Financial Data and Key Metrics Changes - The company generated full-year Adjusted EBITDA of $2.4 billion, down from $2.6 billion in 2024, reflecting lower ownership in three businesses following partial sales [17] - Adjusted EFO for the year was $1.2 billion, including $161 million of net gains during the year [17] - Excluding tax credits and the impact of acquisitions and dispositions, Adjusted EBITDA was $2.1 billion, compared to $2 billion in the prior year [17] Business Line Data and Key Metrics Changes - The industrial segment generated full-year Adjusted EBITDA of $1.3 billion, up from $1.2 billion last year, with a 10% increase excluding acquisitions and dispositions [18] - The business services segment generated full-year Adjusted EBITDA of $823 million, down from $832 million last year, but increased approximately 5% on a same-store basis [19] - The infrastructure services segment generated full-year Adjusted EBITDA of $436 million, down from $606 million last year, impacted by the sale of operations and lower terminal deliveries [20] Market Data and Key Metrics Changes - North America is benefiting from easing rates, steady consumer spending, and resilient labor markets, although growth remains challenging in certain end markets [10] - In Europe, conditions are more challenging with slower activity in cyclical and industrial end markets, but early signs of improvement are noted due to fiscal spending and stabilizing energy prices [11] Company Strategy and Development Direction - The company is close to completing a corporate reorganization to become a single, newly listed corporation, which is expected to improve trading liquidity and attract global investors [5] - The strategy focuses on operational excellence and capitalizing on de-globalization and AI trends to reshape supply chains and enhance business performance [7][8] - The company aims to continue compounding value for shareholders through capital recycling, growth acquisitions, and stock repurchases [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop, noting that the trading price is 50% higher than a year ago but still at a discount to NAV [8] - The company is well-positioned with capital and capabilities to build value in 2026, with a strong pipeline of new commercial opportunities [9][15] Other Important Information - The company ended the year with approximately $2.6 billion of pro forma liquidity at the corporate level, providing significant flexibility for growth and capital allocation [21] - The company has repurchased approximately $235 million of its units and shares, remaining committed to completing its $250 million buyback program [21] Q&A Session Summary Question: Regarding Clarios' performance and tax credits - Management indicated that Clarios is generating significant free cash flow, and the 45X tax credits will enhance cash for reinvestment, with various options for shareholder returns being considered [23][24] Question: On Scientific Games' earnings trajectory - Management expressed cautious optimism about Scientific Games, noting a strong market position and a robust pipeline, but emphasized that earnings growth may take time to materialize [26][27] Question: On the balance between reducing leverage and pursuing growth - Management stated that growing EBITDA will naturally reduce leverage, and the focus remains on growth while managing debt levels effectively [28][29] Question: Update on CDK operations - Management reported strong renewal activity and a focus on stabilizing churn through technology adoption, with a positive long-term outlook for the business [42][44] Question: On monetization environment and deployment pacing - Management noted a strong environment for monetizations and indicated that 2026 is expected to be an active year for acquisitions, continuing the momentum from 2025 [45][46]

Financial Data and Key Metrics Changes - Third quarter adjusted EBITDA was $575 million compared to $844 million in the prior period, reflecting lower ownership in three businesses following the partial sale of Anktrus and including $77 million of tax benefits [16] - Adjusted EFO for the quarter was $284 million, benefiting from lower current tax expense and reduced interest expense due to decreased corporate borrowings [16][20] - The company's market cap increased by nearly $1 billion following the announcement of a corporate structure simplification [5] Business Line Data and Key Metrics Changes - The industrial segment generated adjusted EBITDA of $316 million compared to $500 million in the prior period, with a 17% increase in underlying performance driven by higher volumes and demand for advanced batteries [16][17] - The business services segment's adjusted EBITDA was $188 million compared to $228 million last year, impacted by the sale of a partial interest in dealer software and technology services [18] - The infrastructure services segment's adjusted EBITDA was $104 million compared to $146 million in the same quarter last year, reflecting the sale of offshore oil services and a partial interest in work access services [19] Market Data and Key Metrics Changes - The broader global economy has remained resilient, with public markets at record highs and transaction activity increasing due to declining global interest rates [8] - The company noted that the capital markets environment in Brazil is challenging but showing signs of improvement, with interest rates having peaked [24] Company Strategy and Development Direction - The company is focused on capital recycling, having generated over $2 billion in proceeds and repaying $1 billion of borrowings [4] - Plans to simplify corporate structure aim to improve trading liquidity and increase demand for shares from index investors [5] - The company is leveraging AI to enhance operational capabilities and drive value creation across its businesses [7][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism heading into the fourth quarter, noting strong performance in public markets and transaction activity [8] - The company is confident in its growth prospects, particularly in sectors like water treatment and sewage, where significant opportunities exist [26] Other Important Information - The company has repurchased just over $160 million of its units and shares as part of its buyback program [4][20] - The company is actively pursuing strategic growth acquisitions, having invested $525 million in three acquisitions [4] Q&A Session Summary Question: Regarding BRK and potential IPO - Management indicated that an IPO is one option for monetizing BRK, but the capital markets environment in Brazil remains challenging [24] Question: On Latrobe and regulatory actions - Management clarified that the issues with Latrobe are primarily disclosure-related and have not impacted the underlying fundamentals of the business [27] Question: On Dexco's performance - Management expressed confidence in Dexco's performance, noting an improving market and signs of recovery [46] Question: On AI benefits across investments - Management highlighted the operational improvements and data opportunities being realized through AI across various businesses [48][50] Question: On capital allocation and liquidity - Management confirmed that while they are comfortable with current leverage, they remain opportunistic regarding new investments and buybacks [51]