Group 1 - Ferguson Enterprises Inc. (FERG) is a leading distributor of building products, serving both residential and non-residential markets with a wide array of plumbing, HVAC, waterworks, and construction supplies [2] - The company achieved organic growth of 1% in its Residential segment in 2025, outperforming a 3% sector decline, and 6% growth in Non-Residential versus flat sector growth, outperforming peers by approximately 500 basis points [3] - FERG maintains gross margins around 30%, operating margins of 9–10% (adjusted 11.4% in Q4), and an ROIC of 30% in 2023–2024, reflecting efficient operations and strong capital allocation [4] Group 2 - FERG is positioned to benefit from reshoring, data center growth, and ongoing market share gains, with mid-single-digit revenue growth and mid- to high-single-digit free cash flow growth expected over the next five years [5] - Potential upside catalysts include inclusion in the S&P 500, which could re-rate the stock, while the company's scale, expertise, and consistent profitability provide a resilient investment profile [5] - The company’s competitive moat is anchored in distribution volume, broad product offerings, and specialized knowledge in water-related and dual-trade projects, effectively targeting professional customers [4]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 increased 280% to $5,740,000 compared to $1,510,000 in Q2 2024 [9] - For the six months ended 2025, total revenues increased 314% to $10,690,000 from $2,580,000 in the same period last year [9] - Gross margin for Q2 2025 increased 808% to $1,520,000 compared to negative $215,000 for Q2 2024 [11] - Net loss for Q2 2025 totaled $3,520,000 compared to a net loss of $3,200,000 for Q2 2024, a 10% increase attributed to noncash stock-based compensation [15] Business Line Data and Key Metrics Changes - The asset management agreement (AMA) with APR Energy has stabilized financials, contributing approximately $5,690,000 in recurring services and consulting revenue in Q2 2025 [9][10] - The railcar inspection portal business has remained flat, but is expected to see broader usage in the coming years [3] - Operating expenses for Q2 2025 increased 65% to $4,960,000 compared to $3,000,000 for Q2 2024, largely due to noncash stock-based compensation [12] Market Data and Key Metrics Changes - The company has successfully installed and delivered a 150 megawatt gas turbine power plant in Mexico in 35 days, indicating strong operational capabilities [2] - The edge data center business is gaining momentum, with plans to install 15 edge data centers in Texas this year [2] Company Strategy and Development Direction - The company is pivoting to the edge data center business, with a growing pipeline of opportunities for 2026 [2] - The management team has identified the need to diversify into at least two distinct businesses to achieve significant growth and profitability [5] - The company expects to achieve breakeven to profitability by Q4 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the guidance issued for the year, citing improved financial conditions compared to the previous year [3] - The company anticipates continued revenue growth in the next two quarters, driven by the execution of the AMA and the deployment of edge data centers [8] - Management highlighted the overwhelming demand for behind-the-meter power solutions for large U.S.-based data center operators [22] Other Important Information - The company raised over $50,000,000 in capital, significantly improving its balance sheet and allowing for expansion into new markets [7] - Current contracts in backlog represent more than $40,000,000 in revenue, with approximately $12,300,000 projected to be recognized in 2025 [18] Q&A Session Summary Question: What is the fully diluted share count? - The fully diluted share count is currently 25,000,000 shares [27] Question: Can you provide insight on noncash stock-based compensation? - Noncash compensation is roughly about $1,000,000 a quarter [30] Question: Will the company consider posting non-GAAP earnings numbers? - The company will consider using non-GAAP financials in the future [31] Question: What is the expected revenue per unit for the edge data centers? - Each edge data center is expected to earn around $300,000 to $500,000 annually once fully operational [37] Question: What is the timeline for cash flow from the edge data centers? - It takes about 90 days to manufacture and deliver an edge data center, followed by approximately two weeks for installation [48] Question: What is the gross profit margin once the edge data centers are operational? - The targeted gross profit margin is in the mid-70s, with EBITDA targeted just above 50% [53]

