Post Holdings (NYSE:POST) Q1 2026 Earnings call February 06, 2026 09:00 AM ET Speaker9Welcome to the Post Holdings First Quarter 2026 Earnings Conference Call and Webcast. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your telephone keypad. If at any point your question has been answered, you may remove yourself from the queue by pressi ...

Management also addressed taxes. Harrison said the effective tax rate in the fourth quarter was 24.8% due to the reversal of a previously accrued tax benefit, and said the company expects the effective tax rate to return to about 23.2% going forward.On results, Harrison said the company posted “another strong quarter,” pointing to net interest margin (NIM) expansion, growth in net interest income, contained expenses, and strong credit quality. He said return on average tangible equity was 15.8% in the fourt ...

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]

Core Insights - Corpay (CPAY) has outperformed the industry with a 6% gain over the past three months, while the industry saw a decline of 1.2% [1] - Earnings for CPAY are projected to increase by 10.6% year over year in Q4 2025, with further growth expected at 11.9% in 2025 and 16.7% in 2026. Revenues are anticipated to grow by 13.6% in 2025 and 15.6% in 2026 [1] Revenue Growth Drivers - CPAY's revenue growth is attributed to a multi-channel strategy that includes a comprehensive digital channel, direct sales forces, and partner relationships, enhancing its online capabilities for customer account management [3] Acquisitions and Investments - The company has been active in acquisitions, including the purchase of AvidXchange in October 2025, which will enhance its performance in accounts payable automation [4] - CPAY also acquired Alpha Group International plc, a European B2B cross-border FX solution firm, to expand its global customer reach and made a minority investment in Mastercard to leverage its financial institution network [5] Shareholder Value - CPAY has consistently repurchased shares, with buybacks totaling $849.9 million in 2020, $1.36 billion in 2021, $1.41 billion in 2022, $686.9 million in 2023, and $1.3 billion in 2024, which enhances shareholder value and confidence in the stock [6] Financial Health - As of the end of Q3 2025, CPAY's current ratio was 1.13, slightly below the industry average of 1.14, indicating the company's ability to meet short-term obligations [7] Market Position - CPAY currently holds a Zacks Rank of 3 (Hold), while competitors Genpact and Palantir Technologies have better rankings of 2 (Buy) [8]

Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin improved to 7.83%, an increase of 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales experienced a total growth of 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, driven by strong demand for medical products and pharmaceuticals, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, with notable growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives targeting over $200 million in operating income improvements [7][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [39][32] - The overall market is described as stable, with some inflationary pressures, but the company is gaining market share in key segments [51][49] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter on a non-GAAP basis was 22.9%, reflecting a decrease from the prior year [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with expectations for some operating improvements in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint in 2025 EPS guidance increased by $0.05, reflecting both the remeasurement gain and sales momentum [44][47] Question: Specialty products operating profit and margin dynamics - Specialty products' operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66] Question: Growth trajectory for specialty products - Continued growth in premium implants and endodontic sales is necessary for EBIT dollar growth in the specialty business [71] Question: Market share gains and competitive landscape - Management noted confidence in gaining market share, particularly in the dental and medical segments, despite a stable market environment [49][85]

