But my excitement really comes from looking forward to 2026 and the opportunity to break all those records we set last year. Look. Looking into the future, all our end markets have strong tailwinds. The commercial aftermarket has experienced an increase in the average age of the in-service fleet. Pre-COVID, the average was approximately 11 years. Today, it sits at fourteen-plus years. The older the fleet, the more demand for aftermarket parts. We love that. This is a trend we can expect to continue well int ...

Loar Holdings (NYSE:LOAR) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsBrett Milgrim - Executive Co-ChairmanDirkson Charles - CEO and Executive Co-ChairmanGlenn D'Alessandro - Treasurer and Chief Financial OfficerIan McKillop - Director of Investor RelationsKristine Liwag - Executive Director and Head of Aerospace and Defense Equity ResearchSheila Kahyaoglu - Managing Director and Airlines, Aerospace and Defense Equity ResearchConference Call ParticipantsJohn Godyn - Managing Dire ...

Loar Holdings (NYSE:LOAR) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Company ParticipantsBrett Milgrim - Executive Co-ChairmanDirkson Charles - CEO and Executive Co-ChairmanGlenn D'Alessandro - Treasurer and Chief Financial OfficerIan McKillop - Director of Investor RelationsKristine Liwag - Executive Director and Head of Aerospace and Defense Equity ResearchSheila Kahyaoglu - Managing Director and Airlines, Aerospace and Defense Equity ResearchConference Call ParticipantsJohn Godyn - Managing Dire ...

Loar Holdings (NYSE:LOAR) Q4 2025 Earnings call February 26, 2026 10:30 AM ET Speaker1Greetings, welcome to Loar Q4 and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ian McKillop, Direct ...

GAAP diluted EPS for the quarter was $0.99 per share, up $0.18 per share, or 22%, from last year. On an adjusted basis, EPS for Q4 this year was $1.10 per share, an increase of $0.29 per share, or 36%, compared to last year. Orders for the quarter were $647,000,000, up $201,000,000, or 45%, from last year. Orders in Q4 this year included $132,000,000 of acquired backlog. In terms of our fourth quarter group results, ESG's net sales were $504,000,000, an increase of $108,000,000, or 27%, compared to last yea ...

Circle K's parent company said it will focus more on organic growth and boosting its merchandise revenues, sending the retailer’s stock price to its highest level since 2024 https://t.co/uu4IAXWsfb ...

