Financial Data and Key Metrics Changes - For Q4 2025, Plains reported Adjusted EBITDA of $738 million and full-year Adjusted EBITDA of $2.833 billion, indicating a pivotal year despite market challenges [3][4] - The crude oil segment Adjusted EBITDA was $611 million, while the NGL segment reported $122 million, reflecting seasonal impacts and market conditions [11][12] - The company expects 2026 Adjusted EBITDA guidance of $2.75 billion at the midpoint, with a 13% year-over-year growth in the crude segment [7][8] Business Line Data and Key Metrics Changes - The crude oil segment's performance was bolstered by the Cactus 3 acquisition, contributing to overall EBITDA despite challenges from recontracting [11] - The NGL segment's performance was impacted by warm weather and weak frac spreads, leading to a moderated seasonal uptick [11] - The company anticipates $100 million of EBITDA from the NGL segment post-divestiture, along with $10 million of other income [8] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes projected to be about 6.6 million barrels by year-end [8] - The company noted a cautious optimism among larger producers in the Permian Basin, with a focus on efficiency and inventory preservation [29][30] Company Strategy and Development Direction - Plains is transitioning to a peer-play crude company, focusing on streamlining operations and enhancing cash flow durability through strategic acquisitions and divestitures [3][4] - The company is targeting $100 million in annual savings through efficiency initiatives by 2027, with half expected to be realized in 2026 [4][24] - The acquisition of the Wild Horse Terminal is expected to enhance storage capacity and generate returns above internal thresholds [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of executing on efficiency initiatives and closing the NGL divestiture to position the company competitively for the future [15] - The geopolitical environment and OPEC actions were noted as challenges, but management remains focused on long-term growth and stability [3][15] - The company expressed confidence in the ability to grow beyond 2026, supported by self-help initiatives and market fundamentals [58] Other Important Information - A 10% increase in quarterly distribution was announced, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield [8][9] - The company plans to reduce its distribution coverage ratio threshold from 160% to 150%, reflecting improved visibility and alignment with peers [9][10] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed achieving $50 million in synergies, with half from G&A and OPEX reductions and the rest from optimizing pipeline capacity [20][21] Question: Cost Savings Initiatives - The NGL business sale allows for a comprehensive review of company structure, targeting $100 million in savings by 2027 [24][25] Question: Permian Basin Outlook - Management noted cautious optimism among producers, with a focus on efficiency and inventory preservation, expecting growth to resume in 2027 [29][30] Question: Distribution Coverage Ratio - The reduction to 150% is seen as conservative, allowing for routine investments and distribution growth [37][73] Question: Growth Capital Expenditures - The 2026 growth CAPEX is guided at $350 million, aligning with typical investment levels, focusing on ongoing projects and potential expansions [41][42]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Adjusted EBITDA attributable to Plains of $738 million and $2.833 billion for the full year, indicating a pivotal year despite market challenges [4][5] - The crude oil segment adjusted EBITDA was $611 million, which included contributions from the Cactus III acquisition, while the NGL segment reported adjusted EBITDA of $122 million [11][12] - The company expects adjusted EBITDA guidance for 2026 at $2.75 billion, with a midpoint for the oil segment EBITDA of $2.64 billion, reflecting a 13% year-over-year growth in the crude segment [7][8] Business Line Data and Key Metrics Changes - The crude oil segment is expected to drive significant growth, while the NGL segment is projected to contribute $100 million of EBITDA, assuming the divestiture closes as planned [8][12] - The company is focusing on streamlining operations and has targeted $100 million in annual savings through 2027, with approximately 50% expected to be realized in 2026 [5][6] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes projected to be about 6.6 million barrels at the end of the year [8] - The company anticipates growth to resume in 2027, driven by global energy demand growth and diminishing OPEC spare capacity [8] Company Strategy and Development Direction - The company is transitioning to a pure-play crude company, which is expected to streamline operations and enhance cash flow durability [4][5] - Key initiatives for 2026 include closing the NGL divestiture, integrating the Cactus III Pipeline, and improving cost structures [5][6] - The company remains committed to generating significant free cash flow, optimizing its asset base, and maintaining a flexible balance sheet [10][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced in 2025, including geopolitical unrest and OPEC actions, but emphasized a focus on operational efficiency and strategic transactions [4][16] - The outlook for 2026 is characterized as a year of execution and self-help, with confidence in the ability to grow beyond 2026 due to expected synergies and market improvements [16][61] Other Important Information - The company announced a 10% increase in quarterly distributions, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield based on recent equity prices [8][9] - The company is also focused on maintaining a distribution coverage ratio of 150%, which reflects improved visibility and aligns with peers [9][42] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed that they are on track to achieve $50 million in synergies from the Cactus III acquisition, with half already realized through G&A and OPEX reductions [21][22] Question: Cost Savings Initiatives - The company is rethinking its structure post-NGL sale, aiming for $100 million in cost savings by the end of 2027, with $50 million expected in 2026 [26][27] Question: Permian Basin Outlook - Management expressed cautious optimism regarding producer sentiment in the Permian Basin, noting that efficiencies are improving despite a flat production outlook for 2026 [31][33] Question: Capital Allocation Priorities - The company reiterated its focus on distribution growth and maintaining a conservative coverage ratio, with plans for opportunistic investments in bolt-ons and repurchases [36][42] Question: Long-Haul Permian Volume Guidance - Management explained that the guidance includes contributions from Cactus III and increased contracted capacity, with expectations for stable margins [66][68] Question: Impact of Geopolitical Developments - Management discussed the potential impacts of developments in Venezuela, noting that while immediate effects may create opportunities, substantial long-term changes would require significant investment [52][54]

