Q2 FY26 EARNINGS IMPROVING STRENGTH IN PRODUCT BUSINESS & RETURNING CAPITAL TO SHAREHOLDERS *Organic sales is a non-GAAP measure and excludes the impact of foreign exchange rates and recent acquisitions and dispositions identified in the accompanying reconciliations to GAAP measures. MARCH 26, 2026 FORWARD-LOOKING STATEMENTS AND NON-GAAP MEASURES Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Re ...

Core Insights - Scandinavian Tobacco Group reported a full-year net sales decrease of 1.8% to DKK 9.0 billion for 2025, with a negative organic growth of 3.1% [1][8] - The company proposed a DKK 4.50 dividend per share, representing a payout ratio of 42% [1] - The EBITDA margin before special items was 19.8%, and adjusted EPS was DKK 10.8 [1][13] Financial Performance - In Q4 2025, net sales declined by 4.6% to DKK 2.3 billion, with a negative organic growth of 0.5% [3][8] - The EBITDA margin before special items for Q4 was 19.5%, down from 24.3% in the same quarter last year [3][8] - Free cash flow before acquisitions for Q4 was DKK 0.1 billion, significantly lower than the previous year's DKK 604 million [3][8] Operational Challenges - Delays in the collection of receivables due to the new ERP implementation in Europe resulted in free cash flow being more than DKK 200 million lower than expected [2] - Exchange rate fluctuations negatively impacted reported net sales by over 4% during Q4 [4] Product Performance - Organic growth was positive in the Handmade Cigars and Next Generation Products categories, while it remained unchanged in Machine-Rolled Cigars & Smoking Tobacco and was negative in the Other category [4] Future Outlook - For 2026, the company expects reported net sales growth at constant FX to range from -2% to 2% and EBIT margin before special items to be between 13.0% and 14.5% [9] - Free cash flow before acquisitions is anticipated to be between DKK 950 million and DKK 1,200 million, with adjusted EPS expected to be between DKK 9 and 11 [9][10]

Core Insights - Target Corporation reported fourth-quarter net sales of $30.5 billion, aligning with company expectations, with sales and traffic trends accelerating in the last two months of the quarter [1] - The company achieved fourth-quarter GAAP earnings per share (EPS) of $2.30 and adjusted EPS of $2.44, compared to $2.41 in the previous year [1] - For full-year 2025, net sales decreased by 1.7% to $104.8 billion, with a notable decline in comparable sales [1][2] Financial Performance - Fourth-quarter net sales were 1.5% lower than Q4 2024, with comparable sales decreasing by 2.5% [1] - Operating income for Q4 2025 was $1.4 billion, down 5.9% from $1.5 billion in 2024, while adjusted operating income was slightly above last year at $1.5 billion [1][2] - Full-year operating income declined by 8.1% to $5.1 billion, with a gross margin rate of 27.9%, down from 28.2% in 2024 [1][2] Sales and Growth Metrics - Same-day delivery services grew over 30%, and non-merchandise sales increased by over 25% [1] - Food & Beverage, Beauty, and Toys categories saw net sales growth, with stronger trends in Essentials and Home compared to Q3 [1] - The company expects net sales growth of around 2% for 2026, driven by new store openings and non-merchandise sales [1][2] Cost and Expense Management - Fourth-quarter SG&A expense rate was 19.9%, compared to 19.4% in 2024, reflecting the impact of lower sales [1][2] - The company reported a fourth-quarter gross margin rate of 26.6%, an improvement from 26.2% in 2024, attributed to lower inventory shrink and supply chain costs [1][2] Capital Deployment - Target paid dividends of $516 million in Q4, a 1.8% increase from the previous year, while no share repurchases occurred during the quarter [2] - The trailing twelve months' after-tax return on invested capital (ROIC) was 13.8%, down from 15.4% in the prior year [2][4] Guidance and Future Outlook - For 2026, the company anticipates GAAP and adjusted EPS between $7.50 and $8.50, with Q1 EPS expected to be flat to slightly up from last year's adjusted EPS of $1.30 [1][4] - The company aims to strengthen its merchandising authority and enhance the shopping experience through technology advancements [1]

