FY 2025 PRELIMINARY RESULTS unaudited data TODAY'S PRESENTERS CHIEF FINANCIAL OFFICER MARGHERITA SACERDOTI HEAD OF INVESTOR RELATIONS & SUSTAINABILITY MARCO ZAMMARCHI ALBERTO GALASSI CHIEF EXECUTIVE OFFICER TBD 2 TODAY'S AGENDA | 1 | Key Highlights | | --- | --- | | 2 | Business Dynamics | | 3 | Financial Results | | 4 | Final Remarks | | Q&A | | 3 Key Highlights 01 01 Key Highlights TURNING STRATEGY INTO RESULTS: OUTPERFORMED CONSENSUS & REFERENCE MARKET, WITH FY'25 GUIDANCE FULLY ACHIEVED ORDER BACKLOG4 R ...

Financial Performance - In Q4 2025, the company reported revenue of $4.2 billion, a 16% increase year-over-year, with adjusted earnings per share (EPS) of $1.73, up from $1.34 in Q4 2024 [2] - For the full year 2025, total revenue reached $14.8 billion, with adjusted EPS of $6.10 [2] Financial Guidance - The company provided financial guidance for 2026, projecting revenue of approximately $15.5 billion and adjusted EPS in the range of $6.40 to $6.60, which is below the market analysts' average estimate of $6.84 [3] Business Segments - The aviation segment showed strong recovery, with Q4 2025 revenue increasing by 36%, delivering 49 jet aircraft (up from 32 last year) and 43 turboprop aircraft (up from 38 last year), reflecting improved supply chain and recovery from the 2024 strike. The backlog for this segment stood at $7.7 billion [4] - The Bell segment experienced an 11% revenue growth, primarily driven by orders from the U.S. Army's MV-75 tiltrotor project, with a backlog of $7.8 billion [4] Company Status - Currently, there are no announcements regarding new product launches, significant mergers, or additional capital operations following the financial report and outlook [5]

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [13][14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - Demand in the A&D sector remains robust, with a backlog exceeding $2 billion [5][6] - The semiconductor industry showed significant recovery, contributing positively to order demand [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The capital allocation strategy emphasizes deleveraging by using generated cash to pay off debt [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the A&D sector, describing it as extremely robust with unprecedented demand for products [6][10] - The outlook for the fourth quarter projects revenues between $495 million and $505 million, indicating year-over-year growth of 13.1% to 15.4% [17] - Management expects continued margin improvement driven by efficiencies and better pricing on customer contracts [14] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide insights on the industrial business and revenue outlook for Q4? - Management expects Q4 growth to resemble Q3, with a slightly conservative outlook for the industrial side [20] Question: Are there other applications for the quiet running valve technology outside submarines? - The technology has applications in space on satellites [21] Question: What is the composition of the backlog and its relationship with future revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you see the industrial business performing relative to peers? - Management anticipates the industrial business will outperform peers, expecting high single-digit growth [92] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 per month in the near future [57] Question: What is the expected growth for the missile business relative to commercial aerospace? - The missile business is expected to grow but will not reach the size of the commercial aircraft business [48]

