Financial Data and Key Metrics Changes - In the first nine months of 2025, the company reported a negative net debt of €706 million, indicating a strong cash position [3][16] - Revenue grew by 6.2%, adjusted EBITDA increased by 4.8%, and adjusted EBIT rose by 6.0% in like-for-like terms [15] - Shareholder distributions reached €426 million in the first nine months, with a second scrip dividend announced [4][17] Business Line Data and Key Metrics Changes - Highways division saw a revenue growth of 16.4% in like-for-like terms, with adjusted EBITDA up nearly 15.1% [4][5] - The 407 ETR reported a traffic growth of 9.4% in the quarter, with revenue growth of 18.6% and EBITDA surging by 20.1% [6][7] - Airports division showed steady performance with adjusted EBITDA growth supported by commercial upgrades, despite a 1.5% decline in traffic [13] Market Data and Key Metrics Changes - The I-66 managed lane experienced exceptional traffic growth of 13.2% in the third quarter, with revenue per transaction growing by 12.1% [10][11] - The I-77 also saw traffic growth of 1.5% in the third quarter, with revenue per transaction increasing by 25.7% [12] - The Dallas-Fort Worth managed lanes recorded solid revenue per transaction growth, benefiting from a favorable traffic mix [9] Company Strategy and Development Direction - The company is focused on operational readiness for New Terminal One at JFK, with construction 78% complete and an official opening date set for June 2026 [13] - The construction order book stands at $17.2 billion, reflecting a healthy pipeline for future growth [15] - The company plans to submit bids for several projects in North America, including the I-24 and I-25 in 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance of North American assets, driven by increased customer segmentation and favorable market dynamics [18] - The company is monitoring the potential impact of the U.S. government shutdown but has not seen significant effects on revenue so far [28] - Management highlighted the importance of IT and bidding costs as investments for future growth [69] Other Important Information - The company announced a dividend of $1.05 billion CAD for Q4, a 50% increase from the previous year [7] - The company is committed to returning €2.2 billion to shareholders by the end of 2026 through buybacks and dividends [59] Q&A Session Summary Question: What are the potential financial consequences of a delay in the launch of New Terminal One? - Management stated that delays would result in liquidated damages for the contractor and a delay in revenue perception [22][23] Question: Will there be any impact from the U.S. government shutdown in Q4? - Management indicated no significant impact observed so far, with bidding processes continuing as scheduled [27][28] Question: Can you provide insights on Schedule 22 and its provision reversal? - Management noted that increased mobility and effective promotions contributed to the reversal, but refrained from making future projections [32][33] Question: What is the competitive backdrop in the contracting market? - Management reported a rational market with increased activity and no significant tightening in competition [45][46] Question: What is the strategy regarding data centers? - The recent acquisition is seen as a way to enhance construction capabilities, with no major shift in strategy for data centers [65]

Financial Data and Key Metrics Changes - In the first nine months of 2025, the company reported strong momentum across its business divisions, with net debt standing at negative EUR 706 million, indicating net cash [4][17] - Revenue grew by 6.2%, adjusted EBITDA increased by 4.8%, and adjusted EBIT rose by 6.0% in like-for-like terms [16] Business Line Data and Key Metrics Changes - Highways revenue grew by 16.4% in like-for-like terms in the first nine months, with adjusted EBITDA up nearly 15.1% [5][6] - The Airports division saw steady progress at New Terminal One at JFK, with construction 78% complete and on budget [14] - Construction maintained a solid adjusted EBIT margin of 3.7% in the first nine months, with an order book of $17.2 billion, up 9.1% compared to December 2024 [15][16] Market Data and Key Metrics Changes - North American assets contributed 97% of Highways' adjusted EBITDA and 88% of revenue, with dividends from these assets totaling EUR 312 million in the first nine months [6] - Traffic in the 407 ETR grew by 9.4% in the quarter, reflecting increased mobility due to return-to-office mandates [7] Company Strategy and Development Direction - The company is focused on enhancing value through demand segmentation and maximizing EBITDA growth, particularly in North American highways [7][19] - Future bids are planned for the I-24 in Tennessee and I-25 in Georgia in the first half of 2026, with an RFQ for the I-77 South in North Carolina expected to be submitted in December [5][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong performance of North American assets and the attractive pipeline of opportunities in highways [19][20] - The geopolitical situation has affected international traffic, but domestic traffic remains robust, supporting growth in adjusted EBITDA [14] Other Important Information - The company announced a second scrip dividend and expects to distribute EUR 2.2 billion in cash to shareholders from 2024 to 