Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales increasing by 3% [10] - Operating cash flow rose by 11%, while free cash flow increased by 12% [10] - Earnings per share surged by 43%, and adjusted earnings per share grew by 9% [10] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [10] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [10] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries, aligning with long-term secular trends and customer investment priorities [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of recent acquisitions in enhancing the company's automation capabilities [10] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors was not approved, failing to receive the required 85% of outstanding shares voting in favor [11] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [10]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved adjusted earnings per share of $10.70 and adjusted EBITDA of approximately $12 billion, with a cash flow from operations of $8.7 billion [13][5] - The fourth quarter adjusted earnings per share was reported at $4.07, with adjusted EBITDA around $3.5 billion [13][5] - The refining and marketing segment adjusted EBITDA per barrel was $5.63 for the year and $7.15 for the fourth quarter [13][5] Business Line Data and Key Metrics Changes - The midstream segment grew adjusted EBITDA year-over-year, reaching nearly $7 billion, while the refining and marketing segment's fourth quarter adjusted EBITDA was $2 billion [5][14] - Refining utilization was reported at 95% for the fourth quarter, with total throughput exceeding 3 million barrels per day [14][15] - The renewable segment achieved 94% utilization, benefiting from a one-time sale of credits [17] Market Data and Key Metrics Changes - Global consumption trends for refined products remained steady, with gasoline and distillates each growing by approximately 1% and jet fuel demand increasing nearly 4% [6] - The global refining system is expected to remain tight, with limited new capacity coming online in 2026, further tightening U.S. markets due to regional closures [6] Company Strategy and Development Direction - The company plans to invest approximately $700 million in refining value-enhancing capital in 2026, focusing on lowering operating costs and enhancing system reliability [7] - Investments in marketing are set at $250 million to expand the reach of branded stations in targeted markets, supporting long-term secured offtake [8] - The company aims for a disciplined capital strategy, targeting returns of 25% or above on capital deployment [10] Management's Comments on Operating Environment and Future Outlook - Management remains constructive on refined product demand, expecting growth to outpace capacity additions through the end of the decade [6] - The company anticipates that the structural demand growth across refined products will continue, supported by a strong midstream business outlook [10] - Management expressed confidence in the long-term fundamentals of the energy markets, particularly in the context of MPLX's growth and distribution [12][20] Other Important Information - The company returned $4.5 billion to shareholders in 2025, including a 6.5% reduction in shares outstanding [13] - The company has a net debt to capital ratio within the range of 25%-30% and targets an annual cash balance of $1 billion [18] Q&A Session Summary Question: Capture Rate Performance - The capture rate was strong at 114%, attributed to optimization through the commercial team and improved structural capabilities [25][26] Question: Return of Capital Expectations - The company expects to match or exceed the $4.5 billion returned to shareholders in 2026 based on current market conditions [31][32] Question: Venezuelan Crude Absorption - The company views access to Venezuelan crude positively, with capabilities to absorb incremental barrels, enhancing its competitive position [35][36] Question: Refining Utilization Sensitivity - The company can adjust refining operations to optimize margins based on market conditions, demonstrating flexibility in its operations [50][51] Question: CapEx Guidance - The company expects a 20% reduction in refining capital expenditures in 2026, with further reductions anticipated in 2027 and 2028 [53][56] Question: Negotiations with USW - Ongoing negotiations with the United Steelworkers are progressing positively, with rolling extensions in place [64][65]

