Summary of Orthofix Medical Q3 2025 Conference Call Company Overview - **Company**: Orthofix Medical (NasdaqGS: OFIX) - **Date**: November 12, 2025 - **Key Focus**: Discussion of Q3 2025 financial performance and future outlook Key Highlights Financial Performance - **Q3 Revenue**: Beat consensus by approximately $3 million, achieving a revenue growth of 6% [3][5] - **EBITDA Margin**: Experienced a 230 basis points expansion, marking the seventh consecutive quarter of EBITDA margin growth [3] - **Free Cash Flow**: Positive free cash flow of $2.5 million in Q3 [3] Market Dynamics - **U.S. Spine Growth**: Strong procedure growth at 10%, with expectations to continue growing above market rates [9][10] - **International Orders**: Q3 revenue beat primarily driven by earlier-than-expected international stocking orders [6][7] Product and Strategy Insights - **Distributor Transition**: Ongoing consolidation of a fragmented distributor network is expected to drive incremental growth [14][16] - **7D Placement Demand**: Positive trends noted in capital equipment demand, with a focus on earn-out agreements to reduce upfront costs for hospitals [18][21] - **Verada Launch**: The new product is designed to enhance user experience in the operating room, with a full launch expected in 2026 [25][30] Future Outlook - **2026 Expectations**: Anticipated positive growth driven by the Verada launch, full-year impact from distributor transitions, and new product introductions [34] - **BGT Revenue Impact**: CMS pilot program expected to have an immaterial annual impact on BGT revenue, with no change in physician prescribing behavior anticipated [38][39] Margin and Profitability Goals - **Gross Margin Expansion**: Targeting 300 basis points of gross margin expansion by 2027, driven by supplier consolidation and insourcing strategies [40][42] - **EBITDA Margin Goals**: Aiming for mid-teens EBITDA margins by 2027, with a focus on leveraging operational efficiencies [47][56] Orthopedics Business Outlook - **Growth Potential**: Positive outlook for the Orthopedics segment, particularly in trauma and diabetic foot treatment markets, with significant product differentiation [58][59] Underappreciated Aspects - **Company Transformation**: Notable improvements in free cash flow and consistent EBITDA performance are seen as underappreciated by the market [61][62] Additional Insights - **Pricing Strategy**: Long-term guidance assumes 1% to 2% price erosion, but current pricing has remained relatively flat [12] - **Market Positioning**: Orthofix aims to leverage its innovative product lines and strong distributor relationships to capture market share [10][16] This summary encapsulates the key points discussed during the conference call, highlighting the company's financial performance, market dynamics, product strategies, and future outlook.

Financial Data and Key Metrics Changes - Brink's reported Q3 2025 revenue of over $1.3 billion, a 6% increase, with 5% organic growth and a 1% foreign currency tailwind [18] - Adjusted EBITDA rose 17% to $253 million, with operating profit up 24% [18] - EBITDA margins reached a record 19%, up 180 basis points year-over-year, driven by productivity and AMS/DRS revenue mix [4][18] - Free cash flow for Q3 was $175 million, a year-over-year increase of 30%, with year-to-date free cash flow up 78% [5][18] Business Line Data and Key Metrics Changes - AMS/DRS accounted for 28% of total revenue in Q3, with organic growth accelerating from 16% in Q2 to 19% in Q3 [4][10] - CVM organic growth remained consistent, driven by pricing discipline and conversion to AMS/DRS, contributing 2-3 points of growth in CVM [11][31] - The revenue mix is shifting towards higher-margin AMS/DRS, with expectations for this segment to reach 27-28% of total revenue by year-end [10] Market Data and Key Metrics Changes - The company is experiencing healthy organic growth across all regions, with particular strength in North America and Latin America [30][60] - The penetration rate for ATM outsourcing remains low, indicating significant growth opportunities in both existing and new markets [13][30] Company Strategy and Development Direction - Brink's is focused on delivering organic growth primarily from higher-margin subscription-based services of AMS and DRS, with a value creation strategy in place [7][8] - The company is making structural changes to improve profitability and cash generation, including reducing capital intensity and enhancing operational efficiency [8][22] - The management is confident in the long-term growth potential of AMS/DRS, with a target of achieving at least 20% EBITDA margin in North America over the midterm [16][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and execution, highlighting strong pipelines and growth in AMS/DRS [16][60] - The outlook for the fourth quarter includes expected revenue of $1.355 billion, reflecting mid-single-digit organic growth [24] - Management noted that bank consolidation could present opportunities for AMS solutions, enhancing cost synergies for consolidating banks [68][70] Other Important Information - The company has repurchased approximately 1.7 million shares year-to-date at an average price of just over $89 per share, with plans to return at least 50% of free cash flow to shareholders [8][23] - The net debt to EBITDA leverage ratio was reduced to 2.9x, within the targeted range of 2x-3x [9][22] Q&A Session Summary Question: Increased full-year growth outlook for AMS/DRS - Management noted good visibility into Q4 and the first half of next year, with strong growth in both AMS and DRS across all regions [27][30] Question: Trends in CVM business - Management indicated that the conversion to AMS/DRS accounted for some organic headwind in CVM growth, with Global Services performing in line with expectations [31] Question: Internal strategies for AMS/DRS growth - Management discussed changes in incentive compensation plans to focus on AMS/DRS growth and the evolution of sales channels to include partnerships [41][44] Question: North America margins and long-term potential - Management highlighted that margin improvements are driven by AMS/DRS mix, disciplined pricing, and operational execution, with incremental margins expected to be 20%-30% [45][50] Question: Midterm goals for free cash conversion - Management expressed confidence in maintaining a conversion target of 40%-45%, driven by the favorable DSO profile of AMS/DRS and improved collections [54][57] Question: Impact of bank consolidation - Management believes bank consolidation could create opportunities for AMS solutions, providing unique offerings and cost synergies for consolidating banks [68][70]

