Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. Major U.S. equity indices delivered positive returns in the fourth quarter, while the Russell Midcap® Index return lagged with nominal positive gains. Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns. Investors’ focus on an optimistic 2026, and consensus outperformed ...

Financial Data and Key Metrics Changes - Babcock & Wilcox reported consolidated revenues of $587.7 million for 2025, a modest increase from $581 million in 2024 [14] - Adjusted EBITDA for the fourth quarter was 53% higher compared to the fourth quarter of 2024, while operating income increased by 373% year-over-year [12] - The company achieved a net debt of $119.7 million at the end of 2025, a significant improvement of $217.3 million compared to $337 million at the end of 2024 [13][16] Business Line Data and Key Metrics Changes - Parts and services revenues grew by over 17% in 2025, driven by increased coal generation usage and growing baseload demand in North America [5][14] - The backlog for continuing operations rose to $2.8 billion, a 470% increase compared to the end of 2024 [11] - The pipeline of over $12 billion grew by roughly 20% in 2025, even after converting the recent project to backlog [10] Market Data and Key Metrics Changes - Existing coal plants in the U.S. have been operating at less than 50%, with utilities reconditioning these plants to meet rising power demand [5] - The demand for power in North America is expected to continue growing, positioning Babcock & Wilcox to support AI data center expansion and increased baseload generation [6][10] Company Strategy and Development Direction - The company aims to capitalize on the growing global demand for baseload electrical generation, with a robust pipeline exceeding $12 billion in project opportunities [18] - Babcock & Wilcox is focusing on the AI data center space, with a significant contract valued at $2.4 billion to deliver 1.2 gigawatts of electricity [7][9] - The company is also exploring new power generation utilizing coal technologies, driven by rising demand for fossil fuel-based power generation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth prospects, anticipating strong financial performance throughout 2026 [18] - The company is confident in meeting construction timelines for the Base Electron project, leveraging previously engineered boilers to accelerate delivery schedules [27][28] - Management highlighted the importance of partnerships with manufacturers and labor unions to ensure timely delivery and project execution [19][50] Other Important Information - Babcock & Wilcox fully paid off outstanding bonds due in February 2026 and expects to pay off remaining bonds due in December 2026 [12][17] - The company is celebrating its 160th anniversary, reflecting on its historical milestones and innovations in power generation technologies [20] Q&A Session Summary Question: Can you talk about the dynamics of the Base Electron project and its timeline? - Management explained the transition from a limited notice to proceed to a full contract, emphasizing the variability in project scope and timelines [25][26] Question: What is the visibility into the guidance increase and expected contributions from the power generation project? - Management indicated that the guidance increase includes contributions from the power project, but specifics depend on cost recognition and project timelines [29][30] Question: Can you provide an update on the coal to gas project and its timeline? - Management confirmed that the project is on schedule, with completion expected in 2026 and into 2027 [36] Question: How mature are the discussions for other projects in the pipeline? - Management acknowledged that discussions are mature but did not provide specific timelines, indicating potential announcements in the coming weeks [59] Question: How significant has the announcement of the Applied contract been for attracting new interest? - Management noted a significant increase in inbound interest from various market participants following the announcement, indicating validation of their solutions [61][62]

Core Viewpoint - Journey Energy Inc. reported strong financial and operational results for the year ending December 31, 2025, highlighting a significant increase in net income and adjusted funds flow, despite a slight decline in sales revenue compared to the previous year [1][2]. Financial Highlights - Sales revenue for Q4 2025 was $45.7 million, down 4% from $47.5 million in Q4 2024; for the full year, revenue was $194.5 million, a 1% decrease from $197.1 million in 2024 [3]. - Net income surged to $9.7 million in Q4 2025, a 167% increase from $3.6 million in Q4 2024; for the year, net income reached $25.9 million, up 404% from $5.1 million in 2024 [3][21]. - Adjusted funds flow for Q4 2025 was $15.0 million, totaling $71.0 million for the year, reflecting a 37% increase from $51.7 million in 2024 [3][16]. - Basic