Reliance (NYSE:RS) Q4 2025 Earnings call February 19, 2026 11:00 AM ET Speaker7Greetings, and welcome to the Reliance, Inc. fourth quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. Should anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando, ...

INVESTOR PRESENTATION February 2026 1 FEBRUARY 2026 PRESENTATION FEBRUARY 2026 PRESENTATION 2 INVESTMENT HIGHLIGHTS INVESTMENT HIGHLIGHTS Leading designer and manufacturer of pumps and pump systems with over 90 years of experience Reputation for quality products and outstanding customer first service is a competitive advantage Primarily U.S. based supply chain and manufacturing Highly diversified markets and products with significant presence in Fire Suppression, Industrial, Agriculture, Construction, Munic ...

Core Insights - Capri Holdings Limited (CPRI) reported better-than-expected third-quarter fiscal 2026 results, with revenues and earnings exceeding the Zacks Consensus Estimate, despite a year-over-year decline in top line [1][12] Financial Performance - Adjusted earnings were 81 cents per share, surpassing the Zacks Consensus Estimate of 78 cents, and increased from 63 cents in the prior year [2] - Total revenues reached $1,025 million, exceeding the Zacks Consensus Estimate of $998 million, but declined 4% year over year on a reported basis and 5.9% on a constant-currency basis [3] - Gross profit decreased to $623 million from $674 million in the year-ago quarter, with gross margin contracting 230 basis points to 60.8% [4] - Operating income rose to $46 million from $26 million a year ago, with the operating margin improving 210 basis points to 4.5% [4] Segment Performance - Revenues from Michael Kors declined 5.6% year over year to $858 million, but were better than the Zacks Consensus Estimate of $846 million, with operating income at $119 million [5] - Jimmy Choo's revenues increased 5% year over year to $167 million, surpassing the Zacks Consensus Estimate of $152 million, with an operating income of $3 million [6] Financial Health - Capri Holdings ended the quarter with cash and cash equivalents of $154 million and total borrowings of $234 million, resulting in net debt of $80 million, a significant improvement from $1.17 billion a year earlier [7] - Operating cash flow for the quarter was $271 million, leading to robust free cash flow of $252 million [7] Strategic Developments - The company completed the sale of its Versace business to Prada, focusing on core brands Michael Kors and Jimmy Choo, using proceeds to reduce debt and enhance financial flexibility [8][9] Outlook - For fiscal 2026, Capri Holdings expects total revenues between $3.45 and $3.475 billion, with adjusted earnings projected in the range of $1.30-$1.40 per share [10] - Revenues for Michael Kors are projected between $2.86-$2.875 billion, while Jimmy Choo revenues are expected in the range of $590-$600 million [11]

Financial Data and Key Metrics Changes - Total revenues reached almost $4 billion, increasing 16.3% year-over-year, driven by a 20.3% rise in the passenger segment [10] - Adjusted EBITDA for the quarter was $1.1 billion, representing a 30.4% increase compared to 4Q 2024, while net income totaled $484 million, increasing 78.1% year-over-year [10] - Adjusted operating margin improved to 16.7% for the quarter and 16.2% for the full year, reflecting a 3.5 percentage point margin expansion [10][19] Business Line Data and Key Metrics Changes - The group transported over 87 million passengers in 2025, with 23 million in the 4th quarter, supported by an 8.2% capacity increase for the year [5][6] - Passenger RASC increased by 11.7%, indicating strong demand and effective pricing strategies [11] - Cargo revenues declined 9.6% in the 4th quarter due to a high comparison base from 2024, but full-year cargo revenues increased year-over-year [10] Market Data and Key Metrics Changes - Domestic capacity in Brazil expanded by 12%, with passenger RASC growth of 14% in U.S. dollars [12] - In domestic Spanish-speaking markets, passenger RASC grew by 23% in dollars, driven by disciplined capacity allocation [13] - International segment capacity and passenger volumes grew at a high single-digit pace, maintaining a healthy load factor of 85% [13][14] Company Strategy and Development Direction - LATAM's strategy focuses on enhancing customer experience, operational efficiency, and disciplined cost control, supported by a strong balance sheet [4][8] - The company plans to invest in customer experience improvements, fleet renewal, and digital transformation initiatives [22][26] - LATAM aims for continued profitable growth in 2026, projecting capacity growth of 8%-10% and an adjusted operating margin between 15%-17% [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand outlook for 2026, with no significant concerns noted for the first quarter [33] - The company highlighted the importance of a strong local currency for its operations, as most revenues are in local currency while a significant portion of costs is in dollars [36] - LATAM enters 2026 with solid momentum and a strong foundation to create long-term value, despite potential fuel and currency volatility [8][29] Other Important Information - LATAM generated $1.4 billion in cash after covering business-related commitments, with a total of $605 million in dividends distributed for the year [22][29] - The company received 26 aircraft in 2025 and expects to receive 41 aircraft in 2026, with a CapEx plan of $1.7 billion net of financing [26][39] Q&A Session Summary Question: Can you provide additional details on how yields are tracking across the regions? - Management noted strong and stable demand across all business areas, with a slight slowdown in domestic Chilean demand towards the end of 2025, but recovery is expected in early 2026 [32] Question: How should we think about the impact of a weaker US dollar on LATAM's performance? - A stronger local currency is generally more positive for LATAM, as most revenue is in local currency while costs are in dollars, benefiting domestic markets [36] Question: Can you clarify the impact of the $400 million dividend on net debt? - The dividend distribution was not included in previous guidance, leading to a net debt increase above expectations [48] Question: What is the expected deployment strategy for the new Embraer E2 aircraft? - The E2s will be deployed in Brazil's domestic market, targeting new routes and increasing frequency on existing routes [52] Question: How do you see cargo yields evolving in 2026? - Management does not foresee significant issues in cargo demand, with expectations for stable unit revenues despite seasonal fluctuations [60]

