Core Viewpoint - Dividends supported by strong net cash positions tend to remain stable or grow, even in challenging business conditions, making them attractive for dividend investors [1]. Group 1: Micro-Mechanics (Holdings) Ltd - Micro-Mechanics reported a strong first-half performance with revenue increasing by 8.7% YoY to S$35.4 million and net profit rising by 13.7% to S$6.9 million [2]. - The company generated healthy free cash flow of S$8.6 million, covering the interim dividend of S$0.03 per share with a payout ratio of 60.8% [3]. - With S$27.2 million in cash and no bank borrowings, Micro-Mechanics maintains a strong balance sheet, benefiting from a 23.7% increase in sales driven by demand from China [3]. Group 2: Pan-United Corporation - Pan-United Corporation increased its interim dividend by 43% to S$0.010 per share, with revenue climbing 4% YoY to S$401.1 million and net profit rising 11% to S$20.6 million [5]. - Despite a sharp contraction in free cash flow to S$1.0 million from S$49.9 million, the company holds S$83.0 million in cash against S$13.2 million in debt, providing a net cash cushion of nearly S$70 million [6][7]. - The company has secured approximately S$430 million in contracts for Changi Airport Terminal 5, which supports its confidence in raising the dividend [7]. Group 3: QAF Limited - QAF Limited experienced a 69% YoY decline in profit attributable to owners, down to S$3.9 million, with revenue dipping 1% to S$306.1 million [8]. - The company maintained its interim dividend at S$0.01 per share, supported by improved free cash flow of S$11.5 million and a significant cash position of S$188.6 million against total debt of S$6.9 million [9]. - QAF's strong balance sheet allows it to sustain dividend payments even amid profit declines, with net cash capable of funding years of dividends at the current rate [9]. Group 4: Industry Insights - The global semiconductor market is projected to grow by 25% to nearly US$1 trillion by 2026, providing a favorable outlook for companies in this sector [4]. - The three companies highlighted demonstrate that a robust net cash position can support dividends through earnings volatility, emphasizing the importance of financial stability for dividend investors [11].

Core Viewpoint - Vulcan Materials reported disappointing fourth-quarter 2025 results, with adjusted earnings and revenues missing estimates, leading to a decline in share price and investor concerns about future performance [3][4][16]. Financial Performance - Adjusted EPS for Q4 2025 was $1.70, missing the Zacks Consensus Estimate of $2.13 by 20.2%, and down 21.7% from $2.17 in the same quarter last year [4]. - Total revenues for Q4 were $1.91 billion, missing the consensus mark of $1.94 billion by 1.6%, but showing a year-over-year growth of 3.2% [4]. - For the full year 2025, total revenues reached $7.94 billion, up from $7.42 billion in 2024, with gross profit increasing 8.8% to $2.18 billion [10]. Segment Performance - Aggregates segment revenues increased 3.2% to $1.52 billion, with shipments growing 2.2% to 55.1 million tons [5]. - Asphalt segment revenues were $300.7 million, down 8.1% year over year, while concrete segment revenues rose 29.3% to $211.4 million [7][8]. Operational Highlights - Adjusted EBITDA for Q4 decreased by 5.8% year over year to $518 million, with an adjusted EBITDA margin declining 260 basis points to 27.1% [9]. - Selling, administrative, and general expenses as a percentage of total revenues contracted 40 basis points to 7.1% [9]. Guidance and Outlook - For 2026, Vulcan expects cash gross profit per ton to improve compared to $11.33 in 2025, with shipment growth projected between 1% and 3% year over year [12]. - Adjusted EBITDA for the full year is projected between $2.4 billion and $2.6 billion, indicating continued demand strength [14]. - Capital expenditures are expected to be between $750 million and $800 million for maintenance and growth projects [15]. Market Sentiment - Since the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 6.12% [16]. - Vulcan currently holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return from the stock in the coming months [18].

