2Q 2025 Earnings Investor Presentation July 30, 2025 The Timken Company Agenda | Introduction | Neil Frohnapple Vice President of Investor Relations | | --- | --- | | Overview and | Rich Kyle | | Business Update | President and Chief Executive Officer | | Financial Review | Phil Fracassa | | | Executive Vice President and Chief Financial Officer | | Q&A | Question and Answer Session | 2 Forward-Looking Statements Safe Harbor and Non-GAAP Financial Information Certain statements in this presentation (includi ...

Core Insights - Berkshire Hathaway Inc. (BRK.B) stock is currently trading at approximately a 10% discount to its 52-week high of $542.07, closing at $476.56 after a 1.1% decline in the latest trading session [1] - The company has underperformed compared to the industry, the Finance sector, and the Zacks S&P 500 composite index year to date [1][9] - Berkshire Hathaway operates as a conglomerate with over 90 subsidiaries, providing stability across various economic cycles [1][14] Stock Performance - BRK.B is trending below its 50-day simple moving average (SMA), indicating potential downside risk [2] - The stock is considered overvalued with a price-to-book multiple of 1.57, higher than the industry average of 1.53 [8] - Year to date, BRK.B shares are down 10% from their 52-week high and lag behind the industry, sector, and S&P 500 [9] Financial Metrics - The average target price for BRK.B, based on short-term price targets from four analysts, is $538.75 per share, suggesting a potential upside of 13.1% from the last closing price [11] - Return on equity (ROE) for BRK.B in the trailing 12 months was 7.2%, below the industry average of 7.8%, while return on invested capital (ROIC) was 5.7%, also lower than the industry average of 6% [20][21] Business Segments - Berkshire Hathaway's insurance operations contribute approximately 25% of total revenues and are a key driver of long-term growth, supported by disciplined pricing and solid underwriting performance [14] - The company's diversified structure, including Berkshire Hathaway Energy (BHE), provides stability and aligns with the global shift towards renewable energy [15] - The Utilities and Energy segment, including Burlington Northern Santa Fe (BNSF), is expected to benefit from increasing demand for utility services despite current challenges [16] Analyst Sentiment - The Zacks Consensus Estimate for 2025 earnings indicates a 6.7% year-over-year decrease, while a 5% increase is expected for 2026, with long-term earnings growth projected at 7% [22] - Analyst sentiment has remained muted, with no changes in earnings estimates over the past 30 days [22] Leadership Transition - The focus will shift to the performance of Berkshire Hathaway under Greg Abel, who will succeed Warren Buffett as CEO on January 1, 2026, while Buffett will remain as executive chairman [26]

July 30, 2025 Q1 Fiscal 2026 Financial Results Conference Call David Wilson President & Chief Executive Officer Gregory Rustowicz Executive Vice President Finance & Chief Financial Officer Kristine Moser Vice President, Investor Relations & Treasurer Safe Harbor Statement This presentation and the accompanying oral discussion contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of ...

Group 1 - The Chinese government is committed to advancing AI-enabled new industrialization, with a focus on enhancing industrial applications and optimizing the industry ecosystem [1] - The 2025 World Artificial Intelligence Conference (2025WAIC) showcased various AI applications in industries such as textiles, photovoltaics, and automotive, demonstrating significant efficiency improvements and quality enhancements [1] - AI applications in industrial quality inspection have led to a 70% increase in response efficiency and a 50% reduction in safety management personnel in steel manufacturing [1] Group 2 - China Unicom is developing large-scale industrial intelligent computing clusters to support the construction of smart factories across various sectors, including automotive and steel [2] - The integration of AI and industrial internet is seen as a core driver for industrial transformation, particularly benefiting the digital transformation of small and medium-sized enterprises [1][2] - The Ministry of Industry and Information Technology of China has outlined key tasks for the second half of the year, emphasizing the deepening of the "AI + manufacturing" initiative [2] Group 3 - The establishment of the national AI platform "Huanxin Community" aims to promote the maturity of domestic AI technologies and industry ecosystems, aggregating data sets from 13 industries [2] - A consortium of eight banks, including the Industrial and Commercial Bank of China, has launched a financial product with a credit limit of 400 billion RMB to support the development of "AI + manufacturing" [2] - KPMG's white paper highlights that generative AI is accelerating its penetration into key manufacturing processes, moving from pilot exploration to deep application among Chinese manufacturing enterprises [3]

