Arcosa (NYSE:ACA) Q4 2025 Earnings call February 27, 2026 08:30 AM ET Company ParticipantsAntonio Carrillo - President and CEOErin Drabek - VP of Investor RelationsEthan Roberts - Equity Research AssociateGail Peck - CFOGarik Shmois - Managing DirectorIan Zaffino - Managing DirectorConference Call ParticipantsBrent Thielman - Managing Director and Senior Research AnalystJulio Romero - Senior Equity Research AnalystOperatorGood morning, ladies and gentlemen, and welcome to the Arcosa, Inc. fourth quarter and ...

Arcosa (NYSE:ACA) Q4 2025 Earnings call February 27, 2026 08:30 AM ET Speaker8Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc. fourth quarter and full year 2025 earnings conference call. My name is Chloe, and I will be your conference call coordinator today. As a reminder, today's call is being recorded. I would like to turn the call over to your host, Erin Drabek, Vice President of Investor Relations for Arcosa. Ms. Drabek, you may begin.Speaker2Good morning, everyone, and thank thank yo ...

FOURTH QUARTER & FULL YEAR 2025 EARNINGS CONFERENCE CALL MOVING INFRASTRUCTURE FORWARD | FEBRUARY 27, 2026 FORWARD LOOKING STATEMENTS Some statements in this release, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements about Arcosa's estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words "anticipates," "assumes," "believes," "estimates," "e ...

Group 1: Investment Potential - PPG Industries, Inc. is identified as one of the 9 undervalued chemical stocks to buy according to hedge funds [1] - The company ranks fifth on the list of best chemical stocks [2] - Evercore ISI raised its price target on PPG by $16, Mizhou by $15, and Bernstein increased its target to $130 from $123 while maintaining an Outperform rating [3] Group 2: Market Position and Strategy - PPG Industries is a global supplier of paints, coatings, and specialty materials, providing innovative solutions for various markets [5] - The company recently unveiled its 2026 global automotive color report in Shanghai, emphasizing personal expression and showcasing its expertise in premium automobile finishes [4] - PPG's strategic focus on China includes collaborations with Xiaomi and Chery to develop new colors [4]

Core Insights - The company reported a pre-tax income of $113 million for Q4 2025, down from $134 million in Q4 2024, with a full-year pre-tax income of $561 million compared to $584 million in 2024, reflecting a decline of 4% [1] - Net income for Q4 2025 was $81 million or $8.65 per share, compared to $111 million or $11.56 per share in Q4 2024, with full-year net income at $419 million or $44.44 per share, down from $462 million or $48.22 per share in 2024 [1] - The increase in effective tax rate was a primary driver for the decline in net income, as detailed in the 10-K filing [1] Petroleum Additives Segment - Sales for petroleum additives in Q4 2025 were $585 million, down from $626 million in Q4 2024, with operating profit at $107 million compared to $136 million in the same period last year [1] - For the full year, petroleum additives sales were $2.5 billion, down from $2.6 billion in 2024, with operating profit decreasing to $520 million from $592 million [1] - Shipment volumes declined by 6% in Q4 and 4.9% for the full year, attributed to market softness and lower selling prices [1] Specialty Materials Segment - Specialty materials sales for Q4 2025 were $49 million, up from $27 million in Q4 2024, with operating profit increasing to $7 million from approximately $2 million [1] - Full-year sales for specialty materials reached $182 million, compared to $141 million in 2024, with operating profit rising to $47 million from $17 million [1] - The growth in specialty materials was driven by higher volume demand at AMPAC and the acquisition of Calca Solutions, with a commitment of approximately $1 billion to this segment [1] Financial Performance and Shareholder Returns - The company generated solid cash flows in 2025, returning $183 million to shareholders through share repurchases of $77 million and dividends of $106 million [1] - Total debt was reduced by $88 million compared to 2024, with a net debt to EBITDA ratio of 1.1 times, down from 1.2 at the end of 2024 [1] - The strong cash flow performance supports continued investment in growth, efficiency, acquisitions, and shareholder returns [1]