Financial Data and Key Metrics Changes - For the full year 2025, the company achieved adjusted earnings per share of $10.70 and adjusted EBITDA of approximately $12 billion, with a fourth quarter adjusted earnings per share of $4.07 and adjusted EBITDA of about $3.5 billion [13][14] - The company generated $8.3 billion in cash from operations and returned $4.5 billion to shareholders through share repurchases and dividends, reflecting a 6.5% reduction in shares outstanding [5][13] Business Line Data and Key Metrics Changes - The refining and marketing segment reported adjusted EBITDA of $2 billion for the fourth quarter, with refineries running at 95% utilization and total throughput just over 3 million barrels per day [14][15] - The midstream segment's adjusted EBITDA grew year-over-year, reaching a record of nearly $7 billion, although fourth quarter results declined due to divestitures of non-core assets [5][11][17] Market Data and Key Metrics Changes - Global refined product demand is expected to continue growing, with gasoline and distillates each increasing by roughly 1% and jet fuel demand rising nearly 4% [6] - The global refining system is anticipated to remain tight, with limited new capacity coming online in 2026, further tightening U.S. markets due to regional closures [6][10] Company Strategy and Development Direction - The company plans to invest approximately $700 million in refining value-enhancing capital in 2026, focusing on lowering operating costs and enhancing system reliability [7][10] - Investments in marketing will total $250 million to expand the reach of branded stations in targeted markets, supporting long-term secured offtake and enhancing performance [8] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about refined product demand and expects growth to outpace the net effect of capacity additions through the end of the decade [6][10] - The company emphasizes a disciplined capital strategy and aims for returns of 25% or above on capital investments, reflecting confidence in long-term opportunities across the energy space [10][12] Other Important Information - The company achieved its strongest process safety performance in the last four years and the lowest OSHA recordable injury rate, reflecting a commitment to safe and environmentally sound operations [5] - MPLX, the company's midstream segment, plans to invest $2.4 billion in growth capital, with 90% directed towards natural gas and NGL services, targeting a distribution growth rate of 12.5% over the next two years [11][12] Q&A Session Summary Question: Capture rate performance - Management highlighted that the strong capture rate of 114% was driven by optimization through the commercial team and improved structural capabilities [25][26][28] Question: Return of capital expectations - Management indicated that based on current market conditions, they expect to match or exceed the previous year's capital return of $4.5 billion [31][32] Question: Incremental Venezuelan crude absorption - Management expressed confidence in their ability to absorb more Venezuelan crude, leveraging their system's capabilities and optimizing sour crude processing [35][36][39] Question: CapEx guidance and negotiations with USW - Management confirmed that CapEx for 2026 is expected to be lower than in 2025, and negotiations with the USW are ongoing with positive dialogue [62][65][66]

Financial Data and Key Metrics Changes - In 2025, total company sales grew by 4.5% on a reported basis, or 4.9% on a daily organic constant currency basis, finishing the year at $17.9 billion [17][19] - Operating margin for the year was 15%, with adjusted EPS growth of 1.3%, equating to $39.48 per share [18] - ROIC finished at 39.1%, and operating cash flow was $2 billion, allowing for $1.5 billion returned to shareholders through dividends and share repurchases [18] Business Line Data and Key Metrics Changes - High-Touch Solutions segment delivered sales growth of 2.2% on a reported basis, with nearly 3 points of price inflation contributing to this growth [22] - Endless Assortment segment saw significant improvement, with daily organic constant currency sales up 15.6%, driven by strong performance from Zoro and MonotaRO [17] - Zoro achieved a sales increase of 16%, while MonotaRO experienced 18.4% growth in local constant currency [32] Market Data and Key Metrics Changes - The MRO market showed signs of sequential momentum but remained muted overall, with Grainger's indicators suggesting a mixed outlook across different sectors [22][26] - The multifactor model used to assess market volume indicated Grainger finished 2025 with roughly 250 basis points of outgrowth on a volume basis, despite the overall market being down between 1.5% and 0.5% [31] Company Strategy and Development Direction - The company streamlined its portfolio by exiting the UK market and invested in new supply chain capacity to enhance service leadership [4][17] - Grainger is focused on leveraging technology and data capabilities to drive growth, with significant investments in AI and machine learning to optimize marketing and seller effectiveness [5][12] - The company aims to achieve 400-500 basis points of average annual outgrowth over time, with a focus on improving seller coverage and effectiveness [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in 2025, including tariff dynamics and soft MRO market demand, but expressed confidence in the company's ability to deliver growth and shareholder returns [18][34] - For 2026, the company expects revenue between $18.7 billion and $19.1 billion, with daily organic constant currency sales growth projected between 6.5% and 9% [34][41] - Management remains cautious about market growth, anticipating continued demand pressure due to tariff-related price increases [34] Other Important Information - Grainger was recognized as a great place to work and one of the world's most ethical companies, reflecting its commitment to a positive workplace culture [16] - The company plans