Core Viewpoint - Citigroup Inc. has received internal approval to proceed with the sale of AO Citibank in Russia to Renaissance Capital, with the transaction expected to close in the first half of 2026, pending regulatory approvals [1][2]. Summary by Sections Sale Approval and Timeline - The board of directors approved the sale of AO Citibank on December 29, 2025, allowing Citigroup to classify its remaining Russian operations as "held for sale" starting in Q4 2025 [3]. - A presidential order from the Kremlin in November 2025 authorized the transfer of Citigroup's Russia-based banking unit to Renaissance Capital, facilitating operational preparations for the sale [4]. Financial Impact - Citigroup anticipates a pre-tax loss of approximately $1.2 billion ($1.1 billion after tax) in Q4 2025 due to the sale, which will reduce Other Revenue through a valuation allowance [6]. - The loss includes an estimated $1.6 billion currency translation adjustment (CTA) loss, which will remain in Accumulated Other Comprehensive Income (AOCI) until the transaction closes [7]. - The overall divestiture is expected to benefit Citigroup's Common Equity Tier 1 (CET1) capital over time, despite the near-term accounting impact [8]. Strategic Context - Citigroup's exit from Russia is part of a broader strategy to streamline global operations and exit non-core markets, which has been ongoing for several years [2][5]. - Under CEO Jane Fraser's transformation strategy, Citigroup has been reshaping its global footprint, including exiting consumer banking operations in multiple markets [9][10]. Revenue Projections - Citigroup expects total revenues to exceed $84 billion in 2025, with a projected compound annual growth rate of 4-5% through 2026, reflecting management's confidence in the long-term benefits of its transformation efforts [12]. Market Performance - Citigroup's shares have gained 37% over the past six months, outperforming the industry's growth of 18.1% [13].

MILAN — Style Capital is exiting luxury retailer LuisaViaRoma after four years, WWD has learned. Sources said current chief executive officer Tommaso Maria Andorlini is acquiring the private equity firm’s 40 percent stake in the company and has committed to paving the way for future growth amid a downturn in luxury spending that has hit retailers globally. More from WWD UPDATE: Style Capital Exits LuisaViaRoma, CEO Commits to Futureproof Business Model LuisaViaRoma did not return WWD’s requests for comment ...

