WD-40 lubricant products displayed in a store. Key Points WD-40 Company insiders are buying and signaling a value in this cash-producing, capital-return machine. Dividends are reliable, the yield is attractive, and repurchases will accelerate in F2026. Institutional and analyst trends align with a market bottom in Q4 2025. Interested in WD-40 Company? Here are five stocks we like better. Insider buying at the WD-40 Company (NASDAQ: WDFC) signals value, as the stock trades near its long-term lows an ...

Financial Data and Key Metrics Changes - MPLX reported adjusted EBITDA of $1.8 billion for the third quarter, reflecting a 3% increase year-over-year [15] - Year-to-date adjusted EBITDA reached $5.2 billion, showing a 4% growth compared to the same period last year [5] - Distributable cash flows amounted to $1.5 billion, supporting a return of $1.1 billion to unit holders [5][15] - The company increased its quarterly distribution by 12.5% for the second consecutive year, marking a total annualized base distribution growth of over 50% in the past four years [4][17] Business Line Data and Key Metrics Changes - In the crude oil and products logistics segment, adjusted EBITDA increased by $43 million compared to Q3 2024, driven by higher rates despite flat pipeline volumes and a 3% decline in terminal volumes [13] - The natural gas and NGL services segment saw adjusted EBITDA rise by $9 million year-over-year, with gathered volumes increasing by 3% primarily due to production growth in the Utica [14] - Processing volumes in the Utica increased by 24% year-over-year, while Marcellus processing utilization was at 95% for the quarter [15] Market Data and Key Metrics Changes - MPLX's investments are primarily focused on natural gas and NGL services, with over 90% of total investments allocated to these segments this year [10] - The company is advancing its strategic growth objectives in the Permian Basin, with significant expansions planned for its processing and treating capabilities [8][10] Company Strategy and Development Direction - MPLX aims for mid-single-digit adjusted EBITDA growth anchored in the Marcellus and Permian basins, supported by strategic acquisitions and capital deployment [5][10] - The company is optimizing its competitive position through acquisitions, including full ownership of the Bangle NGL Pipeline System and a Delaware Basin sour gas treating business [6][8] - MPLX is focused on expanding gathering infrastructure and enhancing butane blending at terminals to maximize asset utilization [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining mid-single-digit adjusted EBITDA growth, with expectations for stronger growth in 2026 compared to 2025 [22][24] - The company anticipates that adjusted EBITDA growth will not be linear, with a focus on throughput growth from existing and new assets [17] - Management highlighted the importance of strategic partnerships and operational excellence in driving cash flow growth and delivering capital returns to unit holders [18] Other Important Information - MPLX maintains a solid balance sheet with leverage below its comfort level of four times, entering the quarter with a cash balance of $1.8 billion [16] - The company is progressing on schedule and on budget for its Gulf Coast Fractionation facility and LPG export terminal, expected to enter service in 2028 [9] Q&A Session Summary Question: EBITDA growth outlook - Management indicated that growth from 2025 to 2026 is expected to be stronger than from 2024 to 2025, supported by recent acquisitions and projects coming online [22][23] Question: Power LOI and opportunity set - Management discussed the importance of the LOI with MPC, emphasizing the potential for in-basin demand and lower-cost reliable power for producer customers [26] Question: Permian sour gas opportunity - Management confirmed that no additional AGI wells are needed to run the sour gas asset at full capacity, with a $500 million incremental capital investment planned [32] Question: Data center opportunities - Management is evaluating additional letters of intent for data center opportunities, with a focus on supporting producer customers [34] Question: In-basin demand growth - Management highlighted growth in the Marcellus and Utica regions, with expectations for new greenfield pipelines to support demand [50] Question: Distribution growth policy - Management sees a path for 12.5% distribution growth for the next couple of years, with evaluations ongoing beyond that period [65] Question: Impact of crude oil prices on logistics segment - Management noted strong demand and throughput in the logistics segment, supported by partnerships with Marathon Petroleum [71][72]