Core Viewpoint - Eagle Materials Inc. is identified as a strong long-term investment in the cement sector, with RBC Capital initiating coverage and setting a price target of $208 per share [1]. Group 1: Company Overview - Eagle Materials Inc. operates in the construction materials sector, producing both heavy materials (cement, aggregates, concrete) and light materials (wallboard, paperboard) [4]. - The company is noted for its dual business model, which combines heavy and light side operations, potentially leading to a conglomerate discount that undervalues its stock [2]. Group 2: Investment Insights - RBC Capital estimates that approximately $88 per share of value is currently untapped due to the combined business structure, suggesting that a split could enhance shareholder value [2]. - The residential market exposure is highlighted as a risk, while the heavy-side assets may limit future gains as the housing market recovers [2].

Core Viewpoint - Vulcan Materials Company (VMC) reported lower-than-expected fourth-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate, despite a year-over-year increase in revenues and a decline in earnings [2][5]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2025 was $1.70, missing the consensus estimate of $2.13 by 20.2%, and down 21.7% from $2.17 in the same quarter last year [5]. - Total revenues reached $1.91 billion, missing the consensus mark of $1.94 billion by 1.6%, but grew 3.2% year-over-year [5]. Segment Performance - **Aggregates Segment**: Revenues increased 3.2% to $1.52 billion, with shipments growing 2.2% year-over-year to 55.1 million tons [6]. The freight-adjusted average sales price rose to $21.78 per ton from $21.41 [7]. - **Asphalt Segment**: Revenues were $300.7 million, down 8.1% year-over-year, with a gross profit of $41 million compared to $46.1 million a year ago [8]. - **Concrete Segment**: Revenues increased 29.3% year-over-year to $211.4 million, with gross profit rising to $10.1 million from $4.6 million [10]. Operational Highlights - Selling, administrative, and general expenses as a percentage of total revenues decreased by 40 basis points to 7.1% [11]. - Adjusted EBITDA for the quarter decreased by 5.8% year-over-year to $518 million, with an adjusted EBITDA margin declining 260 basis points to 27.1% [11]. Full-Year Results - For the full year 2025, total revenues were $7.94 billion, up from $7.42 billion in 2024, with adjusted EPS increasing to $8.00 from $7.53 [12]. - Gross profit for the year increased 8.8% to $2.18 billion, and adjusted EBITDA margin expanded to 29.3% from 27.7% [12]. 2026 Outlook - Vulcan Materials expects continued improvement in cash gross profit per ton and shipment growth between 1% and 3% year-over-year [14]. - The company projects freight-adjusted price improvement between 4% and 6%, with total Asphalt and Concrete segment cash gross profit expected to be approximately $290 million [15]. - Adjusted EBITDA for 2026 is projected between $2.4 billion and $2.6 billion, indicating continued demand strength and operational discipline [16].