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [3] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [3][11] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [3][14] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [3][14] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [14] Business Line Data and Key Metrics Changes - Aerospace and Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [4][11] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [8][9] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [11][12] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [4] - The company has a backlog exceeding $2 billion, with strong demand across A&D sectors [4][5] - The semiconductor industry showed significant demand growth, contributing positively to order trends [9] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to existing sites [8] - A five-year plan is in place to support growing A&D revenues, indicating a strategic commitment to this sector [8] - The company aims to continue deleveraging by using generated cash to pay off debt, with expectations to pay off the remainder of the term loan by November 2026 [14] Management's Comments on Operating Environment and Future Outlook - Management described the A&D sector as experiencing robust demand, particularly in submarines and missile systems [5][6] - The outlook for the industrial business remains positive, with expectations for growth in fiscal year 2027 [20] - Management expressed confidence in the company's ability to meet increased demand without significant surprises in capital expenditures [72] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [4][14] - The tax rate in the adjusted EPS calculation was 22.1%, slightly down from 22.2% last year [13] Q&A Session Summary Question: Can you provide details on the industrial business outlook for Q4? - Management expects Q4 growth to be similar to Q3, with a slightly conservative outlook for the industrial side [18] Question: Are there other applications for the quiet running valve technology outside of submarines? - The technology has applications in space on satellites, in addition to its primary use in submarines [19] Question: What is the composition of the backlog and its relationship with revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [26] Question: How do you see the missile business growing relative to commercial aerospace? - The missile business is expected to grow, but it will not be as large as the commercial aircraft business [46] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is pushing towards higher production rates, with the company aligned closely with these rates [55] Question: What is the outlook for A&D gross margins in the fourth quarter? - A&D gross margins are expected to improve in the fourth quarter compared to the third quarter [80]

Financial Data and Key Metrics Changes - The company reported sales of $90.2 million for the second quarter, a slight increase of 0.3% from $89.9 million in the prior year period, driven by strength in marine and industrial product groups [13] - Gross profit rose 3.2% to $22.4 million, with gross margin improving by 70 basis points to 24.8% [14] - Net income attributable to the company was $22.4 million, or $1.55 per diluted share, compared to $919,000 or $0.07 per share in the previous year, largely due to a tax benefit [15] - EBITDA decreased by 25% to $4.7 million compared to the prior year, impacted by higher M&A expenses and tariff-related effects [15] Business Line Data and Key Metrics Changes - Marine and propulsion business sales were flat year-over-year, with strong demand in workboat and government applications offset by challenges in the commercial marine sector in Asia Pacific [8] - Land-based transmission sales decreased by 8.1% year-over-year to $17.5 million, primarily due to shipment delays [9] - Industrial business sales increased by 22% year-over-year to $11.5 million, benefiting from recent acquisitions and steady demand [10] Market Data and Key Metrics Changes - North America and Europe led sales growth, while Asia Pacific and Latin America represented a smaller portion of revenue, reflecting regional market dynamics [16] - The defense-related backlog increased by 18% sequentially, supported by elevated defense spending in the U.S. and NATO [6] Company Strategy and Development Direction - The company is focused on global footprint optimization, operational excellence, and disciplined capital allocation to mitigate tariff impacts and enhance capacity utilization [11] - Plans include relocating ARFF assembly to a tariff-advantaged environment to reduce import duties on finished goods [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning due to a record backlog and strong demand across marine, defense, and industrial applications [4] - The company anticipates that tariff-related impacts will moderate and operational strategies will take effect in the coming quarters [5] Other Important Information - Inventory levels increased due to delayed shipments, but inventory as a percentage of backlog improved by approximately 400 basis points sequentially [11] - The company generated $1.2 million in free cash flow during the quarter, indicating a meaningful improvement from the first quarter [16] Q&A Session Summary Question: Revenue growth expectations for the second half of the year - Management expects good growth in the second half, with Q3 and Q4 being stronger quarters, although specific percentage growth was not provided [25][26] Question: Details on sequential gross margin changes - Gross margin was impacted by tariff expenses, operational delays, and a mix effect due to delayed aftermarket shipments [27][29] Question: Mitigation efforts regarding tariffs - The company is moving assembly of certain products to a free trade zone to mitigate tariff impacts, with expected margin improvements in fiscal 2027 [32][33] Question: Confidence in Veth's margins - Management expressed confidence in Veth's ability to maintain and grow margins due to improved cost estimation and pricing discipline [34] Question: Improvements in international oil and gas business - Recent orders from China exceeded expectations, indicating a potential increase in domestic production activity [36][37] Question: Strength in military orders - The defense backlog is growing due to increased orders for unmanned vessels and NATO-related programs, with a focus on ensuring production capacity [40][41]