Financial Data and Key Metrics Changes - Total revenues reached almost $4 billion, increasing 16.3% year-over-year, driven by a 20.3% rise in the passenger segment [11] - Adjusted EBITDA for the quarter was $1.1 billion, representing a 30.4% increase compared to Q4 2024 [11] - Net income totaled approximately $484 million, increasing 78.1% compared to the same quarter last year [11] - Adjusted operating margin improved to 16.7% for the quarter, with a full-year adjusted operating margin of 16.2%, reflecting a 3.5 percentage point increase year-over-year [11][19] Business Line Data and Key Metrics Changes - The passenger segment saw a revenue increase of 20.3%, while cargo revenues declined by 9.6% due to a high comparison base from Q4 2024 [11] - LATAM Airlines Brazil's domestic capacity expanded by 12%, with passenger RASC growing by 14% in U.S. dollars [13] - In domestic Spanish-speaking affiliate markets, passenger RASC grew by 23% in dollars, driven by disciplined capacity allocation [14] - International segment capacity and passenger volumes grew at a high single-digit pace, with unit revenues increasing by 6% [14] Market Data and Key Metrics Changes - The group transported more than 87 million passengers during 2025, with 23 million in Q4 alone, supported by an 8.2% capacity increase for the year [6][11] - The Net Promoter Score reached a record 54 points, a three-point increase from 2024, indicating strong customer satisfaction [6] - The Organizational Health Index reached 83 points, placing LATAM Group in the top decile of the global benchmark for the first time [6] Company Strategy and Development Direction - LATAM's strategy focuses on people, customer experience, disciplined cost control, and a resilient balance sheet, which has led to consecutive years of margin expansion [9][19] - The company plans to continue investing in customer experience, fleet renewal, and efficiency-focused innovations in 2026 [26] - LATAM aims to grow capacity by 8%-10% in 2026 while maintaining an adjusted operating margin between 15%-17% [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance despite fuel and currency volatility, expecting strong performance in 2026 [9][20] - The booking curve for early 2026 looks healthy, with no concerns regarding demand across all segments [33] - The company anticipates stable corporate demand and continued market share growth in the corporate sector [78] Other Important Information - LATAM generated $3.3 billion in adjusted operating cash flow during 2025, enabling significant capital allocation initiatives [20] - The company distributed $400 million in interim dividends in Q4, bringing total dividends for the year to approximately $605 million [21] - LATAM's liquidity reached $3.7 billion by the end of 2025, with adjusted net leverage at 1.5 times, below the maximum policy level [24] Q&A Session Summary Question: Can you provide additional details on how yields are tracking across the regions? - Management noted strong and stable demand across all business areas, with a slight slowdown in domestic Chilean demand towards the end of 2025, but recovery is expected in early 2026 [31][33] Question: How should we think about the impact of a weaker US dollar on LATAM's performance? - A stronger local currency is generally more positive for LATAM, as most revenue is in local currency while a significant portion of costs is in dollars [36] Question: Can you refresh us on how we should think about CapEx in 2026? - LATAM expects to receive 41 aircraft in 2026, with CapEx projected at $1.7 billion net of financing [38] Question: Can you elaborate on the net debt coming in at $5.9 billion, which was above guidance? - The difference was primarily due to the $400 million dividend distribution, which was not included in the previous guidance [50][51] Question: What is the breakdown of LATAM's debt? - Almost 100% of LATAM's debt is in U.S. dollars, with only a small portion in local currency [87]

