HIVE Digital Technologies (NasdaqCM:HIVE) Q2 2026 Earnings Call November 17, 2025 08:00 AM ET Company ParticipantsAydin Kilic - CEO and PresidentFrank Holmes - Executive ChairmanBill Papanastasiou - Director of Equity ResearchDarcy Daubaras - CFONathan Fast - Director of Marketing and BrandingJoe Vafi - Managing Director of Equity ResearchConference Call ParticipantsFedor Shabalin - Equity Research AnalystMike Grondahl - Senior Research AnalystChris Brendler - Senior Research AnalystDarren Aftahi - Research ...

HIVE Digital Technologies (NasdaqCM:HIVE) Q2 2026 Earnings Call November 17, 2025 08:00 AM ET Company ParticipantsAydin Kilic - CEO and PresidentFrank Holmes - Executive ChairmanBill Papanastasiou - Director of Equity ResearchDarcy Daubaras - CFONathan Fast - Director of Marketing and BrandingJoe Vafi - Managing Director of Equity ResearchConference Call ParticipantsFedor Shabalin - Equity Research AnalystMike Grondahl - Senior Research AnalystChris Brendler - Senior Research AnalystDarren Aftahi - Research ...

Are you worried about the air froth. So, you know, there's something by the way, this is a time of year. You tend to get momentum, gets chased out of the markets, particularly today, where you have ambiguity around some trends that are taking place.So, by the way, I know I don't think it's an air bubble and I don't think there's too much froth in depending on where you go. If you look at some of the big hyperscalers that trade at 22 to 25, 26 times earnings and they throw off ROIC return on equity of 30, 35 ...

Core Viewpoint - AeroVironment's stock price has surged by 106% in the past six months, reaching $328.82 per share, prompting investors to consider their next moves [1] Group 1: Profitability Concerns - AeroVironment's operating margin has decreased by 9.4 percentage points over the last five years, raising concerns about its expense management despite revenue growth [4] - The company's operating margin for the trailing 12 months stands at negative 4.7%, indicating rising costs that could not be passed onto customers [4] - The free cash flow margin has dropped by 25.6 percentage points over the last five years, with a current margin of negative 17.8%, suggesting increasing capital intensity [6] Group 2: Growth Efficiency - AeroVironment's five-year average Return on Invested Capital (ROIC) is negative 2.3%, indicating that management has lost money while attempting to expand the business [8] - The company's returns are among the worst in the industrials sector, highlighting inefficiencies in growth initiatives [8] Group 3: Valuation Perspective - Following the recent stock surge, AeroVironment trades at a forward P/E ratio of 76.9, suggesting that much of the positive outlook is already priced in [9] - Analysts recommend exploring better investment opportunities elsewhere, particularly in digital advertising [9]

Core Insights - NFI Group Inc. reported significant improvements in deliveries, revenue, free cash flow, adjusted EBITDA, and liquidity, with a total backlog of $13.2 billion [1][5][15]. Financial Performance - Deliveries reached 1,114 equivalent units (EUs), a 12.1% increase from 994 EUs in Q3 2024 [3][5]. - Revenue for Q3 2025 was $879.9 million, representing a 23.7% year-over-year increase from $711.3 million in Q3 2024 [3][5]. - The company recorded a net loss of $140.9 million, compared to a net loss of $15.0 million in Q3 2024, primarily due to warranty provisions related to a battery recall [3][5]. - Adjusted EBITDA increased by 52.1% year-over-year to $80.9 million [3][5]. - Free cash flow was $14.8 million, up from $2.0 million in Q3 2024 [3][5]. Operational Highlights - The backlog increased by 7.0% year-over-year, with 5,774 firm EUs and 9,832 EUs as options, indicating strong future demand [5][15]. - The company’s liquidity improved significantly to $386.0 million, a 169.0% increase from Q3 2024 [5][15]. - Return on Invested Capital (ROIC) rose to 9.1%, up from 5.3% in Q3 2024 [5][15]. Market and Strategic Outlook - NFI's strategy focuses on providing a broad range of propulsion-agnostic buses and coaches, positioning the company well to meet diverse customer needs [15][16]. - The company anticipates continued revenue and margin growth, expecting to achieve its highest quarterly adjusted EBITDA performance in Q4 2025 [15][21]. - Management has narrowed its 2025 guidance, reflecting year-to-date performance and expected fourth-quarter results [19][20]. Challenges and Risks - The company initiated a voluntary recall affecting approximately 700 battery-electric buses, leading to a warranty provision of $229.9 million for full battery replacements [7][8]. - Tariff impacts on imports of steel and aluminum are being actively managed, with a new 10% tariff on buses and coaches expected to affect pricing [24][25].