earnings per share for Q4 2025 were $0.14, compared to $0.06 in Q4 2024; for the year, it was $0.39, up from $0.08 in 2024 [3][21]. - Capital expenditures for 2025 were $49.4 million, with a focus on Duvernay development [12][22]. Operational Highlights - Journey's daily sales volumes were 11,226 boe/d in Q4 2025, a 4% increase from 10,815 boe/d in Q4 2024; however, there was a 5% decrease from 11,862 boe/d in Q3 2025 due to asset dispositions and natural declines [11][16]. - The company drilled 8 (2.4 net) wells in the Duvernay play in 2025, contributing approximately 1,570 boe/d (79% liquids) to corporate sales volumes [5][7]. - Journey's net debt decreased by 16% from $60.3 million at the end of 2024 to $50.6 million at the end of 2025 [5][22]. Future Outlook - For 2026, Journey forecasts annual average daily sales volumes of 10,800-11,200 boe/d and capital spending of $70-85 million, with a focus on Duvernay development [25][23]. - The company plans to invest $50-65 million in Duvernay development in 2026, with significant infrastructure investments aimed at improving operational efficiency [8][10]. - Journey's future development costs for the Duvernay are estimated at $238 million, with 80% expected to be spent between 2026 and 2030 [7].

Core Insights - The company is at an 'inflection point' due to an unprecedented capital investment cycle in AI infrastructure, data centers, and power generation [1] - Successful execution of over $740 million in long-term contract awards since February 2025 validates the transition into high-growth end markets [1] - The launch of 'Target Hyperscale' utilizes a vertically integrated accommodations platform to provide speed-to-market solutions for remote infrastructure developments [1] Segment Performance - Performance in the WHS segment is driven by the need for high-quality workforce housing to attract and retain skilled labor in increasingly remote project locations [1] - The HFS segment remains a stable cash flow generator with renewal rates above 90%, providing the financial foundation to fund expansion into the WHS vertical [1] Financial Insights - Recent margin compression is attributed to lower-margin construction services and initial mobilization costs, which are expected to normalize as contracts shift to services-based revenue [1]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenues were $37.7 million, representing a 12% increase year-over-year, primarily driven by the Industrial Solutions segment, which saw a 60% revenue increase [11] - Adjusted EBITDA declined to $1.9 million from $2.1 million in the prior year, mainly due to lower capacity utilization in the Gearing segment and operational inefficiencies related to raw material supply issues [11][12] - The company ended 2025 with approximately $26 million in backlog, a level not reached since 2023 [15] Business Line Data and Key Metrics Changes - Gearing segment orders increased by 38% year-over-year to nearly $9.7 million, driven by strength in power generation and oil and gas [5][14] - Industrial Solutions segment revenue grew 60% year-over-year to $9.4 million, reflecting strong demand in natural gas turbine equipment [9][17] - Heavy Fabrications segment revenue grew by 6% year-over-year to $21.6 million, primarily due to increased sales of wind towers and repowering adapters [8][13] Market Data and Key Metrics Changes - Demand conditions were strong across Gearing and Industrial Solutions segments, with robust project activity noted [5] - The backlog for Industrial Solutions reached a record $38.1 million, indicating strong future demand [16] - The company anticipates continued domestic onshore wind tower activity through 2026 and into 2027 [23] Company Strategy and Development Direction - The company is focusing on stable, growing power generation markets, emphasizing oil and gas, renewables, and potentially nuclear [19] - Strategic actions include divesting non-core operations to optimize asset base and redeploy capital towards higher value opportunities [4][10] - The company aims to expand capabilities in precision manufacturing and is actively pursuing M&A opportunities in power generation and critical infrastructure [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in the Gearing segment, supported by a strong backlog [30] - The company expects to maintain a revenue growth rate of around 20% year-over-year, driven by favorable market conditions and strong demand in key segments [55] - Management highlighted the importance of domestic manufacturing as a competitive advantage in the current trade policy environment [10][24] Other Important Information - The company is implementing an ISO 45001 Occupational Health and Safety Readiness Program to enhance its safety standards [24] - The company has made significant investments in equipment and staffing to double capacity in the Industrial Solutions segment [8][45] Q&A Session Summary Question: Can you discuss the