USANA Health Sciences (NYSE:USNA) Q4 2025 Earnings call February 18, 2026 11:00 AM ET Company ParticipantsAndrew Masuda - Director of Investor RelationsBrent Neidig - CCODoug Hekking - CFOIvan Feinseth - CIOKathryn Armstrong - CSOKevin Guest - Chairman and CEOWalter Noot - COOConference Call ParticipantsAnthony Lebiedzinski - Senior Equity AnalystOperatorGreetings! Welcome to the USANA Health Sciences Fourth Quarter and Fiscal Year 2025 Earnings Call. At this time, all participants will be in listen-only mo ...

Financial Data and Key Metrics Changes - Net sales for Q4 2025 were $1.02 billion, with an adjusted net sales of $968 million, reflecting strong demand in other products and services and the banana segments [12][14] - Gross profit was $106 million, with a gross margin of 10.4%, while adjusted gross profit was $109 million with an adjusted gross margin of 11.3% [13][14] - For the full year 2025, net sales reached $4.3 billion, with adjusted net sales of $4.1 billion, driven by higher selling prices across all business segments [15][16] - Fresh Del Monte's net income was $91 million for the full year, with adjusted net income of $178 million [16][20] Business Line Data and Key Metrics Changes - Fresh and value-added products segment net sales were $2.6 billion, driven by higher selling prices in pineapples and fresh cut products, with adjusted net sales of $2.4 billion [17] - The banana segment reported net sales of $1.5 billion, with gross profit of $71 million, reflecting higher production costs and adverse weather impacts [18] - Other products and services segment net sales were $210 million, with gross profit of $29 million, driven by higher sales in third-party ocean freight [19] Market Data and Key Metrics Changes - Market demand in North America and Europe remains strong, while demand in Asia, particularly Japan and Korea, continues to trend lower year-over-year [24] - The U.S. is the largest market for fresh cut products, with strong performance also noted in the U.K. [31] Company Strategy and Development Direction - The company is focusing on core strengths by streamlining its portfolio and divesting from non-core distractions, which has strengthened its balance sheet and expanded margins [4][5] - Fresh Del Monte is in the process of acquiring select assets from Del Monte Foods, with the transaction expected to close before the end of Q1 2026, aiming to reunify the Del Monte brand under one company [5][10] - The strategy emphasizes operational efficiency and high-return investments, with a focus on long-term value creation [9][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage the upcoming acquisition and highlighted the unique position of Del Monte as a multinational with both fresh and processed food divisions [48] - The outlook for 2026 includes expectations for net sales to be 1%-2% higher, driven by higher selling prices, with gross margins projected at 12%-14% for the fresh and value-added segment [23][24] Other Important Information - The company declared a quarterly cash dividend of $0.30 per share, representing an annualized yield of approximately 3% [21] - Capital expenditures for the full year totaled $64 million, focusing on enhancing operations in Central America and North America [20][21] Q&A Session Summary Question: Margins in the fresh cut segment - Management is comfortable with the guidance of 12%-14% gross margin for the year, despite the last quarter's adjusted gross margin being 14.8% [29][30] Question: Trends in the fresh cut segment - Fresh-cut products are performing well with strong demand and volume increases expected to continue into 2026 [31] Question: Pineapple business supply issues - The company is expanding production in Costa Rica and Brazil, but land availability and government approvals are challenges [34][35] Question: Banana segment performance - North America has performed reasonably well, focusing on profitability rather than volume, while Asia has negatively impacted margins [38][40] Question: Capital spending estimates for 2026 - Management prefers to postpone capital spending estimates until the next quarter for better clarity [41] Question: Expected sales growth from Del Monte Foods acquisition - Management will provide guidance on the acquisition's financial impact in Q1 2026 [45]