Methode Electronics (MEI) Conference Call Summary Company Overview - Methode Electronics is an 80-year-old global supplier of custom engineered solutions, with a business split primarily between automotive (50%) and industrial (45%) sectors, and a small portion (5%) in interface business [2][5] Key Financial Highlights - In fiscal 2025, Methode reported sales of $1,050 million, adjusted EBITDA of $43 million, and free cash flow of €26 million, the highest since 2023 [18][19] - The company aims to double EBITDA to $70-80 million in fiscal 2026 despite a projected revenue decrease from $1,000 million to $950 million [18][19][50] Operational Challenges and Strategies - The company faced significant challenges in the EV sector, particularly in North America, which are expected to continue into 2026, with a return to growth anticipated in 2027 [4][14] - Methode is focusing on improving operational execution, stabilizing its base, and enhancing launch capabilities, particularly in its Mexican and Egyptian facilities [10][12][13] - The leadership team has been restructured to drive efficiencies and improve supply chain management [12][13] Market Dynamics - Methode's business in Mexico has $265 million in annual sales exposed to tariffs, with over 95% being USMCA compliant [23] - The company is leveraging its global footprint to mitigate tariff impacts and enhance customer interactions [24][25] - Despite challenges in the automotive sector, Methode is optimistic about growth in data centers, with sales expected to rise from $35 million in fiscal 2024 to $80 million in fiscal 2025 [35][36] EV Market Outlook - Methode's content opportunity for battery electric vehicles (BEVs) is approximately twice that of internal combustion engine (ICE) vehicles [33] - The company is adjusting its strategy in response to regulatory changes and program delays in North America, while continuing to pursue opportunities in China and Europe [28][29] Portfolio and Capital Allocation - Methode is reviewing its product portfolio to focus on high-margin, high-growth areas, which may include divestitures to strengthen the balance sheet [44][46] - The company aims to reduce its net debt from $214 million to a target range of 1.5 to 2 times EBITDA, with a long-term goal of around 1 [55][56] Conclusion - Methode Electronics is undergoing a significant transformation aimed at stabilizing operations, improving financial performance, and positioning itself for future growth in both automotive and non-automotive sectors, particularly in data centers and EV technologies [19][20][62]

Load Growth Opportunities - Alliant Energy anticipates a greater than 30% increase in projected demand by 2030, using a 2024 base of approximately 6 GW maximum demand[7] - The company has contracted peak demand of +2.1 GW, representing potential load served through a combination of existing or new resources, short-term market purchases, and/or load flexibility[6,9] - Alliant Energy projects electric sales growth at a CAGR of 9-10% from 2025-2030[6] Tax Credits and Financing - Alliant Energy expects approximately $350 million of tax credits to be generated and transferred in 2025[26] - The company anticipates generating $1.5 billion in transferable tax credits through 2028, as projects are either already in service or safe harbored[10,13] - Alliant Energy plans to issue approximately $725 million in debt for AE Finance/Parent, $400 million for IPL, and $300 million for WPL in 2025[26] Regulatory and Financial Performance - Alliant Energy reaffirms its 2025 EPS guidance range of $3.15 - $3.25[23] - Q2 2025 earnings per share (EPS) were $0.68, compared to $0.57 ongoing earnings per share in Q2 2024[20] - The company plans approximately 800 MW of energy storage in service by 2027 and aims to safe harbor 100% of approximately 1,200 MW of new wind capacity[12]

Group 1 - The analyst has over 14 years of experience in stock analysis and writing, with a focus on both long and short positions in an unbiased manner [1] - The primary focus of the analyst's coverage is on the energy sector, specifically the oilfield equipment services sector, for the past 7 years [1] - The analyst also covers the Industrial Supply industry and occasionally collaborates with another contributor [1]

