Financial Performance - Net revenue for Q1 FY2026 was ZAR 1.53 billion, a 45% increase year-on-year [4] - Group adjusted EBITDA reached ZAR 271 million, reflecting a 61% year-on-year growth [4] - Adjusted earnings grew by 150% to ZAR 87 million, with adjusted earnings per share doubling from ZAR 0.54 to ZAR 1.07 [4][9] - Net debt to adjusted EBITDA improved from 2.9 times in the previous quarter to 2.5 times [11] Business Line Performance - The Enterprise division generated ZAR 222 million in net revenue, a 19% year-on-year increase [5] - Consumer division net revenue increased by 43% year-on-year [6] - Merchant division net revenue also rose by 43%, primarily due to the acquisition of Adumo [6] - Merchant segment adjusted EBITDA was ZAR 162 million, a 20% increase year-on-year [6] Market Performance - Total Payment Volume (TPV) for card acquiring more than doubled to ZAR 9.2 billion from ZAR 4.2 billion year-on-year [12] - Cash TPV in the micro merchant segment grew 75% year-on-year, now accounting for 18% of all cash volumes [14] - ADP TPV increased by 13% year-on-year to ZAR 11.9 billion [27] Company Strategy and Industry Competition - The company is focused on unifying its merchant brand and product offerings to enhance efficiency and capture growth [7] - The integration of various products aims to build deeper relationships with clients and transition from single product to multi-product solutions [13] - The Bank Zero acquisition is expected to enhance customer offerings and expand the consumer base [31][34] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving continued growth and reaffirmed FY2026 guidance for net revenue and adjusted EBITDA [35] - The company anticipates a transformative year for the merchant segment, with significant growth expected from the integration of Adumo [6][8] - Management highlighted the importance of maintaining discipline and focus in execution for future growth [35] Other Important Information - Cash flows from operations totaled ZAR 341 million for the quarter, with ZAR 122 million reinvested into growing lending books [10] - Capital expenditure for the quarter was ZAR 90 million, with expectations to remain below ZAR 400 million annually [10] Q&A Session Summary Question: What caused the sequential performance decline in the merchant revenue line? - Management noted seasonality and the closure of non-core business lines as contributing factors [39] Question: What is the impact on margins due to recent changes? - Management indicated that non-recurring costs affected margins, and guidance for the next quarter would provide a clearer picture [40] Question: What are the expected cost savings from infrastructure rationalization? - Management expects significant cost savings from reducing office locations and eliminating duplicated functions [46] Question: How is cross-selling progressing within the merchant segment? - Management confirmed that most merchants have multiple products, with plans to provide detailed metrics on cross-sell rates in future reports [44] Question: What is the rationale behind the Cell C potential IPO? - Management supports the IPO as part of simplifying operations and reallocating capital towards core business [49]

Financial Data and Key Metrics Changes - Brink's reported Q3 2025 revenue of over $1.3 billion, a 6% increase, with 5% organic growth and a 1% foreign currency tailwind [18] - Adjusted EBITDA rose 17% to $253 million, with operating profit up 24% [18] - EBITDA margins reached a record 19%, up 180 basis points year-over-year, driven by strong productivity and a favorable revenue mix [5][18] Business Line Data and Key Metrics Changes - The ATM Managed Services and Digital Retail Solutions (AMS DRS) segment saw organic growth accelerate from 16% in Q2 to 19% in Q3, now accounting for 28% of total revenue [5][11] - Cash and Valuables Management (CVM) organic growth remained consistent, but was impacted by the conversion of existing customers to AMS DRS, accounting for a 2-3 percentage point headwind [10][31] Market Data and Key Metrics Changes - The company is experiencing healthy organic growth across all geographic segments, with notable performance in North America and Latin America [11][29] - The penetration rate for ATM outsourcing remains low, indicating significant growth opportunities in both existing and new markets [13] Company Strategy and Development Direction - Brink's is focused on delivering organic growth primarily from higher-margin subscription-based services, with a strategic shift towards AMS DRS [7][10] - The company aims to maximize shareholder value through disciplined capital allocation, including share repurchase programs [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of AMS DRS, citing a healthy pipeline and strong customer conversions [27][28] - The company anticipates continued margin improvement and cash generation, with a commitment to return at least 50% of free cash flow to shareholders [9][25] Other Important Information - Free cash flow for Q3 was $175 million, a year-over-year increase of 30%, with a trailing 12-month conversion rate of 50% of adjusted EBITDA [6][18] - The net debt to EBITDA leverage ratio was reduced to 2.9 times, within the targeted range [9][22] Q&A Session Summary Question: Can you elaborate on the client traction you're seeing in both AMS and DRS? - Management noted good visibility into Q4 and the first half of next year, with strong growth in both AMS and DRS, particularly in North America and Latin America [27][28] Question: What trends are seen in the CVM business? - The CVM business experienced flat organic growth, primarily due to customer conversions to AMS DRS, which accounted for a headwind [31] Question: What internal strategies are driving growth in AMS DRS? - The company has expanded its incentive compensation plans to align more employees with AMS DRS growth, and is also exploring partnerships with channel partners to enhance sales [36][41] Question: How should investors think about North America margin potential? - Management indicated that North America margins have improved significantly, driven by a better AMS DRS mix, disciplined pricing, and operational execution, with expectations for continued margin expansion [42][46] Question: What are the midterm goals for free cash conversion from EBITDA? - The company aims for a conversion rate of 40-45%, supported by improvements in DSO and capital efficiency [49][51] Question: How does bank consolidation impact the business? - Management views bank consolidation as an opportunity for AMS solutions, providing potential cost synergies for consolidating banks [60][62]