Gearing segment's growth expectations for 2026? - Management expects significant growth in the Gearing segment, with double-digit growth anticipated due to a strong backlog [30][31] Question: What steps are being taken to improve throughput in the Gearing segment? - Management indicated that execution is key, with a ramp-up expected in Q1 and steady revenue anticipated throughout the year [33] Question: What is the capacity outlook for the Industrial Solutions segment? - Management stated that the existing facility could potentially support revenue in the $70 million range, with strong demand expected through 2030 [45][46] Question: How is the Heavy Fabrications segment performing in terms of backlog and demand? - Management noted good visibility for tower production into Q3 2026, with consistent demand expected [48][49] Question: Are there any new opportunities in the oil and gas sector due to recent market volatility? - Management reported increased inquiries and substantive orders from multiple customers in the oil and gas space [57]

Core Insights - Flowserve Corp. (FLS) is optimistic about power generation opportunities in 2026, expecting double-digit earnings growth [1][6] - The company is a leading provider of fluid motion and control products, operating in over 50 countries [1] Financial Performance - Flowserve reported Q4 2025 earnings of $1.11, beating the Zacks Consensus of $0.94 by $0.17, marking the fourth consecutive earnings beat [2] - Q4 bookings reached $1.2 billion, a 2.9% increase, with aftermarket growth of 10.4% to $682 million [2] Future Guidance - The company has provided an optimistic guidance for 2026, with earnings estimates revised up to $4.11 from $3.93, indicating a 12.4% growth from last year's earnings of $3.64 [4] - For 2027, the Zacks Consensus has increased to $4.67 from $4.26, reflecting a 14.2% earnings growth [5] Market Position - Flowserve is involved in the AI infrastructure sector through power generation, which is currently a hot market [6] - The company's shares recently reached a 5-year high but experienced an 8% pullback due to market volatility, although they remain up double digits year-to-date [8] Valuation and Shareholder Returns - Flowserve is attractively priced with a forward P/E ratio of 21, compared to other AI infrastructure stocks trading in the 30s [11] - The company announced a 5% increase in its quarterly dividend to $0.22, yielding about 1%, indicating a shareholder-friendly approach [11]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved record revenues of $2.9 billion, up 12% year-over-year, and record Adjusted EBITDA of $583 million, up 30% [4] - The Adjusted EBITDA margin reached 20.2%, an increase of 280 basis points compared to the previous year [4] - Fourth quarter Adjusted EBITDA increased 13%, with margin expanding by 90 basis points [6] Business Line Data and Key Metrics Changes - In construction products, fourth quarter segment revenues decreased by 2%, but excluding freight, revenues increased by 4% [9] - The aggregates business, which represents approximately 60% of construction materials revenues, achieved 10% growth in cash unit profitability in 2025 [5] - Engineered structures segment revenues increased by 15%, led by a 20% increase in utility and related structures [12] Market Data and Key Metrics Changes - The company ended 2025 with a backlog for utility and related structures of $435 million, up 5% from the start of the year [13] - Customer reservations for utility structures remain strong, providing additional confidence in the demand outlook [13] - Wind tower orders received during the fourth quarter amounted to $190 million, primarily for 2027 delivery [14] Company Strategy and Development Direction - The company announced a definitive agreement to sell its Barge business for $450 million, which is expected to close in the second quarter of 2026 [7] - Post-divestiture, the company will focus entirely on construction materials and engineered structures, aligning with long-term infrastructure and power market tailwinds in the U.S. [8] - The company anticipates another record year for its growth businesses in 2026, with combined double-digit Adjusted EBITDA growth and margin uplift [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the wind industry, despite a short-term step down in wind towers expected in 2026 [41] - The company expects solid infrastructure demand to drive roughly 45% of segment revenues in 2026, supported by IIJA funding [22] - Management highlighted the importance of adapting to increased power demand and the need for larger utility poles to meet customer requirements [67] Other Important Information - The company generated $120 million of operating cash flow in the fourth quarter, with free cash flow for the full year amounting to $202 million [15] - The company ended the year with net debt to Adjusted EBITDA of 2.3x, down from 2.9x at the start of the year [17] - For 2026, the company