If a company can reinvest internally at 20 percent incremental returns with a long runway ahead of it, retiring shares might be the wrong decision. High return reinvestment compounds faster than financial engineering. On the other hand, if incremental opportunities are narrowing and the stock trades at a double-digit free cash flow yield, buying back shares may be the highest return project available. The market understands that tradeoff. It doesn’t react to the size of the authorization. It reacts to what ...

Our strong Q4 results are a direct reflection of our commitment to our key strategic priorities. As I reflect on our 2025 performance, I wanted to take a moment to highlight our achievements against each of the initiatives we laid out one year ago. Entering 2025, our highest priority was to accelerate organic rental growth, which we believe represents the stickiest and highest long-term driver of returns. For the full year 2025, we delivered $124,000,000 in rent revenues, representing 39% year over year gro ...

Management is divestiture-focused, selling Depop to eBay for $1.2 billion to concentrate resources exclusively on the core Etsy marketplace and its higher return on invested capital. A deep diagnostic revealed that while Etsy's value proposition remains resonant, the platform failed to translate scale into a clear advantage, leading to softened perceptions of differentiation. Performance attribution for the Q4 return to growth is credited to a reorganization around customer outcomes rather than functi ...

Financial Data and Key Metrics Changes - Record full-year silver and gold production increased by 57% and 23% year-over-year, respectively, with full-year record EBITDA rising 200% to over $1 billion and free cash flow increasing to $666 million from -$9 million in 2024 [3][4] - Year-end cash increased more than 10 times to $554 million, and net income rose tenfold to a record $586 million [3][4] Business Line Data and Key Metrics Changes - The three U.S. operations accounted for nearly 60% of 2025 revenue, with silver representing about 35% of total revenue [4] - Las Chispas generated $286 million of free cash flow in only 10.5 months of contribution, while Rochester's silver and gold production increased by 40% and 54% year-over-year, respectively [4][12] Market Data and Key Metrics Changes - Quarterly realized gold and silver prices increased by 21% and 40%, respectively, and are expected to strengthen further in 2026 [25] - The company anticipates silver to contribute approximately 42% of total 2026 revenue based on current prices and guidance [7] Company Strategy and Development Direction - The company is focused on integrating New Gold's operations to enhance its geographic footprint and reduce cost profiles, aiming for a combined EBITDA of approximately $3 billion and free cash flow of $2 billion on a full-year run rate basis [8][9] - A record amount of capital is allocated to exploration investments in 2026, with a 47% increase compared to 2025 levels [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, stating it is poised for another record year in 2026, driven by a full year of production at Las Chispas and improved performance at Rochester [7][28] - The company plans to continue advancing the Silvertip project and is optimistic about the potential for adding to its silver profile [29] Other Important Information - The company shifted its reporting to metric units to align better with peers, and prior period figures have been recast for comparability [2] - The company achieved its goal of being net cash positive, with total debt declining by $250 million, or 42% year-over-year [25][26] Q&A Session Summary Question: Reserve grades at Las Chispas - Management indicated that the grade profile reflects a more conservative modeling approach, with expectations for normalization of grades going forward [34][35][38] Question: Exploration results and maiden resources at East Palmarejo - All reported ounces are outside the Franco-Nevada Gold Stream area, with ongoing exploration expected to yield additional resources [41][42] Question: Cash tax guidance breakdown - Approximately 80% of cash taxes are expected to be paid in Mexico, with some cash tax obligations in the U.S. due to limitations on tax shelters [49][50] Question: Capital returns preference - The company is considering both dividends and buybacks, with a slight preference for buybacks due to the flexibility they provide [54][55] Question: Exploration investment in New Gold assets - Management is looking to allocate additional capital to exploration at Rainy River post-integration, with a focus on regional opportunities [58][59]

