Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $614 million, a decrease from $637 million in the prior year, primarily due to lower COVID and donor screening revenue [20][27] - Adjusted EBITDA increased by 19% year-over-year to $107 million, with an adjusted EBITDA margin improvement of 330 basis points to 17% [27] - Adjusted diluted EPS was $0.12, compared to a loss of $0.07 in the prior year, representing a growth of 271% [27] Business Line Data and Key Metrics Changes - The labs business grew by 5%, driven by strong performance in clinical chemistry and immunoassay testing [21] - Immunohematology revenue grew by 3%, with notable strength in Latin America and EMEA [22] - Respiratory business revenue decreased by $2 million, primarily due to a 52% decline in COVID sales [23] Market Data and Key Metrics Changes - North America revenue declined by 12% during the quarter, while international markets showed growth, particularly in Latin America (14% growth) and Japan/Asia Pacific (6% growth) [9][10] - China experienced 2% growth in Q2 despite tariff-related shipment holds, with expectations for mid-single-digit growth for the full year [11][12] Company Strategy and Development Direction - The company is focused on expanding its low OUS penetration as a significant growth opportunity [10] - Plans to acquire Lex Diagnostics to enhance its molecular diagnostics capabilities, with expected FDA clearance and market placements in 2026 [16][17] - Continued emphasis on cost structure optimization and operational improvements to drive profitability [12][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating tariff impacts, estimating potential headwinds of $20 million to $25 million for 2025, lower than previous estimates [15] - The company remains committed to delivering on its strategy to drive growth and expand profitability, with a focus on customer service and innovation [18][27] Other Important Information - The company completed its ERP conversion related to the business combination, which is expected to lower integration costs in the second half of the year [26] - The company anticipates annual operating cost savings of approximately $20 million from the consolidation of its New Jersey manufacturing site [26] Q&A Session Summary Question: Can you walk through your respiratory expectations for the remainder of the year? - The company is not changing flu assumptions, but COVID revenue guidance has been lowered due to lower emergency room visits and hospitalizations [35][36] Question: Can you provide insights on the visibility for China growth? - The company has good visibility for mid-single-digit growth in China, with minimal impact from recent pricing and volume actions [39][45] Question: What are the moving pieces affecting EBITDA? - The decrease in COVID revenue is offset by lower tariff impacts and the discontinuation of the Savannah platform, leading to no change in adjusted EBITDA guidance [48][51] Question: How is the company planning for the commercialization of the Lex platform? - No commercial efforts have started yet; the focus is on FDA approval before any marketing activities [92] Question: What is the outlook for free cash flow in the second half? - The company expects to generate more cash in the second half, targeting $140 million to $160 million of free cash flow [77][78]

Core Insights - Campbell's reported a 1% organic net sales growth for fiscal 2025 Q3, with adjusted EBIT increasing by 2% and adjusted EPS at $0.73, reflecting a 3% year-over-year decline, while full-year adjusted EPS is now expected at the low end of prior guidance [1] Meals and Beverages Performance - The meals and beverages segment achieved a 6% organic net sales growth and a 2% increase in consumption, marking six consecutive quarters of positive in-market consumption [2] - Strong household penetration gains in condensed cooking soups were noted, particularly among millennial consumers, with mac and cheese marketing adding approximately 1 million new households, the largest quarterly gain in four years for this subcategory [2][3] Snacks Segment Challenges - The snacks division experienced a 5% decline in organic net sales, with a 3% drop in consumption attributed to category-wide contraction and company-specific execution issues [4][5] - Recovery prospects for the snacks segment are now pushed into fiscal 2026, with management focusing on price-point strategies, multipack offerings, and targeted innovation to preserve share and margin [5] Cost Management and Acquisition Integration - The company achieved approximately $110 million in cost savings towards a $250 million multi-year target, with the SOVOS acquisition integration unlocking additional efficiencies [6][7] - Despite a 110 basis point contraction in adjusted gross profit margin, disciplined cost controls enabled a 2% adjusted EBIT gain, and acquisition synergies positively impacted adjusted EPS [6][8] Future Outlook - Management reaffirmed FY2025 guidance, now expecting adjusted EPS at the low end of the range, with meals and beverages facing shipment-related headwinds and snacks' full-year operating margin projected at 13% [8] - The FY2025 cost savings target has been raised to $130 million, and the company anticipates capital expenditures at approximately 4.5% of net sales, with tariff-related impacts on adjusted EPS estimated at $0.03–$0.05 [8]

