Hilton Grand Vacations (NYSE:HGV) Q4 2025 Earnings call February 26, 2026 09:00 AM ET Company ParticipantsDan Mathewes - CFOMark Melnyk - Senior Vice President, Investor RelationsMark Wang - CEOConference Call ParticipantsBen Chaiken - AnalystDavid Katz - Equity Research AnalystPatrick Scholes - Senior AnalystStephen Grambling - AnalystOperatorGood morning, welcome to the Hilton Grand Vacations fourth quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mod ...

Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Company ParticipantsBrandon Cheatham - Vice President of Equity ResearchChester Ward - President, Sales, Marketing and DistributionChris Li - Managing Director of Equity ResearchGlenn Chamandy - President and CEOIan Liu - Equity Research AssociateJessy Hayem - Senior Vice President, Head of Investor Relations and Global CommunicationsLuca Barile - EVP and CFOStephen MacLeod - Managing Director of Equity ResearchConference Call ...

Gildan Activewear (NYSE:GIL) Q4 2025 Earnings call February 26, 2026 08:30 AM ET Speaker10Ladies and gentlemen, thank you for standing by, and welcome to Gildan Activewear's 2025 Q4 earnings conference call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jessy Hayem, the Senior Vice President, Head of Investor Relations and Global Communications. Please go ahead.Speaker7Thank you, Sarah. Good morning, everyone, and thank you for joining us. Earli ...

Financial Data and Key Metrics Changes - Full year revenue decreased by 7% year-over-year, with adjusted EBITDA margin increasing by 140 basis points to 37.5% [12][14] - Net income for Q4 was $99 million, down from $175 million in the same period in 2024, primarily due to a $29 million impairment and $26 million in acquisition-related expenses [21][22] - Adjusted net income for Q4 was $141 million, with diluted earnings per share of $1.68 [21] Business Line Data and Key Metrics Changes - North American on-highway end market saw a sequential improvement of 10% from Q3 to Q4, despite year-over-year declines [20] - Defense end market revenue increased by 26% to $267 million for the full year, achieving the $100 million incremental annual revenue objective [13] - Record revenue of $507 million was achieved in the outside North American on-highway end market for the full year [20] Market Data and Key Metrics Changes - The defense end market showed strong growth, while the North American on-highway market remained soft, particularly in medium-duty trucks [20][72] - The company noted sluggish economic growth and uncertainties in global trade policies affecting performance [12] Company Strategy and Development Direction - The acquisition of Dana's Off-Highway Drive & Motion Systems business is expected to create a global leader with expanded market reach and product portfolio [6][7] - The company aims to leverage synergies from the acquisition, focusing on cost reduction and operational efficiencies [8][9] - Strategic investments in India are being made to support local production and partnerships, aligning with the Make in India framework [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainties and highlighted early signs of demand improvements in North America [13] - The company is focused on maintaining disciplined execution and seamless integration of the acquired business [10][60] - Management acknowledged the challenges posed by macroeconomic factors but remains optimistic about long-term growth opportunities [12][14] Other Important Information - The company repurchased $328 million of common stock, representing 4% of outstanding shares, and increased its quarterly dividend to $0.27 per share [14] - For 2026, the company provided guidance of consolidated net sales between $5.575 billion and $5.925 billion, with net income expected to range from $600 million to $750 million [25][26] Q&A Session Summary Question: Pricing expectations for 2026 and inflation impact - Management expects meaningful year-over-year pricing increases between 250 and 400 basis points, despite inflationary pressures [32][33] Question: EBITDA margin expectations for the acquired Off-Highway business - Management indicated that the Off-Highway business is expected to have an EBITDA margin of 11%-12% on $2.6 billion in revenues, with no one-time items assumed in guidance [38][39] Question: Synergies from the acquisition - Management confirmed that no synergies are embedded in the 2026 guidance, but they are confident in achieving the $120 million annual run rate of synergies over the next few years [48][88] Question: Margin profile for the legacy Allison business - Management believes that returning to peak EBITDA margins of 40% is feasible, depending on top-line growth and cost management [57][59] Question: End market guidance and recovery assumptions - Management remains cautious about recovery in Class 8 trucks and expects continued softness in the North American on-highway market [70][72]