2026 [5][18] - The 407 ETR board approved a dividend of CAD 1.05 billion for Q4, up 50% from the previous year [8] Q&A Session Summary Question: What are the potential financial consequences of a delay in the launch of New Terminal One? - Management indicated that delays would result in liquidated damages for the contractor and a delay in revenue perception [24] Question: Will there be any impact from the U.S. government shutdown in Q4? - Management noted no significant impact observed on the I-66 and that bidding processes are mainly at the state level, unaffected by federal shutdowns [29] Question: Can you elaborate on the Schedule 22 provision reversal in Q3? - The reversal was driven by increased mobility and effective promotions, leading to better-than-expected traffic [35] Question: What is the strategy regarding the managed lanes and potential dividends? - Management indicated that there could be opportunities for leveraging managed lanes in the coming years, particularly for the I-66 [58] Question: What is the outlook for the 407 ETR pricing and discounts? - Management emphasized focusing on revenue and EBITDA growth rather than discounts, with expectations for pricing announcements similar to last year [42][59] Question: What is the competitive landscape in contracting? - Management noted that the contracting environment remains rational with no significant tightening in competition, indicating healthy activity levels [48]

Financial Data and Key Metrics Changes - Sales decreased by 4.1% to $288.9 million in the second quarter, primarily due to the closure of 145 underperforming stores, partially offset by a 1.1% increase in comparable store sales from continuing locations [16][21] - Adjusted diluted earnings per share increased to $0.21 from $0.17 in the prior year [18][19] - Gross margin expanded by 40 basis points to 35.7%, driven by lower occupancy costs and material costs as a percentage of sales [14][16] Business Line Data and Key Metrics Changes - Comparable store sales growth was reported for three consecutive quarters, with a 1.1% increase in the second quarter [13][28] - Tire units were down mid-single digits, but the company believes it outperformed the industry [16][46] Market Data and Key Metrics Changes - Preliminary October comparable store sales were down 2%, indicating some softness in consumer demand [14][28] - The company expects to deliver positive comparable store sales in fiscal 2026 despite recent softness [14][21] Company Strategy and Development Direction - The company is focusing on four key areas for performance improvement: customer acquisition, store experience, merchandising productivity, and real estate disposition [4][10] - A new marketing leader has been hired to enhance marketing strategies and execution [8][10] - The company is developing an updated tire assortment strategy to drive incremental sales [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the lower-income consumer is feeling pressure, but the services provided are essential and cater to all economic levels [41][42] - The company remains optimistic about the opportunities ahead and believes it is well-positioned to capitalize on positive industry trends [23][73] Other Important Information - The company generated $30 million in cash from operations during the first half of fiscal 2026 [20] - The company expects to spend $25 million to $35 million on capital expenditures [22] Q&A Session Summary Question: Discussion on price contribution versus car counts and expectations for price in the second half - In the quarter, traffic was down mid-single digits while ticket prices were up mid-single digits, resulting in a net increase of 1% overall [26][28] Question: Inquiry about gross margin improvement drivers - Gross margins increased by 40 basis points, driven by higher comp sales and benefits from store closures, with material costs improving by 50 basis points [38][39] Question: Expectations on working capital and risk spread - There have been no recent changes related to the risk spread in the working capital program [30][31] Question: Insights on consumer softness and trade downs - The lower-income consumer is under pressure, but the company offers services that cater to all economic levels [41][42] Question: Expectations for operating expenses in the second half - Operating expenses are expected to run above Q2 levels, closer to flat compared to the prior year [50][51] Question: Safety of the dividend and capital allocation - The company believes it can fund the dividend alongside other capital allocation priorities, maintaining a conservative balance sheet [66][68]