Core Viewpoint - Honeywell's stock increased by 5% despite missing revenue targets, driven by strong profitability and positive guidance for future earnings [2][13] Financial Performance - Q4 adjusted EPS was $2.59, exceeding estimates by 2.1%, with 2026 EPS guidance set at $10.50, slightly above expectations [2][9] - Q4 revenue reached $9.76 billion, a 6.4% year-over-year increase, although it fell short of the $9.91 billion estimate [6][11] - Organic revenue growth was 11%, primarily driven by the aerospace division, which accounts for 40% of the business [6][7] Backlog and Orders - Honeywell reported a record backlog exceeding $37 billion, with orders growing organically by 23% [2][6][13] Margin Analysis - GAAP operating margin decreased from 17.6% to 10.2% year-over-year due to one-time expenses, while adjusted operating margin improved by 10 basis points to 21.3% [4][5] - Free cash flow margin decreased from 20.6% to 9.2%, reflecting irregular Q4 cash generation rather than a fundamental decline [5] Strategic Developments - Management accelerated the aerospace spin-off timeline to Q3 2026, indicating confidence in the division's standalone value [2][7] - The company invested significantly in R&D, adding 600 engineers, and is navigating substantial portfolio adjustments [8] Valuation Context - Honeywell's stock is trading at approximately $227 per share, at its 52-week high, with a valuation of 23 times trailing adjusted earnings, slightly below the historical average of 24x [11][12] - The company anticipates 2026 revenue of $39.3 billion and operational margin expansion of 50-90 basis points [11][12] Investor Sentiment - The market's recognition of Honeywell's strong underlying fundamentals is reflected in the recent stock price increase [13]

Core Insights - The focus of Wall Street is shifting towards "remaining performance obligations," a metric indicating future sales backlog from long-term contracts in the cloud computing sector, as companies like Microsoft and Amazon report earnings [1][2] - The surge in long-term commitments from AI companies to cloud service providers is reshaping the competitive landscape of the cloud market, with Microsoft surpassing Amazon in new order backlog [1][3] - Concerns arise regarding the actual realization of these sales commitments, highlighted by Oracle's case where a significant increase in backlog did not translate to stock price gains due to doubts about profitability and execution [1][6] Group 1: Remaining Performance Obligations - "Remaining performance obligations" is gaining attention as a financial metric that reflects future sales from long-term contracts, particularly in the context of AI companies making substantial commitments to cloud providers [2] - Analysts note that when order backlog diverges from revenue growth, it becomes a critical indicator for investors to monitor [2] Group 2: Competitive Landscape - Amazon, while still holding the largest market share in cloud computing, has fallen behind Microsoft in terms of new order backlog since the launch of ChatGPT, with Google also emerging as a strong competitor [3] - Google's advancements in AI technology have allowed it to attract significant business from AI companies, altering the competitive dynamics in the cloud market [3] Group 3: Concerns Over Backlog Data - The data on order backlog has limitations, as different companies may have varying accounting methods, which can affect the comparability of the figures [4] - There are concerns about the reliability of these commitments, especially given past instances where companies renegotiated contracts to defer spending [4][5] Group 4: Oracle's Warning - Oracle's experience serves as a cautionary tale, where a massive increase in order backlog did not lead to positive market reactions due to skepticism about the profitability and realization of those contracts [6] - The market's response to the latest commitments from Microsoft, Amazon, and Google will be crucial in assessing investor sentiment regarding potential AI bubbles [6]