Financial Data and Key Metrics Changes - The consolidated net sales outlook for fiscal 2026 is projected to grow by 4% at the midpoint, reflecting confidence in the company's strategy and execution capabilities [8][10] - Inventory increased by $35 million or 48% to $107 million at the end of fiscal 2025, primarily driven by growth initiatives at Rise Wellness and Hiya [11] Business Line Data and Key Metrics Changes - Rise Wellness and Hiya are expected to drive sales growth, with Rise Wellness anticipated to operate at approximately break-even in fiscal 2026 while supporting future growth [12] - The company is focusing on expanding its omni-channel reach and enhancing product innovation to support these brands [8][9] Market Data and Key Metrics Changes - The company is diversifying its distribution channels to access a larger global base of health-conscious consumers, particularly through retail expansions in Target and Costco [24][25] - The company is also entering new markets, including Canada and the United Kingdom, for Hiya products [11][24] Company Strategy and Development Direction - The company aims to transition from a legacy Direct Selling business to a modern, science-driven nutritional products company [6] - Key strategic priorities include strengthening global brand positioning, enhancing customer experience, reinvigorating sales momentum, advancing product innovation, and improving operational efficiencies [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the evolving external environment but believes the company is well-positioned with strong fundamentals and growth opportunities [5][14] - The company emphasizes the importance of speed, focus, and precision in executing its strategic plans to drive sustainable growth [5][6] Other Important Information - The effective income tax rate for fiscal 2026 is expected to range between 55% and 60%, influenced by geographic misalignment between revenue and costs [12] - The company is committed to leveraging technology and AI to enhance customer interactions and improve operational efficiencies [44][45] Q&A Session Summary Question: Can you walk us through the guidance for revenue and EPS? - Management discussed the potential for revenue growth driven by Rise Wellness and Hiya, emphasizing the importance of achieving top-line growth to reach the upper end of EPS guidance [17][19] Question: What is the expected seasonality of the business? - Management indicated that seasonality is influenced by events like the Lunar New Year, with Q1 typically seeing stronger sales due to promotional activities [35][36] Question: How much did the cost realignment lower headcount and what are the implications for gross margins? - The cost realignment impacted about 10% of the workforce, resulting in approximately $10 million in savings, which will primarily affect SG&A rather than gross margins [40][41] Question: What are the company's thoughts on integrating technology into consumer health management? - Management expressed interest in utilizing technology to personalize nutrition and enhance consumer engagement, while ensuring scientific integrity in product offerings [52][54]

Financial Data and Key Metrics Changes - As of December 31, GAAP book value was $13.20 per share, and economic book value was $13.75 per share, both showing modest increases from the end of September [14] - For the fourth quarter, MFA generated GAAP earnings of $54.3 million, or $0.42 per basic common share, with net interest income at $55.5 million, a slight decline from $56.8 million in the previous quarter [15][16] - Distributable earnings for the fourth quarter were approximately $27.8 million, or $0.27 per share, an increase from $0.20 per share in the third quarter [18] Business Line Data and Key Metrics Changes - In the fourth quarter, MFA acquired $1.9 billion of loans and securities, including $1.2 billion of agencies, $443 million of non-QM loans, and $226 million of new business purpose loans [10] - The agency book grew by over 50% to $3.3 billion during the quarter, with a focus on low payout spec pools [20] - Lima One originated $226 million of new loans in the fourth quarter, including various types of loans such as new construction and rehab loans [22] Market Data and Key Metrics Changes - The Bloomberg US Aggregate Index was up 7.3% in 2025, following a decline of 7.1% over the previous three years [5] - Treasury rates declined, with 2-year yields dropping 77 basis points and 10-year yields dropping by 39 basis points [5] - The delinquency rate across the entire loan portfolio ended the year at just over 7%, down from 7.5% a year ago [23] Company Strategy and Development Direction - MFA is focused on increasing earnings and growing return on equity (ROE) through strategic initiatives, including deploying excess cash into target assets [9] - The company is excited about 2026, starting the year with favorable market conditions and government support for housing affordability [6][7] - MFA plans to relaunch multifamily lending and has made investments in technology and