Granite Construction (NYSE:GVA) Q4 2025 Earnings call February 12, 2026 11:00 AM ET Speaker6Good morning. My name is Bailey, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Granite 2025 fourth quarter conference call. This call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. To ask a question, please press star then one. Please note, we will t ...

Core Viewpoint - Millicom International Cellular S.A. has been downgraded by Scotiabank from "Sector Perform" to "Underperform," indicating a more cautious outlook on the company's stock performance [1][5]. Group 1: Stock Performance - Millicom's current stock price is $65.69, reflecting a decrease of 3.79% or a drop of $2.59 [2][5]. - The stock has shown volatility, with a daily trading range between $64.48 and $67.75, and over the past year, it has fluctuated between a high of $68.93 and a low of $25.50 [2]. Group 2: Market Position - Millicom has a market capitalization of approximately $10.98 billion, highlighting its significant size and influence in the telecommunications sector [3]. - The trading volume for Millicom's stock today is 1,724,097 shares, indicating active investor interest despite the downgrade [3]. Group 3: Strategic Developments - Millicom, in partnership with NJJ, has acquired Telefonica's mobile unit in Chile for $1.2 billion, which aligns with Telefonica's strategy to focus on core markets and enhances Millicom's presence in Latin America [4][5].

Core Thesis - Flywire Corporation is positioned as a leading vertical payments and software company, focusing on digitizing complex payment processes in education, travel, and healthcare sectors, leveraging superior technology for faster settlements and lower fees [3][4][6] Company Overview - Flywire's share price was $14.30 as of January 13th, with trailing and forward P/E ratios of 271.80 and 19.08 respectively [1] - The company was founded to address inefficiencies in international tuition payments, disrupting traditional players by offering a modern, asset-light platform that enhances collection accuracy [4] Revenue Breakdown - Education is the dominant vertical for Flywire, accounting for 77% of its revenue, where it leads in cross-border higher-education payments and is expanding into domestic campus payments [4] - Other growing verticals include travel, healthcare, and a nascent B2B business [4] Strategic Shifts - In response to macro pressures, Flywire has shifted towards disciplined execution and margin expansion, including headcount reductions and a focus on profitability [5] - The acquisition of Sertifi has significantly scaled its travel segment and created cross-sell opportunities, while also reducing the appeal for private-equity takeout [5] Management and Market Position - The management team possesses strong expertise in technology and operations, contributing to high customer retention and expansion [6] - Long-term concerns regarding globalization and student mobility are viewed as cyclical rather than structural, indicating a geographical shift in demand rather than a decline [6] Financial Outlook - Flywire is expected to benefit from improving margins, recurring revenues, and conservative guidance, presenting a compelling risk-reward profile with potential for significant upside from normalized growth and multiple expansion [6]

Core Insights - AutoNation, Inc. reported fourth-quarter adjusted earnings that surpassed analyst expectations despite a revenue decline, demonstrating the resilience of its diversified operating model [1] - Shares increased by over 9% intra-day following the earnings report [1] Financial Performance - Adjusted earnings per share were $5.08, exceeding the consensus estimate of $4.91 [1] - Revenue for the quarter was $6.9 billion, which was below the expected $7.22 billion and represented a 4% decline from the same period last year [1] Sales Performance - Same-store retail new vehicle unit sales decreased by 10.2% year over year, attributed to tough comparisons from the previous year and elevated sales earlier in 2025 due to tariffs and the expiration of government electric-vehicle incentives [2] After-Sales Business - The company achieved record fourth-quarter gross profit in its After-Sales business, supported by 4% same-store growth [3] - Record quarterly Customer Financial Services profit per unit was reported, highlighting the strength of its diversified revenue streams [3] Expansion and Acquisitions - AutoNation Finance expanded its portfolio to $2.2 billion while improving profitability and funding [4] - The company completed strategic acquisitions in Baltimore, Chicago, and Denver, enhancing its brand mix and geographic footprint [4]