Core Viewpoint - Resideo Technologies, Inc. plans to separate its ADI Global Distribution business through a tax-free spin-off, expected to be completed in the second half of 2026, allowing both entities to enhance operational performance and strategic flexibility [1][9]. Company Overview - Resideo is a leading global manufacturer and distributor of technology-driven sensing and controls products for residential and commercial markets, with a focus on maximizing comfort, safety, and cost savings [3][16]. - The Products & Solutions (P&S) segment generated net revenue of $2.6 billion with an adjusted EBITDA margin of 24.2% for the twelve-month period ending March 29, 2025 [4]. - ADI Global Distribution is the leading global wholesale distributor of low-voltage products, with net revenue of $4.5 billion and an adjusted EBITDA margin of 7.5% for the same period [7]. Strategic Rationale - The separation is intended to allow both ADI and P&S to unlock their full potential and better serve stakeholders by focusing on their distinct business models [2]. - ADI will continue to leverage its global footprint and exclusive brands to maintain competitive advantages in the low-voltage products market [6][7]. Financial Expectations - Resideo anticipates its second quarter 2025 financial results will exceed previous outlooks, projecting net revenue between $1.805 billion and $1.855 billion, with adjusted EBITDA of $175 million to $195 million [11][12]. Transaction Details - The spin-off does not require shareholder approval and is subject to customary conditions, including board approval and regulatory approvals [9]. - Resideo has entered into an agreement with Honeywell to accelerate a one-time cash payment of $1.59 billion, eliminating future monetary obligations under the Indemnification Agreement [10].

Core Viewpoint - The A-share market has seen a significant increase in equity financing in 2023, with a total of 172 companies raising 823.51 billion yuan, marking a year-on-year growth of 371.52% [1] Group 1: Equity Financing Overview - As of July 28, 2023, 172 companies completed equity financing, raising a total of 823.51 billion yuan, which is a 371.52% increase year-on-year [1] - Among these, 90 companies completed private placements, raising 722.30 billion yuan, up 543.73% year-on-year, while 25 companies issued convertible bonds, raising 40.56 billion yuan, a 53.53% increase [1] - The financial sector leads in private placement scale, with major state-owned banks like Bank of China, Postal Savings Bank, and others raising over 1 trillion yuan each for liquidity support [2][8] Group 2: Regulatory Support and Market Trends - The surge in private placements is supported by regulatory measures aimed at increasing long-term capital inflow into the market, including a joint implementation plan released by six departments in early 2025 [5] - The total amount raised through private placements in 2023 has already surpassed the total for the entire previous year [6] - The "merger and acquisition policies" have also contributed to a rise in financing for acquisitions, with 16 out of 90 private placements being used for asset acquisitions [7] Group 3: Industry Distribution and Company Actions - The manufacturing and high-tech industries are the main contributors to private placements, with significant participation from sectors like chemicals, hardware, machinery, and electrical equipment [7] - Several companies are actively planning private placements, with 352 companies updating their refinancing plans by July 28, 2023, a 162.69% increase from the previous year [12] - The Shenzhen Stock Exchange has introduced guidelines to enhance financing flexibility for companies classified as "light asset" and "high R&D input," allowing them to bypass certain restrictions [13][14] Group 4: Simplified Procedures and Case Studies - A growing number of small and medium-sized enterprises are utilizing simplified procedures for private placements, which allow for quicker approvals and less stringent requirements [8][9] - For instance, Platinum New Materials raised 300 million yuan through a simplified procedure, demonstrating the efficiency of this financing method [10]

Core Viewpoint - TriMas reported strong Q2 2025 results, exceeding analyst expectations due to robust growth in the Aerospace segment, efficient operations, and successful integration of recent acquisitions [1][5] Financial Performance - Adjusted earnings per share (EPS) reached $0.61, surpassing the expected $0.48, and up 41.9% from $0.43 in Q2 2024 [2] - Revenue was $274.8 million, exceeding the GAAP consensus of $250.1 million, and reflecting a 14.2% increase from $240.5 million in Q2 2024 [2] - Operating profit increased to $31.8 million, a 52.9% rise from $20.8 million in the prior year [2] - Free cash flow was reported at $16.9 million, up 48.2% from $11.4 million in Q2 2024 [2] Business Segments - The Packaging segment saw net sales increase by 8.4% to $143.0 million, driven by organic growth in beauty & personal care and industrial markets [6] - The Aerospace segment achieved a significant 32.5% increase in net sales to $103.0 million, with organic growth of 23.8% compared to Q2 2024, bolstered by the acquisition of TriMas Aerospace Germany [7] - Specialty Products recorded GAAP net sales of $28.7 million, down 6.8%, primarily due to the divestiture of Arrow Engine, but showed signs of recovery in order intake [7] Strategic Focus - Innovation and proprietary product development are central to TriMas's strategy, alongside strategic acquisitions and operational excellence [4] - The company is committed to maintaining financial flexibility, investing for long-term growth, and advancing sustainability and ESG objectives [4][8] Future Outlook - Management raised its full-year 2025 adjusted diluted EPS guidance to a range of $1.95 to $2.10, up from $1.70 to $1.85 [10] - Company-wide revenue growth is now targeted at 8% to 10% for FY2025, increased from a previous estimate of 4% to 6% [10]