Financial Data and Key Metrics Changes - In 2025, the company delivered $2.3 billion of Adjusted EBITDA, a 13% increase over the prior year, with an Adjusted EBITDA margin expanding 160 basis points to 29.3% [4][10] - Aggregates cash gross profit per ton grew to $11.33, achieving the target of $11-$12, driving operating cash flow of over $1.8 billion, a 29% increase over the prior year [5][10] - SG&A expenses for the full year were $564 million, 10 basis points lower than the prior year as a percentage of revenue at 7.1% [11] Business Line Data and Key Metrics Changes - Aggregate shipments of approximately 227 million tons increased 3% for the full year, with growth driven by prior year acquisitions [7] - Same-store aggregate shipments for the full year were slightly lower than the prior year, with a 2% increase in the fourth quarter compared to the prior year [7][8] - Aggregates mix adjusted price improved 6% for the full year and 5% in the fourth quarter [8] Market Data and Key Metrics Changes - Public non-highway infrastructure investments continued to grow, with starts in Vulcan markets for water, sewer, and other infrastructure projects increasing double digits in 2025 [15] - Highway starts in Vulcan markets continue to grow at three times the rate compared to the U.S. overall [13] - In California, highway starts were up 47% in 2025 versus 2024, indicating strong demand in key markets [56] Company Strategy and Development Direction - The company is committed to improving its underlying business and expanding its industry-leading aggregates franchise in both current and new geographies [4] - In 2026, the company plans to continue its track record of compounding growth, expecting aggregate shipments to grow between 1% and 3% and freight adjusted average selling prices to increase between 4% and 6% [16] - The company anticipates further expansion in Adjusted EBITDA margin and return on invested capital with the closing of the pending ready-mix divestiture [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in leveraging demand growth and a healthy pricing environment for 2026, with expectations of steady public growth and potential recovery in private demand [21][22] - The company expects residential activity to be limited in 2026 but is monitoring for improving opportunities in the second half of the year [15] - Management highlighted the importance of the IIJA funding, with over 50% of the funding yet to be spent, providing a tailwind for future growth [14][56] Other Important Information - The company returned $260 million to shareholders through dividends and $438 million through share repurchases [10] - The company plans to reinvest in its franchise through capital expenditures of $750 million to $800 million in 2026 [18] Q&A Session Summary Question: Can you talk about your confidence levels regarding end market demand and expectations around pricing and profitability for 2026? - Management indicated strong execution and a healthy pricing environment, expecting steady public growth and some recovery in private demand, particularly in industrial categories and data centers [21][22] Question: Can you clarify the pricing impacts and the mix issues affecting your fourth quarter results? - Management confirmed a "triple whammy" impact on pricing due to geographic mix, acquisition impacts, and product mix, with expectations for pricing to improve as demand recovers [36][37] Question: What gives you confidence in keeping costs down in 2026? - Management attributed confidence to the Vulcan Way of Operating, which focuses on efficiency and cost control, expecting low single-digit cost increases [46][49] Question: How is the IIJA reauthorization impacting your guidance? - Management expects a new bill to be passed, with historical trends indicating it will be higher than the previous bill, and noted that 50% of IIJA funding remains unspent [54][56] Question: What is the outlook for data centers and their impact on margins? - Management indicated that while base pricing for data centers is lower than clean stone products, the overall margin impact is manageable, with expectations for a more uniform mix as projects mature [62][65]

Financial Data and Key Metrics Changes - In 2025, the company delivered $2.3 billion of adjusted EBITDA, a 13% increase over the prior year, with an adjusted EBITDA margin expanding by 160 basis points to 29.3% [3][4] - Aggregates cash gross profit per ton grew to $11.33, achieving the target of $11-$12, driving operating cash flow of over $1.8 billion, a 29% increase over the prior year [4][6] - Free cash flow increased by over 40% after reinvesting $678 million in capital expenditures [8] Business Line Data and Key Metrics Changes - Aggregate shipments of approximately 227 million tons increased by 3% for the full year, with fourth-quarter shipments increasing by 2% compared to the prior year [5][6] - Same-store aggregate shipments for the full year were slightly lower than the