Financial Data and Key Metrics Changes - The company reported net income of $108.8 million or $1.08 per diluted share in Q4 2025, compared to $71.4 million or $0.69 per diluted share in Q3 2025 [15] - Net interest income decreased by $0.4 million or 0.2% to $206.4 million compared to the prior quarter, and decreased by $7.9 million or 3.7% compared to Q4 2024 [15][16] - Non-interest income was $106.6 million, an increase of $62.9 million from the prior quarter, driven by a gain on sale of $62.7 million associated with divestitures [17] - Non-interest expense was $166.7 million for Q4 2025, an increase of $8.8 million from the prior quarter [17] - The fully tax-equivalent net interest margin was 3.38% for Q4 2025, compared to 3.36% in Q3 2025 and 3.20% in Q4 2024 [16][22] Business Line Data and Key Metrics Changes - Loans decreased by $632.8 million in Q4 2025, including $62.8 million of continued amortization of the indirect portfolio and $72.5 million in loans moving to held for sale [19] - Total deposits decreased by $516.7 million to $22.1 billion as of December 31, 2025, driven by the sale of $641.6 million of deposits in the Arizona and Kansas transaction [19] - Criticized loans decreased by $112.3 million or 9.6% in Q4 2025, and non-performing assets decreased by $47.3 million or 26% [9][18] Market Data and Key Metrics Changes - The ratio of loans held for investment to deposits was 68.8% at the end of Q4 2025, compared to 70.1% at the end of Q3 2025 and 77.5% at the end of December 2024 [20] - The company maintained a proactive approach to credit, with net charge-offs for the full year of 2025 at 24 basis points of average loans, in line with long-term expectations [18] Company Strategy and Development Direction - The company has focused on improving core profitability, optimizing the balance sheet, and refocusing capital investment in geographies with strong market share and growth potential [6][10] - Strategic actions included branch divestitures in Arizona, Kansas, and Nebraska, outsourcing the consumer credit card product, and discontinuing originations and indirect lending [6][10] - A new, flatter organizational structure was implemented to enhance decision-making and support organic growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for organic growth following the restructuring of the banking organization and the addition of new team members in growth markets [32][54] - The company anticipates a slight decline in total loans for 2026, with expectations for modest growth in the latter half of the year [24][25] - Management highlighted the importance of maintaining disciplined credit management while pursuing profitable growth opportunities [56] Other Important Information - The company declared a dividend of $0.47 per common share, equating to a 5.7% annualized yield based on the average closing price during Q4 2025 [22] - The share repurchase authorization was increased to $300 million, with approximately $180 million of capacity remaining under the program [21] Q&A Session Summary Question: Loan balances and production outlook - Management noted that a significant portion of the decline in loan balances was due to payoffs of criticized loans, which is viewed positively [31] - There was improved loan production in December, and management is optimistic about the reorganization's impact on growth [32] Question: Margin expectations - Management expects net interest margin to improve sequentially, with a target of north of 3.5% by the end of 2026 [34] Question: Reinvestment rates on new loans and securities - New loan production is currently in the low- to mid-6% range, while securities have seen a slight decrease in reinvestment rates [38] Question: Buyback activity and capital management - Management plans to continue executing share buybacks, with a focus on approaching peer median capital levels [39] Question: Credit quality and criticized loans - Management is optimistic about continued improvement in credit quality, with proactive management strategies in place [40] Question: Expense guidance and seasonality - Management anticipates flat to slightly lower expenses in 2026, with a focus on maintaining discipline across controllable expenses [44][46] Question: Market opportunities in Colorado - Management expressed confidence in the current branch network and team in Colorado, with potential for future expansion [61][62]

Financial Data and Key Metrics Changes - The company reported net income of $108.8 million or $1.08 per diluted share in Q4 2025, compared to $71.4 million or $0.69 per diluted share in Q3 2025 [12] - Net interest income decreased by $0.4 million or 0.2% to $206.4 million compared to the prior quarter, and decreased by $7.9 million or 3.7% compared to Q4 2024 [12][13] - Non-interest income was $106.6 million, an increase of $62.9 million from the prior quarter, driven by a gain on sale of $62.7 million associated with divestitures [14] - Non-interest expense increased by $8.8 million to $166.7 million, including costs related to branch closures and severance [14] Business Line Data and Key Metrics Changes - Loans decreased by $632.8 million in Q4 2025, including $62.8 million from the indirect portfolio and $72.5 million from loans moving to held for sale [16] - Total deposits decreased by $516.7 million to $22.1 billion, primarily due to the sale of deposits in the Arizona and Kansas transaction [16] - Criticized loans decreased by $112.3 million or 9.6%, while non-performing assets decreased by $47.3 million or 26% [6][15] Market Data and Key Metrics Changes - The ratio of loans held for investment to deposits was 68.8% at the end of Q4 2025, down from 70.1% in the prior quarter [17] - The company maintained a proactive approach to credit, resulting in improved credit quality metrics in Q4 2025 [5][6] Company Strategy and Development Direction - The company is refocusing capital investment and optimizing its balance sheet by exiting markets with lower growth potential and enhancing its presence in high-growth areas [4][8] - A new, flatter organizational structure is being implemented to improve decision-making and support organic growth [9][10] - The company plans to continue share repurchases as a priority for capital allocation, with an increased authorization of $300 million [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for organic growth due to recent organizational changes and improved credit culture [27][28] - The company anticipates a slight decline in loans in the first half of 2026, with modest growth expected in the latter half [20][22] - The net interest margin is expected to improve sequentially, driven by a favorable rate environment and loan repricing dynamics [21][22] Other Important Information - The company declared a dividend of $0.47 per common share, equating to a 5.7% annualized yield [19] - Regulatory capital ratios improved, with the Common Equity Tier 1 capital ratio ending at 14.38% [19] Q&A Session Summary Question: Loan balances and production outlook - Management noted that the decline in loan balances was primarily due to payoffs of criticized loans, which is viewed positively, and indicated improved loan production in December [25][26] Question: Margin expectations - Management expects net interest margin to improve sequentially, with a target of over 3.5% by the end of 2026 [29][30] Question: Reinvestment rates on new loans and securities - Current reinvestment rates for new loans are in the low- to mid-6% range, while securities have seen a slight decrease in rates [33] Question: Buyback activity and capital management - The company plans to continue active buyback activity, aligning capital levels with peer averages [34][35] Question: Credit quality and criticized loans - Management expressed confidence in continued improvement in credit quality, although predicting specific reductions in criticized loans remains challenging [36] Question: Expense guidance and management - The company anticipates flat to slightly lower expenses in 2026, with a focus on maintaining discipline across controllable expenses [40][41] Question: Market opportunities and growth strategy - Management highlighted Colorado as a key growth market, with plans to expand branch locations and enhance customer relationships [56][57]