Financial Data and Key Metrics Changes - In Q2 2025, net sales decreased by 2.3% with comparable sales down 1.4% due to 25 net store closures in 2024 and an additional 10 closures year to date, bringing the U.S. store count to 1,388 [23][24] - Gross margin expanded by over 120 basis points to 39.3%, driven by a disciplined approach to average unit cost and retail pricing [25] - SG&A expenses decreased by $36 million year over year, leveraging more than 150 basis points, contributing to a $41 million increase in operating profit to $43 million [26][27] - Adjusted EBITDA increased by $30 million to $114 million, expanding nearly 220 basis points to 7.6% as a percentage of sales [27] Business Line Data and Key Metrics Changes - The company is focusing on improving store performance, which has shown positive results, while e-commerce is being retooled for profitability [61] - The introduction of new product categories aimed at humans has been initiated, responding to customer interest in pet-themed products [14] Market Data and Key Metrics Changes - The pet industry is currently showing flat growth, but the company is maintaining its market share while improving profitability [80] - Customer sentiment has improved, as indicated by sequential increases in the Net Promoter Score (NPS) since the end of the previous year [10] Company Strategy and Development Direction - The company is in Phase two of its transformation, focusing on operational improvements and preparing for Phase three, which aims for profitable sales growth [19] - The North Star project is being implemented to enhance customer experience, service delivery, merchandising differentiation, and omnichannel capabilities [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver improvements and raised the adjusted EBITDA outlook for 2025 to between $385 million and $395 million, an increase of roughly 16% at the midpoint [29] - The company is preparing for potential tariff impacts in the second half of the year, which are expected to be more significant [43] Other Important Information - Free cash flow for the quarter was over $50 million, with a cash balance of $190 million and total liquidity of $684 million [28] - The company is committed to a disciplined promotional strategy and improving customer experience as part of its growth initiatives [19][30] Q&A Session Summary Question: When can the firm be held accountable for generating a positive comp? - Management indicated that results will likely begin to show up in 2026, with the third quarter being the hardest compare of the year [33] Question: Were gross margin gains primarily from online promotions? - Management noted that the focus has been on improving store performance, which represents the majority of sales, while e-commerce is being cleaned up for profitability [34][36] Question: How did gross margin perform relative to expectations? - Management expressed satisfaction with the gross margin expansion, which was driven by a disciplined approach to pricing and promotional strategies [42] Question: What updates can be provided on planogram resets? - Management confirmed that planogram resets have been completed successfully, improving on-shelf availability and store productivity [50] Question: What is the status of the e-commerce retooling? - Management stated that the e-commerce channel is more profitable now, and ongoing improvements are being made to enhance the customer experience [61] Question: What is behind the increase in NPS scores? - Management attributed the increase to various improvements in store experience and customer engagement efforts [64] Question: What are the biggest remaining execution gaps? - Management indicated that the focus is now on investing back into the business and continuing to build on the progress made [73]

Core Insights - Visitor list management is essential for improving customer conversion rates and is a key component of customer relationship management (CRM) goals [1][5] - Effective visitor list management involves data collection, customer segmentation, personalized marketing, and continuous tracking [2][3][5] Visitor List Management Importance - Helps identify potential customers by analyzing visitor behavior [2] - Increases conversion rates through tailored marketing strategies for different visitor types [2] - Optimizes resource allocation by focusing on high-potential customers [2] - Enhances customer relationships through ongoing tracking and communication [2] Data Collection Channels - Various channels for collecting visitor information include website registrations, social media interactions, and offline events [2] - Each channel has its advantages, such as direct access to potential customer information and increased brand exposure [2] Customer Segmentation and Personalized Marketing - Customer segmentation can be based on criteria like geographic location, industry, and purchasing behavior [3] - Personalized marketing strategies can be developed for different customer segments, such as exclusive offers for high-value customers [3] Continuous Tracking and Data Analysis - Continuous monitoring of visitor behavior and feedback is crucial for optimizing visitor list management [3] - Zoho CRM's data analysis tools allow real-time tracking of visitor behavior and marketing effectiveness [3][4] Zoho CRM Features - Zoho CRM integrates with various data sources for automated visitor information collection, reducing manual entry errors [4] - It enables customer segmentation and tagging for quick identification of different customer types [4] - The platform supports personalized marketing campaigns through automation, enhancing customer engagement [4] - Strong data analysis and reporting features help businesses understand the effectiveness of marketing activities [4] Conclusion - Effective visitor list management is a key strategy for improving customer conversion rates [5] - Zoho CRM provides comprehensive support for data collection, customer segmentation, personalized marketing, and data analysis, helping businesses optimize their visitor list management [5]