Financial Data and Key Metrics Changes - Net sales for Q2 were $341 million, a 5% decline compared to Q2 last year [6][12] - Gross margin rate improved to 8.2%, a 160 basis point increase from 6.6% in the same period last year [12] - Adjusted operating income was $15.3 million, or 4.5% of net sales, compared to $13.3 million, or 3.7% of net sales last year [13] - Adjusted net income was $6.9 million, or $0.28 per diluted share, compared to $7.4 million, or $0.29 per diluted share last year [15] Business Line Data and Key Metrics Changes - Medical sales were $96 million, up 15% year-over-year, representing 28% of total company sales [6][8] - Automotive sales totaled $162 million, down 13% year-over-year, accounting for 48% of total sales [9] - Industrial sales were $83 million, a 5% decrease compared to Q2 last year, representing 24% of total sales [11] Market Data and Key Metrics Changes - Medical vertical growth was driven by increases in Poland and Thailand, while North America remained flat [7][8] - Automotive sales decline was primarily due to lower sales in North America and China, with some offset from growth in Poland and Romania [9][10] - Industrial business decline was concentrated in North America, with some recovery in Europe [11] Company Strategy and Development Direction - The company is focusing on the medical vertical as a key growth area, leveraging its capabilities in a highly regulated industry [5][8] - A rebranding to Kimball Solutions reflects the company's evolution beyond traditional manufacturing services, expanding into design, engineering, and supply chain management [20] - The grand opening of a new medical manufacturing facility in Indianapolis is part of the strategy to enhance capabilities and capacity [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medical vertical's growth potential, driven by megatrends such as an aging population and increasing healthcare access [8] - The company raised its guidance for fiscal 2026, expecting net sales between $1.4 billion and $1.46 billion, driven by strength in the medical vertical and automotive programs [17][18] - Management is monitoring the outlook for FY27, particularly in North America automotive and industrial sectors, due to economic concerns and tariff impacts [19] Other Important Information - Cash and cash equivalents at the end of Q2 were $77.9 million, with cash generated from operations at $6.9 million [15][16] - The company invested $4.3 million in share repurchases during Q2, with a total of $109.5 million returned to shareholders since October 2015 [17] - The effective tax rate for Q2 was 47.9%, significantly higher than the previous year due to adjustments related to the sale of the Tampa facility [15] Q&A Session Summary Question: What percentage was Nexteer in December? - Nexteer accounted for 20% of sales in December [25][26] Question: What is the capacity and ramp expectations for the new facility in Indianapolis? - The new facility is 300,000 sq ft, significantly larger than the current footprint, with substantial growth opportunities [28] Question: How should we think about growth in the automotive piece for Q3 and Q4? - Q3 automotive is expected to be flat to slightly up as the company anniversaries the end of the EB100 program [37] Question: What are the win rates and sizes of new programs? - Win rates remain consistent, with larger programs expected from lift and shift opportunities and CMO discussions [39][40] Question: How will the new facility impact margins? - The new facility is expected to drag margins in the near term due to depreciation and additional expenses, but long-term margins are expected to improve [44][45] Question: How do you see cash cycle days play out in the coming quarters? - Cash conversion days are expected to decrease in Q3 from elevated levels in Q2 [49] Question: What are the opportunities in the medical space for acquisitions? - The company is interested in in vitro diagnostics and cardiology as potential areas for expansion [58]

Core Viewpoint - Visionary Holdings Inc. has resolved a compliance issue with Nasdaq regarding its periodic reporting status by filing its Annual Report on Form 20-F, thus maintaining its listing on the exchange [2][3][4]. Group 1: Compliance and Reporting - On January 27, 2026, the Company received a Staff Determination Letter from Nasdaq indicating non-compliance with Listing Rule 5250(c)(1) due to a delayed filing of its Annual Report for the fiscal year ended March 31, 2025 [2]. - The Company filed its Form 20-F on January 28, 2026, resolving the compliance issue, which was caused by technical delays in the EDGAR system rather than financial discrepancies [3]. - Nasdaq confirmed on January 29, 2026, that the Company now meets the requirements of Listing Rule 5250(c)(1), closing the matter [3]. Group 2: Company Overview and Strategy - Visionary Holdings Inc. is a high-growth technology company based in Markham, Ontario, focusing on innovative software solutions for the aesthetic medicine industry and advancements in stem cell research [5]. - The Company aims to integrate cutting-edge technology with industrial resources to provide innovative solutions and high-quality services globally, while pursuing strategic acquisitions and organic growth to deliver long-term value to shareholders [5].

Core Insights - Gentex Corporation (GNTX) reported fourth-quarter 2025 results with adjusted EPS of 43 cents, up from 39 cents a year ago, and net sales of $644.4 million, reflecting a 19% increase year over year [1][9] Financial Performance - The company shipped 3.19 million Full Display Mirror (FDM) units in 2025, marking an 8% year-over-year increase, with expectations of an additional 200,000-400,000 units in 2026 [3][9] - Gentex anticipates consolidated revenues for 2026 to be between $2.6 billion and $2.7 billion, up from $2.53 billion in 2025, with projections for 2027 revenues ranging from $2.75 billion to $2.85 billion [4] Growth Drivers - Growth is expected to be driven by product launches, improved product mix, and the adoption of value-added features, particularly in the FDM segment [3][10] - Strategic acquisitions, including VOXX International and BioConnect, are set to enhance Gentex's product portfolio and support revenue growth [4][10] Market Position and Strategy - Gentex's HomeLink Connect app is expected to increase penetration as demand for home connectivity rises, supported by collaborations with Solace and ADASKY [5] - The company maintains a debt-free balance sheet and a strong cash position, with a current ratio of 2.9 compared to the industry average of 1.9, enhancing financial flexibility [6][11] Challenges - Gentex faces challenges from commodity pricing, particularly in precious metals, and anticipates increased costs from tariffs, which could amount to approximately $45-$50 million in 2026 [7]

