Noble (NYSE:NE) Q4 2025 Earnings call February 12, 2026 09:00 AM ET Speaker6Thank you for standing by. My name is Carrie, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Noble Corporation Fourth Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ask a question during this time, simply press Star followed by the nu ...

Financial Data and Key Metrics Changes - Delta achieved record revenue of $58.3 billion for the full year, a 2.3% increase year over year, with an operating margin of 10% and earnings per share of $5.82 [7][17] - In the December quarter, Delta reported record revenue of $14.6 billion, a 1.2% increase compared to the previous year, despite a government shutdown impact of $200 million [19][24] - Free cash flow reached $4.6 billion, the highest in Delta's history, contributing to a reduction in leverage by more than 50% [7][25] Business Line Data and Key Metrics Changes - Premium revenue grew by 7%, cargo revenue increased by 9%, and maintenance, repair, and overhaul (MRO) revenue surged by 25% [17][18] - Total loyalty revenue improved by 6%, with travel products continuing to grow at double-digit rates [18] - Diverse revenue streams now represent 60% of total revenue, highlighting the success of Delta's integrated commercial strategy [17] Market Data and Key Metrics Changes - Corporate sales grew by 8%, with significant growth across sectors such as banking, consumer services, and media [19] - International performance improved significantly, with unit revenue growth increasing by 5 points, driven by transatlantic and Pacific routes [19] - The U.S. economy remains strong, with consumer spending on travel among the top categories, supporting Delta's positive outlook for revenue growth of 5%-7% in the March quarter [9][21] Company Strategy and Development Direction - Delta aims to reshape the end-to-end travel experience, focusing on premium offerings and expanding its lounge network [10][11] - The company is investing in a new fleet, including an order for 30 Boeing 787-10s, to enhance its international network and improve operational efficiency [12][29] - Delta's strategy includes leveraging technology and partnerships to enhance customer engagement and drive high-margin revenue streams [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting earnings per share growth of 20% year over year, supported by strong demand and a balanced supply-demand environment [10][26] - The company is focused on maintaining disciplined cost management while expanding high-margin revenue streams [26][28] - Management acknowledged the challenges in operational reliability post-COVID but emphasized ongoing efforts to improve recovery capabilities [78][80] Other Important Information - Delta awarded a 4% pay increase and announced a $1.3 billion profit-sharing payout, reflecting the company's commitment to its employees [8] - Glen Hauenstein, the President, will retire, with Joe Esposito stepping into the Chief Commercial Officer role, ensuring continuity in leadership [14][30] Q&A Session Summary Question: Impact of potential 10% rate cap on Delta's competitiveness - Management noted that while it's early to speculate, Delta's premium card offerings would likely benefit from any changes in the industry [34] Question: Regrets about missing future industry developments - Glen Hauenstein expressed excitement about ongoing partnerships and new fleet introductions but acknowledged the challenges of leaving [36][39] Question: Acceleration of demand trends and booking curve normalization - Management confirmed that demand has accelerated across all segments, with the booking curve returning to normal levels [46][47] Question: Corporate demand and market share gains - Management indicated that Delta's market share is at an all-time high, supported by broader market trends [52] Question: Sustainability of current demand strength - Management expressed confidence in the stability of demand, particularly as economic uncertainties have lessened [69] Question: Rationale for new aircraft orders - Management highlighted the financial benefits and operational efficiencies of the Boeing 787-10, which will replace older aircraft [71][72] Question: Differentiation in operational reliability - Management acknowledged the need for improvement in recovery capabilities but emphasized Delta's strong foundation and ongoing efforts [78][80]

Financial Data and Key Metrics Changes - Delta achieved record revenue of $58.3 billion for the full year 2025, a 2.3% increase year-over-year, with an operating margin of 10% and earnings per share of $5.82 [18][8] - In Q4 2025, Delta reported record revenue of $14.6 billion, a 1.2% increase from Q4 2024, despite a $200 million impact from the government shutdown [20][25] - Free cash flow reached $4.6 billion, the highest in Delta's history, contributing to a reduction in leverage by more than 50% [8][26] Business Line Data and Key Metrics Changes - Premium revenue grew by 7%, cargo revenue increased by 9%, and maintenance, repair, and overhaul (MRO) revenue grew by 25% in 2025 [18][19] - Total loyalty revenue improved by 6%, with travel products continuing to grow at double-digit rates [19] - Corporate sales grew by 8%, with significant growth across banking, consumer services, and media sectors [20] Market Data and Key Metrics Changes - Delta's international performance improved significantly, with unit revenue growth increasing by 5 points, driven by transatlantic and Pacific routes [20] - The company expects revenue growth of 5%-7% in the March quarter of 2026, supported by strong consumer and corporate demand [10][22] - Delta's market share is at an all-time high, indicating strong competitive positioning [53] Company Strategy and Development Direction - Delta aims to reshape the end-to-end travel experience, focusing on premium offerings and expanding its international footprint [11][13] - The company plans to invest in a new fleet, including an order for 30 Boeing 787-10s, to enhance its international network and improve operational efficiency [13][30] - Delta's strategy includes leveraging technology and partnerships to enhance customer engagement and drive high-margin revenue streams [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing robust demand and a balanced supply-demand environment in the industry [22][70] - The company anticipates earnings per share growth of 20% year-over-year in 2026, with free cash flow expected to be between $3 billion and $4 billion [11][27] - Management acknowledged challenges in operational reliability and recovery but emphasized ongoing efforts to improve these areas [80][81] Other Important Information - Delta awarded a 4% pay increase and announced a $1.3 billion profit-sharing payout for 2025, reflecting the company's commitment to its employees [9] - Glen Hauenstein, the President, will retire, with Joe Esposito taking over as Chief Commercial Officer, ensuring continuity in leadership [15][16] Q&A Session Summary Question: Impact of potential 10% rate cap on Delta's competitiveness - Management indicated that while it is early to speculate, Delta's premium card offerings would likely benefit if the cap is implemented, as it would restrict lower-end consumers' access to credit [34][36] Question: Regrets about industry evolution not being present - Glen Hauenstein mentioned missing the continued evolution of partnerships and the performance of new fleets, emphasizing the importance of long-term vision [37][39] Question: Acceleration of demand trends into 2026 - Management confirmed that demand has accelerated across all entities and geographies, with a return to more normal booking patterns [45][48] Question: Corporate demand and market share gains - Management noted that Delta's market share is at an all-time high, with broader market improvements contributing to positive corporate demand [52][53] Question: Differentiation in operational reliability - Management acknowledged the need for improvement in recovery from irregular operations but highlighted Delta's strong foundation and recent recognition as the most on-time airline [78][80]