Financial Data and Key Metrics Changes - Full year revenue decreased by 7% year-over-year, with adjusted EBITDA margin increasing by 140 basis points to 37.5% [11][12] - Fourth quarter net sales were $737 million, down 7% from the same period in 2024, with net income for the quarter at $99 million, a decrease of $76 million from $175 million for the same period in 2024 [18][19] - Adjusted EBITDA margin for the fourth quarter increased over 200 basis points to 36% despite a net sales decrease [19] Business Line Data and Key Metrics Changes - The defense end market saw a revenue increase of 26% to $267 million for the year, achieving the $100 million incremental annual revenue objective [12] - In the outside North American on-highway end market, record fourth quarter revenue was achieved, leading to record full-year revenue of $507 million [18] - Fourth quarter net sales in the defense end market were $73 million, up 7% year-over-year [18] Market Data and Key Metrics Changes - North America on-highway end market showed early signs of demand improvements, with a sequential improvement of 10% from the trough in the third quarter of 2025 [12][18] - The company reported strong performance in defense and international markets, with record revenue outside North America in 2025 [12][71] Company Strategy and Development Direction - The acquisition of Dana's off-highway business is expected to create a global leader in the end markets served, with a focus on sustainable growth and long-term value creation [5][10] - The combined company will leverage an expanded global footprint for local production and increased proximity to customers, enhancing product innovation and engineering capabilities [6][8] - The company aims to capture approximately $120 million of annual run rate synergies over the next few years [25][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating ongoing uncertainty and highlighted the importance of cost control and execution amid macroeconomic challenges [11][12] - The company anticipates continued softness in the North America on-highway end market, particularly for medium-duty trucks, with no meaningful recovery expected for Class 8 vocational trucks [25][66] - Management remains focused on meeting customer commitments and seamless integration of the acquired business [60] Other Important Information - The company repurchased $328 million of common stock, representing 4% of outstanding shares, and increased its quarterly dividend to $0.27 per share [13][14] - The company plans to provide segment reporting starting with Q1 2026, reflecting the historical Allison Transmission business and the newly acquired Off-Highway Drive & Motion Systems business [22][23] Q&A Session Summary Question: Pricing expectations for 2026 and inflation impact - Management expects meaningful year-over-year pricing between 250 and 400 basis points, while facing substantial inflationary pressures [32][33] Question: EBITDA margin implications for the Off-Highway business - Management indicated that the Off-Highway business is expected to have a different mix than in 2025, impacting margin outlook [39][40] Question: Synergies from the acquisition - Management confirmed that the $120 million annual run rate of synergies is still targeted, with no synergies assumed in the 2026 guidance [50][87] Question: Margin profile for the legacy Allison business - Management believes that returning to peak margins of 40% is achievable, depending on top-line growth and cost management [56][58] Question: Off-Highway Drive & Motion segment guidance - Management indicated a mid-plus single-digit growth rate year-over-year for the Off-Highway segment [63] Question: End market guidance and recovery expectations - Management expressed cautiousness regarding recovery in Class 8 trucks and noted soft conditions in the vocational market [70][71]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $959 million, up 51% or $325 million from Q3 2025, driven by $388 million from MRC Global contributions during the stub period [22] - Full year 2025 revenue totaled $2.8 billion, an increase of $447 million or 19% from 2024, marking the fifth consecutive year of growth for DNOW [22] - Adjusted EBITDA for Q4 was $61 million, or 6.4% of revenue, while full year EBITDA was $209 million, or 7.4% of revenue [22][23] - Legacy DNOW achieved a record full-year EBITDA of $199 million in 2025, with EBITDA as a percentage of revenue reaching 8.2% [8][9] Business Line Data and Key Metrics Changes - U.S. revenue for Q4 2025 was $765 million, with MRC Global contributing $298 million; legacy DNOW's revenue was $467 million, down approximately 10% sequentially [23] - Canadian revenue for Q4 was $51 million, down 4% sequentially, while full year Canadian revenue was $214 million [23] - International revenue for Q4 was $143 million, with legacy DNOW International revenue at $53 million, down 7.5% year-over-year [24] Market Data and Key Metrics Changes - Upstream market activity is expected to remain flat to down, focusing on maintenance and efficiency rather than growth [16] - Midstream sector benefits from structural growth drivers, including natural gas infrastructure expansion and LNG development [16] - Gas utility market is expected to grow in 2026, supported by modernization efforts [16] Company Strategy and Development Direction - The merger with MRC Global enhances scale, diversifies sector reach, and expands the addressable market, solidifying DNOW's competitive position [10] - The company aims to achieve $70 million in cost synergies within three years, with $23 million expected by the end of the first year [11] - Focus on integrating operations, optimizing supply chains, and capturing identified cost synergies while maintaining customer service [38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ERP challenges impacting U.S. MRC Global operations but is optimistic about