expects capital expenditures to be between $220 million and $250 million [17] Q&A Session Summary Question: Thoughts on redeploying proceeds from the barge sale - Management indicated that there might be some debt reduction in the short term, followed by an active pipeline of M&A opportunities primarily within current markets [35][36] Question: Expectations for utility structures growth - Management confirmed strong underlying demand for utility structures, with expectations for double-digit volume increases and pricing growth in 2026 [46][49] Question: Impact of weather on Q1 performance - Management noted that cold and snowy weather in the Northeast would likely impact Q1 performance, reducing its contribution to annual EBITDA [56] Question: Gross profit per ton expectations for aggregates in 2026 - Management expects solid unit profitability gains for 2026, with mid-single-digit pricing and low single-digit volume growth [58] Question: Transitioning wind tower facility to utility structures - Management stated that the transition would start contributing in the second half of 2026, with a smoother ramp-up expected due to existing skilled labor [51][80]

Financial Data and Key Metrics Changes - In Q4 2025, the company recorded revenue of $700,000 from R&D services, a decrease from $1.5 million in Q4 2024, with a gross margin gain of $100,000 in the previous year [26] - Total operating expenses for Q4 2025 were $15 million, down from $17.2 million in Q4 2024, driven by lower R&D and SG&A costs [27] - The net loss for Q4 2025 was $13.2 million, an improvement from $14.4 million in Q4 2024 [27] - For the full year 2025, total revenue was $3.5 million, compared to $1.5 million in 2024, with a net loss of $57.2 million, up from $52 million in 2024 [28] Business Line Data and Key Metrics Changes - The company has made significant progress in UL certification for the KARNO Power Module, nearing completion of testing for the full module after successfully completing tests for the linear electric motor and battery pack [6][8] - The company achieved over 175 kW of power production in testing, with expectations to reach the full 200 kW design power rating by year-end [9][10] Market Data and Key Metrics Changes - The company has nearly 500 units under non-binding letters of intent, indicating strong demand across commercial, data center, and military markets [12] - The data center market is seeing particularly strong long-term interest, with a shift towards 800V DC architectures for next-generation AI facilities [13][14] Company Strategy and Development Direction - The company is focused on transitioning from development to real-world field deployments and commercialization, with plans to deploy approximately 10 early adopter units prior to commercialization [12][13] - A strategic partnership with ABM Industries aims to support the deployment of integrated distributed energy solutions, enhancing customer access across various applications [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving UL certification for early adopter units in Q2 2026, which will enable broader customer site deployments [21] - The company anticipates generating approximately $10 million in revenue during 2026 from a combination of commercial customer activity and R&D service contracts [32] Other Important Information - The company operates more than 30 additive manufacturing machines and plans to optimize printer throughput to meet production needs for 2026 and 2027 [19][20] - The company has made progress in mitigating supply chain risks related to magnet supply, improving confidence in supporting planned production [20] Q&A Session Summary Question: About commercialization and end markets for units - Management highlighted military applications as a major focus, with additional opportunities in prime power and data centers [37] Question: Manufacturing capacity and costs - Management indicated that improvements in printer speed and throughput are the current focus, with confidence in production capacity for 2026 and 2027 [39][40] Question: Potential military revenue opportunities - Management clarified that the $40 million-$50 million potential is focused on additional applications and unique development for the military [45] Question: Comparison of KARNO technology with competitors - Management provided insights on cost comparisons with internal combustion engines and fuel cells, emphasizing the efficiency and lower maintenance of the KARNO system [48][49] Question: ABM partnership details - Management described ABM's expertise in power generation and their role in site engineering and Energy-as-a-Service solutions [52][53]

4q25 AND full year Earnings call KARNOTM PRODUCT DEVELOPMENT Power System & Performance UL Certification February 25, 2026 DISCLAIMER The information in this presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this presentation, regarding Hyliion and its future financial and operational ...