Financial Data and Key Metrics Changes - The company reported a return on average assets of 1.20%, up from 1.04% in the third quarter, and a return on average common equity of 11.27%, an increase from 10.14% [7] - The efficiency ratio improved to 55.5 from 58.1 in the third quarter and 61.8 a year ago [7] - Reported net income for the fourth quarter was $209.5 million or $2.74 per share, a 16.1% increase from the third quarter [7] - For the full year, net income was $684.6 million or $9.29 per share [8] Business Line Data and Key Metrics Changes - Fourth quarter net interest income totaled $522.5 million, a 10% increase from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs) [8] - Trust and securities processing income increased by $4.5 million or 5.1% linked-quarter, driven by new business activities from fund services and private wealth teams [9] - Total non-interest income was impacted by market-related variances, with a decrease in fee income of $11.2 million from the third quarter [18] Market Data and Key Metrics Changes - The company experienced a 13% linked-quarter annualized growth in average loans and a 5.6% growth in average deposits [9] - Quarterly top-line loan production reached $2.6 billion, with commercial and industrial (C&I) loans showing a 27% annualized growth over the third-quarter average balances [9] - Total non-performing loans were $145 million, or 37 basis points of loans, with total criticized loan levels improving by 9.1% from the prior quarter [10] Company Strategy and Development Direction - The company aims to prioritize organic growth, stating that it does not need to pursue mergers and acquisitions (M&A) to generate assets [12] - The management expressed confidence in capitalizing on opportunities in newly acquired markets and expanding in existing markets [13] - The company is cautious about M&A, indicating a preference for tuck-in acquisitions that make financial and strategic sense [14][15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about maintaining strong asset quality metrics and expects trends of loan growth to continue [10][13] - The company anticipates achieving positive operating leverage in 2026, despite expected lower contractual purchase accounting accretion benefits [21] - The effective tax rate for the fourth quarter was 20.3%, with expectations for 2026 to be between 20%-22% [25][26] Other Important Information - The company reported $39.7 million in acquisition expenses for the fourth quarter, compared to $35.6 million in the previous quarter [8] - The net interest margin for the fourth quarter was reported at 3.29%, with a core margin of 2.96%, increasing 18 basis points sequentially [21][22] - The company has a common equity Tier One ratio of 10.96%, a 26 basis point increase from September [12] Q&A Session Summary Question: Can you provide more detail on the drivers of commercial loan growth in the quarter? - Management noted strong performance across all markets and verticals, with 50% of growth coming from new customer acquisition and market share gains [33] Question: Can you touch on the NPL increase and the timeline for working through acquired credits? - Management indicated the increase was specific to one fully secured credit and expressed confidence in maintaining historical charge-off norms [36] Question: How should we think about average DDA growth quarter over quarter? - Management expects a slight pickup in DDA growth, driven by new client acquisitions and seasonal trends [44] Question: Can you discuss potential revenue synergies from the Heartland acquisition? - Management highlighted opportunities in mortgage products, credit cards, and corporate trust business as key areas for revenue synergies [79] Question: What are the lessons learned from the Heartland acquisition? - Management emphasized the importance of culture and maintaining control over the integration process, noting the transaction went exceptionally well [96][101]

