Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenues of $776 million, up 6.3% compared to the same quarter last year, and up 5.5% on an organic basis [8][17] - Adjusted EBITDA grew 13.9% year over year to $197 million, with an adjusted EBITDA margin of 25.4%, an increase of 170 basis points [8][18] - Adjusted net income for the second quarter was $110 million, up 17% from the previous year, with adjusted diluted earnings per share rising to $0.52 from $0.44 [18][19] Performance by Business Segment - **Industrial Segment**: Revenues rose 7.6% to $338 million, with organic growth of 7%. Adjusted EBITDA increased 20.6% to $117 million, and the adjusted EBITDA margin improved to 34.6% [19][20] - **Consumer Segment**: Revenues were $340 million, up 5.6% overall and 4.7% organically. Adjusted EBITDA was $65 million, a 6.6% increase, with a margin of 19.1% [21][22] - **Software and Advisory Segment**: Revenues increased 4.3% to $98 million, with organic growth of 3.2%. Adjusted EBITDA remained unchanged at $15 million, with a margin of 15.3% [22][23] Market Data and Key Metrics Changes - The company noted a dynamic geopolitical and regulatory environment impacting customer behavior, with a pull forward in orders observed in both industrial and consumer segments [14][35] - The demand for data center services is expected to grow significantly, with power consumption by data centers projected to rise from 4.4% of total U.S. electricity demand in 2023 to 12% by 2028 [11][12] Company Strategy and Development Direction - The company is focusing on higher growth megatrends, including global energy transition, electrification, and digitalization, to drive future growth [6][7] - Strategic investments in lab expansions and capacity enhancements are aimed at addressing growth opportunities in key end markets [9][10] - The company remains committed to identifying and executing strategic acquisitions to enhance profitability and earnings potential [27][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate uncertainties and affirmed the full-year 2025 outlook, expecting mid-single-digit organic revenue growth [26][25] - The company highlighted the essential nature of its services and the resilience of its business model, which supports sustained revenue streams and deep customer relationships [14][30] Other Important Information - The company generated $208 million in free cash flow in the first half of 2025, a 58.8% increase from the previous year [24] - Capital expenditures for the first half were $93 million, with expectations for 2025 capital expenditures to be around 7% to 8% of revenue [24][27] Q&A Session Summary Question: Changes in client behavior related to tariffs - Management noted a shift in client behavior due to uncertainties, with some pull forward in orders observed in both industrial and consumer segments [34][35] Question: Update on lab capacity and future investments - Management confirmed ongoing investments in lab capacity and improvements, with a focus on areas where customer demand is highest [36][37] Question: Tougher comparisons in the second half of the year - Management acknowledged the tougher comparisons but expressed confidence in the business's progress and affirmed guidance for the full year [42][43] Question: Quantifying pull forward activity in segments - Management indicated that pull forward activity was observed in both industrial and consumer segments, with specific quantification provided for organic revenue growth [46][47] Question: Margin expansion opportunities - Management sees margin expansion opportunities across all segments, with strong progress noted in the industrial segment [50][51] Question: Growth in data centers and related megatrends - Management discussed the confluence of electrification, sustainability, and digitalization as key trends driving growth in data centers [55][56] Question: M&A pipeline and competitive pressures - Management remains disciplined in the M&A environment, actively evaluating opportunities that align with the company's strategy [89][90]

P R E S E N T A T I O N First Quarter Fiscal 2026 Results 2 Q1 2026 Highlights 3 • Consolidated Q1 revenues increased 23% year over year with gross margin of 19% • Q1 earnings per diluted share of $1.60, up $1.02 year over year • Q1 EBITDA of $30M, or 15.6% as a percentage of revenue • Record project backlog of $1.9 billion at April 30, 2025 • Q1 backlog additions include a 1.2 GW ultra-efficient natural gas-fired project • Solid balance sheet: large cash and net liquidity position; no debt • Paid quarterly ...

Group 1: Importance of Copper - Copper is essential for the modern economy, playing a critical role in the electrification trend, including electric vehicles, renewable energy, and data centers [2] - The U.S. administration aims to support domestic production of copper, which is beneficial for Freeport-McMoRan [3] Group 2: Freeport-McMoRan's Role - Freeport-McMoRan supplies 70% of domestically sourced copper for U.S. refining, positioning itself as a key player in domestic production [4] - The company is expected to benefit from a premium on U.S. copper prices compared to international prices, potentially leading to an annual financial benefit of approximately $800 million [5] Group 3: Production Initiatives - Freeport plans to sell 4 billion pounds of copper in 2025, with a leaching initiative expected to contribute 200 million pounds by the end of the year, increasing to 800 million pounds by 2030 [6][7] - The company has brownfield expansion projects in Arizona that could increase copper production by 2.5 billion pounds over time, with 47% of that from the U.S. [9] Group 4: Financial Outlook - Management estimates $11 billion in EBITDA for 2026/2027 at a copper price of $4 per pound, and $15 billion at $5 per pound [12] - Current copper prices suggest a potential EBITDA of $13.6 billion, compared to a market capitalization of $56.6 billion, indicating an attractive valuation for the company [13]