Financial Data and Key Metrics Changes - Total reported revenue for Q1 2025 was $693 million, down from $711 million in the prior year, primarily due to lower COVID and donor screening revenue [18] - Excluding COVID and donor screening, the company achieved a mid single-digit revenue growth of 6% [18] - Adjusted EBITDA margin improved by 450 basis points year over year to 23%, with adjusted diluted EPS increasing by 68% to $0.74 [24][25] Business Line Data and Key Metrics Changes - Labs business, accounting for 54% of total revenue, grew by 7%, driven by clinical chemistry and immunoassay testing [10] - Immunohematology business grew by 4%, maintaining its global leadership position [10] - Point of Care business represented 25% of Q1 revenue and grew by 8% excluding COVID, with strong flu sales leading to an 18% year-over-year growth [10] - Molecular Diagnostics business grew by 11% excluding COVID, with ongoing clinical trials for the Savanna respiratory panel [11] Market Data and Key Metrics Changes - Revenue from the "Other" region (Japan, Asia Pacific, Latin America) grew by 12%, driven by a 17% increase in Labs revenue [19] - North America revenue declined by 6% due to lower COVID revenue and donor screening wind down, but grew by 5% when excluding these factors [19] - Europe, Middle East, and Africa grew by 9%, while China revenue remained flat, primarily due to order timing and decreased Triage revenue [20] Company Strategy and Development Direction - The company is focused on a narrow set of strategic initiatives, including increasing platform content and utility, expanding margins, and enhancing commercial execution [11] - Plans to realize $100 million in annualized cost savings, with $50 million expected in the first half of 2025 [12] - The company aims to maintain its manufacturing footprint and continue investing in U.S.-based manufacturing and R&D [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and operational discipline, highlighting strong Q1 results and ongoing initiatives [9] - The company anticipates potential tariff impacts of $30 million to $40 million in 2025 but believes mitigation plans will offset these impacts [15] - Full-year 2025 financial guidance remains unchanged, with expectations for total reported revenue between $2.6 billion and $2.81 billion [27] Other Important Information - The company has invested nearly $1 billion in U.S.-based manufacturing and R&D over the past three years [13] - Adjusted free cash flow for Q1 2025 was $47 million, representing 29% of adjusted EBITDA [26] - The company plans to refinance its debt in the second half of 2025 or early 2026, depending on market conditions [31] Q&A Session Summary Question: Can you elaborate on the tariff impact and pricing actions? - Management indicated that selective pricing actions are being considered to offset tariff impacts, but competitive market conditions must be taken into account [36][37] Question: Will tariff impacts affect long-term manufacturing plans? - Management does not expect changes to the overall manufacturing footprint, emphasizing the importance of their global manufacturing network [38] Question: How confident is the company in mitigating tariff impacts? - Management expressed confidence in fully mitigating tariff impacts through various actions, including cost reductions and realigning inventories [43] Question: What underpins the confidence in China's growth rate? - Confidence in mid to high single-digit growth in China is based on strong performance in labs and immunohematology, despite some softness in Triage sales [49] Question: What is the status of the Savanna program? - The company is focused on completing the RBP4x submission to the FDA and is not speculating on outcomes beyond that [45][61] Question: How is the respiratory sales performance impacting guidance? - Management expects to maintain the guidance range for COVID revenue despite a decline, as flu sales have been strong [56][58]

Core Viewpoint - Alto Ingredients, Inc. reported improved year-over-year gross margin and Adjusted EBITDA for Q1 2025, driven by operational efficiencies from its recent acquisition of Alto Carbonic and a corporate reorganization aimed at cost savings [2][4]. Financial Performance - Net sales for Q1 2025 were $226.5 million, down from $240.6 million in Q1 2024 [8][14]. - Cost of goods sold decreased to $228.3 million from $243.0 million, resulting in a gross loss of $1.8 million compared to a gross loss of $2.4 million in the previous year [8][14]. - Selling, general and administrative expenses were reduced to $7.2 million from $7.9 million [8][14]. - The net loss attributable to common stockholders was $12.0 million, or $0.16 per share, compared to a net loss of $12.0 million, or $0.17 per share, in the prior year [8][14]. Operational Highlights - The acquisition of Alto Carbonic has led to lower combined costs and improved operational coordination, contributing to an expected annual savings of approximately $8 million starting Q2 2025 [2][3]. - The company shifted production to ISCC renewable fuel for European markets, which is experiencing strong demand, partially offsetting the domestic softening of premiums on high-quality alcohol and essential ingredients [3][4]. Cash and Liquidity - Cash and cash equivalents were reported at $26.8 million as of March 31, 2025, down from $35.5 million at the end of 2024 [5][16]. - The company's borrowing availability stood at $76.7 million, including $11.7 million under the operating line of credit and $65.0 million under its term loan facility [5][16]. Market Metrics - Total renewable fuel gallons sold decreased to 65.3 million in Q1 2025 from 72.7 million in Q1 2024 [19]. - The average sales price per gallon for alcohol increased to $1.93 from $1.86 year-over-year [20]. - Essential ingredients sold totaled 310.8 thousand tons, slightly down from 313.4 thousand tons in the previous year [20].