Core Viewpoint - Cooper Companies reported better-than-expected fourth-quarter earnings and provided optimistic financial guidance, leading to a rise in stock price [1][7] Financial Performance - The company reported fourth-quarter adjusted earnings of $1.15 per share, an 11% increase year over year, surpassing the consensus estimate of $1.11 [2] - Total sales for the quarter were $1.065 billion, nearly matching the consensus of $1.061 billion, reflecting a 5% year-over-year increase and 3% organic growth [2] - The CooperVision segment generated sales of $709.6 million, a 5% increase from the previous year's fourth quarter, with 3% growth in constant currency and organically [3] - CooperSurgical reported revenue of $355.6 million, up 4% year over year, with consistent growth in constant currency and organically [3] Future Outlook - For the first quarter of 2026, the company expects sales between $1.019 billion and $1.030 billion, compared to the consensus of $1.025 billion, with adjusted earnings projected at $1.02 to $1.04 per share against a consensus of $1.00 [4] - The company anticipates organic growth of 3% to 4% for 2026 and adjusted earnings for fiscal 2026 to be between $4.45 and $4.60 per share, exceeding the consensus of $4.09 [4] - Projected sales for fiscal 2026 are estimated to be between $4.299 billion and $4.338 billion, compared to the consensus of $4.089 billion [4] - Free cash flow for fiscal 2026 is expected to be between $575 million and $625 million, with projections of over $2.2 billion in free cash flow from fiscal 2026 to fiscal 2028 [5] Analyst Reactions - Needham maintains a Buy rating and raises the price target from $94 to $100 [6] - Mizuho keeps an Outperform rating and increases the price target from $85 to $100 [6] - Baird maintains an Outperform rating and raises the price target from $85 to $98 [6] - JP Morgan retains a Neutral rating and raises the price target from $66 to $78 [6] - Wells Fargo maintains an Equal-Weight rating and increases the price target from $72 to $82 [6]

Core Insights - Barclays (BCS) shares have increased by 68.4% year-to-date, outperforming the industry growth of 45.5% and surpassing peers like HSBC (42.7%) and NatWest (61.1%) [1][9]. Factors Driving Barclays Stock - Business Streamlining Initiatives: Barclays is focusing on core operations, selling its stake in Entercard Group for $273 million and acquiring a U.S. credit card portfolio worth $1.6 billion [5][6]. - Cost-Mitigation Efforts: The company achieved gross savings of £1 billion in 2024 and expects total gross efficiency savings of £2 billion by the end of 2026 [8]. - Robust Capital Position: Barclays maintains a solid capital position, planning to return at least £10 billion to shareholders from 2024 to 2026, with a preference for buybacks [11][9]. Roadblocks in Barclays' Growth Path - Subdued Top-Line Growth: Core operating performance remains unsatisfactory, with net interest income and other income showing volatility due to a challenging environment [12]. - Weak Asset Quality: Rising credit impairment charges are a concern, with significant increases noted since 2022 [13]. Valuation and Market Position - BCS stock appears inexpensive, trading at a price-to-tangible book (P/TB) ratio of 0.85X, below the industry average of 2.77X and lower than peers HSBC (1.23X) and NatWest (1.41X) [14][16]. - Analysts have revised earnings estimates downward for 2025 and 2026, indicating a cautious outlook despite the stock's current discount [17][20].

Core Insights - Bank of Montreal (BMO) is initiating a process to sell some of its U.S. branches, which hold approximately $6 billion in deposits, as part of its strategy to streamline its U.S. retail footprint following its largest acquisition in 2023 [1][8] - The potential sale may involve branches in states such as Wyoming and the Dakotas, and could include associated loans, although the plans are still preliminary [2][8] - This move follows BMO's $16.3 billion acquisition of BNP Paribas' U.S. unit, Bank of the West, which added nearly 500 branches and expanded its customer base by about 2 million [3][8] Strategic Review - BMO is reviewing its branch network to streamline operations, which may involve closures or consolidations, a common practice after major acquisitions [4] - The divestiture reflects BMO's focus on optimizing its U.S. presence while supporting efficiency gains and strengthening its long-term growth strategy [5] Market Performance - Over the past six months, shares of Bank of Montreal have gained 33.2%, outperforming the industry's growth of 22.4% [6]

