Financial Data and Key Metrics Changes - The company achieved a gross profit dollar growth of 16% and revenue growth of 8% in the fourth quarter compared to the same period last year, generating $61 million in operating cash flow [4][15] - The fourth quarter gross profit margin reached a record 31.4%, which is 215 basis points higher than the prior year [4][18] - For the full fiscal year 2025, revenues increased by 9% to $1.1 billion, with net income rising to $180.7 million, or $14.86 per diluted share, compared to $149.8 million, or $12.29 per diluted share in the prior year [22][23] Business Line Data and Key Metrics Changes - The electric utility sector saw revenues double compared to the same period last year, while the light rail traction sector increased by 85% [17][19] - The commercial and other industrial sectors experienced a 9% decline due to project timing, while revenues from petrochemical and oil and gas sectors decreased by 25% and 10%, respectively [17][19] - The company booked $271 million in new orders during the fourth quarter, a 1% increase year-over-year, with a total of $1.2 billion in new orders for the full year, representing a 9% increase [7][21] Market Data and Key Metrics Changes - The company reported that electric utility and oil and gas sectors each now make up one-third of the total backlog, which increased to $1.4 billion, $41 million higher than the end of fiscal 2024 [16][22] - International revenues increased by 38% to $68 million, while domestic revenues rose by 2% to $239 million [17][19] - The backlog is well balanced across markets and geographies, with 60% of it convertible in 2026 [68] Company Strategy and Development Direction - The company is focusing on diversifying its business and growing in strategic markets, particularly electric utility and commercial sectors, which now account for 41% of revenue and 48% of total backlog [5][6] - A $12.4 million investment is being made to expand capacity at the JacintoPort facility, primarily to support oil and gas customers and anticipated LNG project developments [9][10] - The acquisition of REMSDAC is expected to enhance the company's electrical automation strategy and expand its product offerings in various markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial environment for all end markets, expecting continued momentum into fiscal 2026, particularly in the oil and gas and electric utility sectors [12][13] - The company noted a divergence in market performance, with some softness in traditional oil and gas markets being offset by strength in electric utility and data center opportunities [8][12] - Management highlighted the importance of maintaining a stable pricing environment and disciplined project execution to support future performance [24] Other Important Information - The company holds zero debt and ended fiscal 2025 with cash, cash equivalents, and short-term investments of $476 million, reflecting strong commercial activity [23][24] - Research and development spending increased by 17% to $11 million, focusing on new product design and development [22] Q&A Session Summary Question: Changes in competitive landscape or pricing environment - Management noted that the oil and gas market remains healthy, but some regions are softer and more price-sensitive, while the electric utility market is more demand-driven [29][30] Question: Seasonality and first quarter outlook - The first quarter is expected to be seasonally softer due to holidays, but overall optimism for the year remains high [31] Question: SG&A expenses and one-time M&A costs - SG&A expenses increased by $5 million year-over-year, with $3 million attributed to compensation and nearly $2 million to acquisition-related costs [33] Question: Trends in commercial and industrial (C&I) sector - Management indicated that the decline in the C&I sector was largely due to timing, with significant growth opportunities in data centers [39] Question: Sustainability of growth in the utility sector - Management expressed confidence in the utility sector's growth, highlighting equal weighting in backlog between oil and gas and utility sectors [40] Question: LNG project timelines and fundamentals - Management acknowledged delays in LNG project final investment decisions (FID) but remains optimistic about the sector's fundamentals [49][50] Question: R&D spending and commercialization timeline - R&D spending is expected to continue at current levels, with some products anticipated to hit the market in 2026 [64][66] Question: CapEx budget for 2026 - The CapEx budget for 2026 includes $12.4 million for the JacintoPort expansion and $5-$7 million for maintenance and productivity projects [67] Question: Data center revenue as a percentage of backlog - Data center revenue accounts for about 15% of the backlog, with half of that being attributed to data centers, which is an increase from the previous year [71]