Financial Data and Key Metrics Changes - The company generated over $10 per share of free cash flow in 2025, totaling $832 million for the year, with fourth quarter free cash flow being 25% higher than the previous year [3][4] - Total revenue before fuel surcharge for the fourth quarter was $1.7 billion, down from $1.8 billion a year earlier, with operating income of $127 million and a margin of 7.6% [4][5] - Net cash from operating activities improved to $282 million, an 8% increase over the prior year quarter [5] Business Segment Data and Key Metrics Changes - LTL (Less Than Truckload) revenue was $661 million, down 10% year-over-year, with operating income of $62 million and an adjusted operating ratio (OR) of 89.9 [5][6] - Truckload revenue was $674 million, down from $693 million the prior year, with operating income of $48 million and an OR of 93.2% [6] - Logistics revenue was $358 million, down from $410 million, with operating income of $31 million and a margin of 8.7% [7] Market Data and Key Metrics Changes - The company ended the year with a 2.5 times funded debt to EBITDA ratio, maintaining a strong balance sheet [8] - The company anticipates adjusted diluted EPS for Q1 2026 to be in the range of $0.50-$0.60, reflecting a cautious outlook due to ongoing market conditions [8] Company Strategy and Development Direction - The company focuses on strategic capital allocation, investing for the long term and returning excess capital to shareholders through dividends and share repurchases [4] - The management is preparing for a potential industry rebound while controlling costs and improving operational efficiency [3][4] - The company is exploring accretive bolt-on acquisition opportunities, with a focus on smaller regional deals rather than large acquisitions due to market uncertainties [8][76] Management's Comments on Operating Environment and Future Outlook - The management noted that the freight recession persists, particularly in the LTL sector, but there are early signs of improvement in the truckload sector [12][14] - The Canadian market is performing better than the U.S. market, with a focus on improving service and reducing claims ratios [15] - The management expressed optimism about logistics improving in Q3 and Q4 of 2026, driven by customer demand in the energy sector and data centers [14][72] Other Important Information - The company announced a change in its board of directors, with André Bérard retiring and Diane Giard nominated as the new lead director [9] - The company is focused on transitioning away from retail freight towards industrial freight, aiming to increase the weight per shipment [60][61] Q&A Session Summary Question: Guidance for fiscal year and scenarios for 2026 - Management indicated that Q1 guidance reflects a cautious outlook due to ongoing freight recession, with early signs of improvement in truckload [11][12] Question: Segment margin-related drivers behind EPS guidance - Management expects around 250 basis points of sequential margin deterioration in U.S. LTL, with weather impacting costs significantly [24][30] Question: Pricing improvements in contracted rates - Management noted that while spot rates are increasing, contracted rates take longer to adjust, and the supply-demand balance is beginning to shift [40][41] Question: Specialty truckload business and industrial activity - Management highlighted early signs of industrial activity, particularly in the energy sector, and emphasized the importance of focusing on high-value freight [52][54] Question: Impact of non-domiciled CDL on specialty flatbed - Management noted that the impact is more pronounced in the van segment, with less benefit seen in specialty truckload due to unique skill requirements [88][90]

Core Insights - Russel Metals Inc. reported revenues of $4.6 billion for 2025, a 9% increase from 2024, with Q4 revenues at $1.1 billion, up 5% year-over-year [1][2] - The company achieved an EBITDA of $337 million for 2025, reflecting a 13% increase from the previous year, with Q4 EBITDA at $69 million, a 12% improvement over Q4 2024 [1][2] - The acquisition of seven service centers from Kloeckner Metals Corporation was completed on December 31, 2025, expected to increase annual revenues by approximately $500 million and enhance U.S. operations contribution to over 50% [1][2] Financial Performance - For the year ended December 31, 2025, net income was $168.8 million, with earnings per share at $3.01, compared to $161 million and $2.73 per share in 2024 [1][3] - In Q4 2025, net income was $30.4 million, with earnings per share at $0.55, compared to $26.9 million and $0.47 per share in Q4 2024 [1][3] - The average gross margin percentage for 2025 was 21.8%, a 90 basis point increase from 2024, with Q4 gross margin at 21.2%, an 80 basis point increase year-over-year [1][2] Capital Structure and Investments - The company maintained a strong capital structure with a net debt to invested capital ratio of 10% and liquidity of $515 million at year-end 2025 [2][3] - Total invested capital increased from $1.6 billion at the end of 2024 to nearly $1.8 billion at the end of 2025, with a return on invested capital of 15% for 2025 [2][3] - In 2025, Russel Metals invested $74 million in capital expenditures, with plans to invest approximately $100 million annually over the next two years [1][2] Market Conditions and Outlook - Steel prices were influenced by tariffs implemented in early 2025, with the average price for hot rolled coil at $849 per ton, up from $772 per ton in 2024 [1][2] - The company anticipates improved margins in Q1 2026 due to a positive market tone and seasonal recovery in shipments [2][3] - Ongoing investments in value-added equipment and facility modernization are expected to enhance average margins and market share [2][3]