Core Insights - H2O America reported a revenue increase driven by rate adjustments and higher water supply revenues, but faced higher production expenses and operational costs, impacting net income [1][2][3] Financial Performance - The company achieved full-year 2025 diluted EPS of $2.92 and adjusted diluted EPS of $2.99, compared to $2.87 and $2.95 in 2024, respectively, with the adjusted result near the top of the guidance range [3] - Adjusted EPS increased by $0.04 year-over-year, with revenue rising by $1.42 per share, primarily from rate increases and higher pass-through water supply revenues [2][3] Capital Expenditure and Growth Plans - H2O America expanded its five-year capital expenditure plan to $2.7 billion, a 31% increase, focusing on pipeline replacement, PFAS treatment costs, and Texas investments [6][8] - The company plans to raise $100 million to $125 million in equity in 2026 to fund its standalone capital program [5][11] Rate Base and EPS Guidance - The estimated consolidated rate base is projected to grow from nearly $2.8 billion at year-end 2025 to $5.1 billion by year-end 2030, indicating a 13% compound annual growth rate [9] - For 2026, standalone EPS guidance is set at $3.08 to $3.18, excluding impacts from pending acquisitions [11][12] Acquisition Updates - H2O America is pursuing the acquisition of Quadvest for approximately $540 million, with a planned close in mid-2026, which could increase its Texas customer base significantly [5][15] - The Cibolo Valley Wastewater Treatment Plant acquisition is also in progress, expected to close in Q4 2026 [16] Regulatory Developments - The company is actively engaging in regulatory mechanisms across its operating states, including California's cost of capital deferral and Connecticut's Water Quality and Treatment Adjustment [17][19] - In Texas, new legislation aims to streamline rate case processes and enhance infrastructure surcharge applications [20] Affordability Initiatives - H2O America emphasizes affordability, with average bills being 1% or less of median household income, and plans to expand customer assistance programs [22]

Core Viewpoint - Centene expects a rebound in 2026 with adjusted EPS greater than $3, implying over 40% year-over-year growth, driven by Medicaid margin stability, significant margin recovery in Marketplace, and continued improvement toward Medicare Advantage break-even by 2027 [1][4][7] Medicaid - Centene reported a fourth-quarter health benefits ratio (HBR) of 93.0%, showing a 40 basis points sequential improvement and 190 basis points improvement from Q2 levels [8] - The company anticipates a mid-4% net rate impact and mid-4% net trend for 2026, while expecting ongoing Medicaid membership attrition, closing 2025 at 12.5 million members [11][12] - Management is focused on restoring sustainable profitability in Medicaid through operational levers such as network optimization and clinical programs [9] Marketplace - The Marketplace segment is expected to face a smaller membership base due to the expiration of Enhanced Advance Premium Tax Credits (EAPTC), with Ambetter membership projected at approximately 3.5 million by Q1 2026, down from 5.5 million in December [5][15] - Centene anticipates Marketplace pre-tax margins to recover to around 4% in 2026, compared to a loss of approximately 1% in 2025 [17] - The company has accounted for estimated 2026 No Surprises Act costs in its guidance and is advocating for reform [14] Medicare - Centene's Medicare segment is expected to grow premium revenue by about $7.5 billion, with membership projected at approximately 8.7 million coming out of open enrollment [20] - The company aims for break-even results in Medicare Advantage by 2027, with dual-eligible members making up roughly 40% of its Medicare Advantage business [19] - The direct subsidy for Part D increased from $143 to $200, which is expected to raise the HBR without requiring higher SG&A [21] Financial Guidance - For 2026, Centene guided premium and service revenue between $170 billion and $174 billion, with a consolidated HBR of 90.9% to 91.7% [23][24] - The company expects the majority of 2026 adjusted EPS to occur in Q1, with a step-down through the year and a loss anticipated in Q4 [26] - Centene ended 2025 with approximately $400 million in cash for corporate use and reduced debt by $189 million in Q4, reporting a debt-to-cap ratio of 46.5% [25]

