French state-owned transport group SNCF is considering the sale of a stake in its Rail Logistics Europe unit, people with knowledge of the matter said https://t.co/wIia5leXK1 ...

PresentationBrandon OglenskiBarclays Bank PLC, Research Division Good afternoon, everyone. We're going to get this keynote lunch started here. So appreciate everyone coming down to Barclays 43rd Annual Industrial Select Conference. This is our third day. So thank you for making it through. It's been a very eventful conference again. I'm Brandon Oglenski, airline and transport analyst. But I just wanted to very quickly thank our corporate access and event marketing teams. There's a lot of folks that work aro ...

Core Viewpoint - Genesis Energy, L.P. has successfully priced a public offering of $750 million in senior notes, up from the previously announced $500 million, with a fixed interest rate of 6.75% due in 2034 [1] Group 1: Offering Details - The public offering consists of $750 million in aggregate principal amount of senior notes, which will be co-issued with Genesis Energy Finance Corporation and guaranteed by all subsidiaries except unrestricted ones [1] - The notes will be sold at 100% of their principal amount, and the offering is expected to settle on March 4, 2026, pending customary closing conditions [1] Group 2: Use of Proceeds - The net proceeds from the offering will be used to purchase or redeem all outstanding 7.75% senior notes due 2028 and for general partnership purposes, including repaying a portion of revolving borrowings under the senior secured credit facility [1] Group 3: Market Participation - BofA Securities and Citigroup are acting as joint global coordinators for the offering, with several other financial institutions serving as joint book-running managers [1]

Core Insights - Genesis Energy, L.P. has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, with the SEC, which can be accessed on the company's website [1] - The company reported a net income of $19.9 million for Q4 2025, a significant improvement compared to a net loss of $49.4 million in Q4 2024 [1] - Cash flows from operating activities for Q4 2025 were $110.8 million, up from $74.0 million in the same quarter of the previous year [1] - The Board of Directors declared a quarterly cash distribution of $0.18 per common unit, amounting to an annualized distribution of $0.72 per common unit [1] - Genesis Energy will participate in upcoming investor conferences, including the BofA Securities 2025 Leveraged Finance Conference and the Wells Fargo 24th Annual Energy and Power Symposium [1]

Core Viewpoint - Southwest Airlines is experiencing a notable increase in share price despite broader market declines, indicating strong momentum and investor interest [1][3]. Group 1: Stock Performance - Southwest Airlines shares are trading higher during premarket sessions, up 2.25% at $52.26, while major indices like the Dow Jones, Nasdaq, and S&P 500 are showing losses [1][5]. - Over the past 12 months, Southwest Airlines has gained 70.37%, reflecting strong long-term momentum, with the stock trading near its 52-week high of $54.70 [3]. Group 2: Earnings Outlook - The next major catalyst for Southwest Airlines' stock is the upcoming earnings report on April 22, which analysts are closely monitoring due to expected substantial improvements and strategic shifts [4]. Group 3: Analyst Ratings and Estimates - The stock carries a Hold rating with an average price target of $42.44, with recent analyst actions including target increases from Susquehanna to $55.00, UBS to $51.00, and Jefferies to $48.00 [5][6]. - Earnings per share (EPS) is estimated at 52 cents, a significant improvement from a loss of 13 cents year-over-year, while revenue is estimated at $7.16 billion, up from $6.43 billion year-over-year [6].

Core Insights - Russia's drone and missile strikes on Ukraine's infrastructure have highlighted the importance of infrastructure resilience, which may influence investments in industrial and infrastructure-related ETFs [1][3][6] Investment Perspective - The ongoing attacks have targeted Ukraine's energy infrastructure, leading to power outages and necessitating repair work, which underscores a structural shift towards rebuilding energy grids and transport links globally [2][3][4] - Infrastructure ETFs, particularly those focused on utilities, energy pipelines, and transport companies, are expected to benefit from increased investments in power grid hardening and reconstruction efforts [4][6] Infrastructure Trends - Ukraine is moving parts of its power grid underground to enhance resilience, indicating a long-term trend in infrastructure development despite the high costs involved [5] - The global perspective on infrastructure resilience is expanding beyond conflict zones, with governments in the US and Europe aligning their investments with infrastructure and industrial ETFs [6] ETF Dynamics - Infrastructure ETFs are characterized by a slower reaction to market changes compared to defense stocks, as infrastructure spending typically unfolds over several years [7] - The ongoing geopolitical conflicts and targeted attacks on infrastructure support the investment thesis that resilience spending is becoming a fundamental aspect of global fiscal policy [7][10] Key Infrastructure Projects - Focus areas include grid reinforcement, undergrounding projects, railway and port reconstruction, energy diversification efforts, and cross-border infrastructure upgrades [8][9]