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q2 2025 was $1.90, up 7% compared to $1.78 in Q2 2024, and up 10% for the first half of fiscal 2025 compared to the same period in fiscal 2024 [5][14] - Cash flow from operations was $73 million, with discretionary free cash flow at $110 million, and a cash balance of $213 million at the end of the quarter [14][15] - The company announced a 5% increase in its quarterly dividend, marking ten consecutive years of annual dividend increases [9][24] Business Segment Data and Key Metrics Changes - EBIT in Reinforcement Materials was $131 million, down 12% year-over-year, primarily due to lower tire demand [6][15] - Performance Chemicals saw EBIT increase by 61% year-over-year, driven by improved margins and higher volumes, particularly in the fumed silica product line [6][7] - Year-over-year volume growth of 10% was achieved in the battery materials product line during the first half of fiscal 2025 [8] Market Data and Key Metrics Changes - In The Americas, volumes were down 9%, with South America experiencing a significant decline due to lower contract outcomes [15][29] - Asia Pacific volumes decreased by 8%, primarily driven by reduced production during the Lunar New Year holiday [30] - European volumes remained flat year-over-year, with some gains in the contract season [32] Company Strategy and Development Direction - The company is focusing on high-performance segments in China and developing business with customers building battery plants in Western economies [8][12] - The "Creating for Tomorrow" strategy aims to position the company for long-term shareholder value creation [12][24] - The company is executing fixed cost and procurement initiatives expected to contribute $30 million in savings for fiscal 2025 [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current tariff landscape is dynamic, causing customers to adopt a cautious posture regarding inventory levels [11][19] - The company expects volumes in Reinforcement Materials to decline in the low single-digit percentage for the fiscal year, while Performance Chemicals is expected to see low single-digit percentage growth [22][24] - Despite uncertainties, management remains confident in the company's fundamentals and cash generation capabilities [24][25] Other Important Information - Capital expenditures for Q2 2025 were $72 million, with a revised full-year forecast of $250 million to $275 million [14][66] - The company maintains a strong liquidity position of approximately $1.2 billion [15] Q&A Session Summary Question: Can you provide context on the reinforcement volume changes? - Management explained that the volume picture varies by region, with significant declines in South America and a more cautious approach from customers in North America [27][28] Question: How do volumes split between North America and South America in the Reinforcement Materials segment? - Management indicated that approximately 60% of volumes come from North America and 40% from South America, with South American volumes down sharply [38][39] Question: What are the underlying price dynamics in the Reinforcement Materials segment? - Pricing remains largely flat due to contract negotiations, with steady margins in Asia Pacific's spot market [41][42] Question: What is the expected impact on energy center revenues? - Management expects a mid-single-digit million impact headwind in the second half due to declining oil prices [44] Question: Can you elaborate on the cost savings initiatives? - The $30 million in cost savings includes a mix of temporary and structural measures, with most savings expected to be recognized in the second half of the year [54][56] Question: What is the current capacity utilization across the industry? - Capacity utilization varies by region, with North America in the low 80s, Europe in the upper 80s, and Asia Pacific around 90% [62][63]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q2 2025 increased by 7% to $1.9 compared to Q2 2024, with a 10% growth in the first half of fiscal 2025 compared to the same period in fiscal 2024 [5][14][25] - EBIT in Reinforcement Materials was $131 million, up 1% sequentially but down 12% year over year [6][16] - EBIT in Performance Chemicals increased by 61% year over year, driven by improved margins and higher volumes [6][18] Business Line Data and Key Metrics Changes - Reinforcement Materials experienced a 7% decline in global volumes year over year, with regional declines of 9% in The Americas, 8% in Asia Pacific, and 1% in Europe [16][17] - Performance Chemicals saw a 4% increase in volumes year over year, particularly in the fumed silica product line [18] Market Data and Key Metrics Changes - The Americas market was heavily influenced by South America, where lower contract volumes were noted, while North America saw a small decline in volumes due to weak demand [30] - In Asia, volumes were down 8%, primarily due to a more normalized Lunar New Year holiday and cautious production adjustments by customers [31] Company Strategy and Development Direction - The company is focusing on high-performance segments in China and developing business with customers building battery plants in Western economies [7][12] - A 5% increase in quarterly dividends was announced, consistent with the capital allocation framework to increase dividends as earnings grow [9][25] - The company is executing fixed cost and procurement initiatives expected to contribute $30 million in savings for fiscal 2025 [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that the current tariff landscape