Core Insights - MGM Resorts International reported strong financial results for Q4 and full year 2025, highlighting a diversified operational strategy that led to significant growth in key financial metrics [1][2]. Financial Performance - Q4 2025 consolidated net revenues reached $4.6 billion, with a net income attributable to MGM Resorts of $294 million, and Consolidated Adjusted EBITDA of $635 million, reflecting growth of 6%, 87%, and 20% respectively [1][3]. - For the full year 2025, consolidated net revenues were $17.5 billion, an increase of 2% compared to the previous year, with Adjusted EPS of $3.31, up from $2.59 in 2024 [1][2]. Segment Performance - Las Vegas Strip Resorts reported a segment Adjusted EBITDAR of $735 million in Q4 2025, down 4% from the prior year, with net revenues of $2.2 billion, a decrease of 3% [1][3]. - Regional Operations achieved a segment Adjusted EBITDAR of $280 million, nearly flat compared to the previous year, with net revenues increasing by 2% to $950 million [1][2]. - MGM China saw a significant increase in segment Adjusted EBITDAR of 30% to $332 million, with net revenues rising 21% to $1.2 billion [1][3]. Share Repurchase and Financial Stewardship - The company repurchased 15 million shares in Q4 2025 and 37.5 million shares throughout the year, reducing shares outstanding by approximately 48% since early 2021 [1][2]. - MGM Resorts generated $135 million in distributions from its BetMGM North America Venture in Q4 2025, returning over 20% of its cash investment [1][3]. Future Outlook - The company expressed optimism for 2026, driven by a solid base of group and convention business, completion of renovations at MGM Grand in Las Vegas, and continued growth in regional operations and BetMGM [1][2].

Core Insights - Cabot Corporation reported diluted earnings per share (EPS) of $1.37 and adjusted EPS of $1.53 for the first quarter of fiscal 2026, reflecting a 13% decrease in adjusted EPS year-over-year [1][4][10] Financial Performance - Net sales and other operating revenues for the first quarter were $849 million, down from $955 million in the same period last year [3][26] - Net income attributable to Cabot Corporation was $73 million, compared to $93 million in the prior year [5][26] - The Performance Chemicals segment EBIT increased by 7% year-over-year to $48 million, driven by a favorable product mix and strength in the Battery Materials product line [4][6] - The Reinforcement Materials segment EBIT decreased by 22% year-over-year to $102 million, primarily due to lower volumes in the Americas and Asia Pacific [4][6] Segment Highlights - Global Reinforcement Materials volumes decreased by 7%, with a 15% decline in the Americas and a 7% decline in Asia Pacific, while Europe, the Middle East, and Africa saw a 6% increase [7][10] - The Performance Chemicals segment experienced lower volumes due to weaker demand in Europe, despite higher gross profit per ton [6][7] Strategic Developments - Cabot entered into a multi-year supply agreement with PowerCo SE to supply conductive carbons and dispersions for lithium-ion battery applications, reinforcing its leadership in the Battery Materials sector [4][10] - The company aims to build its position in the battery materials sector, which is a strategic priority given the expected growth in electric vehicles and energy storage applications [4][10] Cash Flow and Capital Allocation - Operating cash flow for the first quarter was $126 million, allowing the company to invest in capital expenditures of $69 million, pay $24 million in dividends, and repurchase $52 million of shares [4][8] - The company maintains a strong balance sheet with a net debt to EBITDA ratio of 1.2 times as of December 31, 2025 [4][10] Outlook - The company narrowed its full-year adjusted EPS guidance to a range of $6.00 to $6.50 per share, reflecting ongoing negotiations for tire customer agreements [10] - Despite challenges in the Reinforcement Materials segment, the company expects earnings growth in the Performance Chemicals segment, particularly in Battery Materials [10]