Financial Data and Key Metrics Changes - The company closed the first nine months of 2025 with stable EBITDA compared to the previous year, despite lower hydrology conditions [7] - Net income for the nine months of 2025 reached $352 million, a 21% decrease compared to the previous year, primarily due to higher depreciation and bad debt expenses [24] - FFO reached $615 million, representing an improvement of $248 million compared to the previous year, driven by the recovery of PEC receivables [26] Business Line Data and Key Metrics Changes - Net production decreased by 9% compared to the same period of 2024, driven by lower hydro dispatch and maintenance of solar plants [10] - Energy sales reached 22.7 terawatt-hour, mainly due to lower sales to regulated customers following the expiration of contracts [11] - EBITDA for the last quarter totaled $345 million, a decrease of $63 million compared to the same period of 2024 [18] Market Data and Key Metrics Changes - The company maintained its hydrology guidance despite a particularly dry year in 2025, with hydro production remaining in line with strategic plans [9] - The gas business saw a margin increase of $27 million due to expanded trading activities [22] - The average cost of debt decreased to 4.8% as of September 2025, down from 5.0% in December 2024 [28] Company Strategy and Development Direction - The company is focused on operational excellence and sustainable growth while advancing in energy transition [8] - Significant regulatory updates are expected that will clarify tariffs and market mechanisms, essential for refining long-term strategy [29] - The company is implementing proactive initiatives to address portfolio dynamics and climate challenges [29] Management Comments on Operating Environment and Future Outlook - Management confirmed that despite a tough hydrological situation, the company showed flexibility and maintained high production levels [37] - The company expects to improve FFO performance in the last quarter due to higher EBITDA and efficient management of working capital [38] - The company is negotiating new contracts for Argentinian gas, emphasizing the importance of gas for thermal power plants [33] Other Important Information - Total CAPEX reached $245 million during the first nine months of the year, with a focus on grid investments [17] - The company successfully implemented a comprehensive winter plan to strengthen grid resilience and improve service continuity [6] - The distribution cycle for 2024-2028 is under development, with key changes in the regulatory framework expected [13] Q&A Session Summary Question: What is the amount that Enel Chile must return to customers due to the miscalculation of the CNE? - The estimated amount is between $40 million and $45 million, expected to be accrued in 2025 and paid back in the first half of 2026 [30] Question: What is the amount owed to Enel distribution Chile in connection to the VAD 2020-2025 freeze? - The amount is around $50 million-$55 million, with potential cashback starting in mid-2026 [31] Question: Could you explain your strategy regarding LNG and Argentinian gas? - The company has a long-term gas contract for LNG and is negotiating a new contract for Argentinian gas [33] Question: What is the update on CAPEX for the generation business? - CAPEX for generation is expected to be around $150 million-$160 million, with at least $50 million allocated for BESS projects [34] Question: What measures are being taken to address increasing energy losses? - The company is increasing recovery activities and launching flexible payment plans for customers to address energy losses [36] Question: Is the company confirming its latest guidance? - Yes, the company confirms its guidance despite a tough hydrological situation [37] Question: Could you explain the dynamics of FFO during the nine months of this year? - FFO is usually concentrated in the second half of the year, with expectations for improved performance in the last quarter [38] Question: Do you have any news for unregulated PPA contracts? - Currently, there are no updates regarding unregulated PPA contracts [44]

