Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $474 million, representing a 19.5% sequential increase driven by elevated sales activity [11] - Gross margin before inventory-related charges was over 19%, with an adjusted gross margin of over 22%, although these were below guidance ranges due to the impact of buydowns and price discounts on older inventory [5][6] - Net income for Q4 was $17.3 million, or $0.75 per share, while excluding impairment-related charges, net income was $22.4 million, or $0.97 per share [14] Business Line Data and Key Metrics Changes - In Q4, 1,362 homes were delivered, with 1,301 contributing directly to reported revenue [4] - The average selling price for Q4 closings was $364,000, slightly down compared to the previous year [11] - The wholesale business accounted for 12.1% of Q4 closings, generating significant revenue [11] Market Data and Key Metrics Changes - The cancellation rate increased to 43.3%, attributed to affordability pressures and economic uncertainty [8] - The backlog grew 133% to 1,394 homes, with a value exceeding $501 million, up 112% year-over-year [9] Company Strategy and Development Direction - The company remains focused on managing costs, offering competitive financing options, and delivering affordable homes to first-time buyers [10] - Long-term outlook for the housing market remains positive, driven by supply-demand imbalance and favorable demographic trends [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by affordability and rate volatility but expressed confidence in the company's ability to navigate these issues [4] - For 2026, the company expects to close between 4,600 and 5,400 homes, with stable selling prices and continued use of incentives to support affordability [22][23] Other Important Information - The company ended the year with $1.7 billion of debt and a net debt to capital ratio of 43.2% [19] - Total liquidity at year-end was $335 million, including cash on hand and revolver availability [19] Q&A Session Summary Question: Drivers of sequential decline in gross margin in Q4 - Management indicated that the decline was due to increased incentives and discounts on aged inventory, with expectations for similar conditions in 2026 [26][27] Question: Closings outlook for 2026 - Management confirmed expectations for a similar closings pace in 2026, with wholesale business contributing 10%-15% of total closings [28][30] Question: Profitability on wholesale orders - Management stated that operating margins for wholesale business are similar to retail, but gross margins are lower [35] Question: Community count growth expectations for 2026 - New community openings are expected to be weighted towards the back half of the year, with confidence in achieving the community count guidance [37] Question: Cancellations and buyer financing issues - Management noted that cancellations are primarily due to buyers' ability to secure financing, with customers taking longer to close [43][44] Question: Current market conditions and discounting - Management acknowledged ongoing aggressive discounting in the market, with affordability pressures remaining a significant concern [52] Question: Year-over-year decline in G&A - Management indicated that G&A run rate for 2026 is expected to be similar to 2025, with some fluctuations quarter to quarter [55]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $474 million, representing a 19.5% sequential increase driven by elevated sales activity [10] - Gross margin before inventory-related charges was over 19%, with an adjusted gross margin of over 22%, both below guidance ranges due to the impact of buydowns and price discounts on older inventory [5][11] - Pre-tax net income was $24 million, or 5.1% of revenue, with net income of $17.3 million, or $0.75 per share [13] Business Line Data and Key Metrics Changes - The company delivered 1,362 homes in Q4, with 1,301 contributing to reported revenue [4] - The average selling price for Q4 closings was $364,000, slightly down from the previous year [10] - The wholesale business accounted for 12.1% of Q4 closings, generating significant revenue [10] Market Data and Key Metrics Changes - The cancellation rate increased to 43.3%, attributed to affordability pressures and economic uncertainty [7] - The backlog grew 133% to 1,394 homes, with a value exceeding $501 million, up 112% year-over-year [8] Company Strategy and Development Direction - The company remains focused on managing costs, offering competitive financing options, and delivering affordable homes to first-time buyers [9] - Long-term outlook for the housing market remains positive, driven by supply-demand imbalance and favorable demographic trends [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges of affordability and rate volatility but expressed confidence in the company's ability to navigate these issues [4] - For 2026, the company expects to close between 4,600 and 5,400 homes, with stable selling prices and a focus on maintaining margins [21] Other Important Information - The company ended the year with $1.7 billion in debt and a net debt to capital ratio