Core Insights - Lincoln Educational Services Corporation is reintroducing its Advanced Manufacturing program at the Mahwah, NJ campus, responding to employer and student demand for training in tech-driven manufacturing careers [2][3] - The program will focus on robotic integration and programming skills essential for modern manufacturing, with a projected increase in job opportunities in the field over the next decade [2][4] Company Overview - Lincoln Educational Services Corporation has been a leader in specialized technical training for nearly 80 years, providing career-oriented education in various fields [2][10] - The company operates 21 campuses across 12 states under three brands: Lincoln College of Technology, Lincoln Technical Institute, and Nashville Auto-Diesel College [11] Program Details - The Advanced Manufacturing program will allow students to earn a Certificate in Advanced Manufacturing with Robotics, utilizing equipment from Haas Automation [2][4] - Students will gain skills in programming, operating, and maintaining CNC milling and turning machines, as well as learning to read blueprints and operate robotic systems [4][5] - The program includes training for industry certifications through the National Institute for Metalworking Skills (NIMS) and CNC programming training with MasterCam software [4] Industry Context - The U.S. Department of Labor projects that the manufacturing field will add hundreds of jobs in New Jersey over the next 10 years, while the number of qualified technicians is expected to be significantly lower [2][7] - Industries such as aerospace, automotive manufacturing, and metal fabrication are increasingly reliant on CNC manufacturing and machining, creating a demand for skilled technicians [5][6] Student Experience - Graduates of the program, like Alec Tomasula, have successfully transitioned into careers in specialized fields, highlighting the hands-on experience and training provided [6]

Financial Data and Key Metrics Changes - The company reported solid revenue of $2,040 million for the third quarter, representing a 10.9% year-over-year increase [11][14] - Non-GAAP diluted earnings per share (EPS) was $1.53, a 22.8% increase compared to the same period last year [16] - Non-GAAP gross margin improved to 9.1%, reflecting a 60 basis point increase year-over-year [14][15] - Non-GAAP operating margin was 5.7%, at the high end of the company's outlook [13][15] Business Line Data and Key Metrics Changes - IMS revenue reached $1,650 million, up 11.6% year-over-year, driven by growth in communications networks and cloud infrastructure [18] - CPS revenue was $422 million, an 8.8% increase year-over-year, with a non-GAAP gross margin of 14.7%, a 320 basis point improvement [19] - DPS non-GAAP gross margin was 14.7%, driven by higher revenue and operational efficiencies [19] Market Data and Key Metrics Changes - The communications networks and cloud infrastructure segments showed strong demand, with revenue of $786 million, a 19.1% increase year-over-year [32] - The industrial, energy, medical, defense, aerospace, and automotive segments generated $1,256 million, growing 6.2% year-over-year [32] Company Strategy and Development Direction - The company is focused on improving operating margins to exceed 6% in the long term [31] - A strategic acquisition of ZT Systems is expected to significantly enhance revenue, potentially doubling net revenue within three years [26][27] - The acquisition aligns with the company's strategy to capitalize on long-term growth trends in data center and AI infrastructure [40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver solid revenue and profitability growth despite uncertainties in the geopolitical landscape [25][31] - The company anticipates continued growth in fiscal year 2025, with revenue expected to increase by 6% to 8% [39] - Management noted a strong pipeline of new opportunities and positive customer sentiment regarding future demand [31][34] Other Important Information - The company ended the quarter with cash and cash equivalents of $798 million and no outstanding borrowings, indicating strong liquidity [20] - Capital expenditures for the quarter were $33 million, with expectations to invest strategically in capacity and technology [22] - The company is committed to maintaining a strong balance sheet while pursuing growth opportunities [28] Q&A Session Summary Question: Update on ZT Systems acquisition and revenue expectations - Management remains optimistic about the ZT Systems acquisition, expecting annual revenue run rate to be between $5 billion and $6 billion, with plans to stabilize and grow the business [48][49][57] Question: Concerns about potential slowdown in Q4 growth - Management clarified that while Q4 growth appears modest compared to previous quarters, the business is stable and expanding, with positive customer forecasts [60][62] Question: CPS margins and future expectations - CPS margins improved due to business mix and ongoing investments, with expectations to maintain or exceed 15% margins in the future [66][69] Question: Risks associated with inventory in the ZT deal - Management confirmed thorough evaluation of inventory as part of the acquisition, aiming to mitigate risks associated with potential write-downs [73][75] Question: Progress on Ingen joint venture and tariff impacts - The joint venture in India is progressing well, with expectations for growth across various markets, while management is closely monitoring tariff impacts on customer strategies [90][96][100]

Company Status - Desktop Metal, a 3D printer manufacturer, filed for bankruptcy [1] Business Operations - The bankruptcy occurred months after new owners were forced to complete a takeover [1]