Financial Data and Key Metrics Changes - Gross premiums written increased by 1.4% to $183.9 million compared to $181.2 million in the prior year, primarily due to renewal business premium growth [16] - Net premiums earned rose by 3% to $192.1 million from $186.6 million in the previous year, driven by larger levels of 2024 written premium earning in 2025 [16] - Losses and loss adjustment expenses (LAE) were $186.6 million, significantly higher than $117.7 million a year ago, reflecting increased reserves due to cumulative trauma claims [17] - The adjusted net loss was $25.5 million compared to adjusted net income of $20.2 million a year ago [20] - The book value per share increased by 6.1% to $49.70, while adjusted book value per share rose by 5.5% to $51.31 over the last 12 months [22][23] Business Line Data and Key Metrics Changes - The company increased its accident year 2025 loss and LAE ratio from 69% to 72% due to rising cumulative trauma claims in California [6] - The underwriting expense ratio decreased to 20.6% from 23.5% year-over-year, attributed to lower compensation-related expenses and higher net premiums earned [18] - The commission expense ratio improved to 12% from 13.8%, primarily due to a higher proportion of renewal business [18] Market Data and Key Metrics Changes - The company reported a 4% growth in policies in force, indicating strong retention in the small commercial business despite competitive pressures [13] - The frequency of cumulative trauma claims in California has increased, impacting reserves, while frequency in other states continues to decline [6][10] Company Strategy and Development Direction - The company is focusing on underwriting margin over growth in a soft workers' compensation market, implementing targeted pricing actions and enhanced risk selection [12] - A new excess workers' compensation offering is being developed, with plans to start accepting submissions in early 2026 [14] - The company is pursuing legislative reforms in California to align cumulative trauma claims with other states [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the adjustments made to reserves adequately address recent trends and emphasized that these are not indicative of broad deterioration in the business [7][12] - The company is committed to providing best-in-class care to injured workers while managing the impact of cumulative trauma claims [11] - Future growth is expected to be steady, with a focus on maintaining underwriting margins rather than aggressive expansion [33] Other Important Information - The company announced a $125 million debt-funded recapitalization plan and increased its share repurchase authorization to $250 million [15][21] - Net investment income for the quarter was $26.1 million, slightly lower than the previous year, with realized and unrealized gains on investments increasing to $21.2 million [14][19] Q&A Session Summary Question: Can you elaborate on the targeted litigation strategies? - The company is using analytics to manage cumulative trauma claims and has established aggressive targets to reduce litigation costs [25] Question: How predictable are the loss trends going into 2026? - Management believes the trend is stabilizing but acknowledges the difficulty in predicting future outcomes [29] Question: Will there be a traditional fourth-quarter reserve review? - Yes, a full fourth-quarter review will be conducted, including an external actuarial review [36] Question: What commentary have you received from rating agencies regarding cumulative trauma claims? - Rating agencies have been supportive of the company's operational and capital actions [38] Question: How are medical cost trends evolving? - Overall claim severity values have held steady, with no significant concerns regarding medical costs [39] Question: Can you discuss the new excess workers' compensation product? - The new product is part of the company's diversification strategy, leveraging existing expertise and systems [41]

Financial Data and Key Metrics Changes - Columbia Banking System reported a third-quarter operating PP&R increase of 12% from the second quarter and 22% year-over-year, reflecting strong profitability and balance sheet optimization [6][12] - The operating return on average tangible equity was 18.2%, with a tangible book value per share increasing to $18.57, a 4% rise since Q1 2025 [12][14] - The net interest margin expanded by nine basis points to 3.84%, driven by customer deposit growth and a reduction in reliance on higher-cost wholesale funding [15][16] Business Line Data and Key Metrics Changes - New loan originations reached $1.2 billion, up 36% quarter-over-quarter and 21% year-to-date, with a 5% annualized increase in the commercial portfolio [18][19] - Customer deposits increased nearly $800 million organically during the quarter, with approximately 30% of this growth attributed to new customers [18][19] - Non-interest income for the quarter was $77 million, with operating non-interest income increasing by $6 million due to the contribution from Pacific Premier Bancorp [16][19] Market Data and Key Metrics Changes - The acquisition of Pacific Premier Bancorp has enhanced Columbia's competitive position in the Pacific Northwest, with nearly 10% deposit market share in the region [3][4] - The company is focusing on organic growth opportunities in dynamic markets such as Arizona, Colorado, Nevada, and Utah, leveraging its expanded footprint [4][5] Company Strategy and Development Direction - Columbia Banking System aims to optimize its balance sheet while focusing on organic growth and enhancing customer relationships, particularly in Southern California [4][5] - The company has initiated a $700 million share repurchase program, reflecting confidence in its balance sheet and long-term shareholder value creation [21][22] - Management emphasizes a disciplined approach to lending and profitability over growth for the sake of growth, with a focus on relationship-driven loans [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate capital beyond what is required for growth, with a focus on delivering top-tier performance and capital returns [21][34] - The integration of Pacific Premier Bancorp is expected to enhance customer relationships and drive revenue synergies, with management committed to a disciplined, cost-conscious culture [9][20] - The company anticipates continued strong profitability and capital generation, with a focus on optimizing its balance sheet and enhancing long-term shareholder value [21][22] Other Important Information - The company reported a GAAP provision expense of $70 million due to purchase accounting from the acquisition, with an overall allowance for credit losses at 1.1% of total loans [12][16] - Management announced that Ron Farnsworth, the CFO, will be stepping down, with Ivan Shetta appointed as the new CFO [10][11] Q&A Session Summary Question: Insights on the buyback program and balance sheet optimization - Management indicated that the buyback program is a 12-month initiative, balancing capitalizing on valuation and maintaining flexibility for macroeconomic uncertainties [25][26] Question: Thoughts on recent activist investor presentations - Management acknowledged awareness of the presentation and reiterated their focus on consistent performance, capital returns, and the successful integration of Pacific Premier Bancorp [32][34] Question: Drivers behind strong deposit growth - Approximately 30% of the $800 million organic deposit growth came from new customers, with significant contributions from commercial and retail banking [38][39] Question: Outlook on loan growth and balance sheet optimization - Management expects to achieve around 5% annual loan growth while remixing the balance sheet to focus on higher-quality, relationship-based loans [51][52] Question: Expectations for net interest margin in the upcoming quarter - Management provided a range for net interest margin expectations, indicating stability with modest upside in Q4 [56][58]

