Key Takeaways MS posted $5.2B in IB revenues in 9M 2025, up 15% amid a rebound in M&A and IPO activity.More than 55% of MS's revenue now comes from wealth and asset management, up from 26% in 2010.MS shares rose 45% in a year, but its 17.87X P/E signals a premium valuation over industry peers.After several false starts, global mergers & acquisitions (M&As) finally witnessed a decisive upswing in the second half of 2025 amid easier regulation hopes and inflation pressures, setting the stage for a stronger 20 ...

China's mergers and acquisitions (M&A) market is poised for another year of growth as investors regain confidence in the country's assets and long-term growth prospects, and look beyond geopolitical and economic headwinds, according to industry experts. Investor optimism in 2026 would build on a deeper understanding of risks associated with regulatory restrictions, improved market conditions and success stories in the past year, said Kevin Yu Zhe, Shanghai-based partner at Zhong Lun Law Firm. "It's inte ...

Core Insights - Wall Street banks are positioned to benefit significantly from Warner Bros. Discovery's (WBD) potential sale to either Netflix or Paramount Skydance, with a total of $225 million in fees expected to be paid to advisors if a deal is finalized [1][2]. Group 1: Deal Dynamics - WBD is currently evaluating competing offers from Netflix, which aims to acquire its studio and streaming business, and Paramount, which has made a bid for the entire company, including cable TV channels [2]. - WBD's board has expressed continued support for Netflix's offer following a hostile bid from Paramount [2]. - The advisory firms involved in the bidding process have played a crucial role in board meetings, negotiations, and evaluations of the offers [2][7]. Group 2: Advisory Fees - The fee structure for the advisory firms includes significant contingent payments, with Allen & Co. and J.P. Morgan each set to receive $85 million, of which $45 million and $50 million, respectively, are contingent on a successful deal [11]. - Evercore is expected to receive $55 million, also contingent on the deal's completion [11]. Group 3: Market Context - The investment banking sector has seen a surge in activity, particularly in media and telecom mergers and acquisitions (M&A), with a reported 61% increase in deal value from the second half of 2024 to the second half of 2025, excluding the WBD sale [9]. - PwC anticipates that robust M&A activity will persist in the coming years as investors seek value in content libraries, video games, and sports assets [10].

Get started with iREIT + Hoya Capital today! Sign Up for Top Stocks 2026 Now! This video's transcript was generated by a third party. It is not curated or reviewed and is provided for convenience and information purposes only. The accuracy and completeness of the transcript are not guaranteed. Daniel Snyder: Hey everyone. Daniel Snyder from Seeking Alpha. Thank you so much for taking the time to join us today as we dive into the world of REITs, a sector that many of you love, but also has been down and out ...

Core Insights - GSK's stock has increased by 18.6% over the past three months, driven by strong Q3 results that exceeded earnings and sales estimates, along with raised sales and profit guidance for the year [1][9] - The drug and biotech sector has seen a recovery, with major companies like Pfizer and AstraZeneca entering drug pricing agreements with the Trump administration [2] - GSK's Specialty Medicines unit is a key growth driver, with sales rising 16% in the first nine months of 2025, supported by successful launches in Oncology and long-acting HIV medicines [4][6] Specialty Medicines Growth - The Specialty Medicines unit's sales growth is attributed to strong demand for new long-acting HIV medicines and oncology drugs, with key products like Nucala and Dovato contributing significantly [5][6] - GSK expects Specialty Medicines sales to grow at a mid-teens compound annual growth rate (CAGR) in 2025, up from previous low-teens expectations, and anticipates this segment will account for over 50% of total revenues by 2031 [6][26] Promising Pipeline - GSK is increasing R&D investments in long-acting and specialty medicines, with several recent drug approvals, including Penmenvy and Blujepa, expected to drive growth in the coming years [7][8] - The company plans to launch five new products/line extensions in 2025, with several already approved in the U.S. [12] Vaccine Sales Decline - GSK's vaccine sales in the U.S. have declined by 11% at constant exchange rates (CER) in 2025, primarily due to lower demand for its shingles and RSV vaccines [13][15] - Despite the decline in the U.S., sales of these vaccines have risen in Europe, indicating a mixed performance across regions [15] Stock Performance and Valuation - GSK's stock has outperformed the industry and the S&P 500, rising 43.1% year-to-date compared to an industry increase of 11.7% [17] - The stock is trading at a price/earnings ratio of 10.02, which is lower than the industry average of 16.31, indicating an attractive valuation [20] Earnings Estimates - The Zacks Consensus Estimate for GSK's earnings has increased from $4.38 to $4.49 per share for 2025, reflecting analysts' optimism about profit growth [23][24] - GSK expects to achieve over 7% sales growth and more than 11% core operating profit growth on a CAGR basis through 2026 [27]

