i3 Verticals, Inc. ( IIIV ) has been a challenging stock to hold onto for the past few months as the company has undergone a series of divestitures to narrow its end-market focus towards the public sector. While I believe this mayAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for ...

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Core Viewpoint - Titan Machinery Inc. is divesting its dealership operations in Germany to optimize its dealership network and enhance returns on invested capital, aligning with CNH Industrial's dual-brand strategy [1][2]. Group 1: Planned Transactions - The divestiture involves two separate asset sale transactions to existing New Holland dealers in Germany [1]. - These transactions are expected to close within the next 120 days, pending customary closing conditions and regulatory approvals [2]. - The company anticipates a pre-tax loss on sale of approximately $3 million to $4 million from these transactions [2]. Group 2: Operational Challenges - Titan Machinery's German operations have faced challenges that negatively impacted returns within its European operating segment [2]. - The company is focusing resources on markets where it can leverage its operational expertise and service network to improve returns for shareholders [2]. Group 3: Company Overview - Titan Machinery Inc. operates a network of full-service agricultural and construction equipment dealer locations across North America, Europe, and Australia [3]. - The company's network includes locations in various U.S. states and international stores in Bulgaria, Germany, Romania, and Ukraine, as well as Australia [3].

Financial Data and Key Metrics Changes - The company reported a solid performance in Q3 2025, with expectations to grow EPS by $1 to $2 in 2026, even in a flat demand environment [6][7]. - Working capital has been a source of cash amounting to $250 million this year, with expectations for free cash flow in 2026 to be at least $700-$800 million [35][37]. Business Line Data and Key Metrics Changes - In the engineered materials segment, consolidated volumes were down 8% year-over-year, primarily affecting engineered thermoplastics like POM and nylon, while thermoplastic elastomers showed resilience [17][28]. - Pricing pressures were noted in the acetyl chain, particularly in Europe, while stabilization was observed in China [15][16]. Market Data and Key Metrics Changes - The company is experiencing a lower demand base compared to historical levels, with no significant accelerated destocking observed across the board, although some pockets exist [31][33]. - The U.S. assets are running at high rates, with the potential for increased utilization if demand improves [85]. Company Strategy and Development Direction - The company is focused on increasing cash flow, improving cost efficiencies, and driving top-line growth, particularly through its EM pipeline [6][7]. - A divestiture target of $1 billion by the end of 2027 has been set, with the recent Micromax transaction contributing significantly towards this goal [51][52]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EPS growth despite a challenging demand environment, emphasizing the importance of cost actions and pipeline success [6][7]. - The company is actively evaluating its portfolio for potential divestitures, particularly in areas that do not align with its core business strategies [50][51]. Other Important Information - The company announced a closure of the Narco facility, expected to yield $20 million-$30 million in productivity savings by 2027 [40]. - An impairment related to Zytel and nylon was recorded due to a reduction in market cap, not cash flow projections [69][70]. Q&A Session Summary Question: Early look at 2026 earnings control - Management highlighted priorities for 2026, focusing on cash flow, cost improvements, and top-line growth, with an EPS growth expectation of $1 to $2 [6][7]. Question: Operating rates in the acetyl chain - The lowest-cost assets are running at full capacity, while other assets are flexibly operated based on demand [11][12]. Question: Sequential pricing pressure in the acetyl chain - Pricing pressure has been noted in Europe, with stabilization in China and relative stability in the U.S. [15][16]. Question: Volume decline in engineered materials - The decline is mainly in engineered thermoplastics, while thermoplastic elastomers have shown growth [17][28]. Question: Free cash flow expectations for 2026 - Free cash flow is expected to be at least $700-$800 million, with working capital actions contributing to this [35][37]. Question: Divestiture strategy and portfolio actions - The company is committed to divesting non-core assets, with a target of $1 billion by 2027, and is actively pursuing additional divestitures [50][51]. Question: Impact of European acetate tow closure - Management indicated that the closure would not have ripple effects across the acetates network [98].