of 43.2% [19] - Total liquidity at year-end was $335 million, including cash on hand and revolver availability [19] Q&A Session Summary Question: What drove the sequential decline in gross margin in Q4? - Management indicated that the decline was due to increased incentives and discounts on aged inventory, along with competitive pricing pressures [26] Question: What is the outlook for closings in 2026? - Management confirmed expectations for a similar closings pace in 2026, with wholesale closings projected to be 10%-15% of total closings [28] Question: How will profitability be affected by the 480 orders in the wholesale business? - Management stated that while gross margins are lower for wholesale sales, operating margins remain similar to retail [34] Question: What is the current mix of first-time versus move-up buyers? - Management noted an increase in move-up buyers due to elevated entry-level price points, although first-time buyers still dominate [49] Question: What are the current conditions regarding affordability and discounting? - Management acknowledged ongoing affordability challenges and the need for continued incentives to assist buyers [52]

Financial Data and Key Metrics Changes - Total revenue increased by 19% to $3.7 billion in 2025, driven by strong execution across the royalty portfolio and commercialized medicines [25][26] - Operating profit expanded to $1.26 billion, reflecting strong execution and increasing operating leverage as the business scales [26][30] - Sales of proprietary medicines totaled $632 million, up 54% year-over-year, accounting for approximately 28% of total revenue growth [16][25] Business Line Data and Key Metrics Changes - Epkinly achieved $468 million in sales for 2025, representing a 67% year-over-year increase, driven by its dual indication in diffuse large B-cell lymphoma and follicular lymphoma [17][19] - Tivdak generated $164 million in sales, a 26% year-over-year increase, maintaining market leadership in recurrent or metastatic cervical cancer [20][21] Market Data and Key Metrics Changes - Epkinly closed 2025 with regulatory approvals in over 65 countries, nearly all featuring the dual indication [17] - The U.S. market saw increased uptake for Epkinly, particularly in community settings, with a majority of health systems ordering from multiple sites [18] Company Strategy and Development Direction - The company aims to accelerate the development of its late-stage pipeline and maximize the potential of its commercialized medicines, with a focus on sustainable growth into the 2030s [5][6] - The acquisition of Merus is expected to enhance the late-stage portfolio with petosemtamab, providing multiple value-creating catalysts in 2026 and beyond [8][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on key data readouts in 2026 and subsequent high-impact launches in 2027, emphasizing a disciplined approach to capital allocation [31] - The company anticipates continued momentum in Epkinly and its royalty portfolio, with a revenue growth guidance of 14% for 2026 [27][30] Other Important Information - The company has five combined breakthrough therapy designations for its late-stage programs, which have multi-billion dollar potential [9] - The company is committed to deleveraging, targeting gross leverage below 3x by the end of 2027 [30] Q&A Session Summary Question: Next steps for Epkinly following EPCORE DLBCL-1 study results? - Management confirmed that the study showed positive progression-free survival but missed overall survival, and discussions with regulatory agencies are ongoing regarding the next steps [34][36] Question: Update on outpatient data for Epkinly? - Management indicated that the outpatient study is crucial for modifying the label and facilitating administration in the community [43][46] Question: Expectations for Rina-S pivotal phase two readout? - Management stated that the study is designed to support accelerated approval based on overall response rate and duration of response [51][54] Question: Expectations for EPCORE DLBCL 4 trial? - Management expressed optimism that the trial will lead to registration in second-line and third-line settings, differentiating it from other studies [58][60] Question: Thoughts on pembro approval in PROC and implications for Rina-S? - Management acknowledged the approval as a good option for patients but believes Rina-S can be more transformative for a broader population [62][64] Question: Confirmation on interim results for Epkinly frontline DLBCL trial? - Management reiterated that the readout for the study is expected to happen in 2026 [55][68]

Genmab (NasdaqGS:GMAB) Q4 2025 Earnings call February 17, 2026 12:00 PM ET Company ParticipantsAnthony Pagano - CFOBenjamin Jackson - VP of Equity ResearchBrad Bailey - CCOJames Gordon - Director and Head of European Pharma and Biotech & Life Sciences Equity ResearchJan van de Winkel - CEOJudith Klimovsky - Chief Development OfficerMatthew Phipps - Group Head–BiotechnologyTahamtan Ahmadi - CMOVictor Floc'h - Equity Research of PharmaceuticalsXian Deng - Executive Director and Pharma and Biotech Equity Resea ...