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with EBITDA margin expanding by 2.5 percentage points, reaching its highest level for a third quarter since 2020 [6][9][12] - Free cash flow from operations was close to $540 million, an improvement of more than $350 million versus the third quarter of last year, with a free cash flow conversion rate reaching 41% on a trailing 12-month basis [27][29] - Net income performance in the quarter grew by 8% when adjusting for discontinued operations, with record net income of $1.3 billion for the first nine months of the year [9][30] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew 11%, marking an expected inflection point in quarterly performance, with a 33.1% EBITDA margin achieved, the highest level since 2021 [18][20] - The U.S. operations reached record third-quarter EBITDA and EBITDA margin, driven by increased cost efficiencies and higher prices, although volumes for core products declined by 1% [20][21] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% and margin expanding by 6.8 percentage points [25][26] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, with average daily cement sales volume outperforming historical sequential seasonality patterns [18] - In Europe, high single-digit growth in cement volumes was driven by infrastructure throughout Eastern Europe, with housing activity boosting demand in Spain [24] - The EMEA region continued strong performance, reaching new records in EBITDA and margins, with ready-mix and aggregate volumes expanding by 13% and 1% respectively [24][25] Company Strategy and Development Direction - The company is focused on attaining best-in-class operational excellence and delivering industry-leading shareholder returns, with a strategic framework aimed at enhancing profitability and increasing free cash flow conversion [5][15] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [12][14] - The company is prioritizing small to mid-size acquisitions, reallocating capital to opportunities that are immediately accretive, while divesting non-core markets [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico and the U.S., with expectations of low single-digit growth in U.S. demand next year [20][63] - The company anticipates a pickup in infrastructure spending as the government enters its second year in office, which should support profitability in Mexico [20][42] - Management remains cautious about the residential sector in the U.S., expecting continued weakness but potential recovery in 2027 [63] Other Important Information - The company completed the divestment of its operations in Panama at an attractive multiple of about 12x, reallocating part of the proceeds to acquire a majority stake in Couch Aggregates [16] - The company is advancing its decarbonization agenda, having already surpassed the European Cement Association's 2030 consolidated net CO2 emissions target [25] Q&A Session Summary Question: Cash conversion expectations for next year and 2027 - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [33][34] Question: Outlook for Mexico's demand volumes in 2026 - Management expects demand volumes in Mexico to grow by no less than 2.5%-3% in 2026, driven by infrastructure projects [40][41] Question: Breakdown of EBITDA margin expansion in Mexico - The 500 basis points improvement in EBITDA margin was driven by prices, SG&A reductions, and lower variable costs, including a significant decrease in unitary fuel costs [46][47] Question: Industry's approach to CCUS - Management emphasized that while CCUS is important for net zero, it will only be deployed if it is accretive to value creation, focusing on traditional levers for decarbonization first [51][52] Question: Price increase plans for 2026 - Management has not yet sent price increase letters but is optimistic about pricing strategies that will offset input cost inflation in both the U.S. and Europe [54][56] Question: Regional performance differences in the U.S. - Weaker volumes were noted in Florida, California, and Arizona, while growth was seen in Texas, Colorado, and the Mid-South, with strong infrastructure demand expected to continue [60][63] Question: Optimization plans at Balcones in Texas - The use of artificial intelligence at Balcones is expected to lead to significant yield increases and further cement margin improvements [65][66] Question: Urbanization solutions business performance - The decline in revenue and EBITDA is attributed to weakness in residential and infrastructure activity, but core businesses remain integral to the company's strategy [67][68]