Core Viewpoint - Kefu Medical (301087) reported a year-on-year increase in total revenue and net profit for Q3 2025, indicating a positive growth trend despite challenges in accounts receivable management [1][3]. Financial Performance - Total revenue for Q3 2025 reached 900.2 million yuan, a 30.72% increase year-on-year, while net profit for the same period was 92.83 million yuan, up 38.68% year-on-year [1]. - For the first three quarters of 2025, total revenue was 2.398 billion yuan, reflecting a 6.63% increase compared to the same period in 2024, with net profit rising to 260 million yuan, a 3.3% increase [1]. - The gross profit margin improved to 53.35%, up 3.84% year-on-year, while the net profit margin decreased to 10.82%, down 3.4% year-on-year [1]. Accounts Receivable and Financial Ratios - The accounts receivable amount was significant, with accounts receivable accounting for 134.59% of the net profit, indicating potential liquidity concerns [1][3]. - Total expenses (sales, management, and financial) amounted to 935 million yuan, representing 39.0% of revenue, which is a 10.89% increase year-on-year [1]. Earnings and Cash Flow - Earnings per share (EPS) for Q3 2025 was 1.28 yuan, a 3.23% increase year-on-year, while operating cash flow per share improved significantly by 35.48% to 2.82 yuan [1]. - The company’s net assets per share slightly decreased to 22.56 yuan, down 0.53% year-on-year [1]. Business Model and Market Outlook - The company relies heavily on marketing-driven performance, which necessitates careful analysis of the underlying factors driving this model [4]. - Kefu Medical is optimistic about the long-term growth prospects of the hearing aid market in China and plans to enhance its service capabilities while addressing short-term pressures [6].

Financial Data and Key Metrics Changes - Quarterly profit reached a record EUR 3.5 billion, marking the best nine-month period ever, with a customer base increase of EUR 7 million year-on-year to EUR 178 million [4][5] - Return on Invested Capital (ROIC) increased by 70 basis points to 16.1%, with a strong capital ratio of 13.1% [4][5][20] - Earnings per share rose by 16%, supported by solid profit generation and share buybacks, leading to a 15% increase in TNF plus cash dividend per share [20][21] Business Line Data and Key Metrics Changes - Net Interest Income (NII) grew by 2%, while fees reached a new record, increasing by 8% [6][7] - Consumer business NII increased by 6% year-on-year, with retail NII growing by 1% excluding Argentina [9][11] - Payments revenue surged by 19%, with double-digit growth in both PagoNxt and cards [24][19] Market Data and Key Metrics Changes - CIB (Corporate and Investment Banking) revenue rose by 6% year-on-year, driven by global markets and growth initiatives in the U.S. [24][16] - Wealth management revenue increased by 13%, supported by record assets under management [24][18] - Retail revenue grew even in a less favorable interest rate environment, aided by active margin management [24][11] Company Strategy and Development Direction - The company is on track to meet its 2023/2025 strategic plan targets, with a focus on profitability and disciplined capital allocation [5][34] - The transformation strategy aims to simplify operations and enhance customer experience, with a significant emphasis on digitalization [10][12] - The integration of Santander Consumer Finance and Openbank in Europe is expected to reduce costs and improve product offerings [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite a challenging environment, citing strong business dynamics and revenue growth [34][35] - The outlook for 2026 is promising, with expectations of continued improvement in ROIC and profitability [39][41] - Credit quality is improving, with a stable cost of risk and a low NPL ratio of 2.92% [30][31] Other Important Information - The company plans to distribute at least EUR 10 billion to shareholders through share buybacks for 2025/2026, subject to regulatory approvals [5][20] - The CET1 capital ratio is expected to increase further in Q4, with regulatory headwinds being lower than initially anticipated [50] Q&A Session Summary Question: What are the main drivers for achieving the ROIC target of 16.5%? - Management expects strong performance in Q4 driven by seasonality, higher fees, and execution of the transformation strategy [38] Question: How should we think about credit quality in Brazil? - Credit quality is improving, with a stable cost of risk and a reduction in loan loss provisions [43][45] Question: Can you provide an update on capital and regulatory headwinds? - Regulatory charges are expected to be lower than anticipated, with capital generation projected to increase in Q4 [49][50] Question: What is the outlook for NII in Spain? - NII in Spain has improved, with expectations for continued growth in Q4 and a positive outlook for 2026 [53][54] Question: What is the status of litigation provisions? - The impact of litigation provisions is not expected to be material for the group, with ongoing reviews of the U.K. Motor Finance situation [63][64] Question: How does the company view NII outlook in Brazil? - The company anticipates stable NII in Brazil as interest rates are expected to come down, improving margins [65][66]