sales force to enhance operational efficiency [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the mortgage market due to lower rates, reduced volatility, and a positively sloped yield curve [6] - The company expects to see results from its strategic initiatives in 2026, with a focus on resolving delinquent loans and reducing general and administrative expenses [12][13] - Management anticipates that distributable earnings will reconverge with the common dividend in the latter half of 2026 [30] Other Important Information - MFA paid a common dividend of $0.36 for the fourth quarter and $1.44 for the full year, with approximately 40% of dividends treated as a tax-deferred return of capital [14] - The company has rolled out several technology platforms to enhance borrower experience and drive operational efficiencies [11] Q&A Session Summary Question: Can you talk about the run rate ROE on your EAD once loss provisions are through? - Management indicated that DE on a lossless basis is expected to be in the 8%-9% range, potentially reaching 10-11% in the back half of next year [29] Question: Can you discuss the re-entry into the multifamily market? - The company is targeting higher quality loans with larger unit sizes and an originate-to-sell model to capture fees [31] Question: How do you think about the potential deals that could be called? - Management expects to unlock $50 million-$100 million of capital that can be redeployed, with several deals anticipated in the coming quarters [36] Question: How should we think about capital allocation going forward? - The expectation is to initially increase investments in the agency portfolio before transitioning to non-QM and BPL asset classes as capital is freed up [40] Question: What are your expectations for margins and total volumes throughout the year? - The company anticipates healthy spreads and significant growth potential, particularly in the back half of the year as new channels come online [54]

Financial Data and Key Metrics Changes - In 2025, the company generated $1.4 billion in consolidated revenue, with a record adjusted EBITDA of $260 million, despite a challenging macro environment [15][22] - The company achieved a consolidated gross profit margin improvement, with the Water Infrastructure segment gross profit before D&A increasing by 5% in Q4 2025, reaching 54% [16][19] - Adjusted EBITDA for Q4 2025 was $64.2 million, exceeding guidance of $60 million-$64 million [22] Business Line Data and Key Metrics Changes - The Water Infrastructure segment grew recycled produced water volumes by 18%, totaling over 330 million barrels in 2025, contributing to over 800% revenue growth over five years [6][19] - The Chemical Technology segment achieved 19% year-over-year revenue growth and 45% growth in gross profit before D&A in 2025 [12][20] - The Water Services segment maintained market-leading positions and saw a 7% revenue growth in Q4 2025, driven by a 77% sequential uplift in Water Transfer revenues in New Mexico [18][20] Market Data and Key Metrics Changes - The company anticipates a steady commodity price environment in 2026, with oil prices expected to remain in the $55-$65 range [15][16] - The company is well-positioned to benefit from potential upside in the natural gas market, particularly in key gas basins [16] Company Strategy and Development Direction - The company is focusing on expanding its water infrastructure in the Northern Delaware Basin, which is characterized by productive geology and low breakeven costs [8][9] - Strategic investments are being made in long-term diversification efforts across municipal and industrial spaces, including beneficial reuse and mineral extraction technologies [5][11] - The company aims to grow its water infrastructure to account for over 60% of consolidated gross profit within the next 24 months, targeting 20%-25% year-over-year growth in 2026 [7][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong demand for water infrastructure solutions and the successful integration of new assets [10][14] - The company is focused on enhancing operational efficiencies and reducing costs, with a target to decrease SG&A expenses below 11% of revenue in 2026 [22][24] - Management highlighted the importance of leveraging existing infrastructure to generate incremental cash flow and high-margin royalty streams [11][27] Other Important Information - The company is entering 2026 with a capital expenditure plan of $175 million-$225 million, with a focus on infrastructure growth and maintenance spending [24][25] - The company has multiple ongoing construction projects and anticipates a heavier CapEx weighting in the first half of 2026 [25][26] Q&A Session Summary Question: Expansion opportunities in Northern Delaware - Management noted a shift towards smaller opportunities as the system matures, with a focus on leveraging the existing infrastructure for attractive returns [30][31] Question: Long-term growth opportunities beyond Northern Delaware - Management indicated plans to explore expansion into other regions, including Winkler County and potentially the Central Basin Platform [33] Question: Lithium extraction partnerships and other high-margin opportunities - Management confirmed ongoing evaluations of additional high-margin revenue streams, including potential iodine and strontium extraction projects [41][42] Question: Update on Peak Rentals business - Management is strategically engaging around Peak Rentals to ensure positive outcomes for both Peak and Select, while exploring opportunities in power generation [43][48] Question: Beneficial reuse pilots and their success - Management discussed successful pilots involving treated produced water, emphasizing the importance of proving water quality and informing regulatory efforts [51][54] Question: Macro environment impact on growth opportunities - Management anticipates a maturation phase in New Mexico, with potential for increased capital allocation and free cash flow generation in the coming years [62]

Devon Energy (NYSE:DVN) Q4 2025 Earnings call February 18, 2026 11:00 AM ET Speaker12Welcome to Devon Energy's fourth quarter 2025 conference call. At this time, all participants are in listen-only mode. This call is being recorded. I'd now like to turn the call over to Mr. Chris Carr, Director of Investor Relations. You may begin.Speaker3Good morning, and thank you for joining us on the call today. Last night, we issued Devon's fourth quarter and year-end 2025 earnings release and presentation materials. T ...

Sonic Automotive (NYSE:SAH) Q4 2025 Earnings call February 18, 2026 11:00 AM ET Speaker11Good morning, and welcome to the Sonic Automotive fourth quarter 2025 earnings conference call. This conference call is being recorded today, Wednesday, February 18, 2026. Presentation materials which accompany management's discussion on the conference call can be accessed at the company's website at ir.sonicautomotive.com. At this time, I would like to refer to the Safe Harbor statement under the Private Securities Lit ...

Financial Data and Key Metrics Changes - Consolidated revenue increased 17% to over $2.1 billion in Q4 2025, marking a new record for the fourth quarter and the first quarter to exceed $2 billion [5][20] - Full year consolidated revenue rose 15% to $7.25 billion, a new annual record, up nearly $1 billion from 2024 [6][22] - Gross margin for Q4 was 59.2%, comparable to the prior year, while operating margin expanded by 60 basis points to 28.9% [5][20] - Record full-year operating income reached nearly $1.9 billion, up 18% year-over-year, with an operating margin of 25.9% [7][22] Business Segment Data and Key Metrics Changes - Fitness segment revenue increased 33% to $2.36 billion, driven by wearables, with operating income up 50% year-over-year to $726 million [10][11] - Outdoor segment revenue grew 5% to $2.05 billion, primarily from adventure watches, with operating income of $690 million [12][14] - Aviation segment revenue rose 13% to $987 million, with operating income increasing 22% to $257 million [15] - Marine segment revenue increased 10% to $1.18 billion, with operating income of $251 million [16] - Auto OEM segment revenue grew 9% to $665 million, but operating loss was $49 million for the year [18][19] Market Data and Key Metrics Changes - In Q4, the Americas region achieved strong double-digit growth of 21%, with quarterly revenue exceeding $1 billion for the first time [23] - For the full year, EMEA region grew by 18%, Americas by 40%, and APAC by 12% [23] Company Strategy and Development Direction - The company focuses on market diversification and creating superior products essential to customers' lives, which has been a successful strategy since its inception [6] - The company anticipates 2026 to be another year of strong growth, expecting revenue to increase approximately 9% to $7.9 billion [8][27] - A $500 million share repurchase program was approved, effective through December 2028, alongside a proposed annual dividend increase of 17% [9][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and highlighted strong relationships with suppliers [8][9] - The company is optimistic about continued growth in the fitness segment, driven by demand for current products and new introductions [11][33] - Management noted that the overall market for wearables is on a steady growth