Financial Data and Key Metrics Changes - Consolidated EBITDA rose sharply, increasing at a double-digit rate, with significant margin gains driven by cost savings and higher prices [5][6][8] - EBITDA margin expanded by 2.5 percentage points, reaching its highest level for a third quarter since 2020 [7][11] - Free cash flow from operations improved significantly, reaching approximately $540 million, an increase of over $350 million year-over-year [25][26] Business Line Data and Key Metrics Changes - In Mexico, EBITDA grew by 11%, driven by a leaner cost base and higher prices despite lower volumes [16] - The U.S. operations achieved record third-quarter EBITDA and margins, supported by increased cost efficiencies and higher prices [18][19] - The EMEA region saw strong performance, with new records in EBITDA and margins, particularly in Eastern Europe and the Middle East [22][23] Market Data and Key Metrics Changes - Demand conditions in Mexico are showing signs of improvement, with average daily cement sales volume outperforming historical patterns [16] - In the U.S., infrastructure demand remains strong, while residential sector weakness persists [19][52] - The South Central America and Caribbean region posted impressive results, with EBITDA rising by 54% [24] Company Strategy and Development Direction - The company is focused on operational excellence and delivering industry-leading shareholder returns, with a strategic plan aimed at enhancing profitability and free cash flow conversion [4][13] - Project Cutting Edge aims for annualized recurring EBITDA savings of $400 million by 2027, with significant progress already made [11][12] - The company is prioritizing small to mid-size acquisitions in the U.S. and divesting non-core markets to strengthen its position [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in demand conditions, particularly in Mexico and the U.S., with expectations for volume growth in 2026 [18][39] - The company anticipates continued improvements in free cash flow conversion and operational efficiency as it progresses with its strategic initiatives [26][29] - Management highlighted the importance of maintaining a disciplined approach to capital allocation while pursuing growth opportunities [13][66] Other Important Information - The company completed the divestment of its operations in Panama and consolidated Couch Aggregates into its U.S. business [2][3][14] - The company is committed to decarbonization efforts, having surpassed the European Cement Association's 2030 CO2 emissions target [6][23] Q&A Session Summary Question: What should we expect for cash conversion next year and 2027? - Management targets around 45% free cash flow conversion from operations in 2026, with further improvements expected beyond that [32] Question: Can we expect a recovery in Mexico's demand volumes? - Management is confident that demand volumes in Mexico should grow by at least 2.5% to 3% next year, driven by infrastructure projects [38] Question: What contributed to the EBITDA margin expansion in Mexico? - The 500 basis points improvement was driven by price increases, reductions in SG&A, and lower variable costs, including energy [42] Question: How does the company view CCUS initiatives? - Management emphasized that CCUS remains a mid-term priority, but will only be pursued if it is accretive to value creation [45][46] Question: What is the outlook for U.S. M&A? - The company is actively looking at family-owned aggregate targets in the U.S. and is strengthening its team for bolt-on acquisitions [73]

Financial Data and Key Metrics Changes - The company reported over $1 billion of after-tax operating income and over $1.3 billion of net income, both up 37% year-over-year [5] - After-tax operating earnings per share reached $2.77, representing an 18.5% annualized operating return on average common equity [5] - Year-to-date book value per share growth was 17.3% [5] - The quarterly consolidated combined ratio was 79.8%, reflecting excellent underwriting and low catastrophe activity [5] Business Line Data and Key Metrics Changes - Property and casualty insurance group underwriting income was $129 million, up 8% year-over-year, with a combined ratio of 93.4% [7] - Reinsurance segment achieved a record underwriting income of $482 million with a combined ratio of 76.1% [9][10] - Mortgage segment generated $260 million of underwriting income for the quarter, on pace to deliver approximately $1 billion for the year [11] Market Data and Key Metrics Changes - Net return premium in North America for liability occurrence grew by 17%, while property and short-tail book increased by 15% [8] - International premium volume was essentially flat [8] - The reinsurance segment's net premium returns were $1.7 billion, down roughly 11% year-over-year due to current pricing conditions [10] Company Strategy and Development Direction - The company aims to maximize returns for shareholders over the long term while actively seeking attractive underwriting opportunities [6] - The strategy includes allocating capital to opportunities that meet risk-adjusted target returns and pursuing profitable growth [7] - The company is focused on maintaining a strong balance sheet to support both business investments and capital returns to shareholders [6][20] Management's Comments on Operating Environment and Future Outlook - Management noted increasing competition in the market but emphasized the strength of the brand and underwriting discipline [6] - The company remains bullish about the insurance business and expects to grow better than the overall market [25][27] - Management