Core Viewpoint - ExxonMobil has revised its 2030 outlook, expecting to achieve $25 billion in additional earnings and $35 billion in incremental cash flow, reflecting a more optimistic view than previously stated [2][5]. Group 1: Financial Projections - The updated plan indicates a $5 billion increase in both earnings and cash flow compared to last year's projections, positioning Exxon to grow earnings by an average of 13% per year and deliver double-digit annual cash flow growth [5]. - ExxonMobil can achieve this growth without increasing its capital spending, which will remain within the target range of $28 billion to $33 billion annually from 2026 through 2030 [7]. Group 2: Operational Efficiency - The company expects to generate over $14 billion in earnings growth from its upstream production business by 2030, primarily driven by its operations in the Permian Basin [8]. - ExxonMobil anticipates capturing an additional $2 billion in structural cost savings, leading to a total of $20 billion in cumulative cost savings from its 2019 baseline [9]. Group 3: Strategic Investments - ExxonMobil is investing in large-scale projects aimed at expanding production in higher-value fuels, performance chemicals, and lubricants, as well as new technologies like Proxxima [10]. - The company is also developing the world's first large-scale, end-to-end carbon capture and storage system along the U.S. Gulf Coast, which is expected to significantly contribute to earnings growth [10]. Group 4: Market Position - ExxonMobil has transformed into an industry leader in profitability, particularly due to its large-scale operations in the Permian Basin, positioning it to create more shareholder value in the future [11].

Core Viewpoint - ABN AMRO Bank N.V. has reached an agreement to acquire NIBC Bank from Blackstone, aiming to enhance its retail banking scale and strengthen its position in the Dutch market [1][3]. Company Overview - NIBC Bank, established in 1945, is a Dutch-focused entrepreneurial bank specializing in mortgage lending, savings products, commercial real estate, and digital infrastructure lending, serving approximately 325,000 savings clients, 200,000 mortgage clients, and 175 corporate clients [2]. Strategic Rationale - The acquisition is seen as a unique opportunity to bolster ABN AMRO's position in the Dutch retail market and contribute to profitable growth, aligning with the bank's new strategy focused on profitable growth, cost optimization, and capital allocation [3]. - The transaction is expected to enhance ABN AMRO's profitability, with an anticipated return on invested capital of around 18% by 2029, and is projected to have a positive impact on the bank's CET1 ratio of approximately 70 basis points at closing [3][4]. Operational Changes - Following the acquisition, ABN AMRO plans to focus on its core mortgage brands, ABN AMRO and Florius, while discontinuing the Moneyou brand, allowing for the potential inclusion of NIBC's mortgage label [5]. - The acquisition will also increase ABN AMRO's scale in the Dutch, German, and Belgian savings markets, with potential synergies being explored through a combination with its investment offering at BUX [6]. Transaction Details - The acquisition price is estimated at around EUR 960 million, based on 0.85 times the book value of NIBC's shareholders' equity as of the closing date, and is subject to regulatory approvals and works councils consultation processes [3][4].

Core Insights - Bank of Marin Bancorp (NASDAQ:BMRC) reported an earnings per share (EPS) of $0.47 for Q3 2025, exceeding the estimated $0.42, resulting in an 11.9% earnings surprise [2] - The company experienced a significant year-over-year EPS increase from $0.28, indicating strong profitability growth [2][5] - Despite the positive EPS results, BMRC's revenue for the quarter was approximately $28.19 million, which fell short of the estimated $30.92 million [3] Financial Performance - BMRC showcased a 14.5% increase in year-over-year revenue, reflecting its ability to grow its top line despite missing revenue estimates [5] - The price-to-earnings (P/E) ratio is around 41.40, indicating that investors are willing to pay a premium for the company's earnings [3] - The price-to-sales ratio stands at 3.08, suggesting a relatively high valuation compared to sales [3] Financial Health - The company maintains a low debt-to-equity ratio of 0.044, indicating minimal reliance on debt [4][5] - A high current ratio of 80.64 suggests strong liquidity, enabling BMRC to effectively cover its short-term liabilities [4][5] - These financial metrics highlight the company's solid financial foundation and potential for future growth [4]

