Neogen (NasdaqGS:NEOG) Q2 2026 Earnings Call January 08, 2026 08:00 AM ET Company ParticipantsBill Waelke - Head of Investor RelationsBob Labick - PresidentMike Nassif - CEO and PresidentThomas VonDerVellen - Equity Research AssociateBryan Riggsbee - CFOConference Call ParticipantsDavid Westenberg - Senior Research AnalystBrandon Vazquez - Research AnalystThomas DeBourcy - Principal and Senior Equity Research AnalystOperatorGood morning, ladies and gentlemen, and welcome to the Neogen Corporation Q2 FY 2026 ...

Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter but exceeding the midpoint of revenue guidance [13] - Gross profit increased to $36.8 million, representing 33.1% of net sales, a substantial increase of 153.3% from $14.5 million (12.5% of net sales) in Q1 2025 [14] - Operating loss narrowed to $2.8 million compared to an operating loss of $129.2 million in Q1 2025 [15] - Adjusted EBITDA for Q1 2026 was $9.6 million, a significant improvement from an Adjusted EBITDA loss of $30.8 million in Q1 2025 [16] - Operating cash flows were positive at $8.1 million, marking the third consecutive quarter of positive cash flows, compared to -$21.8 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported over $3 million in GAAP operating profit, a turnaround from a GAAP operating loss of approximately $119 million in the same period last year [8] - The Allerium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year [10] Market Data and Key Metrics Changes - The Satellite and Space segment secured about $8 million in funded orders from an international reseller, indicating strong demand for its products [9] - Allerium was awarded over $15 million in incremental multi-year funding for next-generation solutions, reflecting ongoing market opportunities [12] Company Strategy and Development Direction - Comtech is focused on optimizing cash flow and transitioning to higher-margin, strategic opportunities after phasing out low-margin products [25] - The company aims to capitalize on attractive growth opportunities in its business segments, particularly in satellite communications and public safety applications [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, having improved margins and identified attractive growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise to the company [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - Management indicated that a portion will be booked in the first quarter, but the majority will be booked in the second quarter [24] Question: What are the expectations for top-line growth given the transition to higher volume production? - Management emphasized a focus on cash flow optimization and believes the company is positioned to regrow after phasing out low-margin business [25] Question: Any updates on the PIK preferred stock obligation? - Management refrained from commenting on specific options regarding the capital structure at this time [27]

Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter but exceeding the midpoint of revenue guidance [13] - Gross profit for Q1 2026 was $36.8 million, representing a 153.3% increase from $14.5 million in Q1 2025, with a gross profit margin of 33.1% [14] - The company reported an operating loss of $2.8 million in Q1 2026, significantly improved from an operating loss of $129.2 million in Q1 2025 [15] - Adjusted EBITDA for Q1 2026 was $9.6 million, compared to an adjusted EBITDA loss of $30.8 million in Q1 2025 [16] - Operating cash flows were $8.1 million for Q1 2026, a substantial improvement from negative $21.8 million in Q1 2025 [17] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported a GAAP operating profit of over $3 million in Q1 2026, compared to a GAAP operating loss of approximately $119 million in the same period last year [8] - The Illyrium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year [10] Market Data and Key Metrics Changes - The company secured approximately $27 million in initial funding toward a multi-year contract extension valued at over $130 million, which will contribute to future backlog [16] - Illyrium was awarded over $15 million in incremental multi-year funding for next-generation solutions development [12] Company Strategy and Development Direction - Comtech is focused on optimizing cash flow and has strategically phased out low-margin products to transition to higher-margin opportunities [25] - The company aims to capitalize on attractive growth opportunities in its business segments, particularly in satellite and space communications [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, with improved margins and strategic growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - A portion will be booked in the first quarter, but the majority will be booked in the second quarter [24] Question: What are the expectations for top-line growth given the transition to higher volume production? - The focus is on optimizing cash flow, with a belief that the company is at an inflection point for regrowth after phasing out low-margin business [25] Question: Any updates on the PIK preferred stock obligation? - No specific comments were made, but the company is exploring various options to improve its capital structure [27]