Company Overview - Garrett Motion Inc. is a leading differentiated automotive technology provider with a 70-year history of innovation in the automotive sector and beyond, including off-highway equipment, marine, and power generators [8] - The company specializes in turbocharging technology, which has led to significant reductions in engine size, fuel consumption, and CO2 emissions [8] - Garrett is actively developing technology solutions for Zero Emission Vehicles, including fuel cell compressors for hydrogen fuel cell vehicles and electric propulsion systems for battery electric vehicles [8] - The company operates five R&D centers and 13 manufacturing facilities, employing over 9,000 people in more than 20 countries [8] Recent Developments - Garrett announced a proposed secondary public offering of 17,000,000 shares of common stock held by certain entities managed by affiliates of Oaktree Capital Management, Centerbridge Partners, and Cyrus Capital Partners [1] - The underwriters have a 30-day option to purchase an additional 2,550,000 shares from the Selling Stockholders [1] - The company has authorized the repurchase of approximately 2 million shares of common stock as part of the secondary public offering, with a maximum aggregate repurchase amount of $25 million [2] - This repurchase is part of Garrett's existing $250 million share repurchase program [2] Underwriters and Regulatory Filings - Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as lead bookrunners for the proposed offering, with several other firms serving as joint bookrunning managers [3] - A shelf registration statement and a preliminary prospectus supplement relating to the offering have been filed with the Securities and Exchange Commission [4]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $644 million for Q1 2025, reflecting strong performance in the global nitrogen industry [5][16] - Net earnings attributable to common stockholders were approximately $312 million, or $1.85 per diluted share, marking a 60% increase compared to Q1 2024 [16] - Free cash flow was approximately $1.6 billion, with a conversion rate of 63% from adjusted EBITDA [16][18] Business Line Data and Key Metrics Changes - The production network achieved over 2.6 million tons of gross ammonia, reflecting a 100% utilization rate [7][8] - The company projects approximately 10 million tons of gross ammonia production for 2025 [8] Market Data and Key Metrics Changes - Strong global demand for nitrogen fertilizers is driven by low corn stocks and favorable farmer economics in North America [11][12] - The USDA reported corn planting expectations of 95 million acres in the U.S., with potential for higher final planted acres due to nitrogen demand [11] - Global nitrogen inventory is expected to remain low, supporting strong demand in key consuming regions like Brazil and India [12][13] Company Strategy and Development Direction - The company is focused on growth through the Blue Point joint venture with JERA and Mitsui, aimed at supplying low carbon ammonia [5][8] - The Donaldsonville complex carbon capture and sequestration project is nearing completion, expected to start generating tax credits in H2 2025 [8][18] - The company plans to return $5 billion to shareholders through share repurchases and dividends since 2022, with an additional $2 billion share repurchase program authorized [6][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for future growth, citing favorable industry dynamics and strong cash generation [20] - The global nitrogen supply-demand balance is expected to tighten through the end of the decade, with increasing demand for low carbon ammonia [13][20] Other Important Information - The company will hold an Investor Day on June 24 in New York to discuss strategy and long-term outlook [19] - Capital expenditures for 2025 are expected to be approximately $650 million, with significant investments in the Blue Point project [18] Q&A Session Summary Question: Do you have any off-take agreements for blue ammonia from D. Ville? - The company has agreements in place for blue ammonia, structured for growth, with expectations for increasing demand as the product becomes available [22] Question: Is the Air Products project something the company might be interested in? - The company is not interested in the Air Products project due to high operating costs associated with hydrogen production [25] Question: Can you clarify the partnership stakes in BluePoint and potential changes in offtake? - The company expects JERA to maintain their 35% ownership, and any incremental ownership would be manageable in terms of marketing the tons [30][32] Question: How do you see the market for urea and UAN evolving? - The company is pleased with its order book and expects a positive market environment for Q2 and Q3, despite low inventories [36] Question: How is the company mitigating potential capital inflation for the Blue Point project? - The company is using modular construction to reduce on-site labor and inflationary pressures, with fixed-price contracts for modules [40][41] Question: What is the company's view on nitrogen cost curves and free cash flow conversion? - The U.S. is expected to remain a low-cost region for gas production, supporting strong free cash flow generation [44][46] Question: How will the company report Blue Point in its financials? - The company plans to consolidate Blue Point into its financials, reporting it within the ammonia segment [110]