Financial Data and Key Metrics Changes - The company has maintained its expectation for EBITDA margins of around 16% in 2026, with an anticipated 100 basis points of expansion each year [23][28] - The company reported a 1% drag on pricing in the recent quarter, which was in line with expectations [42][46] Business Line Data and Key Metrics Changes - The company is seeing strong growth in its Boulder Canyon brand, which is the number one potato chip brand in the natural channel, with velocities up about 35% [80] - The On the Border brand is experiencing short-term challenges, but management believes these issues are not structural and can be addressed [76][78] Market Data and Key Metrics Changes - The company has a 1.9% market share in California, which represents a significant opportunity as the state accounts for about 10% of the salty snacks category in the U.S. [41] - Expansion markets such as Florida, Illinois, Colorado, and Missouri are averaging about 6% growth, outperforming the average expansion market share [114][115] Company Strategy and Development Direction - The company plans to make incremental investments to support its expansion into California, leveraging a proven playbook from previous market entries [26][27] - The strategy focuses on holding core markets while expanding into new geographies, with a strong emphasis on innovation and communication to drive growth [111][112] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the salty snacks category, noting that consumer participation is increasing and the pricing environment remains rational [120][121] - The company is committed to increasing marketing investments, particularly in retail media, to drive consumer engagement and support brand growth [124][125] Other Important Information - The company is addressing recent challenges related to potato supply quality, which impacted gross margins, but expects these issues to be isolated and resolved [61][66] - The company is focused on productivity improvements and supply chain optimization to enhance operational efficiency and support top-line growth [98][102] Q&A Session Summary Question: Can you elaborate on the California route acquisition and its impact? - Management indicated that the acquired network will allow for product introduction in early 2026, with confidence in driving growth through existing customer relationships [40] Question: What is the outlook for pricing and volume mix? - The company experienced a 1% drag on pricing but expects to manage this through effective revenue management strategies [46][47] Question: How does the competitive landscape affect the company? - Management views competitor innovations as a net positive for the category, as they can drive consumer interest and engagement [88][90] Question: What are the expectations for market share dynamics? - The company is seeing incremental market share gains in core markets, driven by strong relationships with retailers and effective execution [111][112] Question: What is the company's approach to innovation? - Management believes that innovation can drive category growth and is focused on simplifying ingredients and addressing consumer trends [130][133]

Company Overview - H B Fuller's FY24 revenue reached $3.6 billion[18] - The company's product portfolio now addresses 92% of an $80 billion market, a significant increase from 43% of a $31 billion market pre-2000[34] - H B Fuller currently holds a 4.5% market share in the $80 billion adhesives and sealants market[39, 91] - H B Fuller has a 6% market share in its $56 billion target market[39, 91] Financial Performance and Targets - H B Fuller aims for >5% annual constant currency revenue growth[213, 215] - The company targets EBITDA growth exceeding 2x revenue growth[213, 220] - H B Fuller is targeting >20% EBITDA margin[23, 213, 249] - The company aims to maintain working capital <15% of revenue[213, 223] Strategic Initiatives - Project Quantum Leap aims to reduce the number of manufacturing plants from 82 to 55 by 2030, generating $75 million in run-rate savings[108] - H B Fuller has already announced and in many cases completed reduction of 16 closures by end 2025[108] - The company plans to reduce the number of warehouses in North America from 55 to 10 within two years[108]

