Armor Advisors L.L.C. lessened its stake in shares of Ferguson plc (NYSE:FERG – Free Report) by 59.7% in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 15,386 shares of the company’s stock after selling 22,750 shares during the quarter. Ferguson comprises about 1.9% of Armor Advisors L.L.C.’s holdings, making the stock its 11th biggest holding. Armor Advisors L.L.C.’s holdings in Ferguson were worth $3,455,000 as of its most recent filing ...

DNOW (NYSE:DNOW) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsAlex Rygiel - Managing DirectorBrad Wise - VP of Digital Strategy and Investor RelationsDavid Cherechinsky - President and CEOMark Johnson - SVP and CFOConference Call ParticipantsAdam Farley - Diversified Industrials Associate AnalystChuck Minervino - Equity Research AnalystOperatorGood morning. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the DNOW ...

DNOW (NYSE:DNOW) Q4 2025 Earnings call February 20, 2026 09:00 AM ET Company ParticipantsBrad Wise - VP of Digital Strategy and Investor RelationsDavid Cherechinsky - President and CEOMark Johnson - SVP and CFOConference Call ParticipantsAdam Farley - Diversified Industrials Associate AnalystAlex Riegel - Equity Research AnalystChuck Minervino - Equity Research AnalystOperatorGood morning. My name is Jeannie, and I will be your conference operator today. At this time, I would like to welcome everyone to the ...

Core Insights - The company is undergoing a "comprehensive profitability reset" with significant volume deleverage expected in 2025 and a planned leadership transition [1][3][6] 2025 Results - Full-year sales were $4.5 billion, down 3% year-over-year, with a 1% decline excluding China [5][7] - Operating income decreased to $699 million, down 10%, and earnings per share (EPS) fell to $3.61, down 12% [5][7] - Margins were pressured by lower volumes, higher manufacturing costs, and tariffs, with operating margin at 15.7%, down 120 basis points [7][11] 2026 Outlook - Management guides for net sales growth of approximately flat to 2%, operating margin of about 14.5% to 15.5%, and EPS of $3.35 to $3.65 [4][13] - The outlook assumes continued tariff impacts, with mitigated tariff costs expected to be around $151 million in 2026, an increase of over $100 million year-over-year [14] - Free cash flow is projected to be about $400 million to $450 million, with capital expenditures of roughly $110 million to $140 million [16] Leadership Transition - Amit Banati has been appointed as CEO effective May, succeeding Nick Fink, who is departing [2][6] - The board has been evaluating succession continuously and views Banati as a proven leader with significant experience [2][3] Segment Performance - In Q4, sales in the Water segment were $617 million, down 4%, while the Security segment saw a 6% increase in sales to $166 million [10][15] - The Outdoors segment reported a 3% decline in sales to $295 million, with operating income down 24% [15] - The company has seen improved market share performance, outperforming the market by approximately 130 basis points for the full year, excluding China [12]

Core Viewpoint - Tejara Capital Ltd has established a new position in DNOW, acquiring 685,617 shares valued at approximately $9.08 million, indicating confidence in the company's growth potential and market position [2][3]. Company Overview - DNOW Inc. is a leading distributor of energy and industrial products, focusing on comprehensive supply chain solutions and value-added services for critical infrastructure sectors [5]. - The company operates a distribution-based business model, generating revenue through the sale of consumable products and equipment, complemented by supply chain and materials management solutions [8]. Financial Performance - As of February 4, DNOW shares were priced at $16.05, with a market capitalization of $3 billion and a revenue of $2.43 billion over the trailing twelve months (TTM) [4]. - The company reported a net income of $95 million TTM and generated $634 million in revenue in the third quarter, with an EBITDA of $51 million, representing 8% of sales [10]. - DNOW has zero long-term debt and a liquidity position of approximately $629 million, providing financial flexibility [10]. Strategic Positioning - The new stake by Tejara Capital adds a steady, cash-generative industrial layer to its portfolio, benefiting from energy activity without direct commodity risk [9]. - DNOW serves various sectors, including upstream, midstream, and downstream energy companies, positioning itself as a key partner for operations seeking efficiency and reliability [8]. Future Outlook - The company is working towards closing an all-stock acquisition of MRC Global, a deal valued at around $1.5 billion, which is expected to enhance its scale and product reach [10]. - The essential components sold by DNOW are critical for maintaining energy and industrial systems, suggesting that the business will benefit from rising activity levels while its cash position offers downside protection during market downturns [11].