Summary of Conference Call Company Overview - The company discussed is Hubbell, which has transitioned from being a GDP grower to targeting mid-single-digit through-cycle growth, driven by secular trends in electrical and utility sectors and portfolio high-grading [1][2][3]. Core Growth Insights - Over the last five years, Hubbell has achieved a compounded growth rate of 10% and a 20% compounded growth in earnings per share, indicating confidence in medium-term growth and margin expansion [2][4]. - The company anticipates 25% to 30% incrementals to help grow margins, aiming for 8% earnings per share growth, with a long-term expectation of mid-single-digit top-line growth [4][3]. Market Dynamics - The electrical distribution market is expected to grow at a low to mid-single-digit rate, while transmission and substation markets are projected to grow at double-digit rates, driven by demand from data centers [8][9][10]. - The smart meter segment has faced contraction but is expected to flatten and begin modest growth in the fourth quarter [11][12]. Utility Sector Insights - Utilities are committing to larger capital budgets, which is beneficial for Hubbell as it indicates increased spending on distribution, transmission, and substations [14][15]. - Load growth in the utility sector is seen as a positive indicator for Hubbell, although quantifying its impact on spending remains complex [16][17]. Portfolio Management - Hubbell has focused on high-grading its portfolio, reducing exposure to commercial and residential sectors while increasing focus on industrial and data center markets [19][18]. - The company has been actively acquiring businesses in high-growth, high-margin areas, particularly in the electrical segment [19][25]. Margin Expansion Strategy - Margin expansion has been achieved through portfolio management, restructuring, and increased capital investment, with CapEx now nearly double the historical levels [21][22]. - The strategy includes consolidating factories and streamlining operations to enhance productivity and efficiency [22]. Recent Acquisition - Hubbell announced the acquisition of DMC Power for $825 million, which is expected to contribute significantly to growth and profitability due to its high voltage transmission connector business [31][32]. - DMC Power is projected to grow at 20%, with a high margin due to its cost-effective technology [32][33]. Pricing Strategy - The company has successfully managed pricing in a high-inflation environment, with prices sticking well despite concerns about pricing fatigue [37][38]. - Communication with distributor partners has been crucial in maintaining price inelasticity [44]. Future Outlook - The order book for electric distribution is improving, leading to expectations of steady growth in the coming years [47]. - The company is optimistic about exiting the year with a healthier order book, setting a solid foundation for growth in 2026 and beyond [47].

Financial Performance - Record adjusted earnings per share of $2.95 in Q2 2025, up 8% versus 2Q24, with segment margins of 23.9%, up 20 bps versus 2Q24[4] - Sales reached $7.028 billion in 2Q 2025, an 11% increase compared to $6.350 billion in 2Q 2024[23] - Adjusted earnings increased by 5% from $1.096 billion in 2Q 2024 to $1.155 billion in 2Q 2025[23] Growth and Orders - Organic growth of 8%, driven by 12% growth in Electrical Americas, 11% in Aerospace and 7% in Electrical Global[4] - Electrical Americas data center orders are up approximately 55% and revenue up approximately 50% versus 2Q24[5] - Order acceleration in Electrical Americas up 2% and strong Aerospace growth up 10% on a rolling 12-month basis[4] Segment Performance - Electrical Americas sales increased by 16% to $3.350 billion in 2Q 2025 from $2.877 billion in 2Q 2024[24] - Aerospace sales increased by 13% to $1.080 billion in 2Q 2025 from $955 million in 2Q 2024[29] - Vehicle segment sales decreased by 8% to $663 million in 2Q 2025 from $723 million in 2Q 2024[31] Guidance and Outlook - Raising 2025 guidance for organic growth, segment margin and adjusted EPS at the midpoint[6] - Full year 2025 adjusted earnings per share guidance is $11.97 - $12.17 and organic growth is 8.5% - 9.5%[39] - Full year 2025 free cash flow guidance is $3.7 billion - $4.1 billion and share repurchases are $2.0 billion - $2.4 billion[39]