expressed confidence in the mortgage segment's performance due to strong home prices and a lack of inventory [75] Other Important Information - The company repurchased $732 million of shares in the quarter and has continued to buy back shares in October [20] - The operating effective tax rate year-to-date stands at 14.7%, slightly below the previously guided range [19] - The company maintains a strong capital position, allowing for flexibility in capital management and investment opportunities [20] Q&A Session Summary Question: Future of Capital Return Strategy - Management indicated that share buybacks will likely be the preferred method of capital return in the short term, given strong earnings and limited growth opportunities [23][24] Question: Insurance Premium Growth Outlook - Management remains optimistic about premium growth, particularly in casualty lines, despite some headwinds in professional lines [25][26] Question: Impact of Hurricane on Exposure - Management stated it is too early to assess potential exposure from a current hurricane event [28][30] Question: Reinsurance Growth Normalization - Management estimated that normalized growth in reinsurance, absent one-off impacts, might have been around a decrease of 3%-4% [35] Question: MGA Marketplace Growth - Management expressed skepticism about the long-term sustainability of the MGA growth model, citing concerns over incentive alignment [82]

Financial Data and Key Metrics Changes - The company reported a net income of $59.7 million, or $0.38 per diluted share, reflecting a 23% increase from the adjusted EPS of $0.31 in the prior quarter [12] - Return on tangible common equity increased by 231 basis points to 9.87%, and EPS has risen nearly 50% since Q1 [5] - The CET1 ratio at quarter end was 10.14%, and tangible book value per share increased by 3% quarter over quarter to $16.99 [6][12] Business Line Data and Key Metrics Changes - Loan production and disbursements were healthy at $2.1 billion, with a decline in total loans of about 1.6% from the previous quarter due to elevated paydowns [8][9] - Non-interest income rose by 5% from the previous quarter to $34.3 million, primarily due to higher fair value adjustments on market-sensitive instruments [15] - The average yield on loans increased by 12 basis points to 6.05%, driven by a shift towards higher yielding CNI loan categories [12] Market Data and Key Metrics Changes - Core deposit trends were positive, with non-interest-bearing deposits increasing by 9%, now representing 28% of total deposits [7] - Brokered deposits declined by 16% from the prior quarter, contributing to a reduction in the total cost of deposits by 5 basis points to 2.08% [8][13] - The company expects loan growth for the full year to be in the mid-single-digit range [16] Company Strategy and Development Direction - The company aims to capitalize on opportunities in the California banking landscape and is focused on building a valuable core deposit base and deep client relationships [17][18] - The management emphasized a disciplined approach to capital management, including opportunistic share buybacks while maintaining strong capital levels [6][92] - The company is committed to maintaining a strong capital position and delivering sustainable, high-quality earnings growth [11][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the franchise, citing strong performance and positive operating leverage [17][18] - The company anticipates continued margin expansion driven by increased loan production and a favorable mix shift towards higher yielding loans [12][35] - Management noted that credit quality remains stable, with a proactive approach to managing credit risks [10][16] Other Important Information - The company repurchased 2.2 million shares in Q3, totaling 13.6 million shares repurchased under the program, which is more than 8% of outstanding shares [6] - The allowance for credit losses increased to 1.12% of total loans, reflecting a disciplined approach to reserving [11][16] Q&A Session Summary Question: Can you provide insight on credit trends and collateral protection? - Management clarified that their exposure related to NDFI lending is well secured by real estate, distinguishing their practices from those of peers involved in collateral pools [24][26] Question: What is the outlook for net interest margin? - Management expects net interest margin to continue expanding, with a target range of 3.20%-3.30% for the fourth quarter, not assuming rate cuts [33][34] Question: How is the company managing deposit growth? - Management indicated that deposit growth was broad-based and emphasized the importance of maintaining a balance between deposits and loans [50][60] Question: What are the key drivers of loan production? - Management highlighted strong production in CNI and construction lending, with a robust pipeline expected for the fourth quarter [72][78] Question: Are there any areas of concern regarding credit? - Management noted caution in the office lending sector and indicated a proactive approach to exiting loans with government tenants [84][86]