Financial Data and Key Metrics Changes - The fourth quarter revenue was almost $1.9 billion, an increase of $116.4 million or almost 7% compared to the prior year, driven by growth in both the Energy and Utility segments [25] - Gross profit for the fourth quarter declined by $9.6 million, or approximately 5% to $175 million, with overall gross margins at 9.4%, down from 10.6% in the prior year [25][26] - For the full year 2025, revenue was up $1.2 billion to almost $7.6 billion, primarily driven by double-digit growth in both segments [27] Business Line Data and Key Metrics Changes - In the Utility segment, revenue was up $253 million or a little over 10% from the prior year, driven by growth across all business lines, particularly in gas operations and power delivery [28] - The Energy segment revenue grew almost 25%, primarily driven by renewables, partially offset by a challenging year in pipeline services [16] - Renewables grew over 50% in 2025, with significant revenue pulled forward into 2025 due to project resequencing [29] Market Data and Key Metrics Changes - The company finished the year with over $11.9 billion in total backlog, including nearly $3 billion of new work booked in the final quarter [9][33] - The average increase in CapEx by the largest utility customers suggests around a 50% increase in spending over the next five years compared to the previous five years [10] - The demand for trusted, experienced, and quality contractors is increasing, particularly in solar, natural gas generation, and power delivery [7] Company Strategy and Development Direction - The company is focused on attracting, retaining, training, and developing its workforce to meet the ambitious goals of clients and community shareholders [11] - Primoris aims to improve margins, generate cash flow, and be the best allocators of capital in the industry [37] - The company plans to invest in a new facility for its Premier PV business line in 2026 to increase capacity and align with customer demand [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of power demand, projecting a potential 50% increase over the next decade [9] - The company is optimistic about pipeline activity accelerating due to rising natural gas needs and a favorable regulatory environment [16] - Management acknowledged operational challenges in 2025 but expects margins to improve in 2026 as excess costs are addressed [20] Other Important Information - The company increased its labor force by more than 2,800 people in 2025 to meet client needs [12] - SG&A expenses in the fourth quarter were just over $97 million, essentially flat compared to the prior year, with a full-year SG&A of 5.3% of revenue, down from 6% [29] - The effective tax rate in 2025 was 28.4%, with expectations of 29% for 2026 [31] Q&A Session Summary Question: Gas generation business bidding activity - Management indicated that the $1.5 billion-$2 billion bidding activity would have a meaningful burn in 2026, with a strong end market and capital expenditure [40][41] Question: Challenges in renewables projects - Management explained that challenges arose from underestimating geotechnical conditions, leading to cost overruns, but confidence was expressed in remedial measures taken [44][45] Question: Execution focus for 2026 - Management emphasized the importance of execution efficiency, better estimating, and project controls as key areas for improvement [50][51] Question: Guidance coverage and backlog - Management stated that while strong backlog supports guidance, additional bookings are needed, particularly in pipeline projects [52][54] Question: Utility segment developments - Management highlighted Texas as a fertile location for energy markets, with strong relationships and opportunities for power generation and data center clients [60][61] Question: Growth in renewables for 2026 - Management expressed confidence in continued growth in renewables, particularly in battery storage combined with solar modules [70][71]