Principal Financial Group (NasdaqGS:PFG) Q4 2025 Earnings call February 10, 2026 10:00 AM ET Company ParticipantsAmy Friedrich - President of Benefits and ProtectionChris K. - VP and Chief Information OfficerDeanna Strable - CEOHumphrey Lee - VP of Investor RelationsJack Matten - VP of Equity ResearchJoel Pitz - CFOKamal Bhatia - PresidentWes Carmichael - Executive Director of US Life InsuranceConference Call ParticipantsAlex Scott - Director and Senior Equity Research AnalystJoel Hurwitz - Lead AnalystJohn ...

Core Insights - Brookfield Business Partners reported a net income of $43 million for the year ended December 31, 2025, a significant improvement from a net loss of $109 million in 2024, indicating a recovery in financial performance [2][50] - The company generated over $2 billion from capital recycling initiatives and invested $700 million in four growth acquisitions during the year [2] - Adjusted EBITDA for 2025 was $2,409 million, down from $2,565 million in 2024, reflecting the impact of lower ownership in three businesses due to partial sales [3][4] Financial Performance - Net income (loss) attributable to Unitholders for Q4 2025 was $(4) million, compared to $(438) million in Q4 2024 [2] - Adjusted EBITDA for Q4 2025 was $652 million, slightly down from $653 million in Q4 2024 [3] - The net income per limited partnership unit for 2025 was $(0.30), an improvement from $(0.50) in 2024 [2][44] Segment Performance - The Industrials segment achieved an Adjusted EBITDA of $1,281 million for 2025, a 10% increase compared to the previous year, excluding acquisitions and tax recoveries [4] - The Business Services segment's Adjusted EBITDA was $823 million for 2025, down from $832 million in 2024, but showed a 5% increase when excluding the impact of acquisitions and dispositions [6][7] - The Infrastructure Services segment reported an Adjusted EBITDA of $436 million for 2025, down from $606 million in 2024, impacted by the sale of operations [9] Strategic Initiatives - The company is nearing completion of a corporate reorganization aimed at enhancing global demand for its shares, with approval received from unitholders and the Supreme Court of British Columbia [12] - Brookfield Business Partners plans to acquire Fosber, a global provider of machinery for the corrugated packaging industry, for approximately $480 million, with BBU's share expected to be around $170 million [11] - A repurchase program has returned approximately $235 million to owners through the buyback of 8.8 million units and shares since its launch [13][14] Liquidity and Dividends - As of December 31, 2025, the company had approximately $2,135 million in liquidity, with pro forma liquidity estimated at $2,600 million after recent transactions [15] - Following the corporate reorganization, the company expects to declare a quarterly dividend of $0.0625 per share, with an annual dividend target of $0.25 per share [16][51]

TFS Financial Corporation ® Overview For the quarter ended December 31, 2025 TFSL Shareholder Ownership | | | % of | | --- | --- | --- | | | # of shares | Ownership | | As of Dec 31, 2025 | | | | Owned by Third Federal MHC | 227,119,132 | 80.93% | | Owned by Minority Shareholders | 53,505,667 | 19.07% | | Total shares outstanding | 280,624,799 | 100.00% | | As of April 20, 2007 Minority Offering | | | | Owned by Third Federal MHC | 227,119,132 | 68.30% | | Owned by Minority Shareholders | 105,199,618 | 31.7 ...