Financial Data and Key Metrics Changes - The company reported a net income of $100 million for Q3 2025, reflecting a 13% growth in normalized earnings per share compared to the prior year [4][12] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [12] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024 [15] Business Line Data and Key Metrics Changes - Total loans grew by $181 million or 5.6% linked quarter annualized, surpassing $13 billion in total loans for the first time since 2010 [5] - Core franchise deposits increased by $140 million, despite higher competition in the market [7] - The commercial and construction lending segments showed steady loan production, mitigating the slowdown in consumer credit demand [6] Market Data and Key Metrics Changes - Total retail sales in the industry were down 7% year to date as of September, with Q3 sales down 17% compared to the same period last year [6] - The company experienced a 7% reduction in non-performing assets, indicating stable asset quality [8][24] Company Strategy and Development Direction - The company plans to continue executing its growth strategy, focusing on organic growth and regional diversification [10][11] - An additional $200 million share buyback program was authorized, reflecting the strategy of returning 100% of annual earnings to shareholders [9][25] - The company is considering M&A opportunities in the Florida market to enhance its franchise [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency of the labor markets in Puerto Rico and the ongoing expansion of the manufacturing sector [10] - The company anticipates loan growth guidance for the year to be closer to the 3% to 4% range, influenced by evolving market conditions [11] - Management noted that while consumer credit demand has slowed, stability is expected in the consumer portfolio [31] Other Important Information - The effective tax rate for the full year is estimated to be around 22.2%, reflecting some expected improvements [91][92] - The company recorded a $16.6 million reversal of valuation allowance on deferred tax assets due to new legislation in Puerto Rico [13] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management indicated that while the reversal of deferred tax assets is a one-time event, there will be ongoing benefits from normal operating losses [28] Question: What is the health of the consumer in Puerto Rico? - Management noted that auto sales are normalizing and consumer credit demand is lower, but overall stability is expected in the consumer portfolio [30][31] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs due to rate cuts, but noted that the timing of these changes may vary [46] Question: How does credit performance at other banks influence the company's reserves? - Management stated that they maintain a firm risk appetite and focus on their own portfolio performance, without seeing systemic impacts from competitors [47][48] Question: What are the company's priorities for capital deployment? - The company prioritizes organic growth but is open to M&A opportunities that complement its existing franchise [50] Question: Has there been any new competition from outside Puerto Rico banks? - Management confirmed that competition is primarily from smaller local players rather than new entrants from outside [56]

Core Thesis - Bath & Body Works, Inc. (BBWI) is viewed as an undervalued investment opportunity with potential for growth driven by digital transformation and capital returns [5]. Company Overview - Bath & Body Works, Inc. has a market capitalization of $5.9 billion and an enterprise value of $10.5 billion, specializing in home fragrance and body care products [2]. - The company has a loyalty program with 39 million members, accounting for approximately 10% of the U.S. population, which drives 80% of annual sales, projected to be $7.3 billion in 2025 [2]. Financial Performance - Sales have declined from $7.9 billion in 2022 to $7.3 billion in 2025, negatively impacting investor sentiment and leading to a stock price drop of over 60% since its peak in 2021 [2]. - Management has utilized free cash flow to reduce share count by 25% since 2022 and pay down $1 billion of debt, with a current debt balance of $3.9 billion [3]. Leadership and Strategy - Daniel Heaf was appointed CEO in May 2025, focusing on enhancing digital capabilities and addressing weaknesses in the current platform [3]. - Under Heaf's leadership, the company projects 1–3% sales growth, gross margins of 42.2%, and free cash flow between $750 million and $850 million, alongside $400 million in share repurchases [4]. Investment Potential - BBWI is considered to be trading at 7–8 times forward free cash flow, presenting a compelling entry point for investors if operational improvements and digital transformation are successful [4].