Financial Data and Key Metrics Changes - Comtech reported net sales of $111 million for Q1 2026, a decrease from $130.4 million in the previous quarter, but exceeding the midpoint of revenue guidance [13] - Gross profit for Q1 2026 was $36.8 million, representing a 153.3% increase from $14.5 million in Q1 2025, with a gross profit margin of 33.1% [15] - Operating loss narrowed to $2.8 million in Q1 2026 from a loss of $129.2 million in Q1 2025, with adjusted EBITDA of $9.6 million compared to a loss of $30.8 million in the prior year [16][17] - Operating cash flows improved to $8.1 million in Q1 2026 from negative $21.8 million in Q1 2025, marking the third consecutive quarter of positive cash flow [18] Business Line Data and Key Metrics Changes - The Satellite and Space Communications segment reported a GAAP operating profit of over $3 million in Q1 2026, a significant turnaround from a $119 million operating loss in the same period last year [8] - Illyrium segment achieved adjusted EBITDA of $11.3 million, a slight increase from $11.0 million in the prior year, despite lower net sales in Call Handling Solutions [10] Market Data and Key Metrics Changes - The first quarter's performance was impacted by earlier-than-anticipated orders and net sales, as well as delays due to the recent U.S. government shutdown [14] - Net bookings for Q1 2026 were $101.9 million, resulting in a book-to-bill ratio of 0.92, compared to 1.1 in the prior year [17] Company Strategy and Development Direction - The company is focused on optimizing cash flow and has phased out low-margin products to transition to higher-margin, strategic opportunities [25] - The successful transformation initiatives have positioned Comtech to capitalize on attractive opportunities in each business segment [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's revitalized financial health, which is expected to enhance employee retention, customer trust, and vendor relationships [21] - The company is at an inflection point, with improved margins and attractive growth opportunities ahead [25] Other Important Information - Mary Jane Raymond has joined the board of directors, bringing governance and operational expertise [22] Q&A Session Summary Question: Will the $130 million of new bookings flow to backlog in the current quarter? - A portion will be booked in Q1, but the majority will be booked in Q2 [24] Question: How should investors think about the return to top-line growth? - The focus is on optimizing cash flow, with a deliberate strategy to phase out low-margin business and focus on higher-margin opportunities [25] Question: Any updates on the PIK preferred stock obligation? - No specific comments were made, but the company is exploring various options to improve its capital structure [26]

Core Insights - ARKO Corp. has appointed Galagher Jeff as the new Executive Vice President and Chief Financial Officer, effective December 1, 2025, to support its growth and transformation plans [1][3]. Company Overview - ARKO Corp. is a Fortune 500 company and one of the largest convenience store operators and fuel wholesalers in the United States, owning 100% of GPM Investments, LLC [4]. - The company operates in four reportable segments: retail, wholesale, fleet fueling, and GPM Petroleum, providing a range of products including prepared foods, beverages, and fuel [4]. Leadership Background - Galagher Jeff has a distinguished career as a CFO and finance executive, previously serving as CFO for Murphy USA, Inc., and holding senior finance roles at major retailers such as Dollar Tree, Advance Auto Parts, and Walmart [2][3]. - Jeff holds a Bachelor of Science in Electrical Engineering and two Master's degrees in Engineering and Business Administration from reputable institutions [2]. Strategic Vision - The appointment of Jeff is expected to enhance ARKO's leadership team as the company continues its multi-year transformation plan and focuses on organic growth initiatives [3]. - Jeff expressed optimism about the opportunities for ARKO as it executes its transformation plan and channel optimization work [3].

Group 1 - Arko Corp. has appointed Galagher Jeff as executive vice president and chief financial officer, effective December 1, following the departure of Rob Giammatteo [9] - Jeff's previous experience includes roles at Murphy USA, Dollar Tree, Advance Auto Parts, and Walmart, where he held significant positions in finance and strategy [6][9] - The company is undergoing a transformation plan that includes converting underperforming stores to dealer sites and enhancing its focus on food through a new store design centered around the Fas Craves foodservice program [3][9] Group 2 - Jeff expressed optimism about Arko's multi-year transformation plan and the potential for organic growth initiatives [7] - Jordan Mann served as interim CFO during the search for Jeff and was acknowledged for ensuring a smooth transition [8]