is dynamic, causing customers to adopt a cautious posture regarding inventory levels [11][20] - The company expects volumes in Reinforcement Materials to decline in the low single-digit percentage for the fiscal year, while Performance Chemicals is expected to see low single-digit percentage growth [22][24] Other Important Information - Cash flow from operations was $73 million, with discretionary free cash flow of $110 million for the quarter [15] - Capital expenditures for Q2 2025 were $72 million, with a full-year forecast of $250 million to $275 million [15][67] Q&A Session Summary Question: Can you provide insight on the reinforcement volume changes? - Management explained that the volume picture varies by region, with significant declines in South America and a small decline in North America due to economic uncertainty [28][30][34] Question: How do volumes split between North America and South America? - Management indicated that approximately 60% of volumes come from North America and 40% from South America, with South American volumes down sharply [40][42] Question: What are the underlying price dynamics in the Reinforcement Materials segment? - Pricing is largely flat due to contract negotiations, with steady margins in Asia Pacific but lower than in the West [43][45] Question: What is the expected impact on energy center revenues? - Management expects some impact in the second half due to declining oil prices, with a mid-single-digit million headwind anticipated [46] Question: How is the seasonal trend expected to play out in Performance Chemicals? - Management noted that while seasonal trends remain, customers are exhibiting caution in inventory levels due to tariff uncertainties [52][55] Question: What is the current capacity utilization across the industry? - Capacity utilization varies by region, with North America in the low 80s, Europe in the upper 80s, and Asia Pacific around 90%, but a cautious approach is expected to lower these levels [62][64][66] Question: How is the CapEx split between growth and maintenance? - Approximately $100 million of the $250 million to $275 million CapEx is growth-related, primarily for new capacity in Indonesia [68]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased by 1% to $484 million in 2025 from $488 million in 2024 [14] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased by 14% to $90 million [14] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024, driven by lower gross margins [15] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share, compared to a net loss of $5 million or $0.27 per diluted share in the prior year [16] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [17] Business Line Data and Key Metrics Changes - Same store sales declined by 2%, primarily due to a decrease in new boat sales [4] - Revenue from service parts and other sales increased by 2% to $69 million, driven by growth in the dealership segment [14] - Financing and insurance revenue increased by 10 basis points as a percentage of sales [15] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [12] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry [4] - The average unit price of new boats increased, driven by strength in larger boats [11] - The company expects total sales to be in the range of $1.7 billion to $1.8 billion, with same store sales flat to down low single digits [20] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to consolidate its offerings and strengthen its market position [41][45] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [8] Management Comments on Operating Environment and Future Outlook - Management noted considerable macroeconomic uncertainty and a challenging environment but expressed optimism about improving performance over time [4] - The company is taking a cautious view on the demand environment and updating its outlook accordingly [8] - Management emphasized the importance of controlling factors within their operations to weather current challenges [9] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [18] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [18] - The company aims to reduce leverage in the latter half of 2025 as part of its capital allocation strategy [19] Q&A Session Summary Question: What are the demand trends seen in April post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22] Question: What drove the margin down on used boats? - Management noted that the model mix and aggressive pricing strategies to move inventory contributed to the margin decline [24][26] Question: Where is the company gaining market share? - The company is primarily gaining share in the premium segment, outperforming the industry which is down 10% [32] Question: Is the company discounting heavily to move volume? - Management confirmed that while some discounting is occurring, it is strategic and focused on clearing outdated inventory [34][36] Question: How does the company see the industry evolving post-slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [41][43]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased by 1% to $484 million in 2025 from $488 million in 2024 [14] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased by 14% to $90 million [14] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024, driven by lower gross margins [15] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share, compared to a net loss of $5 million or $0.27 per diluted share in the prior year [16] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [17] Business Line Data and Key Metrics Changes - Same store sales declined