to invest approximately $550 million to $650 million in capital expenditures to support supply chain initiatives and technology investments [40] Q&A Session Summary Question: Growth outlook and cautiousness for the year - Management indicated that planning conservatively is essential, and while January showed strong growth, external factors like competitive outages influenced results [48][49] Question: Update on digital channels - EDI ePro has grown to approximately 40% of order origination, indicating a shift towards direct connections with customers [50][52] Question: Customer tone and market expectations - Conversations with large customers reflect a mixed sentiment, with no panic but also no significant tailwinds expected for volume growth [58][59] Question: Gross margins and first-quarter expectations - Gross margins in Q4 were better than expected, with LIFO costs impacting first-quarter margins negatively [64][66] Question: Continued outgrowth for High-Touch Solutions - Management noted that external factors and execution challenges have influenced outgrowth, but improvements in seller effectiveness and marketing are expected to drive future growth [81][82]

Financial Data and Key Metrics Changes - The company reported a strong start to fiscal Q1 2026, with revenue guidance raised by $90 million and EBITDA guidance increased by $60 million, reflecting solid performance [14][15] - EBITDA margin for the quarter was 52.4%, slightly diluted by recent acquisitions, but overall margin performance improved compared to expectations [8][17] - Free cash flow for the quarter was just under $900 million, higher than average due to timing of interest and tax payments, with a full-year guidance of approximately $2.4 billion [30][31] Business Line Data and Key Metrics Changes - Commercial OEM revenue increased approximately 17% year-over-year, driven by higher build rates from Boeing and Airbus [19][20] - Commercial aftermarket revenue grew by approximately 7%, with all submarkets experiencing positive growth, particularly in commercial transport [23] - Defense market revenue grew by approximately 7%, supported by new business wins and increased defense spending globally [25] Market Data and Key Metrics Changes - The commercial OEM market is expected to see revenue growth in the high single digits to mid-teens percentage range, contingent on production rates from Boeing and Airbus [16][22] - Commercial aftermarket growth is anticipated to be in the high single-digit percentage range, with strong bookings supporting this outlook [24] - Defense revenue growth is projected in the mid-single-digit to high single-digit percentage range, with robust bookings indicating a healthy backlog [25] Company Strategy and Development Direction - The company maintains a consistent long-term strategy focused on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns [5][6] - Recent acquisitions, including Stellent Systems, Jet Parts Engineering, and Victor Sierra Aviation, align with the company's strategy to enhance its aftermarket revenue and strengthen partnerships with airlines [10][11] - The capital allocation priorities remain focused on reinvesting in businesses, pursuing disciplined M&A, and returning capital to shareholders [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current fiscal year, noting favorable commercial aerospace trends and stable airline schedules [6][15] - The company is closely monitoring the aerospace and capital markets, with a focus on operational excellence and value drivers [17][28] - Despite potential risks, management believes the company is well-positioned for the remainder of fiscal 2026 [17] Other Important Information - The company ended the quarter with a cash balance of over $2.5 billion, providing significant liquidity for future capital requirements [31][33] - The net debt to EBITDA ratio improved to 5.7 times, down from 5.8, indicating a stronger financial position [31][32] Q&A Session Summary Question: How is the company thinking about profitability cadence through the year? - Management noted a stronger than expected margin performance in Q1, attributing it to a favorable mix and cost management efforts, with a conservative outlook for the remainder of the year [37][39] Question: Can you comment on distributor POS and aftermarket growth? - Management confirmed that distributor POS growth has been strong, but noted that inventory changes have created some headwinds, which are expected to turn into tailwinds as the year progresses [42][44] Question: What is the expected impact of the Jet Parts Engineering and Victor Sierra acquisitions? - Management emphasized that the acquisitions were made based on their strong business fundamentals and potential for a 20% IRR, rather than as a defensive strategy against competitors [73][74] Question: How does the company view the current M&A environment? - Management acknowledged that while acquisition prices are reflective of broader market trends, they believe the prices paid for recent acquisitions are fair and aligned with their return targets [80][81] Question: What is the outlook for the commercial OEM segment? - Management indicated that they believe they are through the destocking phase and are encouraged by the production rates from Boeing and Airbus, although risks remain in the supply chain [106][107]