Financial Data and Key Metrics Changes - The quarterly profit reached a record €3.5 billion, marking the best nine-month period ever for the company [3] - Return on Invested Capital (ROIC) increased by 70 basis points to 16.1% [3] - The capital ratio ended the quarter at an all-time high of 13.1% [3][30] - Earnings per share rose by 16%, supported by solid profit generation and fewer shares due to buybacks [19] Business Line Data and Key Metrics Changes - Revenue grew by 4% in euros, with Net Interest Income (NII) increasing by 2% and fees rising by 8% [5] - Corporate and Investment Banking (CIB) revenue rose by 6%, driven by global markets and growth initiatives in the U.S. [23] - Wealth management revenue increased by 13%, supported by record assets under management [23] - Payments revenue surged by 19%, with both PagoNext and cards delivering double-digit growth [23][18] Market Data and Key Metrics Changes - The company added 7 million new customers year on year, bringing the total to 178 million [3] - Customer activity and diversification continued to drive revenue growth, particularly in fee-driven businesses [7] - The cost of risk improved year on year, reflecting robust credit quality trends [5][28] Company Strategy and Development Direction - The company is on track to meet its 2023-2025 strategic plan targets, focusing on profitability and disciplined capital allocation [4] - The transformation strategy aims to simplify operations and enhance customer experience, with a focus on digitalization [9][11] - The integration of Santander Consumer Finance and Openbank in Europe is expected to reduce costs and improve product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 targets despite a more challenging environment than initially anticipated [32] - The outlook for 2026 is promising, with expectations of improved credit quality and stable cost of risk [40][42] - The company anticipates a stable cost of risk in Brazil, supported by resilient labor markets [42][64] Other Important Information - The company plans to distribute at least €10 billion to shareholders through share buybacks for 2025-2026, subject to regulatory approvals [4][19] - The efficiency ratio improved to 41.3%, the best reported in over 15 years [28] Q&A Session Summary Question: ROIC target for the year of 16.5% - Management expects strong performance in Q4 driven by seasonality, higher fees, and execution of One Transformation [37] Question: Credit quality in Brazil - Provisions have decreased, and management expects stable cost of risk due to improved credit quality [41][43] Question: Capital guidance and regulatory headwinds - Regulatory charges are expected to be lower than initially anticipated, with a CET1 ratio projected to increase further in Q4 [48][49] Question: NII outlook in Spain - NII in Spain improved, with expectations for continued growth in Q4 and 2026 [51][52] Question: Litigation provisions - The impact of litigation provisions is not expected to be material for the group [60][62] Question: NII outlook in Brazil - Management expects stable NII with improved margins as interest rates decline [64][65]