by 2%, primarily due to a decrease in new boat sales [4] - Revenue from service parts and other sales increased by 2% to $69 million, driven by growth in the dealership segment [14] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [12] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [11] - Financing and insurance revenue increased slightly as a percentage of total sales, indicating strong performance in in-store financing programs [12] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to streamline operations and focus on higher-performing brands [46][48] - The company is monitoring the tariff landscape closely and does not expect an immediate impact on pricing for current inventory [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about demand in April, indicating that results were in line with the prior year [22] - The macroeconomic environment remains uncertain, leading to an updated fiscal 2025 guidance with total sales expected to be in the range of $1.7 billion to $1.8 billion [20] - Management emphasized the importance of controlling factors within their operations to navigate current challenges [9] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [18] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [18] - The company aims to reduce leverage in the latter half of 2025 as part of its capital allocation strategy [19] Q&A Session Summary Question: What is the demand outlook post-tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs for May [22][23] Question: What drove the margin down on used boats? - Management noted that the model mix and aggressive pricing strategies to move inventory contributed to the softer margins [25][26] Question: Where is the company gaining market share? - The majority of market share gains are in the premium segment, with the company performing better than the industry average [32][33] Question: Is the company discounting heavily to gain share? - Management confirmed that while some discounting is occurring, it is strategic and focused on moving dated inventory [36][37] Question: How does the company see the industry evolving post-slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [41][45]

Financial Data and Key Metrics Changes - Fiscal second quarter revenue decreased 1% to $484 million in 2025 from $488 million in 2024 [13] - New boat sales were down 5% to $310 million, while pre-owned boat sales increased 14% to $90 million [13] - Gross profit declined to $110 million in 2025 compared to $120 million in 2024 [14] - Net loss for the fiscal second quarter totaled $375,000 or $0.02 per diluted share compared to a net loss of $5 million or $0.27 per diluted share in the prior year [14][15] - Adjusted income per diluted share was $0.13 compared to $0.67 in the prior year [15] Business Line Data and Key Metrics Changes - Same store sales declined 2%, primarily due to a decrease in new boat sales [4][13] - Revenue from service parts and other sales increased 2% to $69 million, driven by growth in the dealership segment [13] - Parts and service business revenue was up 2%, partially offset by headwinds in the distribution segment [11] Market Data and Key Metrics Changes - Total unit sales for the industry were down in excess of 10% for the quarter, while the company continued to outperform the industry and gain market share [4] - The average unit price of new boats increased, driven by continued strength in larger boats [10] Company Strategy and Development Direction - The company is focused on inventory and brand rationalization strategies, reducing inventory by 12% year over year [5] - The company plans to exit 15 brands to streamline operations and focus on higher-performing brands [40][41] - The company is monitoring the tariff landscape and does not expect an impact on pricing for current inventory [7] Management Comments on Operating Environment and Future Outlook - Management noted considerable macroeconomic uncertainty and a challenging environment but expressed optimism about improving performance over time [4] - The company updated its fiscal 2025 guidance, anticipating total sales in the range of $1.7 billion to $1.8 billion, with same store sales expected to be flat to down low single digits [18] - Management emphasized a focus on factors within their control, including rationalizing the brand portfolio and streamlining operations [8] Other Important Information - Total liquidity as of March 31, 2025, was in excess of $74 million [16] - Total inventory decreased to $602 million from $687 million year over year, indicating a healthier mix and aging profile [16] Q&A Session Summary Question: What are you seeing in April from a demand standpoint post the tariff announcements? - Management indicated that April results were in line with the previous year, with positive signs of demand continuing into May [20][21] Question: Can you discuss the margins on used boats? - Management noted that margins were affected by model mix and aggressive pricing strategies to move inventory [22][23] Question: Where are you taking market share? - The company is primarily gaining share in the premium segment, outperforming the industry despite a decline in same store sales [29][30] Question: Are you having to discount heavily to move volume? - Management confirmed that while some discounting is necessary, they are strategically managing margins on current year models [31][32] Question: How do you see the industry shaking out after the slowdown? - Management anticipates potential consolidation in the industry due to higher carrying costs and competitive pressures [36][40]