Financial Data and Key Metrics Changes - Fourth quarter 2025 revenue was $138.3 million, up 3% compared to Q3 2025 and up 7% year-over-year [13] - Full year 2025 revenue was $526.5 million, slightly up year-over-year, driven by service revenue growth [13] - Operating margins in reservoir description for Q4 were 14%, expanding sequentially by 60 basis points [7] - Net income ex items for Q4 was $9.7 million, down 5% sequentially and down 7% year-over-year [23] - Earnings per diluted share ex items for Q4 was $0.21, compared to $0.22 in both the prior quarter and the same quarter last year [23] Business Line Data and Key Metrics Changes - Reservoir description revenue for Q4 was $92.3 million, up over 5% compared to Q3 [41] - Production enhancement revenue for Q4 was $46 million, up over 8% year-over-year [44] - Operating income for production enhancement was $3 million, yielding operating margins of 7%, down from 11% in Q3 [45] Market Data and Key Metrics Changes - Demand for laboratory services tied to crude oil was negatively impacted by geopolitical conflicts and sanctions [7] - International markets showed resilient activity levels with ongoing investments in offshore developments [31] - U.S. land completion activity is expected to decline in the first half of 2026 compared to the same period in 2025 [33] Company Strategy and Development Direction - The company focuses on technology investments to solve client problems and capitalize on technical opportunities [6] - Core Lab aims to maximize free cash flow, return on invested capital, and return excess free cash to shareholders [11] - The company plans to introduce new products and services in key geographic markets while maintaining a strong balance sheet [10] Management's Comments on Operating Environment and Future Outlook - Management maintains a constructive multiyear outlook despite near-term economic headwinds and commodity price volatility [36] - The IEA forecasts global crude oil demand growth of approximately 900,000-1.4 million barrels per day in 2026 [30] - Geopolitical conflicts and evolving trade dynamics continue to create uncertainty in demand for Core Lab's products and services [32] Other Important Information - The company returned free cash to shareholders through dividends and share repurchases, repurchasing over 363,000 shares in Q4 [9] - Capital expenditures for operations in 2025 were $11.2 million, with expectations for 2026 to be in the range of $15 million-$18 million [28] Q&A Session All Questions and Answers Question: Comments on Venezuela - Management noted a long history in Venezuela and the potential to monetize legacy data if operators return [54][57] Question: Capabilities in the Middle East - Management confirmed expanded lab capabilities in Saudi Arabia and ongoing engagement with Aramco, with opportunities in North Africa [59][60] Question: Future Cash Flows and Debt Management - Management indicated a mix of using free cash flow for share buybacks and debt reduction, with a focus on maintaining a comfortable leverage ratio [62][64]