Core Insights - Merck (MRK) has made significant investments in strategic mergers and acquisitions to enhance its long-term portfolio and growth prospects [1] M&A Activity - Merck announced an agreement to acquire Cidara Therapeutics (CDTX) for $221.50 per share, totaling nearly $9.2 billion, which will enhance its respiratory portfolio with the addition of CD388, a candidate for influenza prevention [2][10] - The acquisition is expected to close in Q1 2026, pending customary conditions [2] - This follows Merck's recent acquisition of Verona Pharma for approximately $10 billion, which added Ohtuvayre for COPD treatment, strengthening its cardio-pulmonary portfolio [5] Product Development - CD388, developed using CDTX's Cloudbreak platform, is a long-acting small molecule inhibitor targeting influenza, currently in phase III trials for high-risk patients [3] - CD388 offers broad protection against seasonal and pandemic flu strains with a single injection, independent of the body's immune response, and has received Fast Track and Breakthrough Therapy designations from the FDA [4] Strategic Focus - Merck's management highlighted that strategic business development is a key priority, with ongoing assessments for further investments to drive growth and shareholder value [6] - Recent multi-billion-dollar deals with Chinese biotechs have broadened Merck's pipeline beyond its reliance on the PD-L1 inhibitor Keytruda, positioning it for sustainable revenue growth over the next decade [7] Industry Trends - M&A activity in the pharma/biotech sector is increasing, with a focus on innovation-driven acquisitions rather than large-scale consolidation, shifting therapeutic focus towards metabolic and cardio-metabolic diseases and respiratory conditions [8]

Financial Data and Key Metrics Changes - For Q3 2025, revenue increased by 30% year-over-year, reaching $986.8 million, driven by strong performance in the electrical and mechanical (E&M) segment [15][5] - EBITDA for the third quarter rose by 37% compared to the previous year, totaling $89 million, with an EBITDA margin of 9%, up 50 basis points from 8.5% [15][16] - Total backlog at the end of Q3 was $2.95 billion, reflecting a 2% increase from the same period last year and a 6% increase from the end of 2024 [7][16] Business Line Data and Key Metrics Changes - E&M segment revenues increased by 43% to $767.3 million, primarily driven by growth in commercial and renewables markets, particularly in the data center submarket [15][17] - T&D segment revenues were $223.4 million, a slight decrease from $228.5 million last year, attributed to timing and reduced storm work, while T&D backlog increased by 19% year-over-year [15][18] Market Data and Key Metrics Changes - The demand for power transmission infrastructure upgrades in the U.S. is unprecedented, driven by factors such as data centers, electric vehicle adoption, and industrial reshoring, creating a multi-year tailwind for T&D services [9][10] - The data center submarket continues to show strong demand with no signs of weakening, with significant projects located in the Upper Midwest, Southwest, and Pacific Northwest [31][49] Company Strategy and Development Direction - The company is focused on maintaining a disciplined approach to project selection, emphasizing opportunities that align with strategic objectives and offer attractive returns [8][10] - The "Forever strategy" aims to attract and retain key talent, with significant investments in training and development to support growth objectives [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue building backlog momentum, citing robust underlying demand drivers across key markets [7][9] - The company raised its 2025 revenue guidance to a range of $3.55 billion to $3.65 billion, reflecting strong business momentum and elevated backlog levels [21][22] Other Important Information - Operating cash flows for the first nine months of 2025 were $108.6 million, up from $82.7 million in the same period last year, with CapEx increasing to $42.1 million [19] - The company is actively evaluating M&A opportunities, with a broader and deeper funnel than a year ago, focusing on companies that align with its strategic priorities [51] Q&A Session Summary Question: Margin sustainability and future expectations - Management acknowledged that while margin expansion is challenging to forecast, strong execution has led to improved margins this fiscal year, and they will continue to focus on margin uplift [27][28] Question: Data center project strength and timelines - Management highlighted strong demand for data center projects in specific regions and noted that larger projects are entering the backlog earlier than expected [29][31] Question: Organic growth expectations for next year - Management remains optimistic about strong demand for services and believes they can secure sufficient backlog to support growth, despite potential cyclicality [36][37] Question: Pre-construction projects and backlog conversion - Some projects in pre-construction have accelerated, contributing to solid revenue, while others remain in early phases, providing visibility for the next year [40][42] Question: Local market activity in Las Vegas - Management reported a diversified approach in Las Vegas, with ongoing projects in hospitality and data centers, and noted that their backlog in these areas has increased [44][45] Question: Data center end market revenue progression - Management confirmed that data centers have become a significant part of their business, with strong demand and a long runway for opportunities [48][49] Question: M&A opportunities and capital deployment - The company is in a strong position to pursue meaningful acquisitions, with an active corporate development team and a focus on strategic alignment [51]