Core Thesis - Brookfield Infrastructure Partners L.P. (BIP) is viewed positively due to its strong performance and growth potential, with shares trading at $37.03 and trailing and forward P/E ratios of 40.86 and 156.25 respectively [1][2] Financial Performance - BIP reported a Q4/25 FFO of $0.87 per unit and increased its annual distribution by 6% to $1.82, marking a 17-year streak of distribution increases [2] - Management anticipates that 2026 will be an inflection year, with FFO growth expected to exceed 10% driven by new investments and a growing backlog of data-related capital projects [2] Transaction Activity - The company has robust transaction activity, including the first Bloom Energy project delivering 55MW of power to a U.S. data center, and secured additional hyperscaler projects, bringing total AI and data center exposure to approximately 230MW [3] - Capital recycling is progressing well, highlighted by a $150 million sale of Brazilian electricity transmission that generated a 45% IRR, alongside monetization of stabilized North American data centers to fund further development [3] Strategic Focus - BIP's approach to AI and data infrastructure emphasizes disciplined growth with long-term, inflation-protected contracts and investment-grade counterparties, allowing for upside capture without excessive risk [3] Liquidity and Valuation - The company maintains $2.7 billion in corporate liquidity and offers a current yield of 5%, positioning it among the top TSX60 dividend payers, while its valuation remains below its long-term mid-range despite recent 52-week highs [4] Investment Outlook - With accelerating earnings, strong transaction momentum, and active capital recycling, BIP is well-positioned to deliver reliable income and capital appreciation, presenting a compelling risk/reward profile for long-term holders [5]

Group 1 - RXO announced participation in several upcoming investor conferences, including the Stifel 2026 Transportation & Logistics Conference on February 10, the Barclays 43rd Annual Industrial Select Conference on February 18, and Citi's 2026 Global Industrial Tech and Mobility Conference on February 19 [1] - The company will issue its fourth-quarter financial results before the opening of the New York Stock Exchange on February 6, 2026, followed by a conference call at 8 a.m. EST [1] - RXO has been recognized as a Leader in the inaugural 2025 Gartner Magic Quadrant for Fourth-Party Logistics (4PL), noted for its Ability to Execute and Completeness of Vision [1] Group 2 - RXO's latest Curve Freight Market Forecast indicates a sustained year-over-year increase in truckload rates in the third quarter, although the growth rate is decelerating [1]