Core Insights - B&G Foods, Inc. reported better-than-expected earnings for Q3 fiscal 2025 despite ongoing top-line pressures, with adjusted earnings of 15 cents per share, up 15.4% from 13 cents in the previous year [3][10] - The company experienced a 4.7% year-over-year decline in net sales to $439.3 million, primarily due to lower volumes and unfavorable foreign exchange, although improved pricing and product mix provided some offset [3][4] Financial Performance - Adjusted EBITDA remained steady at $70.4 million, with an adjusted EBITDA margin improvement from 15.3% to 16% [5] - SG&A expenses decreased by 3% year over year to $44.6 million, while as a percentage of sales, SG&A rose slightly to 10.2% [5] - The adjusted gross profit was $98.8 million, down from $102.4 million in the year-ago period, but the adjusted gross margin expanded by 30 basis points to 22.5% [4] Segment Performance - Specialty segment net sales fell 6.5% to $150.5 million, with adjusted EBITDA dropping 8.7% to $37.7 million [6] - Meals segment net sales dipped 1.4% to $110 million, while adjusted EBITDA grew 2.7% to $23.9 million [6] - Frozen & Vegetables segment saw a 13.2% drop in net sales to $77.4 million, but adjusted EBITDA surged to $4.2 million from $1.2 million [7] - Spices & Flavor Solutions segment net sales rose 2.1% to $101.4 million, although adjusted EBITDA decreased 7.4% to $26.4 million due to higher raw material costs [8] Financial Health - B&G Foods ended the quarter with cash and cash equivalents of $60.9 million, net long-term debt of $2,020.4 million, and total shareholders' equity of $470.7 million [9] Outlook - The company narrowed its fiscal 2025 outlook, projecting net sales between $1.82 billion and $1.84 billion, adjusted EBITDA of $273 million to $280 million, and adjusted earnings per share in the range of 50-58 cents [11]

Financial Performance - Q3 2025 - Total company sales decreased by 3%[23], but only 2%[20] when excluding divestiture and currency impacts - Adjusted gross margin reached 34.6%[20] - Adjusted operating profit margin was 16.3%[20], a decrease of 190 bps year-over-year[22] - Adjusted EPS was $0.97[15], a 10% decrease year-over-year[22] Segment Performance - Q3 2025 - Plumbing Products segment sales increased by 2%[24], or 1% excluding currency impacts[26], with an operating margin of 16.4%[24] - Decorative Architectural Products segment sales decreased by 12%[27], or 6% excluding divestiture[28], with an operating margin of 19.1%[27] Full Year 2025 Outlook - The company updated its anticipated full-year adjusted EPS to a range of $3.90-$3.95[16] - Total Masco sales are forecasted to be down low single digits[32], with an adjusted operating profit margin of approximately 16.5%[32] - Plumbing Products sales are forecasted to be up low single digits with an adjusted operating profit margin of approximately 18%[32] - Decorative Architectural Products sales are forecasted to be down low double digits, or down mid-single digits excluding divestiture, with an adjusted operating profit margin of approximately 18%[32] Financial Position - The company has a strong balance sheet with $559 million in cash and cash investments[29] - Revolver availability is $1 billion, resulting in total liquidity of $1.559 billion[29] - Gross debt to EBITDA is 2.0x[29]

Core Viewpoint - Flowserve Corporation has agreed to divest its wholly owned subsidiary BW/IP - New Mexico, Inc., which holds asbestos liabilities, to Acorn Investment Partners, allowing Flowserve to simplify its capital structure and focus on value-enhancing opportunities [1][2][4]. Transaction Overview - Acorn will acquire 100% of BW/IP, which will be capitalized with approximately $219 million in cash, including $199 million from Flowserve and $20 million from Acorn [4]. - Flowserve will remove all asbestos liabilities, related insurance assets, and associated deferred tax assets from its consolidated balance sheet as a result of this transaction [4]. Financial Impact - The divestiture is expected to result in a one-time loss of approximately $135 million in the fourth quarter of 2025, which will be excluded from adjusted earnings per share [5]. - The transaction is anticipated to improve Flowserve's free cash flow by approximately $15 million to $20 million annually [5]. Advisors - J.P. Morgan Securities LLC is serving as the financial advisor, while Baker McKenzie is the legal advisor for Flowserve [7].