Company Overview - Mueller Industries, Inc. (NYSE:MLI) produces copper, brass, and aluminum components such as tubes, fittings, and valves for plumbing, refrigeration, and HVAC systems [2] Investment Sentiment - Jim Cramer expressed strong support for Mueller Industries, indicating he was a significant holder when the company emerged from bankruptcy and remains a buyer, emphasizing the company's steady growth and infrastructure relevance [1] Market Position - The company is recognized for its extensive product offerings in the infrastructure sector, including pipes and manhole covers, which are critical for various applications [1]

Market Overview - The U.S. stock market experienced a rally in 2023 and 2024, continuing into 2025, with the Dow, S&P 500, and Nasdaq Composite increasing by 13%, 16.4%, and 20.4% respectively [1] - December 2024 showed mixed results, with the Dow and S&P 500 rising by 0.7% and 0.3%, while the Nasdaq Composite fell by 0.5% due to profit booking in AI-centric technology stocks [2] - Strong fundamentals, solid fourth-quarter earnings projections, and accommodative Fed policies are expected to support market momentum in January 2025 [3] Investment Opportunities - Stocks with favorable Zacks Rank and momentum are recommended for investment in January, including Robinhood Markets Inc. (HOOD), MongoDB Inc. (MDB), Samsara Inc. (IOT), Ciena Corp. (CIEN), and Core & Main Inc. (CNM) [4] Robinhood Markets Inc. - Robinhood operates a financial services platform allowing investments in various assets, including cryptocurrencies [5] - The company is focusing on growth through product innovation, including AI tools and global expansion, with new features like Cortex and Legend enhancing user engagement [6][8] - Robinhood's expected revenue and earnings growth rates are 22% and 20.6% respectively for the current year, with a 5.7% improvement in earnings estimates over the last 30 days [10] MongoDB Inc. - MongoDB has expanded its Atlas platform into analytics, targeting modern workloads and generative AI applications [11] - The company has seen strong adoption across enterprises, with a focus on larger deals and efficient customer acquisition [12] - Expected revenue and earnings growth rates for MongoDB are 17.5% and 17% respectively for the next year, with a significant 29.6% improvement in earnings estimates over the last 60 days [14] Samsara Inc. - Samsara connects physical operations data to its cloud platform, developing sensor systems for analytics [15] - The company's Connected Operations Cloud includes AI capabilities and is expected to see revenue and earnings growth rates of 19.8% and 12.9% respectively for the next year [16] Ciena Corp. - Ciena reported a 20% year-over-year revenue increase and 69.5% EPS growth, driven by AI demand from cloud and service providers [17] - The company expects revenue for fiscal 2026 to be between $5.7 billion and $6.1 billion, reflecting nearly 24% growth at the midpoint [19] - Ciena's expected revenue and earnings growth rates are 24.3% and 97.7% respectively for the current year, with a 19.7% improvement in earnings estimates over the last 30 days [21] Core & Main Inc. - Core & Main distributes water and fire protection products to various markets in the U.S. [22] - The company has an expected revenue and earnings growth rate of 3% and 7.7% respectively for the next year, with a 24.4% improvement in earnings estimates over the last 30 days [24]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $634 million, up 1% or $6 million from Q2 2025, marking the highest revenue quarter in almost six years [17][19] - EBITDA for Q3 was $51 million, or 8% of revenue, marking the 14th consecutive quarter of approximately 7% EBITDA or better [17][19] - Net income attributable to DNOW for Q3 was $25 million or $0.23 per fully diluted share, with a Non-GAAP net income of $28 million or $0.26 per fully diluted share [20][19] - Free cash flow for Q3 was $39 million, elevating year-to-date free cash flow to $58 million, with expectations to approach $150 million for the full year 2025 [8][19] Business Line Data and Key Metrics Changes - U.S. revenue totaled $527 million, effectively flat sequentially but up $45 million or 9% year-over-year, with U.S. Energy Centers contributing approximately 73% of total U.S. revenue [18][19] - Canada revenue was $53 million, up $5 million or 10% sequentially, while international revenue was $54 million, up $2 million or 4% sequentially [18][19] - The midstream sector accounted for 24% of overall DNOW revenue, with strong demand for pipe, valves, and fittings supporting several capital projects [10][19] Market Data and Key Metrics Changes - In the U.S., rig count decreased by 5% sequentially, and completions declined by 6% in Q3, indicating a cautious market environment [8][9] - Demand for products improved in the Haynesville region, primarily tied to new construction linked to increased demand for power generation and LNG exports [9][10] - Internationally, growth was observed in the Middle East and Singapore, driven by high demand for FPSO conversions and LNG module fabrication [15] Company Strategy and Development Direction - The company aims to invest in organic growth and pursue acquisitions, particularly in process solutions, to enhance service and product offerings [16][23] - The announced merger with MRC Global is expected to generate $70 million in annual cost synergies within three years, enhancing DNOW's earnings durability and cash flow [24][25] - The focus remains on retaining top talent and leveraging combined resources to grow business with existing and prospective customers [34][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the fifth consecutive year of revenue growth, despite macro challenges such as customer consolidations and geopolitical uncertainties [27][29] - The outlook for Q4 anticipates typical seasonal decreases in revenue, with expectations for mid-single-digit percentage growth compared to Q4 2024 [26][27] - Full year 2025 EBITDA is projected to approach 8% of revenues, with free cash flow expected to reach approximately $150 million [27] Other Important Information - The company ended Q3 with zero debt and a cash position of $266 million, an increase of $34 million sequentially [20][21] - Accounts receivable was $429 million with days sales outstanding improving to 62 days, while inventory was $377 million, down $6 million from Q2 2025 [21][22] - The company has completed acquisitions totaling $122 million over the last 12 months and returned $32 million to shareholders through share repurchases [23] Q&A Session Summary Question: Insights on MRC Global merger and cost synergies - Management confirmed focus on achieving the $70 million synergy target and emphasized the importance of retaining top talent to maximize performance [34][35] Question: Challenges in integration and risk management - The biggest challenge is to engage employees and promote the future of the combined company to avoid revenue leakage during integration [38][39] Question: Growth opportunities in U.S. revenue and market share - Management believes the merger will enhance growth opportunities and market share in upstream sectors [44] Question: Visibility on FlexFlow and EcoVapor growth opportunities - Management indicated plans to continue evaluating and investing in these areas for growth, particularly in midstream and adjacent markets [49][70] Question: Update on gross margins and pricing environment - Management highlighted a focus on maximizing gross margins and navigating inflationary pressures while remaining competitive [63][64] Question: Opportunities in data centers and industrial markets - Management discussed growth prospects in midstream and data center markets, emphasizing the importance of providing necessary infrastructure [71][75]