Financial Data and Key Metrics Changes - For the full year 2025, the company reported pre-tax, pre-provision earnings growth of 105% year-over-year and earnings per share (EPS) growth of 45% to $3.40, excluding merger-related charges [3][4] - The fourth quarter net income, excluding merger and restructuring expenses, was $81 million, with diluted EPS of $0.84, an 18% increase year-over-year [4][10] - The return on tangible common equity for the fourth quarter was 16%, with non-performing assets to total assets at 0.33% [5][10] Business Line Data and Key Metrics Changes - Total portfolio loans increased by 52% year-over-year to $19.2 billion, driven by both acquired loans from Premier Financial and organic growth [11] - Non-interest income for the fourth quarter was $43.3 million, a 19% increase year-over-year, primarily due to the acquisition of Premier [14] - Treasury management revenue reached a record of $6 million, with total wealth management assets under management at $10.4 billion [6][14] Market Data and Key Metrics Changes - Total deposits increased by 53% year-over-year to $21.7 billion, supported by acquired deposits from Premier Financial and organic growth [12] - The company experienced a significant increase in commercial real estate project payoffs, totaling $415 million in the fourth quarter and over $900 million for the year, which created a 4% headwind to loan growth [7][11] Company Strategy and Development Direction - The company successfully integrated the acquisition of Premier Financial, transforming itself into a $28 billion asset regional financial services partner and ranking among the top 50 publicly traded U.S. financial institutions [5][6] - Continued investment in organic growth includes opening loan production offices in new markets and launching a healthcare vertical [6][9] - The company aims to maintain a focus on relationship banking, which differentiates it from competitors [6] Management's Comments on Operating Environment and Future Outlook - Management anticipates mid-single-digit year-over-year loan growth during 2026, despite expected elevated commercial real estate payoffs [8][30] - The company expects net interest margin to remain consistent with the fourth quarter margin of 3.61% in the first quarter of 2026, with potential increases in subsequent quarters [18][49] - The effective tax rate for 2026 is projected to be between 20.5% and 21.5%, slightly higher than in 2025 [23] Other Important Information - The company redeemed $150 million of Series A Preferred Stock and $50 million of subdebt acquired for Premier during the fourth quarter [16] - The CET1 ratio improved to 10.34%, with expectations to build 15-20 basis points per quarter moving forward [17][59] Q&A Session Summary Question: Loan growth expectations and payoffs - Management expects elevated payoffs in the first half of 2026, estimating between $600 million and $800 million, but believes loan growth will remain strong due to a robust pipeline [28][30] Question: Expense guidance and branch evaluations - Management confirmed that branch evaluations will continue, with potential for additional closures not reflected in current numbers [42][43] Question: Margin outlook and factors influencing it - The company anticipates a flat margin in the first quarter, with a step-up in the second quarter due to strong deposit growth and repricing of CDs [44][46] Question: Capital deployment priorities - The company prioritizes dividends, loan growth, and buybacks, with M&A being a distant fourth [57][58] Question: Fair Value Accretion expectations - Management models about 25 basis points of fair value accretion for the first quarter, with a gradual decline over the next six years [62] Question: Deposit pipeline and costs - The deposit pipeline remains strong, with spot deposit rates slightly down at the end of December [85][86] Question: Types of loans in new markets - The types of loans in new markets are similar to legacy markets, focusing on commercial real estate, commercial and industrial loans, and healthcare [90]

Financial Performance - Q3 FY26 - Revenue decreased by 10.2% to $2.6 billion, primarily due to a slowed procurement and funding environment, including the government shutdown[47] - Revenue excluding billable expenses decreased by 6.7% to $1.8 billion[13, 24] - Adjusted EBITDA decreased by 14.2% to $285 million, with adjusted EBITDA margins at 10.9%, a decrease of 50 bps[13, 24] - Adjusted Diluted EPS increased by 14.2% to $1.77, driven by profitability and tax benefits[13, 14] - Free Cash Flow increased by 85.1% to $248 million due to higher collections, lower payables, and lower tax payments[13, 47] Backlog and Book-to-Bill - Backlog increased by 2% year-over-year to $38 billion[14] - Quarterly book-to-bill was 0.3x, and LTM book-to-bill was 1.1x[14] Capital Deployment - $125 million was deployed in share repurchases during the third quarter, representing 1.1% of outstanding shares[16] - The board approved a quarterly dividend of $0.59 per share, a 7% increase[16] - A $400 million capital commitment was made for a partnership with Andreessen Horowitz (a16z)[16] FY26 Financial Outlook - Revenue is projected to be $11.3 - $11.4 billion, representing a decrease of 5.0 - 6.0%[18] - Adjusted EBITDA is expected to be $1,195 - $1,215 million, with adjusted EBITDA margin on revenue in the mid 10% range[18] - Adjusted Diluted EPS is projected to be $5.95 - $6.15[18] - Free Cash Flow is expected to be $825 - $900 million[18]