Investment Rating - The report maintains a "Buy" rating for Energisa, Equatorial, and Copel, while Cemig is rated as "Sell" [6][64][50]. Core Insights - The new power distribution opex methodology approved by the regulator aims to enhance efficiency sharing with consumers, impacting the fair equity values of the companies covered [7][21]. - Energisa and Equatorial are the most exposed to the new methodology, with estimated impacts of -9% and -8% on their fair equity values, respectively [2][8]. - Despite recent market rallies, the sector remains reasonably valued, with an average real spread of approximately 3.8% to Brazil's free risk bonds [3]. Summary by Sections New Opex Methodology - The new methodology includes annual updates to reference opex, a simplified benchmark model, and the application of the IPCA index for all variables [7][21]. - Cost outperformance sharing with consumers is now correlated to median sectoral efficiency, with limits set at 140%/60% for cost outperformance [21][28]. Company-Specific Adjustments - Energisa's fair equity value is adjusted down by -9% due to the new methodology and updated power demand forecasts, with a revised 2025E growth estimate of 0.5% YoY [49][50]. - Equatorial's fair equity value is adjusted down by -8%, with a similar revision in growth estimates to 0.5% YoY for 2025E [63][64]. - Copel is the least affected, with a -3% impact on fair equity value [2][8]. Market Demand and Forecasts - The report incorporates updated forecasts from Brazil's independent power system operator, indicating a decrease in power demand growth, with a -4% YoY drop noted in April and May 2025 [44][45]. - The overall demand forecast for 2025E has been revised down to -3.1% YoY from a previous estimate of +0.4% YoY [44][45].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported an adjusted EBITDA of BRL 1.3 billion and a net income of almost BRL 600 million, with a full-year adjusted EBITDA of BRL 5.1 billion and net income of BRL 2.8 billion, nearly BRL 3 billion [7][10][34] - The adjusted EBITDA for Q4 2024 was 12% lower than the BRL 1.4 billion reported in Q4 2023, primarily due to a smaller sales mix at Copel GeT and increased curtailment [23][24] Business Line Data and Key Metrics Changes - Copel Distribuicao generated an EBITDA of BRL 715 million in Q4 2024, marking a 23.6% increase compared to the same period last year, driven by a 2.5% growth in the billed grid market and a 2.7% adjustment in TUSD [24][25] - Copel GeT reported an adjusted EBITDA of BRL 613 million, impacted by a BRL 93 million loss due to lower performance of wind complexes and curtailment [26][27] Market Data and Key Metrics Changes - The company experienced a curtailment of 13.1% in Q4 2024 compared to 8.3% in Q4 2023, affecting the performance of wind assets [23][26][88] - The trading segment closed the quarter with an adjusted EBITDA of negative BRL 15 million, reflecting lower trading margins due to price variations in submarkets [27] Company Strategy and Development Direction - The company aims to optimize its asset portfolio and simplify its operating structure through strategic asset swaps and divestments, including the sale of minority stakes [12][16][74] - Future focus includes completing the investment program for Copel Distribuicao, enhancing operational excellence, and pursuing opportunities in energy trading [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate value through disciplined capital allocation and a focus on operational excellence, despite challenges from curtailment and market volatility [11][17][78] - The company anticipates a positive outlook for 2025, with expectations of improved EBITDA driven by tariff cycle renewals and operational efficiencies [17][34][110] Other Important Information - The company proposed a total of BRL 2.3 billion in dividends for 2024, resulting in a payout ratio of 86% and a dividend yield of approximately 8.4% [10][34] - The company executed a historical CapEx focused on regulatory remuneration and service quality, with 88% of total investments directed towards Copel Distribuicao [34] Q&A Session Summary Question: Capital allocation and optimum capital structure - Management discussed the ongoing study to determine the optimum capital structure, emphasizing the importance of maintaining flexibility for future investments while optimizing short-term capital allocation [40][44][49] Question: Energy price scenario and liquidity - Management highlighted the ability to capitalize on higher energy prices, with trading volumes exceeding BRL 180 in Q4 2024, and noted no significant liquidity issues [53][54][56] Question: Timing for optimum capital structure study and capacity auction - Management plans to present the findings of the optimum capital structure study and new dividend policy in May, alongside the first quarter earnings call [61][62] Question: Regulatory discussions on curtailment - Management acknowledged ongoing discussions regarding curtailment and emphasized the need for regulatory adjustments to mitigate its impact [69][78] Question: Performance of wind assets - Management explained that the performance of wind assets was affected by curtailment and maintenance issues, but measures are being taken to address these challenges [85][88]