Financial Data and Key Metrics Changes - Total revenue growth for the third quarter of 2025 was 9.1%, driven by solid trends outside Mexico and currency tailwinds, particularly in Europe [30] - Operating income increased by 4.3% year over year, reflecting inflationary effects on costs and expenses, partially offset by efficiency efforts [30] - Net consolidated income decreased by 36.8% to 5.8 billion pesos, primarily due to a non-cash foreign exchange loss of 1.3 billion pesos [31][32] Business Line Data and Key Metrics Changes - Proximity Americas reported same-store sales growth of 1.7%, with average ticket rising 4.9% and average traffic contracting 3.1% [19][34] - Total revenues for Proximity Americas grew 9.2%, driven by the expansion of the store network and strong performance in LATAM markets [35] - Operating income for the health division declined by 4%, with same-store sales growing 0.8%, primarily due to strong performance in Chile and Colombia [39][40] Market Data and Key Metrics Changes - In Mexico, OXXO continues to experience a decade of continuous store growth, with a leadership transition to Carlos Arroyo [10] - Coca-Cola FEMSA showed gradual improvement in volume, particularly in South America, despite a slight decline in Mexico [41] - Valora in Europe reported total revenues increased by 10.1% in pesos, driven by higher Swiss retail sales [38] Company Strategy and Development Direction - The FEMSA Forward strategy focuses on maximizing long-term value creation by concentrating on core verticals: retail and beverages, supported by digital initiatives [8] - The company plans to distribute approximately $7.8 billion in capital through dividends and share buybacks between March 2024 and March 2027 [8] - Future growth opportunities are seen in OXXO Brazil, OXXO Colombia, and Bara, with significant potential for value creation [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of business units despite a sluggish year in Mexico, with positive signs of recovery in traffic and market share gains [9][20] - The company is cautiously optimistic about the upcoming year, anticipating improvements in the operating environment and benefiting from the FIFA World Cup [42] - Management acknowledged challenges from a recent tax increase in Mexico but believes adjustments can be made to maintain return on investment [12] Other Important Information - The company distributed a total of 11.8 billion pesos in dividends during the quarter, with no share buybacks executed [41] - The effective tax rate for the quarter improved to 29.3%, following a spike in the first half of the year [32][33] Q&A Session Summary Question: Insights on same-store sales performance and traffic dynamics at OXXO - Management noted a reversal of trends in OXXO Mexico, with improved traffic performance compared to the first half of the year, and expressed optimism for the fourth quarter [46][49] Question: Details on gross margin performance at OXXO Mexico - Management indicated that gross margin improvements were driven by commercial income growth and a favorable service mix, with expectations for continued gains [54][57] Question: Update on the health business in Mexico and Chile - Management reported strong growth in Chile despite a competitive environment, while acknowledging challenges in Mexico and the need for operational improvements [70][71] Question: Corporate restructuring and SG&A reduction plans - Management discussed ongoing efforts to streamline corporate overhead and indicated potential for significant savings, with further details expected in future calls [78][79] Question: Interest expense increase and its drivers - Management explained that the increase in interest expense was primarily due to lease accounting under IFRS and the consolidation of U.S. operations [95][96]

Talos Energy (TALO) Update Summary Company Overview - **Company**: Talos Energy (TALO) - **Industry**: Offshore Exploration and Production (E&P) Key Points and Arguments Corporate Strategy and Vision - Talos aims to become a leading pure play offshore E&P company, capitalizing on the anticipated shift in the E&P landscape towards offshore energy production [5][10] - The company has a strong foundation with high-margin oil-weighted production, a stable asset base, and proven technical capabilities [6][9] Financial Strength and Performance - Talos has low leverage with a leverage ratio of 0.8 times, $960 million in liquidity, and no public debt maturities until 2029, providing significant financial flexibility [15][18] - The company generated free cash flow and aims to return up to 50% of its annual free cash flow to shareholders, primarily through share buybacks [17][68] Operational Efficiency and Cost Management - Talos plans to achieve $100 million in cash flow savings by the end of 2026 through improvements in capital efficiency, margin enhancement, and operational excellence [23][47] - The company successfully reduced lease operating expenses from approximately $12 to $4 per barrel, a 60% decrease, contributing to one of the highest