Hamilton Lane (NasdaqGS:HLNE) Q3 2026 Earnings call February 03, 2026 11:00 AM ET Speaker2Good morning, ladies and gentlemen, and welcome to the Hamilton Lane Fiscal Q3 2026 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator. This call is being recorded on Tuesday, February 3, 2026. I would now like to turn the conferen ...

Financial Data and Key Metrics Changes - Pre-tax net investment income was $34.6 million, or $0.60 per share, an increase from the previous quarter [13] - Total investment income rose to $61.4 million, up from $56.9 million in the prior quarter, driven by increases in PIK income, fees, and dividend income [13][14] - The company's undistributed taxable income (UTI) balance increased to $1.02 per share, up from $0.68 per share in December 2024 [3] Business Line Data and Key Metrics Changes - The company closed $244 million in total new commitments across eight new portfolio companies and 16 existing portfolio companies [4] - The weighted average spread on new commitments was approximately 6.4%, considered attractive in the current competitive environment [5] - The on-balance sheet credit portfolio ended the quarter at $1.8 billion, representing a 19% year-over-year growth from $1.5 billion [8] Market Data and Key Metrics Changes - Approximately 93% of the credit portfolio is sponsor-backed, providing strong governance and operational support [8] - The credit portfolio generated a weighted average yield of 11.3% with a weighted average leverage of 3.6x EBITDA [10] - Non-accruals represented just 1.5% of the investment portfolio at fair value [14] Company Strategy and Development Direction - The company announced a joint venture with a private credit asset manager to enhance competitiveness in the lower middle market [6] - The joint venture is expected to allow participation in larger, higher-quality deals while maintaining disciplined hold sizes [6] - The company aims to maintain a conservative leverage cushion to mitigate capital market volatility [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive position in the lower middle market, noting a reduction in competition from peers who have cut dividends [22] - The company anticipates continued strong deal flow and is bullish about net portfolio growth due to enhanced sponsor relationships and the new joint venture [34] - Management is actively evaluating AI disruption risks in both existing assets and new originations, indicating a proactive approach to potential market changes [67] Other Important Information - The board declared a total of $0.64 per share in dividends for the March quarter, maintaining strong dividend coverage [15] - The company's liquidity position remains robust, with approximately $438 million in cash and undrawn leverage commitments [17] - NAV per share increased to $16.75, up from $16.62 in the prior quarter, driven by the equity ATM program [16] Q&A Session Summary Question: Competitive dynamics in the lower middle market - Management noted that while regional banks have entered the market, competition has decreased as many BDCs have cut dividends, positioning the company favorably [22] Question: Outlook for spreads - Current spreads on debt have held steady, with expectations to remain between 7% and 7.25% over the next 12 months [24] Question: Breakdown of portfolio between sponsored and non-sponsored - The portfolio is currently 93% sponsored and 7% non-sponsored, with sponsors still actively seeking deals despite a challenging environment [27] Question: Activity expectations for deal flow - Management expressed bullishness for the upcoming year, citing strong sponsor relationships and the new joint venture as key drivers for growth [34] Question: AI disruption risk evaluation - The company has formed an AI committee to assess risks and opportunities related to AI in their investment process [67]

Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales up 3% [9] - Operating cash flow increased by 11% and free cash flow rose by 12% [9] - Earnings per share surged by 43%, while adjusted earnings per share grew by 9% [9] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [9] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [9] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries, aligning with long-term secular trends and customer investment priorities [9] Management Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of recent acquisitions in enhancing the company's automation capabilities [9] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors did not receive the required 85% of outstanding shares voting in favor and therefore was not approved [10] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [9]

Eaton Corporation (NYSE:ETN) Q4 2025 Earnings call February 03, 2026 11:00 AM ET Speaker3day and welcome to the Eaton fourth quarter 2025 earnings results. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question, please press star 11. To remove yourself from the queue, please press star 11 again. As a reminder, this call may be recorded. I would like to turn the call over to Yan Jin, Senior Vice President of Inv ...