Financial Data and Key Metrics Changes - The company reported second quarter 2025 earnings of $1.01 per share, an increase from $0.97 per share in 2024, with expectations for 2025 diluted earnings per share to be in the range of $4.85 to $5.05 [8][19] - Total normalized retail sales in Missouri increased approximately 1% over the trailing twelve months through June, with industrial sales up more than 2.5% [20][21] Business Line Data and Key Metrics Changes - The company invested over $2 billion in critical infrastructure during the first half of the year, focusing on strengthening the energy grid and enhancing operational performance [5][17] - The company has signed construction agreements with data center developers representing approximately 2.3 gigawatts of future demand, expected to ramp up in late 2026 and beyond [9][42] Market Data and Key Metrics Changes - The company anticipates approximately 5.5% compound annual sales growth in Missouri from 2025 through 2029, primarily driven by increased data center demand [8][9] - The industrial sector's growth is supported by ongoing manufacturing expansions and the growth of new digital and communication services firms [21] Company Strategy and Development Direction - The company's strategy is built on three pillars: prudent investments in rate-regulated energy infrastructure, advocating for responsible energy policies, and optimizing operations for long-term sustainable value [4] - The company has a robust pipeline of investment opportunities exceeding $63 billion, aimed at strengthening the energy grid and powering economic growth [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute the investment plan and strategy across all business segments, expecting strong long-term earnings and dividend growth [17][29] - The company remains focused on building a resilient energy grid, with ongoing investments in upgraded substations and smart technologies to enhance outage detection and recovery [7][12] Other Important Information - The company plans to issue approximately $600 million of common equity each year through 2029 to support its investment plan [24] - Federal energy-related tax credits are expected to provide approximately $1.5 billion in cost savings for customers from 2025 through 2029 [25][26] Q&A Session Summary Question: Data center load and economic development outlook - Management highlighted strong interest and momentum from data center developers, with a robust pipeline of signed construction agreements totaling 2.3 gigawatts [34][36] Question: Turbine slot queue and growth derisking - Management confirmed they are actively securing turbine slots and are confident in meeting service dates for upcoming projects [44][46] Question: Access to gas for plans - Management stated they feel good about their current gas transmission position and the ability to meet future needs with existing infrastructure [49][51] Question: MISO awards and regulatory challenges - Management acknowledged the recent complaint regarding MISO's tranche 2.1 projects but expressed support for the need for transmission investments [68][70] Question: Impact of potential changes in federal renewable policies - Management emphasized their advocacy for business certainty regarding tax credits and expressed confidence in the current legislative framework [74][76]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.38 for Q2 2025, up from $0.33 in Q2 2024, reflecting a year-over-year growth of approximately 15% [15][16] - Year-to-date EPS increased to $2.24 from $2.19 compared to the same period last year, driven by successful regulatory strategies and favorable weather conditions [17][18] - The company reaffirmed its full-year earnings guidance range of $4 to $4.2 per share, indicating a 5% growth rate at the midpoint over 2024 EPS [11][21] Business Line Data and Key Metrics Changes - New margins contributed $0.22 per share, including $0.17 from new rates and rider recovery, which offset higher operating expenses and financing costs [16] - The company experienced a positive weather impact of $0.03 per share compared to Q2 2024, although weather drove $0.04 per share of unfavorability during Q2 2025 [16][17] Market Data and Key Metrics Changes - Wyoming Electric recorded four all-time peak loads in the first half of the year, with the latest peak of 379 megawatts representing a 21% increase over 2024 [9] - The company is witnessing growing demand from data center and blockchain customers, contributing solid earnings growth [9][12] Company Strategy and Development Direction - The company is focused on a $1 billion capital plan to support key projects and regulatory initiatives, aiming for top quartile reliability and above-industry-average safety performance [6][8] - The long-term growth strategy includes a $4.7 billion capital plan, with significant investments in infrastructure to enhance system resiliency and support growing demand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the upper half of the long-term EPS growth target of 4% to 6% starting in 2026, driven by new rates, customer growth, and data center demand [21][53] - The company is actively engaging with potential data center customers, indicating a robust pipeline of demand that will drive future growth [14][21] Other Important Information - The company has established an emergency public safety power shutoff program to mitigate wildfire risks, reflecting