EBITDA per barrel margins in the E&P sector [13][14] Growth Strategy - Talos focuses on organic growth through high-margin projects and disciplined evaluation of bolt-on acquisitions, primarily in the Gulf of America [21][28] - The company is actively participating in lease sales and exploring joint ventures to enhance its asset base and operational efficiency [27][28] Market Trends and Competitive Advantages - Talos believes offshore production will play a larger role in meeting global energy demands, especially as onshore basins face depletion issues [31][32] - The company’s deepwater expertise and operational efficiencies provide competitive advantages over diversified majors [32][33] Future Outlook - Talos is committed to continuous improvement and aims to enhance production longevity through disciplined capital allocation and strategic investments [39][40] - The company is exploring opportunities in other conventional basins while maintaining a strong focus on its core operations in the Gulf of America [60][61] Additional Important Content - Talos emphasizes a culture of safety, innovation, and continuous improvement, which is crucial for its operational success [4][5] - The management team is focused on maintaining a balance between returning capital to shareholders and investing in growth opportunities [68][99] - The company is open to both corporate and asset-level deals for inorganic growth, evaluating each opportunity based on its potential to enhance key financial metrics [103][104]

Financial Data and Key Metrics Changes - The company reported strong first quarter results, with site rental revenues showing 5.1% organic growth, excluding the impact of Sprint cancellations [20] - Adjusted EBITDA for the first quarter was positively impacted by lower repair and maintenance costs, sustaining capital expenditures, and other non-worker costs [21] - The full year 2025 outlook remains unchanged, with expectations of 4.5% organic growth, adjusted EBITDA of approximately $2.8 billion, and AFFO of approximately $1.8 billion [22][23] Business Line Data and Key Metrics Changes - The company is in the process of separating its fiber solutions and small cell businesses, which will be reported as discontinued operations [18] - Site rental revenues included a $3 million contribution from other billings, primarily related to intercompany back billings, which is not expected to recur [20] - The company expects straight-line revenues to turn negative, consistent with the full year 2025 outlook of zero [21] Market Data and Key Metrics Changes - Mobile data demand in the U.S. has grown substantially, with customers investing over $35 billion annually in their networks, resulting in more than 5% average annual organic growth in the tower business from 2020 to 2024 [9] - The U.S. tower business model has shown resilience across market cycles, with cash site rental revenues growing consistently despite economic fluctuations [10] Company Strategy and Development Direction - The company aims to become a pure play U.S. tower company, focusing exclusively on the U.S. market, which is viewed as the best market for tower ownership [8] - The capital allocation framework balances predictable returns to shareholders with financial flexibility and balance sheet strength, with plans to return capital via a quarterly dividend and share repurchase program [12][14] - The company intends to reduce its annualized dividend per share to $4.25 beginning in the second quarter of 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full year 2025 outlook, citing strong first quarter results and progress in separating the fiber solutions and small cell businesses [14] - The company believes that being a pure play tower company will enhance value by focusing on customer service, operational excellence, and improved profitability [11] - Management noted that regulatory approvals for the sale of the fiber and small cell businesses are time-consuming but not expected to pose significant difficulties [40] Other Important Information - The company ended the quarter with significant liquidity and flexibility, maintaining an investment-grade credit rating [23] - The board intends to use approximately $6 billion of cash proceeds from the sale to repay debt, balancing this with share repurchases [14] Q&A Session Summary Question: Can you shed light on the executive changes and the strategy going forward? - Management acknowledged the recent executive changes and emphasized the focus on separating the fiber and small cell businesses while creating value in the U.S. tower market [28][30] Question: What is the current status of the fiber and small cell business sale? - Management stated that the transaction is expected to close in the first half of 2026, pending regulatory approvals [40][42] Question: How is the company managing costs and what is the outlook for new leasing activity? - Management indicated that cost control measures are in place and that new leasing activity is expected to remain consistent throughout 2025 [46][49] Question: What are the strategic priorities for the new CFO? - The new CFO highlighted the importance of closing the fiber business sale and positioning the tower business for operational improvements [66] Question: Can you provide insights on the services side of the business? - Management noted good demand for services, although they have exited the construction services business [70] Question: What is the expected impact of the Sprint merger on churn? - Management acknowledged the ongoing churn from the Sprint merger but indicated that overall churn rates are expected to remain within normal ranges [57] Question: How will the share repurchase program be structured? - Management stated that the share repurchase program will depend on market conditions at the time of the transaction close [99]