Financial Data and Key Metrics Changes - Q4 core FFO was $1.44 per share, finishing at the top end of guidance ranges [10] - Average occupancy was 95.3% for Q4 and 95% for the full year, with period-end occupancy at 95.8% [10] - Same-store NOI growth was 4.7% on a net effective basis and 5.7% on a cash basis, exceeding guidance [11] - Net effective rent change for the year was over 50%, with a quarterly change of 44% [10][11] Business Line Data and Key Metrics Changes - The company signed 57 million sq ft of leases in Q4, driving occupancy towards 96% [9] - Development platform, particularly build-to-suits, exceeded expectations, capturing significant market share [9] - The Data Center business saw a growing power pipeline, with expectations for solid starts in the upcoming year [9] Market Data and Key Metrics Changes - Q4 net absorption was 59 million sq ft in the U.S., leading to a decline in U.S. vacancy to 7.4% [14] - Many markets are experiencing a slowdown in rent decline, with some showing positive growth [14] - International markets, particularly in Latin America and Europe, are outperforming, with strong occupancy and rent growth [16] Company Strategy and Development Direction - The company focuses on three priorities: extending leadership as a best-in-class operator, capturing value creation opportunities in logistics and data centers, and enhancing shareholder returns through growth in assets under management [7][8] - The company aims to develop critical infrastructure in logistics and data centers, leveraging customer relationships and expertise [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational momentum and strategic initiatives in place for 2026, indicating a strong position for long-term growth [22] - The tone of customer conversations is increasingly positive, with e-commerce driving demand [15] - Management noted that while uncertainties exist, they are treated as planning assumptions rather than impediments [15] Other Important Information - The company sold approximately $900 million of value-maximized assets and acquired $625 million at attractive discounts [11] - The company achieved significant milestones in strategic capital, including the IPO of the China AMC Prologis Logistics REIT [17] Q&A Session Summary Question: Changes in strategic initiatives with new leadership - Management highlighted a focus on compounding the core logistics business while broadening the platform, with plans to grow strategic capital significantly [24][25] Question: Market rent growth expectations for 2026 - Management expects net absorption to approach 200 million sq ft in 2026, with vacancies declining to 7.1%-7.2% by year-end [33] Question: Data Center project details and guidance - Management indicated that 40% of the overall development starts guidance will be in Data Centers, with a mix of powered shell and turnkey projects [38] Question: Update on the 10 GW power outlook - Management remains confident in the 10 GW pipeline, emphasizing the significant opportunities available [43] Question: Capital deployment pipeline and ramp-up - Management noted that capital deployment decisions are made based on market conditions, with a significant number of opportunities available [56][57] Question: Same-store growth guidance breakdown - Management indicated that occupancy gains are expected across geographies, with a smaller contribution from mark-to-market as rent changes normalize [79]

Group 1 - The article discusses Warren Buffett's upcoming transition as CEO of Berkshire Hathaway, highlighting the strategic implications of this leadership change [1] - It emphasizes the significance of Berkshire Hathaway's record cash balance, which positions the company favorably for future investments [1] - The discussion includes potential strategies for capital deployment during a market downturn, indicating a proactive approach to managing assets [1]

Summary of National Bank of Canada Conference Call Company Overview - **Company**: National Bank of Canada (OTCPK:NBCD.F) - **Date**: January 06, 2026 Key Points Macro Environment - The macroeconomic environment in 2025 was characterized by uncertainty due to trade wars and a fragile labor market, leading to a pause in business investments in Canada, which is a major concern for the bank [4][5] - Despite these challenges, the Canadian economy has shown resilience, surprising many observers [4] - National security and geopolitical issues are highlighted as critical priorities for Canada, with a call for faster decision-making in nation-building and reindustrialization efforts [5][6] Trade and Interprovincial Barriers - There is a need for more collaboration to address trade barriers, particularly between provinces, and to expedite agreements with key allies [11][12] Financial Performance and ROE Targets - The bank targets a Return on Equity (ROE) of approximately 15% for 2026 and over 17% for 2027, with improvements expected from both capital deployment and organic growth [12][13] - The bank's capital generation is outpacing consumption, allowing for share buybacks and strategic acquisitions [13][14] Growth Strategies - The bank anticipates significant revenue synergies from the acquisition of CWB, particularly in commercial client fees and organic growth in wealth and capital markets [16][22] - There is a focus on domestic growth, with plans to accelerate growth outside Quebec starting in the second half of 2026 [25][26] Credit Quality and ABA - The bank is maintaining a conservative approach to credit quality in its Cambodian operations (ABA), with increased allowances for impaired loans and a focus on prudent management [31][32] - The Cambodian economy is expected to grow at around 4% in 2026, with a long-term potential of 7% [28][30] Capital Markets Outlook - The capital markets business had a strong performance in 2025, with a 58% growth in PTPP to CAD 2.2 billion, but a decline is expected in 2026 to a range of CAD 1.8 billion to CAD 2 billion [35] - The bank is well-positioned to take advantage of market opportunities, particularly in trading and investment banking [36][37] Cost Control and Efficiency - The bank is focusing on cost control, particularly in its retail business, and is exploring technology and digital onboarding to improve efficiency [71][74] - There is an emphasis on adapting the branch network to changing customer behaviors, with a shift towards cashless branches [76] Key Messages for Investors - The bank is proud of its execution in 2025 and is optimistic about 2026, focusing on client engagement and realizing synergies from recent acquisitions [78][79] - Acknowledgment of employee contributions and shareholder support is emphasized as crucial for future success [79] Additional Insights - The bank is open to tuck-in acquisitions, particularly in wealth management, but recognizes the complexities involved [57][58] - The current market environment is viewed as frothy, with a cautious approach to capital deployment in private credit [51][52]