Core Insights - Barclays (BCS) shares reached a 52-week high of $21.13, closing at $21.05, with a year-to-date increase of 58.4%, outperforming the industry growth of 38.2% [1] - The company has outperformed peers such as HSBC Holdings (40.4% increase) and NatWest Group (44.6% increase) [1] Factors Driving Barclays Stock - Business Streamlining Initiatives: Barclays is simplifying operations and focusing on core businesses, including selling its stake in Entercard Group for $273 million and divesting its Germany-based consumer finance business [4][5] - Recent acquisitions, such as Tesco's retail banking business and Kensington Mortgage, are expected to strengthen Barclays' market position and improve profitability [5][6] - Cost-Mitigating Efforts: Barclays has seen a decline in expenses due to efficiency initiatives, with a negative compound annual growth rate of 2.4% over six years ending in 2021, and aims for gross efficiency savings of £2 billion by 2026 [7][10] Robust Capital Position - Despite macroeconomic uncertainties, Barclays maintains a solid capital position, regularly paying dividends and planning to return at least £10 billion to shareholders through dividends and share buybacks from 2024 to 2026 [11][12] Challenges Facing Barclays - Muted Top-Line Growth: Core operating performance remains unsatisfactory, with net interest income and net fee income showing volatility due to a challenging operating environment [13] - Weak Asset Quality: Rising credit impairment charges are a concern, with significant increases noted since 2022, expected to remain elevated in the near term [14] Valuation and Market Position - Barclays' stock appears inexpensive, trading at a price-to-tangible book (P/TB) ratio of 0.82X, below the industry average of 2.54X, and also lower than peers HSBC (1.31X) and NWG (1.29X) [15][17] - Analysts express concerns regarding the company's earnings growth potential, with the Zacks Consensus Estimate for 2025 earnings remaining unchanged over the past 60 days [18]

Core Insights - Natura Cosméticos has entered into a binding agreement to sell its Avon business in Central America and the Dominican Republic for a nominal value of $1, plus a receivable payment of $22 million from Avon Guatemala [1][2] - The transaction aims to streamline operations and simplify business focus, allowing Natura to concentrate on integrating Natura and Avon in Latin America [2] - Natura continues to explore strategic alternatives for its Avon International business, which is officially classified as an asset held for sale [3][4] Transaction Details - The sale includes Avon operations in Guatemala, Nicaragua, Panama, Honduras, El Salvador, and the Dominican Republic [1] - Natura will continue supplying finished goods to Avon CARD and will be the licensor of the Avon brand in the region [2] - The transaction is expected to close by October 30 [2] Strategic Direction - Natura has been exploring options for its Avon International business, indicating ongoing strategic evaluations [3][4] - Avon Central America and the Dominican Republic have been reclassified as assets for sale, aligning with Natura's broader strategic review [4]

Investment Rating - The investment rating for Rentokil Initial Plc is Neutral [4][7]. Core Views - The sale of the French Workwear business for approximately €410 million ($465 million) is aligned with the company's strategy to streamline operations towards lower capital expenditure pest and hygiene businesses [3][4]. - The transaction is expected to improve the group's capital expenditure to sales ratio and cash flow, with free cash flow conversion benefiting by approximately 100 basis points [3][4]. - The Workwear business generated revenues of $324 million and operational EBITA of $57 million in FY24, indicating a margin of approximately 17.7% [2][4]. Financial Metrics - The transaction values the Workwear business at approximately 1.4x EV/Sales and 8x EV/EBITA based on 2024 estimates, and about 3x EV/EBITDA assuming capital expenditures equal depreciation and amortization [2][4]. - The expected net cash proceeds from the sale are approximately €370 million ($420 million) [1][2]. - The company's 12-month price target is set at 425p, with an upside potential of 20% from the current price of 354.2p [7]. Future Projections - Revenue forecasts for Rentokil Initial Plc are projected to grow from $6.94 billion in 2024 to $7.87 billion by 2027 [7]. - EBITA is expected to increase from $1.065 billion in 2024 to $1.277 billion in 2027 [7]. - The company anticipates a gradual improvement in earnings per share (EPS), from $0.27 in 2024 to $0.32 in 2027 [7].