resolving these issues [12][14] - The company plans to reinstate guidance once operational stability is achieved, emphasizing the importance of integration and customer service [40][41] - Long-term growth is expected through improved competitiveness, better product availability, and enhanced relationships with suppliers [70] Other Important Information - The company changed its inventory valuation method to LIFO, which better reflects current costs due to commodity price fluctuations [26] - Transaction-related costs and foreign currency translation adjustments negatively impacted net loss in Q4, totaling $147 million [31] - The balance sheet remains healthy with $588 million in liquidity and a leverage ratio of 1.2x [32][33] Q&A Session Summary Question: Impact of MRC's ERP transition on Q4 and resolution timeline - Management indicated that ERP issues are limited to U.S. MRC only and have caused notable revenue declines in Q3 and Q4; efforts are underway to resolve these issues [47][48] Question: Growth expectations for 2026 - Management expects upstream markets to remain flat to down, while midstream and gas utilities are anticipated to grow; overall revenue is expected to be flattish [52][54] Question: Cost synergy targets and drivers - Improved cost synergy targets are driven by urgency to resolve ERP issues, with potential for exceeding initial savings projections [55][59] Question: Long-term vision for revenue growth and profit margins - Management envisions long-term growth through better competitiveness and improved supplier relationships, aiming for EBITDA margins in the 8% range [66][70] Question: Retaining key employees during ERP challenges - The company is focused on rewarding top talent and ensuring they are involved in decision-making to retain key employees during the transition [71][73]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported an Adjusted EBITDA of $385 million and free cash flow of $321 million, with a year-on-year increase in Adjusted EBITDA of nearly 20% to $1.37 billion and free cash flow rising to $626 million [4][5] - The company retired approximately $1.3 billion in debt during the year, reducing annual interest expenses by nearly $90 million and enhancing financial flexibility [5][6] - Total liquidity at the end of Q4 was approximately $1.5 billion, including $620 million in unrestricted cash and cash equivalents [16] Business Line Data and Key Metrics Changes - The company achieved record uptime performance just shy of 98% across its fleet, with zero operational integrity events and zero lost time incidents [6] - The company executed five major planned out-of-service projects on time and on budget, while also recycling six rigs in 2025 [6] Market Data and Key Metrics Changes - Tendering activity is increasing, with expectations for deepwater utilization to exceed 90% through 2027, indicating a strengthening market environment [10] - In the U.S. Gulf, long-term demand remains robust, driven by new lease awards and improved fiscal terms, while Brazil's rig activity is expected to remain stable [10][11] - Africa is projected to see an increase in rig count from approximately 15 to at least 20 over the next couple of years, with significant multi-year program awards anticipated [11] Company Strategy and Development Direction - The company aims to optimize the value of its differentiated assets and generate industry-leading free cash flow, with a backlog of roughly $6 billion expected to convert efficiently into cash [7][8] - The recent acquisition of Valaris is seen as a transformational move that will enhance the company's capabilities and market position, with identified cost synergies exceeding $200 million [8][9] - The company is focused on establishing a stronger capital structure to weather business cycles and improve operational efficiencies [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming inflection point for offshore drilling, supported by customer conversations and increasing tender activity [33][34] - The company anticipates that the market will transition towards development of previously discovered assets, with a marked increase in exploration budgets [35] - Management highlighted the importance of continuity in operations with customers like Petrobras, aiming for cost reductions and extended contracts [56][58] Other Important Information - The company has made significant strides in cost reduction, with plans to decrease costs by an additional $150 million in 2026 [5][6] - The company is positioned to capitalize on improving demand and has a strong operational performance record, which is expected to enhance shareholder returns [9] Q&A Session Summary Question: Impact of Valaris acquisition on chartering strategy - Management indicated that the acquisition allows for cost efficiencies and improved service provision, enhancing reliability and predictability for customers [22][23] Question: Confidence in offshore drilling inflection timing - Management cited customer conversations and data from tender releases as indicators of a strengthening market, with expectations for over 90% utilization by late 2026 [33][34] Question: Guidance related to Petrobras negotiations - Management stated that the guidance reflects their best estimates and does not include significant upside from the Petrobras negotiations [38] Question: Fleet placement and regional opportunities - Management noted that the company can move rigs globally to meet demand, with high-spec rigs being preferred by customers [42][44] Question: Customer feedback on Valaris acquisition - Management reported overwhelmingly positive feedback from customers regarding the acquisition and its potential benefits [52][55] Question: Recent trends in producer M&A activity - Management observed a pivot back towards traditional hydrocarbon sources among producers, indicating a potential for increased offshore activity [74][76]