a commitment to customer safety [10][30] - The company maintains a strong balance sheet with a focus on credit quality, targeting a funds from operations (FFO) to debt ratio of 14% to 15% [18][19] Q&A Session Summary Question: What is the outlook for industrial growth, particularly in digital sectors? - Management noted that while significant growth was observed, it is not expected to be strictly linear, with varying ramp rates depending on the type of data center and blockchain load [35][38] Question: Are the new announcements for Wyoming part of the existing pipeline? - Management confirmed that the new announcements are incremental to the existing pipeline and will be included in future load forecasts once agreements are executed [39][40] Question: What is driving the confidence in achieving the upper half of the growth range? - Management highlighted several drivers, including significant capital projects, ongoing customer growth, and the ramp-up of data center loads, which are expected to contribute positively [49][53] Question: Can you provide details on the unplanned outages and their impact? - Management stated that all generation is currently online and operational, and while there were some impacts from outages, they have been mitigated, resulting in an immaterial financial impact [54][56][58]

Financial Data and Key Metrics Changes - The company reported earnings per share (EPS) of $0.38 for Q2 2025, up from $0.33 in Q2 2024, reflecting a year-over-year growth of approximately 15% [14] - Year-to-date EPS increased to $2.24 from $2.19 compared to the same period last year, driven by successful execution of regulatory strategies [16] - The company reaffirmed its full-year earnings guidance range of $4 to $4.2 per share, indicating a 5% growth rate at the midpoint over 2024 EPS [10][20] Business Line Data and Key Metrics Changes - New margins contributed $0.22 per share, including $0.17 from new rates and rider recovery, which offset higher operating expenses and financing costs [15] - The company experienced a positive weather impact of $0.03 per share compared to Q2 2024, although weather drove $0.04 per share of unfavorability during Q2 2025 [15] Market Data and Key Metrics Changes - Wyoming Electric recorded four distinct all-time peak loads during the first half of the year, with the latest peak of 379 megawatts in June representing a 21% increase over the peak recorded in 2024 [7] - The company noted strong customer growth driven by demand from data centers and blockchain customers, contributing solid earnings [6] Company Strategy and Development Direction - The company is focused on delivering financial commitments, executing regulatory and growth initiatives, and providing excellent operational performance [5] - A $1 billion capital plan is in place to support key projects that address the growing needs of customers [5] - The company is on track to achieve its long-term EPS growth target of 4% to 6% starting in 2026, supported by a $4.7 billion capital plan [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the upper half of the long-term EPS growth target, driven by new rates, regulatory efforts, and customer growth [20] - The company is actively engaging with potential data center customers, indicating a robust pipeline of demand that will further drive revenue growth [13] Other Important Information - The company has established an emergency public safety power shutoff program to mitigate wildfire risk across its electric utilities [8][30] - The company maintains a strong balance sheet with a focus on sustaining credit quality and liquidity, with over $600 million available under its revolving credit facility [18] Q&A Session Summary Question: Industrial growth for the quarter was 19%. What is the outlook for digital growth? - Management indicated that while significant growth is expected from data centers and blockchain, it may not be strictly linear due to varying ramp rates [35][38] Question: Was the new announcement for Wyoming part of the existing pipeline? - Management confirmed that the new announcement is incremental to the existing pipeline and will be included in future load forecasts once agreements are executed [39][40] Question: What is driving the expectation for upper half growth in the 4% to 6% range? - Management highlighted several drivers, including capital projects, regulatory efforts, and customer growth, particularly from data centers [55] Question: Can you provide details on unplanned outages and their impact? - Management confirmed that all generation is currently online and operational, and the financial impact of unplanned outages is considered immaterial [58][60]