Financial Data and Key Metrics Changes - Organic sales decreased by 0.9%, with positive pricing of 1% offset by a volume decline of 1.9% [4][10] - Adjusted EBITDA for the quarter was $171 million, up 3% year-on-year, with an EBITDA margin of 19.1%, an increase of 110 basis points year-on-year [4][12] - Adjusted gross profit margin was 32.3%, up 190 basis points versus last year [10] - Adjusted earnings per share (EPS) of $1.26 was up 12% compared to the third quarter of 2024 [12] - Operating cash flow increased by 13% year-on-year [12] Business Line Data and Key Metrics Changes - HHC: Organic revenue decreased by 3.1%, with EBITDA up 2% year-on-year and EBITDA margin at 16.9% [5][6] - Engineering Adhesives (EA): Organic revenue increased by 2.2%, with EBITDA up 14% and EBITDA margin expanded to 23.3% [6][7] - Building Adhesive Solutions (BAS): Organic sales decreased by 1%, with EBITDA increasing by 3% to $41 million and EBITDA margin at 17.7% [7][8] Market Data and Key Metrics Changes - Americas: Organic revenue was up 1% year-on-year, driven by EA's high single-digit increase [8] - EIMEA: Organic revenue declined by 2% year-on-year, with EA flat and HHC and BAS down modestly [8] - Asia-Pacific: Organic revenue decreased by 4% year-on-year, primarily due to significant volume decline in solar [8] Company Strategy and Development Direction - The company is focused on enhancing its portfolio, driving efficiencies, and repositioning for growth and margin expansion [4][15] - The strategy includes proactive measures in pricing and raw material management, as well as cost controls [15][16] - The company aims to achieve a greater than 20% EBITDA margin target in the long term [17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution due to a globally subdued economic backdrop, expecting volume growth to remain elusive [4][9] - The manufacturing sector is weak, with customer demand appearing uneven and less predictable [9] - The company anticipates a slow growth environment with continued economic volatility and high interest rates [9] Other Important Information - The company updated its financial guidance for fiscal 2025, expecting net revenue to be down 2%-3% year-on-year and organic revenue to be flat to up 1% [13][14] - Full-year adjusted diluted EPS is expected to be in the range of $4.10-$4.25, equating to year-on-year growth of 7%-11% [14] Q&A Session Summary Question: Could you provide some more detail behind the reduction in cash flow guidance? - The reduction is primarily due to higher inventory levels in preparation for footprint consolidation actions, which is expected to be temporary [19][20] Question: Did anything accelerate in the quarter for EA? - EA experienced a return to double-digit organic growth in electronics, with strong performance in the U.S. driven by new customer wins and share take [24][25][26] Question: How would you explain the HHC decline in volumes versus EA? - HHC volumes reflect a tougher consumer environment, with mid-single-digit declines across major regions, while EA is outperforming the market [32] Question: What are the expectations for solar in fiscal year 2026? - The company will continue to face headwinds in revenue from the silicon sealant product line, but expects to shore up EBITDA and margins by exiting lower-margin spaces [35] Question: What is the status of pricing versus raw material cost tailwinds? - The company has generated about $15 million of the anticipated $55 million in price and cost actions, with expectations for additional benefits in Q4 and into next year [40][41] Question: How do you see growth opportunities in the next year or two? - The company is experiencing accelerated growth in EA and medical adhesives, with strong performance in new geographies and product ranges [44][45] Question: What kind of lag effects do you expect from lower interest rates? - Lower interest rates typically impact the business 15-18 months later, but immediate benefits are expected in various segments, particularly in woodworking [50][51] Question: How large is the data center business and its impact? - The data center business is growing quickly, with a strategic focus on roofing systems, contributing to overall segment growth [52][53]

Core Insights - The company reported a significant increase in occupancy and revenue metrics for July, indicating strong operational performance and positive market trends [2] Booking Position - As of now, 66% of the 2025 capacity is booked, which corresponds to approximately 88% of the full-year targeted cabin nights [2] - For 2026, 27% of the capacity is already booked, with ACR exceeding the same time last year by more than 10% [2] Revenue Growth - Occupancy in July reached 82%, marking a 4% increase compared to the previous year [2] - Average Cabin Revenue (ACR) saw an approximate 15% increase compared to July 2024 [2] - Total ticket revenue grew by over 30% year-over-year, with ticket revenue for shorter voyages increasing by more than 40% [2] - ACR is currently more than 20% above the same time last year for the full year [2] - Forward bookings are expected to support continued revenue growth and EBITDA margin expansion into 2026 [2]