Financial Data and Key Metrics Changes - Brookfield Infrastructure Partners generated funds from operations (FFO) of $2.6 billion in 2025, reflecting a 10% increase compared to 2024 when normalized for asset sales and foreign exchange [4][5] - The fourth quarter FFO reached a record of $0.87 per unit, leading to a conservative payout ratio of 66% and a 6% increase in quarterly distribution to $1.82 per unit, marking the 17th consecutive year of distribution increases of at least 5% [5][6] Business Line Data and Key Metrics Changes - The transport segment generated FFO of $1.1 billion, consistent with the prior year after normalizing for $1.8 billion in capital recycling initiatives, with higher revenues in rail and toll road segments [6][7] - The midstream segment's FFO increased by 7% year-over-year to $668 million, driven by higher volumes in Canadian natural gas operations and a newly acquired US refined products pipeline [7][8] - The data segment's FFO surged over 50% to $502 million, attributed to new investments and strong organic growth, including the commissioning of 220 megawatts of capacity at hyperscale data centers [8][9] Market Data and Key Metrics Changes - The global data center platform has development potential of approximately 3.6 gigawatts, with contracted capacity exceeding 2.3 gigawatts [9] - In 2025, corporates invested around $500 billion into AI-related infrastructure, with expectations for further capital investment in the next two years [11][12] Company Strategy and Development Direction - The company is focused on a prudent, risk-focused approach to AI infrastructure investing, emphasizing long-term contracts and selective partnerships with investment-grade counterparties [12][13] - Brookfield Infrastructure aims to capitalize on structural themes such as digitalization, decarbonization, and deglobalization, positioning itself for a super cycle in infrastructure investment [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating a return to 10% or higher per unit growth, supported by resilient cash flows and a robust pipeline of investment opportunities [20][21] - The company highlighted the importance of maintaining a disciplined execution strategy to convert demand into durable returns, particularly in the data center sector [16][17] Other Important Information - The company achieved record liquidity of $6 billion at the end of 2025, bolstered by $3.1 billion in asset sale proceeds [9] - Significant new investments included a $125 million acquisition of a South Korean industrial gas business and a $300 million investment in a railcar leasing platform [19] Q&A Session Summary Question: Can you elaborate on your contract approach to mitigate technology risk in data centers? - Management explained that long-term contracts (around 15 years) help avoid technology risks by ensuring that any necessary infrastructure changes are not at their cost [28][30] Question: What is the expected return on new data center developments? - Management indicated that new data centers yield a return of 9% to 10%, with monetization at cap rates of 5.5% to 6%, leading to potential equity returns in the high teens or twenties [26][27] Question: Can you provide details on the KKR acquisition of data centers? - Management stated that they cannot disclose specific transaction details but confirmed joint ventures with institutional investors across North America and Europe, totaling about 850 megawatts [35][36] Question: What is the outlook for inflation indexation across geographies in 2026? - Management expects inflation indexation in OECD markets to average between 2% and 3%, with emerging markets like India and Brazil ranging from 2% to 4% [46][47] Question: How is the capital backlog in data operations expected to evolve? - Management noted a significant increase in the capital backlog, driven by hyperscale projects, and expects about $1.5 billion to come online in 2026 [51][59]

Core Insights - Brookfield Infrastructure Partners L.P. reported a net income of $1.1 billion for the year ended December 31, 2025, significantly up from $391 million in 2024, driven by strong operational performance and capital recycling activities [2][3][31] - The company achieved funds from operations (FFO) of $2.6 billion, or $3.32 per unit, representing a 10% increase over normalized FFO and a 6% increase compared to 2024 [3][4][41] - The company expects FFO to increase further in 2026 as new investments contribute to results and the growth pipeline expands to include AI infrastructure [2][8] Financial Performance - Net income attributable to the partnership for 2025 was $1.1 billion, with a per unit income of $0.90, compared to $0.04 in 2024 [2][31] - FFO for 2025 was $2.6 billion, or $3.32 per unit, compared to $2.5 billion, or $3.12 per unit, in 2024 [3][41] - Revenues for 2025 reached $23.1 billion, up from $21.0 billion in 2024, while direct operating costs increased from $15.7 billion to $16.9 billion [31][53] Segment Performance - The utilities segment generated FFO of $786 million, a 7% increase year-over-year, benefiting from inflation indexation and new capital commissioned [4][5] - The transport segment's FFO was $1.1 billion, consistent with the previous year after normalizing for asset sales and foreign exchange [5][6] - The midstream segment reported FFO of $668 million, reflecting a 7% year-over-year increase due to higher volumes and activity levels [6] - The data segment saw a significant increase in FFO to $502 million, over 50% higher than the previous year, driven by new investments and strong organic growth [7] Strategic Initiatives - The company exceeded its $3 billion capital recycling target in 2025 and completed $1.5 billion in new investments [2][8] - Asset sales reached a record $3.1 billion in 2025, with expectations to continue this momentum into 2026 [12][13] - The company has secured additional projects under a framework agreement with Bloom Energy, totaling approximately 230 MW of power generation [9] Dividend and Distribution - The Board of Directors declared a quarterly distribution of $0.455 per unit, a 6% increase compared to the prior year, payable on March 31, 2026 [16][44] - The equivalent quarterly dividend for Brookfield Infrastructure Corporation's shares was also declared at $0.455, aligning with the distribution for BIP units [44][45]