prior year, impacted by weaker single-family residential activity [4][5] - Aggregates mix adjusted price improved by 6% for the full year and 5% in the fourth quarter [6] Market Data and Key Metrics Changes - Public non-highway infrastructure investments grew, with starts in Vulcan markets for water, sewer, and other infrastructure projects increasing double digits in 2025 [11][12] - Highway starts in Vulcan markets continue to grow at three times the rate compared to the U.S. overall [11] - The company expects aggregate shipments to grow between 1% and 3% in 2026, with freight adjusted average selling prices expected to increase between 4% and 6% [13] Company Strategy and Development Direction - The company is committed to improving its underlying business and expanding its industry-leading aggregates franchise in current and new geographies [3] - The focus remains on leveraging demand growth and maintaining a healthy pricing environment for 2026 [19] - The company anticipates further expansion in adjusted EBITDA margin and return on invested capital, driven by strategic portfolio optimization [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing profitability and driving cash gross profit in 2026, supported by improving public and private demand [19][21] - The company expects modest overall growth in 2026, with a focus on monitoring residential activity for potential improvements in the second half of the year [12][19] - Management highlighted the importance of the Infrastructure Investment and Jobs Act (IIJA) funding, with over 50% of the funding yet to be spent [11][12] Other Important Information - The company returned $260 million to shareholders through dividends and $438 million through share repurchases [9] - SAG expenses for the full year were $564 million, 10 basis points lower than the prior year as a percentage of revenue [9] - The company plans to reinvest $750 million to $800 million in capital expenditures for operating and maintenance needs in 2026 [15] Q&A Session Summary Question: Insights on Q4 performance and 2026 outlook - Management noted that Q4 performance was impacted by weaker residential activity, weather conditions, and timing costs, but expressed confidence in a healthy pricing environment for 2026 [18][22] Question: Pricing dynamics and mix impacts - Management acknowledged a "triple whammy" effect on pricing due to geographic mix, acquisitions, and product mix, and anticipated pricing to be lower in the first half of 2026, improving later in the year [31][34] Question: Confidence in cost control for 2026 - Management attributed confidence in controlling costs to the Vulcan Way of Operating, which focuses on efficiency and labor management [43][46] Question: Impact of IIJA reauthorization on guidance - Management expects a reauthorization bill to be completed, with historical trends indicating higher funding levels, and noted that 50% of IIJA funding remains unspent [49][50] Question: Data center projects and their impact on margins - Management indicated that data center projects currently represent a significant portion of private demand, with base pricing lower than clean stone products, but overall margins remain stable [60][62] Question: M&A pipeline and opportunities - Management expressed optimism about a healthy M&A pipeline for 2026, focusing on aggregates-led opportunities while maintaining discipline in acquisitions [70][72]

Financial Data and Key Metrics Changes - For Q4 2025, sales volumes increased by 8.2% compared to the same period last year, and for the full year 2025, there was a 7.2% increase relative to 2024 [8] - EBITDA for Q4 2025 reached PEN 158.7 million, an 11.4% increase year-over-year, while full year EBITDA was PEN 584.2 million, marking a 6.4% year-over-year increase when excluding one-off expenses [9][10] - Consolidated net income for Q4 2025 was negative due to transactional expenses, but excluding these, net income would have been PEN 59.8 million, a 19.6% increase over the same period last year [26] Business Line Data and Key Metrics Changes - Cement sales in Q4 2025 increased by 13.6%, driven by strong demand in the self-construction sector, while for the full year, cement sales rose by 8.7% compared to 2024 [19][20] - Sales of concrete, pavement, and mortar decreased by 25.1% year-over-year in Q4 2025, primarily due to lower sales volume from the halted Motupe Riverbank Defense Project, but increased by 6.3% for the full year [21][23] - Precast materials sales decreased by 16% in Q4 2025 but increased by 3% for the full year, driven by higher demand from the public sector [25] Market Data and Key Metrics Changes - The growth in sales volumes was attributed to stronger demand for infrastructure projects and consistent performance in the self-construction segment [8] - The agro-industrial and fishing sectors, key income drivers in the north, contributed to the elevated demand for cement [20] Company Strategy and Development Direction - The