Financial Data and Key Metrics Changes - Pre-tax income for Q4 2025 was $113 million, down from $134 million in Q4 2024. For the full year, pre-tax income was $561 million in 2025, compared to $584 million in 2024, a decline of 4% [3] - Net income for Q4 2025 was $81 million, or $8.65 per share, compared to $111 million, or $11.56 per share for Q4 2024. Full year net income for 2025 was $419 million, or $44.44 per share, down from $462 million, or $48.22 per share in 2024 [3][4] Business Line Data and Key Metrics Changes - Petroleum Additives sales for Q4 2025 were $585 million, down from $626 million in Q4 2024. Operating profit for this segment was $107 million in Q4 2025, compared to $136 million in Q4 2024, driven by a 6% decline in shipments and lower selling prices [4][5] - For the full year, Petroleum Additives sales were $2.5 billion in 2025, down from $2.6 billion in 2024. Operating profit for 2025 was $520 million, compared to $592 million in 2024, with shipments down by 4.9% [5][6] - Specialty Materials sales for Q4 2025 were $49 million, up from $27 million in Q4 2024, with operating profit increasing to $7 million from about $2 million in the same period [7] - Full year sales for Specialty Materials were $182 million in 2025, compared to $141 million in 2024, with operating profit rising to $47 million from $17 million [9] Market Data and Key Metrics Changes - The company experienced market softness throughout 2025, impacting shipments and profitability in the Petroleum Additives segment [6] - The Specialty Materials segment showed growth due to higher volume demand at Ampac and the acquisition of Calca Solutions [9] Company Strategy and Development Direction - The company is focused on investing in technology, optimizing inventory levels, and improving portfolio profitability. It has committed approximately $1 billion to expand capacity in the Specialty Materials segment [9] - The company aims to promote long-term value for shareholders and customers, emphasizing a safety-first culture and technology-driven products [11] Management's Comments on Operating Environment and Future Outlook - Management noted challenges from ongoing inflation, tariffs, and market softness impacting shipments. However, they expressed confidence in the performance of the Petroleum Additives and Specialty Materials segments [6][10] - The company generated solid cash flows in 2025, allowing for shareholder returns through share repurchases and dividends, while also reducing total debt [10] Other Important Information - The effective tax rate increased in 2025 compared to 2024, contributing to the decline in net income [4] - The company reported a net debt to EBITDA ratio of 1.1 times as of December 31, 2025, slightly down from 1.2 at the end of 2024 [10] Q&A Session Summary - No specific questions or answers were provided in the content, indicating that the conference concluded without a Q&A segment [12]

Core Insights - The Petroleum Additives segment experienced a 6% decline in Q4 shipments due to broader market softness and a strategic exit from low-margin businesses to protect profitability [1] - Operating profit in the core additives segment was negatively impacted by higher unit costs as the company reduced production volumes to optimize inventory levels [1] - The Specialty Materials segment showed significant growth, driven by increased demand at AMPAC and the acquisition of Calca Solutions on October 1, 2025 [1] - Despite a decline in 2025 results compared to a record-breaking 2024, the business remains resilient amid ongoing inflation and tariff impacts [1] - The company has allocated approximately $1,000,000,000 to the Specialty Materials segment to develop a high-technology growth engine alongside its legacy additives business [1] - A higher effective tax rate in 2025 was a primary factor contributing to the year-over-year decline in net income and earnings per share [1]

Institutional Holdings - Vanguard Group Inc. increased its holdings in PPG Industries by 0.7%, owning 29,265,369 shares valued at $3.33 billion after purchasing an additional 192,560 shares [1] - State Street Corp raised its position by 6.3%, now owning 12,624,828 shares worth $1.44 billion after acquiring 749,081 shares [1] - First Eagle Investment Management LLC boosted its stake by 21.2%, holding 5,560,280 shares valued at $632.48 million after buying 971,799 shares [1] - Norges Bank established a new position worth approximately $362.41 million [1] - Charles Schwab Investment Management Inc. increased its holdings by 1.5%, owning 2,775,676 shares valued at $315.73 million after acquiring 41,406 shares [1] - Institutional investors own 81.86% of PPG Industries' stock [1] Analyst Ratings and Price Targets - KeyCorp reaffirmed a "sector weight" rating on PPG Industries [2] - Bank of America lowered its price target from $118.00 to $116.00, maintaining a "neutral" rating [2] - Goldman Sachs raised its target price from $118.00 to $132.00, giving a "buy" rating [2] - Royal Bank Of Canada increased its price target from $109.00 to $115.00, with a "sector perform" rating [2] - Mizuho raised its price objective from $118.00 to $125.00, rating the stock as "outperform" [2] - The average rating for the stock is "Hold" with a consensus target price of $123.71 [2] Insider Activity - CFO Vincent J. Morales sold 29,672 shares at an average price of $125.00, totaling $3.71 million, reducing his ownership by 51.06% [3] - VP Chancey E. Hagerty sold 2,250 shares at an average price of $115.59, totaling $260,077.50, decreasing his ownership by 20.98% [3] - Insiders sold 37,122 shares valued at $4.54 million in the last ninety days, with insiders owning 0.33% of the stock [3] Stock Performance and Financial Metrics - PPG Industries' stock opened at $126.63, with a market capitalization of $28.42 billion [4] - The company has a current ratio of 1.47, a quick ratio of 1.08, and a debt-to-equity ratio of 0.74 [4] - The stock has a 12-month low of $90.24 and a high of $126.74, with a 50-day moving average of $107.46 and a 200-day moving average of $105.85 [4] - The PE ratio is 18.25, the P/E/G ratio is 1.87, and the beta is 1.16 [4] Earnings Results - PPG Industries reported $1.51 EPS for the last quarter, missing estimates of $1.57 by $0.06 [5] - The company had revenue of $3.91 billion, exceeding estimates of $3.77 billion, with a 5.0% increase compared to the same quarter last year [5] - The return on equity was 22.67% and the net margin was 9.93% [5] - FY 2026 guidance is set at 7.700-8.100 EPS, with analysts forecasting 7.95 EPS for the current year [5] Dividend Announcement - PPG Industries declared a quarterly dividend of $0.71, to be paid on March 12th, with a yield of 2.2% [7] - The annualized dividend amounts to $2.84, and the payout ratio is 40.92% [7] Company Overview - PPG Industries is a global supplier of paints, coatings, and specialty materials, serving various markets including industrial, transportation, consumer, and construction [8] - Founded in 1883, the company has evolved from glass manufacturing to a diversified coatings and materials company headquartered in Pittsburgh, Pennsylvania [8] - The product portfolio includes architectural and decorative paints, automotive coatings, industrial coatings, protective and marine coatings, aerospace coatings, and packaging materials [9]