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.77 per share for Q1 fiscal 2026, an increase from $1.34 per share a year ago, reflecting strong execution in the gas utility business and contributions from marketing and midstream segments [4][10] - Adjusted earnings for the quarter totaled $108 million, compared to $81 million in the previous year, with gas utilities earning $104 million, up over 33% [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25-$5.45 per share and 2027 guidance of $5.65-$5.85 per share, indicating confidence in its financial performance [5][12] Business Line Data and Key Metrics Changes - Gas utilities segment earnings increased by $26 million year-over-year, driven by new rates in Missouri and higher margins in Alabama, despite lower volumetric margins and increased O&M depreciation and interest expenses [10][11] - Gas marketing segment earnings rose to $4.5 million, an increase of $2.3 million due to enhanced portfolio optimization opportunities [10] - Midstream segment earnings reached $12.7 million, up nearly $1 million from the previous year, attributed to additional capacity at Spire Storage [11] Market Data and Key Metrics Changes - The company experienced significant demand for natural gas during Winter Storm Fern, delivering natural gas equivalent to 31 gigawatts of electric generation capacity [3] - The company’s capital expenditures for the quarter were $230 million, primarily directed towards gas utility operations, with expectations of $809 million in CapEx for 2026 [8][9] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, primarily targeting utility investments, while maintaining a disciplined approach to capital deployment [6][9] - The company aims to achieve constructive regulatory outcomes and is preparing for a future test year Missouri rate case [16] - The ongoing evaluation of the potential sale of natural gas storage assets reflects the company's strategy to simplify its portfolio [8][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the disciplined approach to capital deployment, reaffirming long-term adjusted EPS growth targets of 5%-7% [5][12] - The integration planning for the Tennessee acquisition is underway, with a focus on ensuring seamless continuity for customers and employees [8][39] - Management highlighted the importance of customer affordability and cost management as central to the company's strategy [4][16] Other Important Information - The company issued $900 million of junior subordinated notes and entered into a master note purchase agreement for $825 million of senior notes to fund the Tennessee acquisition [7][15] - The merger of the STL and MoGas pipelines was completed on January 1, 2026, which will operate as the Spire MoGas pipeline [13] Q&A Session Summary Question: How did the marketing segment perform during the gas market volatility in January? - Management indicated satisfaction with the operational performance and confirmed that customer obligations were met during the volatility [18][19] Question: Can you provide an update on the storage asset sales process? - Management noted that the evaluation process is taking longer than expected but remains optimistic about achieving the right value for the assets [24][25][46] Question: What are the expectations for equity issuance related to the Tennessee acquisition? - Management stated that an announcement regarding the storage evaluation is expected later this quarter, and they are covered with a bridge loan if needed [32][26] Question: What is the regulatory strategy and timeline for Missouri? - Management anticipates filing the next rate case after the fiscal year-end, likely in the October-November timeframe [56]