path, with Garmin gaining market share [78] Other Important Information - The company plans to shift R&D resources from the auto OEM segment to accelerate product development in other segments [40] - The Truemed collaboration allows customers to use HSA and FSA funds for Garmin products, becoming a significant sales channel [59] Q&A Session Summary Question: Impact of memory costs on 2026 guidance - Management acknowledged pressure on memory costs but did not quantify the impact, emphasizing overall cost efficiency across the BOM [30][31] Question: Factors contributing to wearables growth - Growth was primarily volume-driven, with minor impacts from ASP; management expects continued momentum in 2026 [32][33] Question: Future of auto OEM business - Management noted that projections were based on automotive OEM partners' assumptions, which have since changed; they are focusing on achieving scale and innovation [39] Question: Growth opportunities in aviation - Management confirmed that projects like the Black Hawk helicopter modernization represent growth opportunities, leveraging commercial products for military applications [48][90] Question: Update on Connect Plus uptake - Management reported high conversion rates for the nutrition feature added to Connect Plus, indicating strong customer interest [49] Question: Global wearables market trends - Management believes the overall wearables market is experiencing steady growth, with Garmin gaining market share [78] Question: Marine industry outlook - Management sees a healthy marine market with active boat shows and demand for larger boats, contributing to growth [81]

Financial Data and Key Metrics Changes - Consolidated revenue increased 17% to over $2.1 billion in Q4 2025, marking a new record for the fourth quarter and the first quarter to exceed $2 billion [5][20] - Full year consolidated revenue rose 15% to $7.25 billion, a new annual record, with gross margin at 58.7% and operating margin expanding 60 basis points to 25.9% [6][7] - Record operating income of nearly $1.9 billion for the full year, up 18% year-over-year, with pro forma EPS of $8.56, a 16% increase [21][26] Business Segment Data and Key Metrics Changes - Fitness segment revenue surged 33% to $2.36 billion, driven by wearables, with operating income increasing 50% year-over-year to $726 million [10] - Outdoor segment revenue grew 5% to $2.05 billion, primarily from adventure watches, with operating income of $690 million [12] - Aviation segment revenue increased 13% to $987 million, with operating income rising 22% to $257 million [14] - Marine segment revenue rose 10% to $1.18 billion, with operating income of $251 million [16] - Auto OEM segment revenue increased 9% to $665 million, but operating loss was $49 million [18] Market Data and Key Metrics Changes - Americas region achieved strong double-digit growth of 21%, with quarterly revenue exceeding $1 billion for the first time [23] - EMEA region grew by 14% and APAC region by 8% in Q4 2025 [23] - For the full year, EMEA grew 18%, Americas 40%, and APAC 12% [23] Company Strategy and Development Direction - The company focuses on market diversification and creating essential products, which has been a successful strategy since its inception [6] - Future guidance anticipates revenue growth of approximately 9% to $7.9 billion in 2026, with operating income expected to exceed $2 billion for the first time [8][27] - The company plans to continue leveraging its vertically integrated business model to optimize cost structures amid supply chain challenges [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and highlighted strong relationships with suppliers [8][9] - The company expects continued strong performance in the fitness segment, driven by demand for current products and new introductions [11] - Management noted that the overall market for wearables is on a steady growth path, with Garmin gaining market share [78] Other Important Information - The company proposed an annual dividend of $4.20 per share, reflecting a 17% increase, and announced a $500 million share repurchase program [9][26] - The company is exploring new product categories and enhancing existing services, such as the Connect Plus program, which has seen high engagement [49][60] Q&A Session Summary Question: Impact of memory costs on 2026 guidance - Management indicated that while memory costs are under pressure, they do not quantify individual components of the cost structure [29][30] Question: Factors contributing to wearables growth - Management noted that growth was primarily volume-driven, with minor impacts from average selling price [32][33] Question: Future of auto OEM business - Management acknowledged that while initial projections were optimistic, they are now focusing on achieving scale and investing for future growth [38][39] Question: Growth opportunities in aviation - Management confirmed that projects like the Black Hawk helicopter represent growth opportunities, utilizing commercial components for military applications [47][48] Question: Update on Connect Plus uptake - Management reported high conversion rates for the nutrition feature added to Connect Plus, indicating strong customer interest [49] Question: Global wearables market trends - Management believes the overall wearables market is experiencing steady growth, with Garmin successfully gaining market share [78]

Financial Data and Key Metrics Changes - Consolidated revenue increased 17% to over $2.1 billion in Q4 2025, marking a new record for the fourth quarter and the first quarter to exceed $2 billion [4][20] - Full year consolidated revenue rose 15% to $7.25 billion, a new annual record, with gross margin at 58.7% and operating margin expanding by 60 basis points to 25.9% [5][21] - Record operating income for Q4 was $614 million, up 19% year-over-year, and for the full year, it was nearly $1.9 billion, an 18% increase [4][6] Business Segment Data and Key Metrics Changes - Fitness segment revenue increased 33% to $2.36 billion, with operating income rising 50% year-over-year to $726 million [10] - Outdoor segment revenue grew 5% to $2.05 billion, driven by adventure watches, with operating income of $690 million [12] - Aviation segment revenue increased 13% to $987 million, with operating income rising 22% to $257 million [14] - Marine segment revenue rose 10% to $1.18 billion, with operating income of $251 million [16] - Auto OEM segment revenue increased 9% to $665 million, but operating loss was $49 million [18] Market Data and Key Metrics Changes - In Q4, the Americas region achieved strong double-digit growth of 21%, while EMEA and APAC regions grew by 14% and 8%, respectively [22] - For the full year, EMEA grew by 18%, Americas by 40%, and APAC by 12% [22] Company Strategy and Development Direction - The company focuses on market diversification and creating superior products essential to customers' lives, which has been a successful strategy since its inception [5] - The company anticipates 2026 to be another year of strong growth, expecting revenue to increase approximately 9% to $7.9 billion and operating income to exceed $2 billion for the first time [7][27] - The company will no longer emphasize individual segment growth targets, focusing instead on consolidated guidance measures [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating supply chain challenges and highlighted strong relationships with suppliers [8][9] - The company is prepared for potential impacts from memory constraints and is actively seeking efficiencies throughout its supply chain [8] - Management noted that the overall market for wearables is on a steady growth path, with Garmin gaining market share [79] Other Important Information - The company proposed an annual dividend of $4.20 per share, reflecting a 17% increase, and announced a $500 million share repurchase program [9][25] - The company is investing in a new manufacturing facility in Thailand, expected to be operational in early 2027 [25] Q&A Session Summary Question: Impact of memory costs on 2026 guidance - Management acknowledged pressure on memory costs but did not quantify the impact, emphasizing overall cost efficiency across the bill of materials [29][31] Question: Factors contributing to wearables growth - Management indicated that volume was the primary driver of growth in wearables, with minor impacts from average selling price [33][34] Question: Future of auto OEM business - Management discussed the need to achieve scale and invest in innovation, indicating a shift in R&D resources to accelerate product development [38][41] Question: Military exposure in aviation segment - Management confirmed that projects like the Black Hawk helicopter represent growth opportunities, utilizing commercial components for modernization [49][50] Question: Update on Connect Plus uptake - Management reported high conversion rates for the nutrition feature added to Connect Plus, indicating strong customer interest [51] Question: Timing of new product launches in outdoor segment - Management stated that many product launches are planned for the back half of the year, expecting stronger revenue in that period [44] Question: Ratable business growth priority - Management confirmed that while subscription-based business margins are higher, the focus remains on overall growth across all segments [95][96]