Company Performance - Spring Valley Acquisition Corp. III Warrants (NASDAQ:SVACW) experienced a significant price increase of 294.23%, reaching $2.05, potentially driven by speculative trading or news related to their energy and decarbonization operations [1][6] - 60 Degrees Pharmaceuticals, Inc. (NASDAQ:SXTP) saw its stock price rise by 144.5% to $4.89, likely benefiting from positive clinical trial developments or regulatory approvals, despite a 1-4 reverse stock split leading to a 2.4% decline ahead of the event [2] - IO Biotech, Inc. (NASDAQ:IOBT) had a stock price increase of 102.12%, reaching $0.41, with investor optimism possibly fueled by its focus on immune-modulating cancer therapies and exploration of strategic alternatives [3][6] - Namib Minerals Warrants (NASDAQ:NAMMW) recorded an 88.68% increase to $0.34, influenced by its involvement in gold and critical green metals production and exploration, while Namib Minerals Ordinary Shares (NASDAQ:NAMM) rose by 77.47% to $4.01, possibly due to favorable mining outcomes or strategic acquisitions [4] Market Dynamics - The recent stock price movements highlight the dynamic nature of the market, where company developments, industry trends, and investor sentiment play crucial roles in influencing stock prices [5]

Core Insights - Gibraltar Industries, Inc. (ROCK) has reported preliminary unaudited fourth-quarter and full-year 2025 results that fell short of prior guidance due to weaker end-market conditions and timing issues across key segments [2] - Following the announcement, ROCK's stock experienced an 11.4% decline during the trading session [2] Financial Performance - The company has lowered its full-year guidance for 2025, with net sales now expected to be between $1.13 billion and $1.14 billion, down from the previous range of $1.15 billion to $1.18 billion, but still above 2024's net sales of $1.02 billion [3] - Projected operating income for 2025 is now $121 million to $123 million, reduced from prior guidance of $141 million to $145 million and below the $140 million reported in 2024 [4] - Adjusted operating income is estimated at $149 million to $151 million, compared to earlier guidance of $163 million to $167 million, aligning with the $149 million generated in 2024 [4] - Adjusted EBITDA is expected to be between $184 million and $186 million, trailing prior guidance of $197 million to $202 million but exceeding the $177 million recorded last year [4] - Adjusted EPS is projected to be $3.88 to $3.93, below the previous guidance range of $4.20 to $4.30, yet slightly higher than the adjusted EPS of $3.82 in 2024 [5] Segment Performance - In the Residential segment, Gibraltar gained market share in building accessories, although overall industry demand was slower due to inventory adjustments and delayed price realization [6] - The Agtech segment experienced a shift in large project volumes out of 2025, impacting reported revenues, but bookings remained strong with backlog more than tripling year over year, positioning the segment for a stronger 2026 [7] - The Infrastructure segment reported quarterly revenue growth with strong margins, providing stability amid broader market softness [7] Future Outlook - Management expressed confidence in improving fundamentals heading into 2026, including better-aligned residential channel inventories and a total backlog that has increased by over 100% year over year [8] - The company has a cash balance exceeding $115 million, and price increases along with cost-reduction initiatives implemented late in 2025 are expected to support profitability in 2026 [8] - The planned OmniMax acquisition is on track to close in the first quarter of 2026, which is expected to further strengthen Gibraltar's building-accessories platform [8] Stock Performance - Gibraltar's stock has gained 1.3% over the past month, compared to a 4.4% growth in the Zacks Building Products - Miscellaneous industry [11] - Near-term visibility remains challenged due to ongoing sluggishness in single- and multi-family construction, affecting Mail and Package volumes and causing delays in Agtech projects [11]

Core Insights - CBRE Group's shares have increased by 17.6% over the past six months, outperforming the industry's growth of 11.1% [1][7] - The company is well-positioned to benefit from its diverse range of real estate products and services, with a healthy outsourcing business and an elevated pipeline for growth [1][2] - Strategic acquisitions and technology investments are expected to enhance CBRE's performance [1][4][8] Business Model and Revenue Growth - CBRE has adopted a more balanced and resilient business model, shifting towards a diversified and contractual revenue base, which has led to a net revenue growth of 14% in Q3 2025, surpassing the 13% growth in transactional businesses [3] - The Building Operations & Experience (BOE) segment has shown significant growth, with a 12.6% revenue increase year-over-year in Q3 2025, and an estimated total revenue growth of 14.5% for 2025 [5][7] Strategic Acquisitions and Financial Position - To expand its global reach, CBRE has focused on strategic infill acquisitions, including the acquisition of Pearce Services, LLC for approximately $1.2 billion in cash, and two other acquisitions totaling around $31 million in the first nine months of 2025 [4] - As of September 30, 2025, CBRE had $5.2 billion in total liquidity, providing ample financial flexibility to capitalize on growth opportunities [8]