Group 1 - The biotech industry has experienced significant fluctuations this year, characterized by both high and low points [1] - There has been a recent increase in M&A activity within the biotech sector, indicating a shift in market dynamics [1] - The company is evaluating its approach to capital deployment, particularly in relation to larger scale transactions versus smaller in-licensing deals [2]

Summary of AbVie Conference Call Company Overview - **Company**: AbVie - **Event**: 37th Annual Piper Sandler Healthcare Conference Key Industry Insights - **Biotech Landscape**: The biotech industry has experienced significant fluctuations, with both positive and negative trends observed this year. There is a noted increase in M&A activity within the sector [1][2]. Capital Deployment Strategy - **Transaction Activity**: AbVie has engaged in approximately 30 transactions since the beginning of the previous year, primarily focusing on smaller deals to enhance its pipeline. This includes platform deals and single-asset acquisitions [3][4]. - **Focus on Growth**: The company aims to drive growth well into the next decade, leveraging a strong balance sheet and cash flow generation. The strategy emphasizes smaller transactions rather than large-scale acquisitions [4][5]. Therapeutic Areas and Pipeline - **Obesity and Other Therapeutic Areas**: AbVie is actively exploring opportunities in the obesity space and is considering adjacencies within its core therapeutic areas, which include immunology, oncology, neuroscience, and eye care [6]. - **R&D Investment**: The company has increased its R&D investment by over $2.5 billion since 2022, with R&D expenses currently at just under 15% of sales. This investment is expected to continue growing in line with sales growth [8][9]. Product Performance - **Skyrizi**: The product has shown exceptional growth, with a 46% year-over-year increase. It is noted for its efficacy and convenience, particularly in the IBD market. The IL-23 market has expanded significantly, with IL-23 subcategory share increasing from 4% to nearly 40% in 18 months [10][12]. - **Rinvoq**: The product has potential for significant sales growth, particularly in the vitiligo indication, which is projected to generate over $2 billion in peak sales. Rinvoq is positioned as a first systemic agent for vitiligo, with strong efficacy and a well-characterized safety profile [25][26][27]. Neuroscience and Psychiatry Developments - **Vyalev**: This product is gaining traction in the Parkinson's disease market, with expectations of exceeding $400 million in sales this year and potential for over $1 billion in the near future. The product offers unique dosing flexibility and continuous infusion capabilities [32][35]. - **Brexalosin**: Acquired from Gilgamesh, this neuroplastogen shows promise in treating MDD and GAD. Its short duration of psychedelic effect (about two hours) and strong efficacy are highlighted as key differentiators from other neuroplastogens [36][38]. Competitive Landscape - **Market Dynamics**: The company anticipates some share pressure from competitors like Tremfya in the IL-23 category but expects overall market expansion to offset this. The focus remains on differentiating their products through efficacy and convenience [11][12]. Conclusion - AbVie is strategically positioned for growth through a combination of targeted acquisitions, significant R&D investment, and a robust product pipeline across various therapeutic areas. The company is focused on maintaining its competitive edge while exploring new opportunities in emerging markets.