Core Insights - The company reported solid quarterly results despite ongoing macroeconomic challenges, highlighting progress on strategic priorities and disciplined execution [2][3] - The sale of the Aerospace business was completed, allowing the company to sharpen its focus on core operations [2] - The company reaffirmed its full-year sales and adjusted EPS guidance, indicating confidence in its business resilience [3] Financial Performance - Net trade sales for the third quarter were $1.0 billion, representing a 6% decrease compared to the same period in 2024 [3][7] - EBIT was reported at $171 million, a significant increase of $93 million from the third quarter of 2024, while adjusted EBIT decreased by $3 million to $73 million [4][5] - The EBIT margin improved to 16.5%, up from 7.1% in the third quarter of 2024, while the adjusted EBIT margin slightly increased to 7.0% [5] Earnings Per Share (EPS) - The EPS for the third quarter was $0.91, an increase of $0.58 compared to $0.33 in the third quarter of 2024 [5][7] - Adjusted EPS was $0.29, down $0.03 from $0.32 in the same quarter last year [5][7] Cash Flow and Debt Management - Operating cash flow for the third quarter was $126 million, an increase of $30 million from the previous year [7][13] - The company reduced its debt by $296 million during the third quarter, utilizing proceeds from the Aerospace sale and operating cash flow [7][13] - Total liquidity stood at $974 million as of September 30, with $461 million in cash on hand [13] Guidance and Future Outlook - The company narrowed its sales guidance for 2025 to a range of $4.0–$4.1 billion, reflecting a decrease of 6% to 9% compared to 2024 [14] - Volume is expected to decline in the mid to high single digits, with specific segments like Bedding Products anticipated to see a mid-teens decrease [14] - Adjusted EPS guidance for 2025 is now set at $1.00–$1.10, indicating a flat performance compared to 2024 [14] Segment Performance - The Bedding Products segment experienced a 10% decrease in trade sales, while EBIT improved by 43% to $36 million [15][26] - The Specialized Products segment saw a 7% decline in trade sales, with EBIT significantly increasing to $112.9 million [16][26] - The Furniture, Flooring & Textile Products segment reported flat trade sales year-over-year, with EBIT decreasing by 20% [17][26]

We came across a bullish thesis on Honeywell International Inc. on The Value Road’s Substack. In this article, we will summarize the bulls’ thesis on HON. Honeywell International Inc.'s share was trading at $208.61 as of October 14th. HON’s trailing and forward P/E were 24.01 and 18.35 respectively according to Yahoo Finance. Costco Wholesale Corporation (COST)'s A Short Term Disappointment With Long Term Potential, Says Jim Cramer Copyright: kzenon / 123RF Stock Photo Honeywell has announced a strategi ...

Core Viewpoint - Newmont has sold its stake in Orla Mining for $439 million as part of its divestiture program, aiming to streamline its portfolio and enhance cash flow [1][3]. Group 1: Divestiture Details - Newmont sold 43 million shares of Orla Mining at a price of $10.14 per share [1]. - The sale is part of a broader strategy to divest non-core assets and optimize its portfolio following the $17.14 billion acquisition of Newcrest [1][2]. Group 2: Financial Strategy - The company aims to unlock over $2 billion in cash through portfolio optimization, focusing on expanding Tier 1 assets [2]. - Newmont has been divesting several Canadian assets, including the Musselwhite Gold Mine, which was sold to Orla in an $850 million deal [2]. Group 3: Management Perspective - Newmont's CEO, Tom Palmer, stated that the stake sale is intended to streamline the equity portfolio and free up cash for capital allocation priorities [3].