Key Takeaways Auna S.A.'s net leverage stood at 3.6X, with a target to reduce it below 3X over the medium term.AUNA saw a 35% rise in free cash flow and a 42% increase in cash balance, boosting flexibility.Auna S.A. refinanced $825M debt, cutting interest costs and extending maturities to aid deleveraging.As of the 2025 fourth-quarter end, Auna S.A.’s (AUNA) net leverage held steady at 3.6X Net Debt-to-Adjusted EBITDA. The company is aiming to reduce its leverage below 3X over the medium term, supported by ...

Core Insights - Custom Truck One Source reported record quarterly revenue of $528 million for Q4 2025, with adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase. Full-year revenue reached $1.944 billion, an 8% increase from 2024, with adjusted EBITDA up 13% [7][8]. Segment Performance - APS (Advanced Power Solutions) generated $37 million in revenue for Q4, maintaining a gross margin of 27%. The full-year gross margin was just under 24%, improving by nearly 120 basis points year-over-year [1]. - TES (Truck and Equipment Sales) reported Q4 equipment sales of $284 million, down 8% year-over-year due to customers advancing capital spending and deferring deliveries. Full-year revenue was $1.1 billion, up 4% and the highest in the segment's history [2]. - ERS (Equipment Rental Solutions) achieved Q4 revenue of $207 million, a 20% increase year-over-year, with full-year revenue growing 17%. Utilization averaged 83.6% in Q4, up approximately 470 basis points from Q4 2024 [3][5]. Financial Performance - The company reported a Q4 net income of approximately $21 million but a full-year GAAP net loss of about $31 million, affected by a prior year gain from a sale-leaseback transaction. Excluding this gain, underlying net income improved due to higher gross profit and lower interest expenses [4]. - The average OEC (Original Equipment Cost) on rent was just under $1.4 billion in Q4, up 14% year-over-year, with management noting historically high levels of utilization and OEC on rent [5][6]. Strategic Initiatives - A strategic partnership with Hiab was highlighted, aimed at broadening the product portfolio and enhancing service capabilities in various markets [10]. - The company is investing in expanding aftermarket service capacity to support TES customers and grow parts and service revenue [11]. Balance Sheet and Cash Flow - The company ended 2025 with net debt of $1.65 billion and net leverage of 4.3x, an improvement from the previous year. Working capital progress was noted, with inventory declining by over $100 million in Q4 [12][13]. - Net rental capital expenditures exceeded $40 million in Q4, with total rental fleet OEC reaching almost $1.64 billion, a record high [14]. 2026 Outlook - Full-year 2026 guidance projects revenue between $2.005 billion and $2.12 billion, with adjusted EBITDA of $410 million to $435 million, indicating year-over-year growth of 3% to 9% in revenue and 7% to 13% in adjusted EBITDA [15]. - The company plans to reduce net investment in the rental fleet to approximately $150 million to $170 million in 2026, down from over $250 million in 2025, while still growing the rental fleet at a mid-single-digit rate [15]. Reporting Changes - Starting with the quarter ending March 31, 2026, the company will shift to two reportable segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM) [16].

CLOSING PRICES AS OF 01/31/26NAV12.91MKT11.49AVERAGE ANNUAL TOTAL RETURN AS OF 01/31/26NAV (%)MKT (%)One-Month*9.5010.16One-Year25.4726.00Three-Year15.6515.76Five-Year9.8710.5810-Year14.1214.97*Not AnnualizedAll performance information reflects past performance, is presented on a total return basis, net of the Fund's investment advisory fee, and reflects the reinvestment of distributions. Past performance is no guarantee of future results Current performance may be higher or lower than performance quoted. R ...