Core Insights - Lockheed Martin's shares have increased by 13.7% over the past month, outperforming the Zacks Aerospace-Defense industry's growth of 3.6% [1][7] - The company is one of the largest U.S. defense contractors, benefiting from a steady order flow from the Pentagon and U.S. allies [1][3] Performance of Other Defense Stocks - Boeing and Northrop Grumman have also shown strong performance, with shares rising by 16.6% and 9.2% respectively during the same period [2] Factors Supporting Lockheed Martin - Lockheed Martin's platform-centric focus ensures a steady inflow of follow-on orders across major U.S. military branches and IT programs [3][18] - The U.S. defense budget is expected to rise significantly, with military spending proposed to reach approximately $1.5 trillion by 2027, up from $901 billion in 2026 [3] - A historic deal in January 2026 for PAC-3 MSE production will enhance revenues through increased missile output to meet rising demand [4][18] - Record deliveries of 191 F-35 fighter jets in 2025 reflect sustained global demand and strengthen long-term production and maintenance contracts [5][18] - Lockheed Martin secured a contract for 18 space vehicles from the Space Development Agency, valued at over $1 billion, enhancing its role in space-based defense capabilities [8] Challenges Faced by Lockheed Martin - The company has encountered performance issues on a classified contract, resulting in significant losses, including $950 million in the first nine months of 2025 [9] - Additional losses were reported on various programs, including $570 million on the Canadian Maritime Helicopter Program and $95 million on the Turkish Utility Helicopter Program [9] Earnings Estimates - The Zacks Consensus Estimate for 2026 earnings per share indicates a slight decrease of 0.17% over the past 60 days, with a long-term earnings growth rate projected at 11.85% [10] - Lockheed Martin has consistently beaten earnings estimates in the past four quarters, with an average surprise of 13.29% [12] Valuation Metrics - Lockheed Martin's forward 12-month price-to-sales ratio is 1.64X, which is a discount compared to the industry's average of 2.72X, indicating a favorable valuation relative to expected sales growth [15]

Core Insights - Airline stocks, particularly Delta Air Lines (DAL) and United Airlines (UAL), have experienced significant growth leading into 2026, driven by record-breaking air travel demand during the holiday seasons [1][2] Profitability & Liquidity Comparison - Delta and United are among the most efficient airlines, with Delta achieving a TTM net margin of 7.36%, the highest among major domestic carriers, while United follows with 5.64%. In contrast, American Airlines (AAL) and Southwest Airlines (LUV) have TTM net margins just above 1% [3] - Despite the capital-intensive nature of the airline industry, Delta and United effectively convert a large portion of their operating profits into free cash flow (FCF), with United boasting an impressive FCF conversion rate of 130%, exceeding the preferred threshold of 80% [4][5] Financial Outlook - Delta's fiscal 2025 EPS is projected to decline to $5.82 from $6.16 in 2024, but is expected to rebound by 23% in FY26 to a record $7.17. Sales are anticipated to increase by 2% in FY25 and by another 3% in FY26 to reach $65.19 billion [10] - United's FY25 EPS is expected to be $10.48, slightly down from a record $10.61 in 2024, with a projected 25% increase in FY26 EPS to $13.15. Annual sales are forecasted to rise by 3% in FY25 and by 9% in FY26 to $64.26 billion [11] Valuation Comparison - Delta and United stocks trade around the industry average of 9X forward earnings and less than 1X forward sales, making them attractive despite their leadership in the market. United's stock, priced over $100, has a slightly lower P/E valuation compared to Delta's stock, which trades around $70 [12] Strategic Considerations - Both Delta and United stocks are considered intriguing investments, with upcoming Q4 reports and guidance being crucial for potential upside. Both stocks have increased nearly 10% in the last month and currently hold a Zacks Rank 3 (Hold), indicating long-term value [14] - United's stock typically shows stronger price performance, while Delta may offer a more accessible investment option for those seeking smaller financial commitments [15]

Core Viewpoint - AT&T Inc. is a major telecommunications and technology services company facing challenges with revenue decline and competition, but it has been recognized for its potential upside by analysts [1][5][6]. Financial Performance - Analysts expect AT&T to report a fiscal fourth-quarter profit of $0.47 per share, a decrease of 13% from $0.54 per share in the same quarter last year [2]. - For the current year, the expected EPS is $2.06, down 8.9% from $2.26 in fiscal 2024, but projected to rise 9.2% annually to $2.25 in fiscal 2026 [3]. Stock Performance - AT&T shares have increased by 7.4% over the past year, underperforming compared to the S&P 500 Index's 14.8% gains and the Communication Services Select Sector SPDR ETF's 19.1% increase [4]. - The company has experienced a five-year revenue decline averaging 5.6% annually, contributing to concerns about its growth and business quality [5]. Analyst Ratings - JPMorgan Chase & Co. has named AT&T as the only telecommunications stock on its 2026 list of 47 Top Picks, assigning it an "Overweight" rating with a price target of $33, indicating a potential upside of approximately 35% [6]. - The stock offers a forward dividend yield of about 4.5%, appealing to income-focused investors despite recent volatility [6].