Financial Data and Key Metrics Changes - The company reported a return on average assets of 1.20%, up from 1.04% in the third quarter, and a return on average common equity of 11.27%, an increase from 10.14% [5] - The efficiency ratio improved to 55.5 from 58.1 in the third quarter and 61.8 a year ago [5] - Reported net income for the fourth quarter was $209.5 million or $2.74 per share, a 16.1% increase from the third quarter [5] - For the full year, net income was $684.6 million or $9.29 per share [6] Business Line Data and Key Metrics Changes - Fourth quarter net interest income totaled $522.5 million, a 10% increase from the third quarter, driven by double-digit growth in loans and demand deposit accounts (DDAs) [6] - Trust and securities processing income increased by $4.5 million or 5.1% linked-quarter, driven by new business activities from fund services and private wealth teams [7] - The company experienced a 13% linked-quarter annualized growth in average loans and a 5.6% growth in average deposits [7] Market Data and Key Metrics Changes - The company reported a 3.9% rate of net payoffs and pay downs as a percentage of total loans [9] - Total non-performing loans were $145 million, or 37 basis points of loans, with total criticized loan levels improving by 9.1% from the prior quarter [9] - Industry-wide non-performing loans for banks reported so far were a median of 55 basis points [9] Company Strategy and Development Direction - The company aims to focus on organic growth as its top capital priority, while also being open to tuck-in acquisitions that make financial and strategic sense [12] - The management emphasized the importance of maintaining strong asset quality metrics while continuing to build capital [11] - The company is excited about opportunities in newly acquired markets and plans to capitalize on these in 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate assets organically and take market share ahead of peers [11] - The company expects trends of loan growth to continue, especially in newly acquired markets [12] - Management remains cautious about M&A, focusing instead on organic growth and maintaining the company's culture and business model [12] Other Important Information - The effective tax rate was 20.3% for the fourth quarter and 19.7% for the full year, with expectations for 2026 to be between 20%-22% [24][25] - The company reported a net interest margin of 3.29%, with a core margin of 2.96%, increasing 18 basis points sequentially [20] Q&A Session Summary Question: Can you provide more detail on the drivers of commercial loan growth in the quarter? - Management noted that growth comes from new customer acquisition and market share gains, with strong performance across all markets and verticals [31] Question: Can you touch on the NPL increase and timeline for working through acquired credits? - Management indicated that the increase was specific to one fully secured credit and expressed confidence in maintaining historical charge-off norms [36] Question: How should we think about average DDA growth quarter over quarter? - Management expects a slight pickup in DDA growth, driven by new client acquisitions and seasonal inflows [42] Question: Are all cost savings realized, and where are incremental dollars being invested? - Management confirmed that all identified cost savings have been realized and emphasized disciplined investment in sales activities [55] Question: Can you discuss potential revenue synergies from the Heartland acquisition? - Management highlighted opportunities in mortgage products, credit cards, and corporate trust business as key areas for revenue synergies [78] Question: What are the expectations for loan and deposit growth? - Management stated that they focus on building a strong deposit base and expect exceptional growth in both loans and deposits without specific guidance on loan-to-deposit ratios [117]