acquisition agreement with Holcim for a controlling stake in Cementos Pacasmayo is seen as a strong endorsement of the company's long-term strategy and operational excellence [5][6] - The company aims to promote sustainable development and create new opportunities while contributing to the growth of Peru and the wider region [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining EBITDA margins at current levels, with potential improvements due to energy-saving projects planned for the second half of the year [36] - The company anticipates a stronger year in 2026 in terms of volumes and competitive pricing, which should support revenue growth and stable EBITDA margins [38] Other Important Information - The company achieved three-star recognition from Peru's Minister of Environment for reducing greenhouse gas emissions, reflecting its commitment to sustainability [11] - Cementos Pacasmayo has been recognized as the industry leader in the Merco ESG Sustainability Ranking for ten consecutive years, highlighting its focus on sustainability [12][13] Q&A Session Summary Question: Details about the transaction with Holcim and pending steps - The transaction involves Holcim acquiring Inversiones ASPI, which controls 60.01% of Pacasmayo, pending regulatory approval from Indecopi, which is expected to be approved soon [29] Question: Why acquisition-related expenses are high - Most expenses are related to long-standing change of control issues, with part of the costs to be assumed by Hochschild, and the board deemed these expenses reasonable given the share price [30][32] Question: Recognition of PEN 77 million in expenses related to the Holcim transaction - The decision to incur these costs was based on contractual obligations and was approved by the board, with no anticipated impediments from regulatory authorities [32] Question: Expectations for project-related disruptions and margin pressures - Management believes EBITDA margins should remain stable or improve slightly, with expectations for increased spending from authorities later in the year [36] Question: Guidance on revenue growth and EBITDA margins for 2026 - Management is optimistic about volume growth and stable EBITDA margins, with expectations for efficiencies to enhance margins in the second half of the year [38]

Financial Data and Key Metrics Changes - For Q4 2025, sales volumes increased by 8.2% year-over-year, while full-year sales grew by 7.2% compared to 2024, driven by demand for infrastructure projects and self-construction [5][10] - EBITDA for Q4 2025 reached PEN 158.7 million, an 11.4% increase year-over-year, while full-year EBITDA was PEN 584.2 million, marking a 6.4% increase when excluding one-off expenses [5][6][10] - Consolidated net income for Q4 2025 was negative due to transactional expenses, but would have been PEN 59.8 million, a 19.6% increase year-over-year if excluding these expenses [15][16] Business Line Data and Key Metrics Changes - Cement sales in Q4 2025 increased by 13.6%, primarily due to strong demand in the self-construction sector, while full-year cement sales rose by 8.7% compared to 2024 [12][14] - Sales of concrete, pavement, and mortar decreased by 25.1% year-over-year in Q4 2025, attributed to the Motupe Riverbank Defense Project being on standby, but full-year sales increased by 6.3% [13][14] - Precast materials sales decreased by 16% in Q4 2025, but full-year sales increased by 3%, driven by public sector demand [15] Market Data and Key Metrics Changes - The company achieved three-star recognition from Peru's Minister of Environment for reducing greenhouse gas emissions, reflecting its commitment to sustainability [7][8] - The company maintained a top-tier position in the Merco ESG Sustainability Ranking, being recognized as the industry leader for ten consecutive years [8] Company Strategy and Development Direction - The acquisition agreement with Holcim for a controlling stake in Cementos Pacasmayo is seen as a strong endorsement of the company's long-term strategy and operational excellence [3][4] - The company aims to promote sustainable development and create new opportunities in collaboration with Holcim [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining EBITDA margins and expects improvements due to energy-saving projects in the second half of the year [25][26] - The company anticipates a positive outlook for revenue growth and EBITDA margins in 2026, driven by strong volume growth and competitive pricing [26] Other Important Information - Administrative expenses increased by 5.7% in Q1 2025 and by 50% for the full year, mainly due to higher personnel costs from collective bargaining [11] - Selling expenses decreased by 8.3% in Q4 2025 but increased by 40% for the full year due to higher advertising and promotional expenses [12] Q&A Session Summary Question: Details about the transaction with Holcim and regulatory approvals - Management confirmed that the transaction is pending INDECOPI