Financial Data and Key Metrics Changes - The negative EBITDA impact from Monterrey challenges in Q4 was $8 million, higher than the previously estimated $5 million, affecting EBITDA margins for the Hardware Solutions segment [5][9] - The company paid down debt aggressively during the fiscal year and repurchased approximately $3 million in stock in Q4, despite shares being perceived as undervalued [10][12] Business Line Data and Key Metrics Changes - The Hardware Solutions segment faced challenges due to increased labor and expedited freight costs, but a favorable cost roll impact helped mitigate some losses [5][9] - The company expects a $3 million drag in Q1 from Monterrey issues but anticipates this will go to zero beyond the first quarter [6][9] Market Data and Key Metrics Changes - The company has not observed irrational pricing behavior in the market, indicating a focus on supply chain risk management among customers [19][20] - The Custom Solutions group may face impacts from tariffs, but there is potential for insourcing demand back into the U.S. to mitigate risks [21][23] Company Strategy and Development Direction - The company is focused on operational improvements and sharing best practices across segments, particularly in the extruded solutions group [24][25] - The resegmentation is expected to yield mid- to long-term growth opportunities, with a focus on innovation and process improvements [25] Management Comments on Operating Environment and Future Outlook - Management noted that both residential repair and remodel (R&R) and new construction markets are currently experiencing similar impacts, with R&R expected to lead any recovery [51][53] - The company anticipates stable material costs but expects continued inflationary pressure in specific areas, particularly oil-based products [35][36] Other Important Information - The company is balancing cash flow generation, stock repurchases, and debt paydown, with Q1 typically being a low cash flow period [12][56] - Incentive payouts for the executive team were lower than usual, which may positively impact cash flow in Q1 [57] Q&A Session Summary Question: Impact of Monterrey challenges on EBITDA - The negative EBITDA impact was confirmed to be $8 million, affecting margins in the Hardware Solutions segment [5] Question: Competitive response in the market - Management indicated no irrational pricing behavior has been observed, with supply chain risks being prioritized [19] Question: Expectations for product performance in 2026 - The Custom Solutions group may see impacts from tariffs, but there is potential for insourcing demand [21][23] Question: SG&A changes and outlook - SG&A is expected to be around $73 million, reflecting higher benefit costs and inflationary measures [33][34] Question: Pricing and cost outlook for 2026 - Pricing increases are primarily driven by inflationary pressures, with a strong ability to maintain prices due to cost support [48][50] Question: Cash flow expectations for Q1 - Slightly negative free cash flow is possible in Q1, depending on December and January performance [54][56]

Portfolio Overview - The company's Manhattan-focused real estate portfolio features an underlying tenant base in core commercial businesses, with 69% of the top 10 tenants being Investment Grade rated[2] - The portfolio occupancy rate is 80.9%, with a weighted-average remaining lease term of 6.2 years[5] - Over 56% of the leases expire after 2030[5] - The real estate investments are valued at $382.5 million[11] - The annualized straight-line rent is $28.8 million[11] Tenant Profile - The top 10 tenants are 69% Investment Grade rated, with 43.6% being actual Investment Grade and 25.4% being implied Investment Grade[3, 15] - The top 10 tenants have a remaining lease term of 7.1 years[5] - Government/Public Administration represents 27% of the tenant industry diversity[14] Financial Highlights - The company has a 100% fixed-debt capital structure with a weighted-average interest rate of 5.33%[5] - Net Leverage is 58.6%[5, 40] - Total debt is $251.0 million[35] - Revenue from tenants is $12.3 million for Q3 2025[35] - Net income is $35.8 million for Q3 2025[35] Active Portfolio Management - The company entered into an agreement for the consensual foreclosure of 1140 Avenue of the Americas, eliminating a $99 million debt maturity[5] - The company continued the marketing process for the dispositions of 123 William St and 196 Orchard St[5, 7]

Core Insights - The company reported earnings of $1.85 per share for the quarter, a significant improvement from a loss of $1.47 per share in the same quarter last year, with adjusted earnings per share at $2.24 compared to $1.99 previously [1] - Net sales increased by 4.2% year-on-year, driven by a 12% rise in shipments in European beverage, despite lower volumes in Latin America [1][4] - The company achieved a segment income of $490 million, up from $472 million in the prior year, reflecting operational improvements and increased volumes in Europe [1][8] - Free cash flow for the nine months ending September 30 improved to $887 million from $668 million, with a commitment to return excess cash to shareholders [1][8] - The company raised its full-year adjusted EPS guidance to a range of $7.7 to $7.8, projecting fourth-quarter adjusted EPS between $1.65 and $1.75 [1] Financial Performance - Earnings per share increased by 13% compared to the previous year, with strong demand in European beverage offsetting weaknesses in Latin America [2][8] - The company repurchased $105 million of common stock in the quarter and $314 million year-to-date, returning over $400 million to shareholders this year [1][8] - The company achieved its long-term net leverage target of 2.5 times in September, indicating a strong balance sheet [1][8] Market Dynamics - European beverage segment income rose by 27% year-on-year, supported by a 12% volume growth, while North American volumes were mixed, down 3% [5][8] - Latin American beverage volumes declined by 5%, primarily due to a 15% drop in Brazil and Mexico, attributed to consumer uncertainty and adverse weather conditions [4][5] - The company noted limited direct impacts from tariffs but remains cautious about indirect effects on global demand [1][8] Operational Insights - The company is focused on maintaining a healthy balance sheet while returning cash to shareholders, with expectations of continued operational improvements [1][8] - The North American food can segment benefited from strong harvest demand and efficiency improvements, contributing to better-than-expected results [7][8] - The company is optimistic about growth in Brazil for the fourth quarter and 2026, supported by government initiatives to lower interest rates [4][8] Future Outlook - The company expects to achieve approximately $1 billion in adjusted free cash flow for 2025 after capital spending of $400 million, with net leverage remaining close to the long-term target [1][8] - The long-term growth rate in Europe is anticipated to stabilize around 4% to 5%, with the company well-positioned to capitalize on market opportunities [12][24] - The company is exploring additional capacity in Europe and is modernizing facilities to enhance output and efficiency [54][65]