Core Insights - Analysts project Corning (GLW) will report quarterly earnings of $0.70 per share, reflecting a 22.8% year-over-year increase, with revenues expected to reach $4.32 billion, an 11.6% increase from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2] Key Metrics Forecast - Analysts estimate 'Net Sales- Display Technologies' at $880.85 million, a decrease of 9.3% year over year [4] - 'Net Sales- Hemlock and Emerging Growth Businesses' is projected at $464.86 million, an increase of 24.6% year over year [4] - 'Net Sales- Specialty Materials' is expected to reach $587.56 million, indicating a 14.1% increase from the prior-year quarter [4] Segment Sales and Income - The consensus for 'Net Sales- Life Sciences' is $249.13 million, showing a slight decline of 0.4% year over year [5] - 'Net Sales- Optical Communications' is forecasted at $1.71 billion, reflecting a 24.8% increase from the year-ago quarter [5] - 'Segment Net Income- Display Technologies' is expected to be $216.95 million, down from $262.00 million in the same quarter last year [5][6] - 'Segment Net Income- Life Sciences' is projected at $17.35 million, compared to $18.00 million a year ago [6] - 'Segment Net Income- Optical Communications' is anticipated to reach $261.29 million, up from $194.00 million last year [6] - 'Segment Net Income- Specialty Materials' is estimated at $98.80 million, compared to $81.00 million in the previous year [7] Stock Performance - Over the past month, Corning's shares have returned +5.2%, outperforming the Zacks S&P 500 composite's +0.6% change [7] - Corning currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [7]

Company Overview - PPG Industries, Inc. is headquartered in Pittsburgh, Pennsylvania, and specializes in manufacturing and distributing paints, coatings, and specialty materials, with a market cap of $22.7 billion [1] - The company produces protective and decorative coatings, flat glass, fabricated glass products, continuous-strand fiber glass products, and industrial and specialty chemicals [1] Market Position - PPG is classified as a "large-cap stock" due to its market cap exceeding $10 billion, highlighting its size and influence in the specialty chemicals industry [2] Stock Performance - PPG's stock has declined 22.3% from its 52-week high of $130.05, reached on December 9, 2024, and has fallen 8.1% over the past three months, underperforming the Materials Select Sector SPDR Fund (XLB) which lost 4.1% in the same period [3][4] - Over a six-month period, PPG shares fell 9.2%, and over the past 52 weeks, they dipped 19.5%, again underperforming XLB's marginal gains and 4.4% dip [4] Recent Financial Results - On October 28, PPG reported Q3 results, with an adjusted EPS of $2.13, surpassing Wall Street's expectation of $2.09, and revenue of $4.1 billion, exceeding the forecast of $4 billion [5] - The company anticipates full-year adjusted EPS in the range of $7.60 to $7.70 [5] Competitive Landscape - The Sherwin-Williams Company has outperformed PPG, with a 6.9% decline over six months and 13.5% losses over the past year [6] - Analysts maintain a "Moderate Buy" rating for PPG, with a consensus price target of $120, indicating a potential upside of 18.8% from current levels [6]