DNOW (NYSE:DNOW) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Speaker6Good morning. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the DNOW fourth quarter and full year 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number ...

Herc Rentals FY Conference Summary Company Overview - **Company**: Herc Rentals (NYSE:HRI) - **Industry**: Equipment Rental - **Market Position**: Leading full-line equipment supplier in North America with a market size approaching $90 billion [4][5] - **Workforce**: Approximately 9,600 employees across over 600 locations in 46 states and five Western Canadian provinces [4] Core Insights - **Growth Strategy**: Herc Rentals has been generating above-market growth through investments in fleet, new greenfields, and mergers & acquisitions (M&A) [5] - **Recent Acquisition**: Closed the largest transaction in the industry by acquiring H&E Equipment Services, enhancing branch network and customer reach [6][7] - **Integration Success**: IT integration completed in 90 days, with branch and fleet optimization exercises underway to prepare for peak season [8][13] Financial Performance - **Cost Synergies**: Expected to achieve $125 million in cost synergies impacting EBITDA for 2026, with $35 million already realized in 2025 [21] - **Revenue Synergies**: Projected gross revenue synergies of $390 million over three years, with $40 million achieved in the latter half of 2025 and an expected $100-$120 million in 2026 [21][24] - **CapEx Guidance**: Projected gross CapEx of approximately $1 billion for 2026, with a focus on fleet optimization [31] Market Dynamics - **Rental Market Conditions**: Supply is readily available, with a disciplined market and no significant oversupply. Demand remains stable but challenging, particularly in regions without mega projects [35][36] - **Mega Projects**: $1 trillion worth of work in the pipeline, with Herc Rentals increasing its share in mega projects since 2023 [40][41] Competitive Landscape - **Market Discipline**: The competitive environment remains stable, with major players maintaining discipline in fleet management and market entry [56] - **Future Outlook**: Anticipated improvements in utilization rates and potential for rate increases in the latter half of 2026 [50] Strategic Focus - **Diversification Strategy**: Focus on top 100 metropolitan statistical areas (MSAs) to ensure resilience during uncertain times [6] - **Technology Leadership**: Continued investment in technology to enhance operational efficiency and customer interaction [5] Additional Considerations - **Debt Management**: Plans to utilize free cash flow, projected at $400 million-$600 million for 2026, to pay down debt and return to a 2-3 times leverage ratio by the end of 2027 [67] - **Market Sentiment**: Audience sentiment during the conference indicated a preference for debt paydown and a balanced view on stock valuation multiples for 2026 earnings [60][68]

Group 1 - Danaher announced the acquisition of Masimo for $9.9 billion, expanding its presence in the patient monitoring equipment sector, with a valuation of $180 per share, representing a 38.3% premium over Masimo's previous closing price [1] - Danaher, valued at $150 billion, is primarily focused on drug development and testing tools, marking this acquisition as a new venture outside its core business [1] - Masimo specializes in non-invasive monitoring devices for hospitals, including pulse oximeters and brain activity monitors, and has been in the spotlight due to patent disputes with Apple [1] Group 2 - The acquisition will enhance Danaher's diagnostic product matrix by integrating Masimo's non-invasive monitoring devices with its existing invasive Radiometer blood analysis product line [2] - Danaher expects an increase in adjusted diluted earnings per share by $0.15 to $0.20 in the first full fiscal year post-acquisition, and approximately $0.70 by the fifth full fiscal year, with the deal anticipated to close in the second half of 2026 [2] - The transaction is expected to generate over $125 million in annual cost synergies [2]