Core Insights - Ubisoft reported strong first-half earnings for fiscal year 2025-26, with net bookings reaching €772.4 million, a 20.3% increase year-on-year, driven by robust digital sales and back-catalog performance [2][41] - The company confirmed its financial targets for FY2025-26, expecting stable net bookings and approximately break-even non-IFRS operating income [48] - The strategic transaction with Tencent is set to close soon, which will provide €1.16 billion to help deleverage the company and support its transformation efforts [8][9] Financial Performance - Net bookings for Q2 2025-26 were €490.8 million, exceeding guidance and up 39% year-on-year, attributed to strong partnerships and a solid back-catalog [3][41] - Digital net bookings accounted for €685.8 million, representing a 30.2% increase and 88.8% of total net bookings [2] - Non-IFRS operating income for the first half was €27.1 million, a significant improvement from a loss of €252.1 million in the same period last year [42] Strategic Developments - The Tencent transaction will enable early repayment of loans totaling approximately €286 million, enhancing financial flexibility [5][28] - Ubisoft is progressing with its transformation into a new operating model centered around Creative Houses, aimed at fostering autonomy and efficiency [12][26] - The company is on track to achieve at least €100 million in fixed cost savings by FY2026-27 through targeted restructuring and disciplined hiring [29][30] Product Lineup and Market Position - Upcoming titles include Anno 117: Pax Romana™, Assassin's Creed Mirage updates, and Avatar: Frontiers of Pandora expansion, with significant releases planned for Q4 [6][49] - The Assassin's Creed franchise continues to perform strongly, with recent updates and expansions driving player engagement [15][10] - Tom Clancy's Rainbow Six Siege is adapting to a new seasonal approach to enhance player experience and address recent challenges [16][17] Market Dynamics - Ubisoft's portfolio showed contrasting dynamics, with strong performances in franchises like Assassin's Creed and The Division 2, while facing challenges in Rainbow Six Siege due to a competitive FPS environment [10][19] - The company reported 34 million monthly active users and 88 million unique users across consoles and PC, indicating a slight decline when excluding XDefiant [14]

Group 1 - The company is currently in a significant sales season and is actively working through its budget processes to determine investment areas [3][4] - A transformation initiative has been ongoing throughout the year, impacting various aspects such as design, technology, and employee benefits [3][4] - The company is balancing short-term and long-term goals, emphasizing that short-term success is essential for long-term sustainability [4] Group 2 - A new digital tool named Reliance is being introduced for the company's Individual and Family Group (IFG) segment, indicating a focus on technological advancements [4]

Group 1 - The company has raised its guidance for EBITDA, free cash flow, and revenue for the year, marking the second increase in free cash flow within a few months [1] - Zac Coughlin has been appointed as the new CFO, bringing valuable experience from his previous roles, particularly at Ford, which is expected to aid in the company's transformation [2] - The company expressed gratitude towards the outgoing CFO, Tom, who has served for 1.5 decades, highlighting his leadership and partnership [3]

Core Insights - FLSmidth's CEO Mikko Keto has announced his decision to step down to take an executive role at a non-competing company, with his departure expected in H1 2026 [1][2] - The Board of Directors has a succession plan in place and will begin the search for a new CEO immediately [2] - During his tenure, Mikko Keto has led a significant transformation of FLSmidth, improving its strategic, operational, and financial profile [3] Company Performance - Under Mikko Keto's leadership, FLSmidth has undergone a multi-year transformation, including portfolio rationalization and cost-discipline initiatives, resulting in improved commercial and financial performance [3] - The company is now positioned for the next phase of its strategic journey, focusing on driving profitable growth as the mining industry is expected to enter a new growth cycle [4] Leadership Transition - The Board of Directors expressed gratitude for Mikko Keto's contributions, noting his role in simplifying the business and strengthening operational execution [4] - The previously scheduled Capital Markets Day on March 11, 2026, has been postponed to ensure the involvement of the new CEO [4] Financial Guidance - The announcement regarding the CEO's departure does not alter FLSmidth's previously communicated financial guidance for the full year 2025 [5]