Core Insights - Longleaf Partners Fund reported a return of -0.33% in Q3 2025, underperforming the S&P 500's 8.12% and the Russell 1000 Value's 5.33% [1] - The fund focuses on investments in real assets and brands that generate growing free cash flow (FCF) per share, with expectations of an increase in FCF multiple from ~10x to the mid-teens [1] - The fund highlighted PotlatchDeltic Corporation as a key investment, which has a market capitalization of $3.27 billion and a one-month return of 5.57% [2] Investment Highlights - PotlatchDeltic Corporation is a Real Estate Investment Trust (REIT) owning nearly 2.1 million acres of timberlands, with shares gaining 0.50% over the last 52 weeks [2] - The fund expressed excitement over the merger of PotlatchDeltic Corporation and Rayonier, viewing it as a win/win scenario with real synergies that enhance the value per share of the combined entity [3] - Both PotlatchDeltic and Rayonier were acquired at large discounts, presenting multiple avenues for growth [3]

Group 1 - Paramount Skydance's acquisition offer for Warner Bros. Discovery (WBD) has been rejected for the second time, with the latest bid at $24 per share, up from an initial offer of $20 [1] - WBD has confirmed it is for sale and has initiated a strategic review process due to unsolicited interest from multiple parties [3] - The market has reacted positively, with WBD's stock price doubling since the beginning of the M&A discussions, reaching a three-year high with an 11% increase [5] Group 2 - Media earnings season is underway, with both WBD and Paramount expected to report quarterly results soon, which may provide insights into the M&A landscape [2] - Speculation exists regarding interest from other companies like Comcast, Netflix, and Amazon, but Paramount is seen as a strong contender due to its financial backing and relationships [4] - Netflix's co-CEO has expressed skepticism about a bid for WBD, while Comcast may face antitrust challenges [4]

Group 1: Industry Overview - Global geopolitical risks are driving nations to increase defense spending, benefiting the aerospace and defense (A&D) sector and creating trading opportunities [1] - The A&D sector is experiencing increased business activity, evidenced by a rise in mergers and acquisitions (M&A), despite concerns over macroeconomic factors like tariffs [2][3] - The current market environment is conducive to consolidation as supply chains seek efficiency and investors look for capital deployment opportunities in a growing market [3] Group 2: M&A Activity and Market Trends - A steady stream of private equity-owned assets is expected to enter the market in the next 12-24 months as investors divest assets held longer than usual due to the Covid-19 pandemic and supply chain challenges [4] - There have been 185 deals announced in the defense sector year-to-date in 2025, indicating strong M&A activity [4] - The MSCI ACWI Aerospace & Defense Index is outperforming the broader S&P 500, highlighting the strength of the A&D sector and presenting short-term trading opportunities [4] Group 3: Investment Vehicles - Traders can consider the Direxion Daily Aerospace & Defense Bull 3X Shares ETF (DFEN) to gain exposure to the A&D sector while mitigating concentration risk associated with individual stocks [5] - As of June 30, the top three allocations in DFEN include GE Aerospace (20.68%), Raytheon Technologies Corporation (14.7%), and Boeing (8.78%) [5] - DFEN tracks the Dow Jones U.S. Select Aerospace & Defense Index, which includes various aerospace and defense companies [6]