Core Insights - Howmet Aerospace Inc. (HWM) has shown consistent margin expansion, with adjusted EBITDA margins increasing from 26.5% in Q3 2024 to 28.7% in Q2 2025, reflecting a 300 basis point year-over-year improvement [1][8] Financial Performance - In Q2 2025, HWM's cost of goods sold rose by 6.1% year-over-year, but a significant 8.2% reduction in SG&A expenses helped maintain profitability [2] - The adjusted EBITDA margins for HWM's segments were as follows: Engine Products (up 200 basis points), Fastening Systems (up 360 basis points), and Engineered Structures (up 690 basis points), driven by manufacturing optimization and improved product mix [2] - HWM has raised its 2025 adjusted EBITDA margin guidance to a range of 28.5% to 28.6%, up from the previous estimate of 27.8% to 28.2%, indicating strong confidence in sustained performance [4] Market Dynamics - Strong demand in both commercial and defense aerospace markets is positively impacting HWM's performance, particularly with robust orders for F-35 engine spares and aerospace fastening systems [3] Peer Comparison - RTX Corporation's total costs increased by 6.4% year-over-year to $19.48 billion in Q2 2025, with an adjusted operating profit of $2.79 billion [5] - GE Aerospace experienced a 22.8% surge in cost of sales year-over-year in Q2 2025, but its adjusted operating profit rose by 23% [6] Stock Performance and Valuation - HWM's shares have increased by 95.1% over the past year, significantly outperforming the industry average growth of 16% [7] - The company is currently trading at a forward price-to-earnings ratio of 45.59X, which is above the industry average of 27.64X [10] Earnings Estimates - The Zacks Consensus Estimate for HWM's earnings has been rising over the past 60 days, with current estimates for the current quarter at $0.90 and for the next year at $4.28 [12]

Core Insights - AngloGold Ashanti plc (AU) reported a significant 111% increase in adjusted EBITDA to $1.4 billion in Q2 2025, driven by higher production volumes, cost discipline, and elevated gold prices [1][8] - The company generated a total of $2.56 billion in adjusted EBITDA in the first half of 2025, with a key driver being the Full Asset Potential Program that enhances cost efficiencies [2] - Gold production increased by 22% year-over-year to 1.52 million ounces in H1 2025, with projections for 2025 indicating production of 2.9-3.225 million ounces, representing 9-21% growth over the previous year [3] Financial Performance - Adjusted EBITDA margin expanded to 59% in Q2 2025 from 50% in the same quarter last year [1][8] - The Zacks Consensus Estimate for AngloGold Ashanti's 2025 sales is $8.85 billion, indicating a 52.8% year-over-year growth, while earnings are expected to be $4.99 per share, reflecting a 125.8% increase [10] Market Position - AngloGold Ashanti's stock has surged 144.6% year-to-date, outperforming the Zacks Mining – Gold industry growth of 63.7% [7][8] - The company is currently trading at a forward 12-month earnings multiple of 11.41X, which is below the industry average of 12.87X [9] Industry Comparison - Peers Newmont Corporation and Agnico Eagle Mines also reported improved EBITDA, with Newmont seeing a 52% increase to around $3 billion and Agnico Eagle Mines reporting a 63% jump to $1.9 billion in Q2 2025 [5][6]

Operational Highlights - Occupancy in June reached 76%, consistent with the previous year [2] - Average Cabin Revenue (ACR) increased by 23% compared to June 2024 [2] - Total ticket revenue grew by more than 20% year-over-year [2] Booking Position - As of now, 65% of 2025 capacity is booked, representing about 87% of the full-year targeted cabin nights [2] - ACR is currently more than 20% above the same time last year for the full year [2] - 25% of 2026 capacity is already booked with more than 10% higher ACR than the same time last year for 2025 [2] Revenue Growth Outlook - Forward bookings support continued revenue growth and EBITDA margin expansion into 2026 [2]

Core Insights - European Wax Center, Inc. (EWCZ) achieved a significant EBITDA improvement in Q1 of fiscal 2025, raising questions about the sustainability of this expansion [1][8] - The company reported adjusted EBITDA of $18.8 million, a 7.2% year-over-year increase, with margins increasing to 36.5% from 33.7% [1][8] Financial Performance - The EBITDA margin expansion was primarily driven by revenue growth, advertising, and the timing of selling, general and administrative expenses, which provided a temporary boost to profitability [2] - EWCZ reaffirmed its full-year adjusted EBITDA guidance of $69 million to $71 million, indicating confidence in its cost structure and marketing strategy [4][8] Marketing Strategy - EWCZ plans to distribute advertising expenses more evenly throughout 2025 to support new guest acquisition and stabilize marketing activities [3] - The company has reported early progress in marketing efficiency with the implementation of a new media strategy [2] Market Position - EWCZ's shares have increased by 61.6% over the past three months, slightly trailing the industry's growth of 62.6% [7] - The company trades at a forward price-to-earnings ratio of 8.15X, significantly lower than the industry average of 28.11X, indicating potential undervaluation [9] Earnings Estimates - The Zacks Consensus Estimate for EWCZ's fiscal 2025 and 2026 earnings implies year-over-year growth of 35.6% and 8.2%, respectively [10] - Current earnings estimates for the upcoming quarters show a positive growth trajectory, with a year-over-year growth estimate of 13.33% for the current quarter [11]