Core Viewpoint - MGM Resorts International, with a market cap of $9.2 billion, operates casino resorts and digital gaming platforms globally, but its stock has underperformed compared to broader market indices over the past year [1][2]. Financial Performance - MGM reported Q3 2025 revenue of $4.25 billion, exceeding expectations, but shares fell 1.6% due to adjusted EPS of $0.24 missing Wall Street forecasts and declining from $0.54 a year earlier [6]. - The company experienced a net loss of $285 million, primarily due to a $256 million non-cash goodwill impairment and approximately $93 million in other write-offs related to Empire City [6]. - Las Vegas Strip Resorts saw net revenues decrease by 7% year-over-year to $2 billion, with Segment Adjusted EBITDAR falling 18% to $601 million, overshadowing gains in MGM China and BetMGM [6]. Stock Performance - Over the past 52 weeks, MGM's stock has decreased while the S&P 500 Index increased by 16.5%, and year-to-date, shares are down 7.2% compared to a 2% rise in the S&P 500 [2]. - MGM's shares have also underperformed against the State Street Consumer Discretionary Select Sector SPDR ETF, which returned 7.1% over the same period [3]. Analyst Ratings - For the fiscal year ending December 2025, analysts project MGM's adjusted EPS to decline by 7.7% year-over-year to $2.39 [7]. - Among 21 analysts covering MGM, the consensus rating is a "Moderate Buy," consisting of eight "Strong Buy" ratings, 10 "Holds," and three "Strong Sells" [7]. - Goldman Sachs analyst Lizzie Dove raised the price target on MGM Resorts to $33 while maintaining a "Sell" rating [8].

Core Viewpoint - NRG Energy, Inc. shares are experiencing a decline following the release of updated financial guidance for FY26, which includes adjusted EPS and net income projections that differ from market consensus [1][2]. Group 1: FY26 Guidance - The company has provided adjusted EPS guidance of $7.90–$9.90, compared to the consensus estimate of $9.72 [2]. - Adjusted net income is projected to be between $1.685 billion and $2.115 billion [2]. - The guidance reflects the anticipated completion of the LS Power asset portfolio acquisition on January 30, 2026, which will account for approximately 11 months of asset ownership [2]. Group 2: Adjusted EBITDA and Free Cash Flow - NRG has raised its outlook for adjusted EBITDA to a range of $5.325 billion to $5.825 billion, up from the previous estimate of $3.925 billion to $4.175 billion [3]. - The forecast for Free Cash Flow Before Growth Investments has also been increased to between $2.800 billion and $3.300 billion, compared to the earlier range of $1.975 billion to $2.225 billion [3]. Group 3: LS Power Acquisition - NRG Energy recently completed the acquisition of a generation asset portfolio and CPower from LS Power, which includes 18 natural gas-fired power plants with a total capacity of approximately 13 GW [4]. - The acquisition also incorporates CPower's commercial and industrial virtual power plant platform [4]. - NRG plans to report its fourth quarter 2025 results on February 24, 2026 [4].

Core Insights - DXC Technology, Inc. reported better-than-expected non-GAAP earnings of 96 cents per share for Q3 fiscal 2026, exceeding the Zacks Consensus Estimate by 12.94% and reflecting a 4.3% year-over-year increase [1] - Despite the earnings beat, shares fell 6.3% in after-hours trading due to revenue shortfalls, with reported revenues of $3.19 billion, missing estimates by 0.31% and decreasing 1% year over year [2] Financial Performance - DXC's non-GAAP operating income (Adjusted EBIT) for Q3 was $263 million, down 8% year over year, with a non-GAAP operating margin of 8.2%, a contraction of 70 basis points [5] - The company generated operating cash flow of $414 million and free cash flow of $266 million in Q3, with share repurchases totaling $65 million during the quarter [7] Revenue Breakdown - Revenues from the Consulting & Engineering Services (CES) segment declined 0.1% year over year to $1.27 billion, with an organic decline of 3.6% [4] - Global Infrastructure Services (GIS) revenues totaled $1.61 billion, down 2.7% year over year, with an organic decline of 6.2% [4] - Insurance Services revenues increased 4.6% year over year to $321 million, with organic growth of 3.2% [4] Guidance Update - DXC updated its fiscal 2026 revenue outlook to approximately $12.69 billion, slightly down from the previous guidance of $12.67-$12.81 billion [8] - The adjusted EBIT margin is now projected to be around 7.5%, with adjusted EPS expected to be about $3.15, up from the previous range of $2.85-$3.35 [9] - For Q4, the company anticipates organic revenue declines of 4-5% and adjusted EPS of 65-75 cents [10] Market Position - DXC Technology currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook compared to other stocks in the Computer and Technology sector [12]