approval and is expected to be approved smoothly [18] Question: Why acquisition-related expenses are high - Most expenses are related to long-standing change of control issues, with part assumed by Holcim, and were approved by the board [19] Question: Recognition of PEN 77 million in expenses related to the Holcim transaction - Management explained that these costs are due to contractual obligations from previous agreements and are considered reasonable given the share price [20][21] Question: Expectations for project-related disruptions and margin pressures - Management believes EBITDA margins will remain stable or improve, with expectations of increased spending from authorities later in the year [25] Question: Guidance on revenue growth and EBITDA margins for 2026 - Management is optimistic about volume growth and stable EBITDA margins, with potential increases due to operational efficiencies [26]

Financial Data and Key Metrics Changes - For Q4 2025, revenues increased by 6.2% year-over-year, reaching PEN 559.5 million, driven by higher sales of pack cement and increased sales for infrastructure projects [10] - EBITDA for Q4 2025 reached PEN 158.7 million, an 11.4% increase compared to the same period last year, excluding one-off expenses related to the share purchase agreement with Holcim [6][10] - Full year 2025 EBITDA was PEN 584.2 million, marking a 6.4% year-over-year increase when excluding one-off expenses [7][17] - Net income for Q4 2025, excluding one-off expenses, would have been PEN 59.8 million, a 19.6% increase over the same period last year [16][17] Business Line Data and Key Metrics Changes - Cement sales in Q4 2025 increased by 13.6%, primarily due to robust demand in the self-construction sector, while full year cement sales increased by 8.7% compared to 2024 [12][14] - Sales of concrete, pavement, and mortar decreased by 25.1% year-over-year in Q4 2025, mainly due to lower sales volume from the halted Motupe Riverbank Defense Project [13][14] - Precast materials sales decreased by 16% in Q4 2025 but increased by 3% for the full year, driven by higher demand from the public sector [16] Market Data and Key Metrics Changes - The company experienced strong momentum in sales volumes, with an 8.2% increase in Q4 2025 compared to the same period last year, and a 7.2% increase for the full year 2025 relative to 2024 [6] - The growth was attributed to stronger demand for infrastructure projects and consistent performance in the self-construction segment [6] Company Strategy and Development Direction - The acquisition agreement with Holcim for a controlling stake in Cementos Pacasmayo is seen as a strong endorsement of the company's long-term strategy and operational excellence [4][5] - The company aims to promote sustainable development and contribute to the growth of Peru and the wider region [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum built and the positive outlook for future performance, emphasizing operational excellence and profitability [9] - The company anticipates that EBITDA margins will remain stable or increase slightly due to energy-saving projects planned for the second half of the year [26][27] Other Important Information - The company achieved three-star recognition from Peru's Minister of Environment for reducing greenhouse gas emissions, reinforcing its commitment to sustainability [7][8] - The company maintains a top-tier position in the Merco ESG Sustainability Ranking, recognized as the industry leader for ten consecutive years [8] Q&A Session Summary Question: Details about the transaction with Holcim and regulatory approvals - Management confirmed that the transaction is pending Indecopi approval and is expected to be approved in the coming months, with no anticipated impediments [19] Question: Acquisition-related expenses and their justification - Management explained that most transaction expenses are related to long-standing change of control issues, with part of the expenses to be assumed by Holcim [20][21] Question: Future project-related disruptions and margin pressures - Management indicated that while each project has unique circumstances, they expect EBITDA margins to remain stable or improve due to upcoming energy-saving projects [26] Question: Guidance on revenue growth and EBITDA margins for 2026 - Management expressed optimism about volume growth and stable EBITDA margins for 2026, citing competitive pricing and operational efficiencies [27]

4Q25 Corporate Presentation MACRO OVERVIEW 1. About us We are a leading Peruvian cement company, with over 67 years of operating history As of Dec-25 LTM, Pacasmayo's cement shipments reached 3.0 million MT Listed on the Lima Stock Exchange (BVL: CPACASC1-PE) since 1995 and on the New York Stock Exchange (NYSE: CPAC) since 2012 Quarterly Highlights S/ 2,116.9 7.0% Compared to LTM Dec 31 2024 SALES VOLUME SALES OF GOODS million EBITDA 3,049.2 MT 7.2% Compared to LTM Dec 31 2024 CEMENT, CONCRETE AND PRECAST S ...