Summary of Conference Call on China Property Sector Industry Overview - The conference call focuses on the **China Property Sector**, highlighting the current market conditions and future expectations for developers and policies affecting the industry. Key Points and Arguments Market Conditions - The sector is expected to trade within a range due to sluggish fundamentals and potential policy support, with a current P/E ratio of **8.5x FY27E**, aligning with historical averages [1][2] - National inventory is projected to remain high at **24 months** through **2027**, but Tier 1 and top 15 cities may see inventory decrease to **15 months** by **2026/27** [3][4] - New home sales volume/value is forecasted to decline by **5%-7%** and **8%-10%** in **2025**, with further mid-single-digit declines in **2026** [3][4] Developer Performance - Top developers are focusing on major cities, acquiring land only in the **10-20 largest cities** since **2024**, despite generating sales from **60 cities** [4][5] - Developers with younger land banks (acquired after **2022**) tend to have higher returns on invested capital (ROIC), with **Binjiang, C&D, and COLI** having the youngest land banks [5][6] - The earnings estimates for the sector have been trimmed by single-digit percentages, reflecting minor changes in contracted sales forecasts [5][6] Policy Outlook - Policymakers are expected to emphasize quality housing in the upcoming **15th Five-Year Plan**, with no major new policy support anticipated until **March 2026** [2][24] - Potential policy tools include tax deductibility for mortgage interest, lower transaction taxes, direct subsidies to home buyers, and relaxation of urban redevelopment restrictions [2][29] - The **Fourth Plenary Session** is expected to provide preliminary guidelines for property policy over the next five years, focusing on balancing growth and risk control [24][27] Risks and Challenges - Secondary home prices have declined by **1.6% MoM** in September, nearing the steepest decline observed in the second half of **2023** [21][22] - Real estate investment fell by **20% YoY** in September, worsening from a **10%** decline in the first half of **2025** [22][23] - Home prices are expected to face significant downside risks, with estimates suggesting a potential **20%** correction for entry-level buyers in Tier 1 cities [56][58] Developer Ratings and Forecasts - Price objectives for several developers have been revised, with **Binjiang** seeing an increase from **12.8 billion** to **13.5 billion**, while **Poly** was cut from **8.0 billion** to **7.5 billion** [8][9] - The contracted sales forecast for key developers has been adjusted, with **CMSK** seeing an increase due to better-than-expected performance, while **COLI** and **Poly** have been trimmed due to deteriorating market conditions [76][79] Conclusion - The China Property Sector is currently facing a challenging environment with sluggish sales, high inventory levels, and declining prices. However, top developers are strategically focusing on major cities and improving their land bank quality, which may position them better for future recovery as policy support is anticipated in the coming years.

Core Insights - Plexus Corp. reported strong financial results for the fiscal fourth quarter and fiscal year ended September 27, 2025, with revenue of $1.058 billion and diluted EPS of $1.87, exceeding guidance [5][7] - The company provided guidance for the fiscal first quarter of 2026, expecting revenue between $1.050 billion and $1.090 billion, with diluted EPS projected between $1.40 and $1.55 [5][7] Financial Performance - Fiscal Q4 2025 revenue was $1.058 billion, with a GAAP operating margin of 5.0% and diluted EPS of $1.87 [5][9] - For fiscal year 2025, total revenue reached $4.033 billion, maintaining a GAAP operating margin of 5.0% and diluted EPS of $6.26 [5][9] - Non-GAAP results for Q4 2025 showed an operating margin of 5.8% and diluted EPS of $2.14, excluding stock-based compensation [5][9] Cash Flow and Share Repurchase - The company generated free cash flow of $97 million in Q4 2025 and $154 million for the entire fiscal year [6][14] - Plexus repurchased $21.5 million of its shares at an average price of $134.07 per share, with $85 million remaining under its current repurchase authorization [6][8] Operational Highlights - Plexus secured 28 manufacturing programs in Q4 2025, representing $274 million in annualized revenue when fully ramped [6][7] - The company achieved a return on invested capital (ROIC) of 14.6% for fiscal 2025, exceeding its weighted average cost of capital by 570 basis points [8][13] Market Sector Performance - In Q4 2025, revenue by market sector included Aerospace/Defense at $173 million (16%), Healthcare/Life Sciences at $424 million (40%), and Industrial at $461 million (44%) [10][11] - The top 10 customers accounted for 49% of revenue in Q4 2025, consistent with the previous quarter [10]