Financial Data and Key Metrics Changes - Earnings for the quarter were $1.85 per share compared to a loss of $1.47 per share in the prior year quarter, with adjusted earnings per share at $2.24 compared to $1.99 in the prior year quarter [4] - Net sales in the quarter increased by 4.2% compared to the prior year, driven by a 12% increase in shipments across European beverage [4] - Free cash flow improved to $887 million from $668 million in the prior year, reflecting higher income and lower capital spending [5] - Segment income was $490 million in the quarter compared to $472 million in the prior year, indicating year-on-year improvements in segment income, adjusted EBITDA, and free cash flow [5] Business Line Data and Key Metrics Changes - European beverage posted a record quarter with income 27% above the prior year, supported by 12% volume growth [13] - Americas beverage volumes were down 5% in the quarter, primarily due to a 15% volume decline across Brazil and Mexico [12] - North American volumes were mixed, down 3% overall, but showed a rebound of 3% in September [12] - Transit packaging income remained level to the prior year, with increased shipments offsetting the impact of lower equipment activity [13] Market Data and Key Metrics Changes - Delivered aluminum reached $2.1 per pound, up $0.74 per pound or 54% in the last ten months, impacting North American beverage margins [9][10] - European beverage growth was driven by market growth and substitution, with margins remaining strong despite lower Southeast Asian volumes [13][14] Company Strategy and Development Direction - The company is committed to maintaining a healthy balance sheet while returning excess cash to shareholders, having achieved its long-term net leverage target of 2.5 times [5][6] - The company expects to continue benefiting from strong demand in European beverage and improving cost structures across its operations [8][14] - The company is cautious about future growth rates, indicating that while 12% growth was achieved, historical growth rates in the can business are typically lower [22][47] Management's Comments on Operating Environment and Future Outlook - Management raised guidance for the full year adjusted EPS to $7.7 to $7.8, projecting fourth quarter adjusted EPS to be in the range of $1.65 to $1.75 [6] - Management noted limited direct impact from tariffs but remains attentive to indirect effects on global consumer and industrial demand [5][6] - The company expects fourth quarter in Brazil to return to growth, supported by government initiatives to lower interest rates [12] Other Important Information - The company repurchased $105 million of common stock in the quarter and $314 million year to date, returning more than $400 million to shareholders this year [5] - The company is monitoring the impact of the Novelis fire, which has a more significant effect on other customers but not directly on its operations [126] Q&A Session Summary Question: Growth in Europe and potential concerns about pre-buying - Management indicated that the growth in Europe is driven by underlying market growth and substitution, with historical growth rates expected to be around 4% to 5% [22][47] Question: Outlook for Americas EBIT and impact from Mexico and Brazil - Management confirmed that the EBIT target of $1 billion is still aspirational but achievable this year, with significant impacts from Brazil and Mexico noted [30] Question: North American market performance and promotional spending - Management acknowledged underperformance due to customer pruning but noted that the overall market was estimated to be up 2% [39][40] Question: Capacity and growth expectations in Europe - Management expressed confidence in their capacity to meet demand, with ongoing investments in new lines in Germany and Greece [85][86] Question: Capital allocation and share repurchase strategy - Management emphasized flexibility in capital allocation, with potential for share repurchases depending on market conditions [106][107]

Core Insights - The Royce Micro-Cap Trust, Inc. aims for long-term capital growth by investing primarily in equity securities of companies with market capitalizations of $1 billion or less [10] Performance Summary - As of August 31, 2025, the Net Asset Value (NAV) is $11.54, while the market price (MKT) is $10.17 [1] - The average annual total return for the Fund as of August 31, 2025, is as follows: - One-Month: NAV 7.25%, MKT 7.39% - Year to Date: NAV 9.64%, MKT 8.81% - One-Year: NAV 12.74%, MKT 12.85% - Three-Year: NAV 13.82%, MKT 13.45% - Five-Year: NAV 12.70%, MKT 13.69% - Ten-Year: NAV 11.35%, MKT 11.81% [1] Portfolio Diagnostics - The average market capitalization of the portfolio is $795.9 million [4] - The weighted average Price-to-Book (P/B) ratio is 1.9x [5] - The net assets of the Fund total $606.9 million, with a net leverage of 1.4% [4] Portfolio Composition - The top ten positions in the portfolio, each representing 1.2% of net assets, include: - CECO Environmental - Montrose Environmental Group - nLIGHT - NWPX Infrastructure - NPK International [6][8] - The top five sectors by percentage of net assets are: - Industrials: 27.8% - Information Technology: 20.1% - Financials: 17.1% - Health Care: 10.7% - Consumer Discretionary: 9.9% [9] Trading and Management - The average weekly trading volume of the Fund is approximately 580,845 shares [7] - The Fund's adviser has over 50 years of experience in small- and micro-cap investments [7]