Core Viewpoint - Morgan Stanley has adjusted its model for North American large banks' Q3 2025 performance forecasts, indicating a mild impact on EPS growth of 0-1% and a median EPS estimate 3% higher than market consensus [1][2] Group 1: Earnings Forecasts - The median EPS forecast for North American banks in Q3 2025 is 3% above market consensus, with the largest increases expected for money center banks and State Street Bank (STT.US) [1] - Citigroup (C.US) is projected to have an EPS of $1.99, exceeding the market consensus of $1.83 by 9% [1] - Bank of America (BAC.US) is expected to report an EPS of $1.01, which is 7% higher than the consensus of $0.94 [1] - State Street Bank's EPS is forecasted to be 6% above consensus, while Northern Trust (NTRS.US) is expected to be 3% higher [1] - Most super-regional banks are projected to be 1-3% above consensus, with Truist Financial (TFC.US) and Wells Fargo (WFC.US) both expected to be 3% higher [1] Group 2: Key Financial Metrics - The model incorporates a macro assumption of an additional 125 basis points rate cut by the end of 2026, with a focus on Citigroup, Bank of America, Goldman Sachs, and JPMorgan Chase (JPM.US) due to expected outperformance in investment banking fees and trading income [2] - Money center banks are expected to lead in asset growth, with JPMorgan Chase's average total assets projected to reach $4.43 trillion, an 8.4% year-over-year increase, and Bank of America expected to reach $3.47 trillion, a 5.5% increase [2] - The deposit structure shows a gradual decline in non-interest-bearing deposits, with Bank of America projected to have 26.0% in 2025, down from 26.7% in 2024 [2] - The net interest margin (NIM) is expected to remain stable, with a median estimate of 2.50% for 2025, while super-regional banks are projected to have higher NIMs [2] Group 3: Revenue Growth Drivers - Fee income is a core growth driver, with M&A fees expected to grow 30% year-over-year, significantly above the consensus growth of 11% [3] - Equity Capital Markets (ECM) fees are projected to increase by 41%, compared to a consensus of 30%, while Debt Capital Markets (DCM) fees are expected to grow by 4% against a consensus of 3% [3] - Money center banks like JPMorgan and Goldman Sachs are expected to see over 9% year-over-year growth in fee income for 2025 [3] Group 4: Capital Returns - The median dividend payout ratio for banks in 2025 is expected to be around 30%, with money center banks showing a slight decrease from 27% to 29% [3] - JPMorgan is projected to pay $5.80 per share in dividends, while Citigroup is expected to pay $2.32 per share [3] - Stock buybacks are anticipated to increase significantly, with JPMorgan expected to repurchase $38.01 billion in 2025, up from $18.84 billion in 2024, and Citigroup expected to repurchase $13.47 billion, a substantial increase from $2.5 billion in 2024 [3] Group 5: Overall Outlook - The report maintains a cautiously optimistic view on North American large banks, suggesting that money center banks will outperform due to investment banking and trading income, while super-regional banks show stable asset quality [4] - Trust banks are expected to face pressure on net interest margins but still demonstrate resilience supported by fee income [4]

Core Insights - International asset management institutions are reassessing the investment value of the Chinese market, with a growing interest in Chinese stocks among global investors [1] - UBS's head of China equity strategy, Wang Zonghao, noted that many investors are increasingly optimistic about the market outlook [1] - The potential inflow of retail investor funds and strong market performance suggest that investors are unlikely to reduce their Chinese positions in the short term [1] Investment Trends - There remains an opportunity for further foreign capital inflow into the Chinese stock market [1] - The topic of "anti-involution" has been a focal point in discussions, with investors showing interest in China's AI/technology development and capital return prospects [1] - UBS's overweight stance on A-shares in the TMT (Technology, Media, and Telecommunications) sector and brokerage firms has garnered significant interest from investors [1]