Financial Data and Key Metrics Changes - GAAP earnings for Q2 2025 were $0.46 per share, compared to $0.08 in Q2 2024 [6] - Core earnings were $0.52 per share for the quarter, up from $0.51 in the same quarter last year, indicating a strong performance [7][22] - Year-to-date core earnings reached $1.19 per share, reflecting a 19% increase compared to 2024 [23] - Consolidated return on equity was 9.7%, aligning with the targeted range of 9.5% to 10% [23] Business Line Data and Key Metrics Changes - The distribution and integrated businesses showed meaningful increases due to the execution of regulated strategies and higher customer demand [23] - Operating expenses were approximately 4% below plan, contributing to favorable financial performance [51] - Capital investments for 2025 are on track with over $1.4 billion deployed in Q2 and more than $2.5 billion in the first half of the year, which is 29% ahead of the same period in 2024 [25] Market Data and Key Metrics Changes - The data center pipeline has increased over 80% to 11.1 gigawatts since February, with contracted data center load rising approximately 25% to 2.7 gigawatts [12] - Requests for large load studies greater than 500 megawatts have surged, with over 95 gigawatts requested since the beginning of 2024 [13] Company Strategy and Development Direction - The company is focused on a $28 billion capital investment plan through 2029 to enhance system resiliency and reliability [9][20] - Significant investments in Pennsylvania are planned, with $15 billion expected through 2029, including $4.3 billion in distribution and $5.5 billion in transmission capital investments [11] - The company aims to be recognized as a premier electric utility, targeting a compound annual growth rate of 6% to 8% through 2029 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving core earnings in the upper half of the guidance range of $2.4 to $2.6 per share for 2025 [19] - The leadership team is focused on optimizing performance and financial strength, with a commitment to delivering stable growth [19][29] - Management highlighted the need for new dispatchable generation in West Virginia and is prepared to invest accordingly [40] Other Important Information - The company successfully sold its minority ownership in the Signal Peak coal mine for $47.5 million, eliminating any remaining financial or operational liabilities [29] - The company is committed to maintaining a strong balance sheet and investment-grade metrics, targeting a funds from operations to debt ratio of 14% plus through 2029 [28] Q&A Session Summary Question: Clarification on transmission CapEx upside - The company indicated that the 20% increase in CapEx is gross and includes approximately $2.3 billion to $4 billion identified for shareholders [34][35] Question: Balance sheet capacity and equity considerations - Management stated they are keeping all options open regarding balance sheet capacity and would consider equity if necessary, but are not currently concerned [36][37] Question: Data center pipeline and negotiations - The pace of negotiations is driven by customer demand, with legitimate developers willing to sign contracts [43] Question: Incremental generation needs in West Virginia - The company anticipates needing to add about 1,000 megawatts of dispatchable gas combined cycle generation over the next ten years [45] Question: Ohio regulatory strategy post-rate case - Future regulatory strategy will depend on the outcomes of the current rate case, with plans to file under the new framework as soon as practicable [91][92]

Demand & Growth Drivers - Energy infrastructure sees continued momentum with strong orders in both the first and second half of the year [2] - Data center growth, driven by artificial intelligence, is fueling demand for distributed power generation, particularly for Nova LT turbines (12 MW, 16 MW, and multi-fuel flexible turbines) [2] - The company anticipates accelerating the achievement of $15 billion (15,000 million) in orders within three years [3] - Data center demand represents a significant opportunity for industrial energy technology and synergies with oil field services and equipment, including carbon capture sequestration (CCS) [4] Oil & Gas Market Dynamics - North America activity is impacted by rig efficiency, digital solutions usage, and incremental supply from OPEC plus, leading to rangebound prices [5] - Underlying demand for oil service and equipment is softening due to OPEC adding barrels and US activity slowing [6] - Baker Hughes is focused on margin accretion in the oilfield services and equipment sector [6] International Opportunities - Mexico has an important role to play in energy infrastructure, both from a Mexican and global perspective [8] - Baker Hughes had productive discussions with Mexico regarding how its energy technology can assist in expanding and securing energy, including gas from the United States [8]