Summary of Key Points from the Conference Call Industry Overview - The reports focus on the performance of hedge funds and mutual funds, analyzing $8 trillion of equity positions at the start of Q3 2025 [3][4] - Hedge funds have returned 8% YTD, while large-cap mutual funds have also returned 8% YTD, with 39% of large-cap mutual funds outperforming their benchmarks [3][5] Core Insights - Hedge funds and mutual funds have both navigated beta and alpha headwinds to generate solid YTD returns [5] - Mutual funds have cut cash allocations to near-record lows, while hedge fund net leverage remains near its 5-year average [3][11] - Health Care and Industrials are the most overweight sectors for both fund types, while Financials have seen increased exposure from both groups [3][17][19] - Mutual funds have reduced their exposure to the "Magnificent 7" stocks, increasing their underweights from 723 basis points in Q1 to 819 basis points [3][22] - Hedge funds have increased their exposure to the Magnificent 7, with the weight in their long portfolio rising from 11.8% in Q1 to 12.8% [3][22] Notable Stock Movements - COF has seen the largest increase in popularity among fund managers based on net changes in shares owned [3] - Seven "shared favorites" this quarter include APP, CRH, MA, SCHW, SPOT, V, and VRT, which have returned 20% YTD compared to 9% for the S&P 500 [3][22] Sector Positioning - Both hedge funds and mutual funds are underweight in Technology, with mutual funds carrying the largest underweight in Info Tech on record [17][18] - Financials dominate the list of stocks with the largest increase in hedge fund popularity, with FI, NU, and SSB joining COF and BRO among the most popular mutual fund increases [19] Performance Metrics - The Hedge Fund VIP basket has returned 13% YTD, while a basket of Concentrated Shorts has returned 8% YTD after a surge of more than 60% in recent months [5] - Mutual funds have seen a decline in cash balances to 1.4% of assets, nearly a record low [11][14] Economic Indicators - The median S&P 500 stock has a short interest of 2.3% of float, ranking in the 96th percentile relative to the last 5 years [11] - The S&P 500 is forecasted to have an EPS of $246 for 2024, with a year-over-year growth of 10% [29] Conclusion - The analysis indicates a cautious but optimistic outlook for hedge funds and mutual funds, with strategic positioning in sectors like Health Care and Industrials while navigating challenges in the Technology sector [3][17][19]

Core Insights - Ingevity Corporation (NGVT) reported a second-quarter 2025 loss of $146.5 million or $4.02 per share, an improvement from a loss of $283.7 million or $7.81 per share in the same quarter last year [1] - Adjusted earnings for the quarter were $1.39 per share, up from $1.01 a year ago, surpassing the Zacks Consensus Estimate of $1.02 per share [1][9] - Revenues decreased by 6.5% year over year to $365.1 million, primarily due to lower sales in the Performance Chemicals segment [2] Segment Performance - The Performance Chemicals division generated revenues of $167.9 million, down approximately 9.5% year over year, with Road Technologies sales at $119.5 million (down 7.4%) and Industrial Specialties at $48.4 million (down 14.2%) [3] - EBITDA for the Performance Chemicals segment increased by 244% to $32 million, attributed to successful repositioning and cost savings [3] - Performance Materials revenues fell by 2.1% year over year to $153.9 million, impacted by lower sales in Asia and Europe, while North America saw higher sales; segment EBITDA was $77.1 million, down 6.2% [4] - Advanced Polymer Technologies segment sales decreased by 9.6% to $43.3 million due to reduced customer demand, particularly in Europe, with segment EBITDA down 90.8% to $0.9 million [5] Financial Overview - Operating cash flow for the second quarter was $79 million, with free cash flow of $66.8 million; no share repurchases occurred during the quarter, leaving $353.4 million remaining under the current $500 million authorization [6] - Net leverage improved to 3x from 3.3x in the previous quarter [6] 2025 Outlook - NGVT has revised its 2025 EBITDA guidance upwards, now expecting adjusted EBITDA between $390 million and $415 million, compared to the previous range of $380 million to $415 million; sales estimates remain between $1.25 billion and $1.40 billion [7][9] Stock Performance - NGVT shares have increased by 50.8% over the past year, outperforming the industry average increase of 1.2% [8]