波音(BA.US)连续第二个季度实现现金流为正，并报告称，2025年最后三个月的销售额大幅增长，这家 美国飞机制造商继续复苏，并受益于订单激增。第四季度自由现金流为3.75亿美元，高于分析师预期， 营收同比增长56.8%至239.5亿美元，也高于预期。 波音首席执行官Kelly Ortberg周二在致员工的信中表示："我们取得了良好的进展，在新的一年伊始， 有很多值得乐观的理由，与此同时，随着进步的到来，期望也会随之而来，我们的客户和利益相关者今 年对我们抱有更高的期望。" 在Ortberg的领导下，波音公司正从长达五年的运营和质量危机中复苏。该公司正在提高737和787梦想 客机的产量，并在去年最后一个季度实现了近三倍的飞机交付量增长。由于波音客户通过购买飞机来提 升与白宫和美国总统特朗普的关系，波音公司的积压订单总额已飙升至创纪录的6820亿美元。 这家总部位于弗吉尼亚州阿灵顿的制造商公布，第四季度调整后每股收益为9.92美元，高于预期，创下 十多年来的最高季度水平。盈利增长主要得益于去年出售波音公司旗下数字航空子公司Jeppesen获得的 96亿美元收益。波音公司在一份声明中表示，11月份完成的数字航空 ...

Core Viewpoint - KB Home has experienced a 12.6% increase in stock price over the last six months, but this is significantly lower than the S&P 500's 19.5% return during the same period, raising concerns among investors about its future performance [1] Group 1: Backlog and Orders - KB Home's backlog is reported at $1.99 billion, with an average decline of 20.4% year-on-year over the last two years, indicating a lack of new orders and potential market saturation [4][3] Group 2: Return on Invested Capital (ROIC) - The company's ROIC has been declining, suggesting fewer profitable growth opportunities, despite previous management efforts that were well-regarded [6][5] Group 3: Debt Levels - KB Home has a debt level of $3.89 billion, which is significantly higher than its cash reserves of $330.6 million, resulting in a 5× net-debt-to-EBITDA ratio based on an EBITDA of $671.8 million over the last 12 months, indicating over-leverage [8][7]

Financial Data and Key Metrics Changes - Revenues increased by 1.5% to €620,000,000 compared to the previous year [5] - Adjusted EBITDA grew by 2.5% to €99,000,000, with an EBITDA margin increase from 15.8% to 16% [5][29] - Net backlog decreased by 3.2% from €786,000,000 to €761,000,000 [5] Business Line Data and Key Metrics Changes - Made to measure segment increased by 8.6%, while superyacht segment grew by 26.5% [28] - Composite yachts above 80 feet accounted for more than half of the orders in Q2 [21] Market Data and Key Metrics Changes - The U.S. market showed a significant increase in negotiations, rising from €270,000,000 to €420,000,000 [34] - The Middle East market is recovering, with negotiations resuming after previous disruptions [68] Company Strategy and Development Direction - The company focuses on high-end markets, specifically above 24 meters, and aims to maintain a strong position despite market pressures [32][33] - A cost containment program has been implemented to enhance competitiveness and support profitability [60][78] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in achieving the guidance for 2025, despite market uncertainties and pressures from competitors [41] - The upcoming boat shows are expected to provide significant opportunities for sales and brand exposure [6][40] Other Important Information - The company has no debt and maintains over €100,000,000 in cash after paying dividends [42] - The Ravenna Shipyard is expected to be fully operational by October, enhancing production capabilities [40] Q&A Session Summary Question: How do you feel about the news on tariffs in the U.S. market? - Management indicated that tariffs are manageable and do not significantly impact the company, as most products do not have an American flag [47][49] Question: What gives you confidence to reach the 16.5% adjusted EBITDA margin guidance? - Confidence stems from a favorable product mix and a cost containment program that has been implemented [60] Question: Is the increase in order intake driven by a specific region? - The increase is widespread, with notable recovery in the Middle East and the U.S. market returning to normal [68] Question: Can you elaborate on the ongoing cost-cutting initiatives? - The company is reducing fixed costs by adjusting production rates and postponing non-essential expenses, with a goal to cut approximately 5% of fixed costs [78]