Financial Data and Key Metrics Changes - Total revenue for the third quarter of fiscal 2025 increased by 16% to $5.9 million compared to $5.1 million in the prior year [14] - GAAP net income rose from $1.6 million to $2 million, reflecting a 27% increase [16] - Earnings per share increased to $0.10 from $0.08, marking a 25% rise [17] - For the fiscal year to date, total revenue increased by 10.3% to $16.8 million [18] Business Line Data and Key Metrics Changes - Recurring revenue increased by 15% to $5.8 million, although the percentage of recurring revenue to total revenue declined from 99% to 98% due to accelerated customer onboarding [15] - Income from operations increased by 43% from $1.3 million to $1.8 million [16] - The company is experiencing growth across all lines of business, including traceability, compliance, and supply chain [11][28] Market Data and Key Metrics Changes - The FDA extended the enforcement deadline for compliance by 30 months, allowing more time for smaller distributors and producers to meet requirements [21] - Major retailers are prioritizing food safety and investing in food traceability, which is driving market adoption [23] Company Strategy and Development Direction - The company aims to grow annual revenue at a double-digit pace of 10% to 20% while increasing profitability even faster [6][28] - The strategy includes exceptional customer care, flawless execution, and balancing costs with opportunities [13][20] - The company is focused on cross-selling initiatives, leveraging a single technology platform to enhance operational efficiencies [25][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued revenue growth and cash generation, with expectations to return about 50% of annual cash from operations to shareholders [30] - The company is optimistic about its ability to grow revenue and earnings, with a focus on maintaining customer service quality [29][31] Other Important Information - The company has over $28 million in cash as of March 31, 2025, after returning more than $25 million to shareholders through dividends and stock buybacks [17][20] - The company plans to continue its capital allocation strategy, focusing on returning capital to shareholders while building cash reserves [20][59] Q&A Session Summary Question: Impact of tariffs on the business - Management indicated that tariffs introduce uncertainty but have not significantly impacted business operations [33][34] Question: Changes in cost structure and profitability - Management stated that while they will continue to invest in awareness and automation, the cost structure is not expected to change significantly [35][36] Question: Contribution margin on incremental revenue - Current contribution margin is approximately 50%, with a goal to increase it to 70-80% as onboarding costs flatten [40] Question: Growth of other initiatives and cross-selling - Management highlighted that cross-selling is becoming more effective, with growth across various business lines [41][49] Question: Capital allocation plans and M&A strategy - The company prefers building applications in-house rather than acquiring technologies, focusing on domain knowledge and customer acquisition [51][52]

Financial Data and Key Metrics Changes - AMERISAFE reported a net income of $13.2 million or $0.69 per diluted share for Q4 2024, down from $19.2 million or $1 per diluted share in Q4 2023 [13] - For the full year, net income was $55.4 million compared to $62.1 million in 2023, while net operating income decreased to $48.4 million from $55.9 million [14] - Gross premiums written increased by 3.9% in Q4 and 3.1% for the full year, with net premiums earned growing by 1.2% in Q4 and 1.3% for the year [6][14] - The combined ratio was reported at 88.7% with a return on equity (ROE) of 20.2% [8] Business Line Data and Key Metrics Changes - Voluntary premiums on policies written rose by 8.5% in Q4 and 4.6% for the year compared to 2023, with enforced policy count growing by 9.6% [6][7] - The accident year loss ratio remained steady at 71% for the full year, consistent with the prior year [10] Market Data and Key Metrics Changes - The company experienced strong premium retention with a policy retention rate of 94.1% on a policy basis and 88% on a premium basis for the quarter [37] - The investment portfolio had a net investment income decrease of 14.4% to $6.9 million for Q4 and 6.8% to $29.2 million for the full year [17] Company Strategy and Development Direction - AMERISAFE is focused on top-line growth while maintaining consistent underwriting margins, emphasizing profitable growth in a competitive landscape [6][11] - The company aims to improve agent relationships and enhance its sales-driven culture to capitalize on profitable opportunities [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitable growth despite industry-wide challenges, including rate reductions [7][11] - The company anticipates favorable development from prior accident years and aims to continue identifying profitable high-risk opportunities [10][11] Other Important Information - The Board of Directors approved a 5.4% increase in the regular dividend to $0.39 per share [11] - The investment portfolio is high quality with an average AA- credit rating and a duration of 4.4 years [19] Q&A Session Summary Question: Can you provide context on the policy count growth of 9.6%? - Management clarified that the 9.6% growth was for the entire year, with a 2.6% growth in the fourth quarter [24][28] Question: How has the average size per policy trended? - The average policy size for 2024 was slightly lower than in 2023, with a noted slowdown in average wages in Q4 [34] Question: What impact did renewal rates have on the top line? - Renewal rates were strong, with a policy retention rate of 94.1% and premium retention at 88% [37] Question: How are the claims from 2021 and 2022 shaping up? - Management indicated that 2021 and 2022 are expected to be good accident years, with favorable development from these years [39] Question: What is the outlook for the construction industry? - Management believes the construction industry remains strong, with continued payroll growth and opportunities for business [74][79] Question: Any updates on large claims for the year? - The company ended the year with 18 claims over a million dollars, which is consistent with the five-year average [81] Question: How is medical inflation affecting costs? - There have been no significant developments regarding medical inflation, but home health costs are being monitored closely [86] Question: What is the outlook for audit premiums? - Management expects audit premiums to remain positive in 2025, despite potential deceleration in year-over-year comparisons [100][102] Question: Have competitors become more aggressive in the workers' comp market? - The market remains competitive, but AMERISAFE is prepared for competitors entering the high hazard space [104]