Core Insights - NOW reported strong financial performance in Q2 2025, with non-GAAP EPS of $0.27, exceeding analyst expectations by 28.2% and GAAP revenue of $628 million, also above estimates [1][5] - The company achieved record EBITDA of $51 million, marking a 2% increase year-over-year, despite a slight decline in GAAP revenue compared to Q2 2024 [2][5] - Free cash flow reached $41 million, a significant increase of 115.8% year-over-year, indicating robust cash generation capabilities [2][6] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.27, compared to estimates of $0.21 and $0.25 in Q2 2024, reflecting an 8% year-over-year increase [2][5] - GAAP revenue was reported at $628 million, down 0.8% from $633 million in Q2 2024, but above the estimate of $612.7 million [2][5] - EBITDA (Non-GAAP) was $51 million, representing 8.1% of revenue, a record high for the company [5] - Cash and cash equivalents stood at $232 million, down 9.4% from $256 million year-over-year, with no long-term debt [2][6] Business Overview - NOW operates as an industrial distributor, focusing on supplying pipe, valves, fittings, pumps, and automation control equipment to energy and industrial markets across approximately 165 locations globally [3] - The company is strategically positioned to leverage its distribution network for timely product delivery and is adopting digital solutions like the DigitalNOW platform to enhance procurement and workflow [4] Strategic Focus - The company is emphasizing growth in sustainable and adjacent industrial segments, with a focus on deep customer relationships and effective inventory management [4] - A pending merger with MRC Global is expected to enhance operational capabilities and market reach [4] Regional Performance - U.S. revenue for Q2 2025 was $528 million, an increase from $512 million in Q2 2024, driven by midstream project demand [7] - Canadian and international segments experienced declines due to the absence of one-time project revenue and strategic exits from less profitable regions [7][12] Product and Digital Initiatives - NOW's diversified product portfolio includes traditional offerings and solutions for automation and environmental sustainability, with digital revenue accounting for 53% of SAP-based sales [8][13] - The DigitalNOW platform is a key initiative aimed at improving procurement efficiency and integrating AI for document processing [11] Outlook - Management anticipates flat to high-single-digit percent revenue growth for 2025 compared to 2024, with EBITDA margins expected to approach 8% of revenue [14] - The company is targeting $150 million in free cash flow for 2025, maintaining its forward guidance [14]

Core Insights - Ichor reported Q2 FY2025 GAAP revenue of $240.3 million, exceeding expectations, but non-GAAP earnings per share fell to $0.03, significantly below the $0.14 estimate, indicating profitability challenges due to margin pressure and operational inefficiencies [1][5][10] Financial Performance - Non-GAAP EPS for Q2 FY2025 was $0.03, down 40% from $0.05 in Q2 FY2024 [2] - GAAP revenue increased by 18.3% year-over-year from $203.2 million in Q2 FY2024 [2] - Non-GAAP gross margin decreased to 12.5% from 13.0% in the prior year [2] - Free cash flow turned negative at $(14.8) million, a decline of 201.4% compared to $14.6 million in Q2 FY2024 [2][7] Business Overview - Ichor specializes in precision fluid delivery systems essential for semiconductor manufacturing, serving major clients like Lam Research and ASML [3] - The company is focusing on increasing proprietary product content and operational flexibility, aiming to internalize more gas panel components to enhance margins and supply control [4] Operational Challenges - Despite strong revenue, profitability was impacted by a decline in gross margin from 12.6% in Q2 FY2024 to 11.3% in Q2 FY2025, attributed to slow internal production integration and reliance on external suppliers [6] - The company faced operational setbacks, including a strategic exit from its refurbishment operation in Scotland, which previously contributed approximately $10 million in annual revenue [5][6] Future Outlook - For Q3 FY2025, Ichor expects revenue between $225 million and $245 million, with a midpoint of $235 million, slightly below Q2 FY2025 actual revenue [10] - Non-GAAP EPS guidance for Q3 FY2025 is projected between $0.06 and $0.18, indicating potential recovery [10] - Management anticipates sequential improvement in gross margins, targeting 15% to 16% for the second half of FY2025, but has tempered expectations for full-year gross margins compared to prior years [10][11]