched 126 products in the first half of 2025, a significant increase from 128 in all of 2023, representing a 70% year-over-year growth [4][5] - The company is on track for over 215 product launches in 2025, aiming for 1,000 launches over the next three years [4][5] Financial Performance and Growth Metrics - The Safety and Industrial Business Group (SIBG) showed improvement with organic growth of 2.5% in the first half of 2025, up from negative growth in the previous year [5][6] - Margins improved by 250 basis points year-over-year, with a target of 25% margins by 2027 [6][7] - The company aims for a billion dollars of growth above macroeconomic trends over the next three years, with half from commercial excellence and half from new product introductions [18][24] Operational Excellence - The CEO highlighted the importance of operational excellence, including metrics like on-time and in-full (OTIF) delivery, which improved from 80% to 89.6% year-over-year [11][12] - The focus on asset utilization is critical, with current utilization at 59%, aiming to improve surge capacity and reduce excess assets [13][14] Market Conditions and Expectations - The macroeconomic environment remains sluggish, with expectations of low single-digit growth in various sectors, including automotive and consumer markets [31][32] - China remains a strong market for 3M, contributing over 10% of the company's revenue, although growth is expected to soften in the back half of the year [36][38] Portfolio Management and Divestitures - The company is reviewing its portfolio to focus on higher growth and margin potential businesses, with about 10% of the portfolio identified for potential divestiture [25][26] - Priority verticals for investment include semiconductors, data centers, aerospace, and automotive [25][26] Litigation and Financial Management - Ongoing litigation includes public water supplier issues and personal injury cases, with settlements structured to manage cash flow over time [40][41] - The company maintains a strong balance sheet to handle litigation costs and is focused on cash management strategies [44][45] Future Outlook - The CEO expressed confidence in achieving growth targets, with expectations of accelerating growth in the back half of 2025 [23][31] - The company is committed to innovation and improving operational metrics to drive sustainable growth [10][18] Additional Important Insights - The company is phasing out PFAS production by the end of 2025, focusing on alternative materials and innovation [46][47] - The impact of tariffs is being managed, with expectations of offsetting costs through pricing and operational efficiencies [51][52]

Financial Data and Key Metrics Changes - The company reported a Q2 EBITDA that was 19% higher than the same quarter last year, and H1 EBITDA was nearly 20% above H1 last year, marking the fifth consecutive quarter of EBITDA growth [9][10] - Gross margin improved from 26.8% to 29.6%, and EBITDA margin increased from 10.8% to 13.3% compared to the same period last year [11] - Free cash flow increased by $24 million to a total of $32 million, reflecting strong cash management [15][32] Business Line Data and Key Metrics Changes - The company achieved a top-line sales increase for the first time since Q3 2022, reaching $908 million, driven by a 6% volume growth that offset a 3% decline in prices [17] - Gross profit increased by 14%, with a gross margin of 29% in Q2 2025 compared to 26% in Q2 2024 [17][21] - EBITDA for H1 2025 reached $244 million, a 20% increase compared to the previous year [21] Market Data and Key Metrics Changes - Sales in North America grew by approximately 20%, benefiting from a rebound in market volumes [25] - Sales in Europe, Africa, and the Middle East showed a slight drop, but would have grown by 3% if not for geopolitical issues in Turkey [24] - The company faced significant price pressure in Latin America, particularly in Brazil and Argentina, impacting overall performance in that region [28] Company Strategy and Development Direction - The company is focused on a transformation strategy called "Fight Forward," aimed at improving profitability and growing the top line by focusing on high-margin products [12][59] - The management emphasized the importance of operational efficiency and cost reduction initiatives that have contributed to improved margins [12][19] - The company aims to leverage its differentiated product portfolio to gain market share in key regions moving forward [59] Management's Comments on Operating Environment and Future Outlook - Management noted that the agrochemical market remains in an oversupply situation, primarily due to overcapacity from China, which continues to exert price pressure [5][6] - Despite challenges, there are signs of market stabilization, with normalized inventory levels leading to improved volume dynamics [46][48] - The management expressed confidence in the company's ability to navigate the current environment and capitalize on growth opportunities [59][60] Other Important Information - The company has undergone significant restructuring, which has resulted in a narrowing of net profit losses, with reported net profit at $43 million in Q2 2025, down 64% from the previous year [19][22] - The company has a net debt to EBITDA ratio of 2.5, which is within the required covenant limits [34] Q&A Session Summary Question: What are the main challenges faced in the market? - Management highlighted ongoing price pressures due to farmer profitability issues and geopolitical factors affecting sales in certain regions [47][48] Question: How is the company addressing operational efficiency? - The company has implemented various initiatives under the "Fight Forward" plan to reduce costs and improve operational efficiency, contributing to better margins [12][19] Question: What is the outlook for growth in key markets? - Management expressed optimism about growth opportunities in North America and Europe, while acknowledging challenges in Latin America and India [25][28]