Financial Data and Key Metrics Changes - Total revenue increased by 19% to $3.7 billion in 2025, driven by strong execution across the royalty portfolio and commercialized medicines [24][25] - Operating profit expanded to $1.26 billion, reflecting strong execution and increasing operating leverage as the business scales [25][27] - Sales of proprietary medicines totaled $632 million, up 54% year over year, accounting for approximately 28% of total revenue growth [14][24] Business Line Data and Key Metrics Changes - Epkinly achieved $468 million in sales for the year, representing a 67% year-over-year increase, driven by its dual indication in diffuse large B-cell lymphoma and follicular lymphoma [15][24] - Tivdak generated $164 million in sales, representing a 26% year-over-year increase, maintaining market leadership in recurrent or metastatic cervical cancer [19][20] Market Data and Key Metrics Changes - Epkinly closed 2025 with regulatory approvals in more than 65 countries, nearly all featuring the dual indication [15] - The U.S. market saw increased uptake for Epkinly, particularly following its approval in second-line follicular lymphoma [17][18] - Tivdak's launch in Germany showed strong uptake, with positive physician feedback [20] Company Strategy and Development Direction - The company aims to accelerate the development of its late-stage pipeline and maximize the potential of its commercialized medicines [5][24] - The acquisition of Merus is expected to enhance the late-stage portfolio with petosemtamab, contributing to sustainable growth [6][25] - The focus for 2026 includes advancing proprietary portfolio impact, expanding market footprint, and preparing for multiple product launches [22][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on key data readouts in 2026 and subsequent high-impact launches in 2027 [29] - The company anticipates continued revenue growth driven by Epkinly and its royalty portfolio, with a guidance of 14% total revenue growth for 2026 [26][28] - Management highlighted the importance of maintaining substantial profitability while investing in growth opportunities [27][28] Other Important Information - The company has five combined breakthrough therapy designations for its late-stage programs, indicating multi-billion dollar potential [7] - The anticipated data readouts in 2026 are expected to set the stage for multiple important product launches and line extensions in 2027 [8][10] Q&A Session Summary Question: Next steps for Epkinly following EPCORE DLBCL-1 study results - Management confirmed that the study showed positive progression-free survival but missed overall survival, with ongoing discussions with regulatory agencies about the data [31][33] Question: Update on outpatient data for Epkinly - Management indicated that the outpatient study is crucial for modifying the label and facilitating administration in the community [40][42] Question: Expectations for Rina-S pivotal phase two readout - Management stated that the study is designed to support accelerated approval based on overall response rate and duration of response [47][49] Question: Expectations for EPCORE DLBCL-4 trial outcomes - Management expressed optimism that the trial will lead to registration in second-line and third-line settings, differentiating it from other studies [53][55] Question: Thoughts on pembro approval in PROC and implications for Rina-S - Management acknowledged the approval as a good option for patients but believes Rina-S can be more transformative for a broader population [57][59] Question: Clarification on phase 3 for petosemtamab - Management confirmed that the phase 3 studies have dual endpoints of overall response rate and overall survival, which are standard in areas of unmet medical need [75]

Financial Data and Key Metrics Changes - In 2025, the company achieved a record Adjusted EBITDA of $497 million, representing a 7% increase year-over-year [4] - The fourth quarter saw a 47% increase in Adjusted EBITDA and a 340 basis point improvement in Adjusted EBITDA margin [18] - Gross profit for the fourth quarter increased by 27%, achieving a record gross margin of nearly 19% [18] Business Line Data and Key Metrics Changes - Aggregates volumes increased by 17% in the fourth quarter, with pricing up by 8% [18] - Ready Mix volumes rose by 20% in the fourth quarter, with gross margin lifting by 230 basis points [20] - Contracting services revenue grew by 15%, with the Mountain region experiencing nearly 20% growth [22] Market Data and Key Metrics Changes - The company entered 2026 with a record backlog of $1 billion, a 38% increase from the previous year [11] - Approximately 46% of IIJA funding remains to be disbursed across the company's 14 states, indicating strong public budgets [11] - The company anticipates continued growth in states with higher infrastructure spending, particularly in California, Alaska, and Hawaii [12] Company Strategy and Development Direction - The company focuses on four growth components: market positioning, vertical integration, self-help initiatives, and a strong corporate culture [6] - The acquisition program ramped up in 2025, with five deals completed and expectations for continued activity in 2026 [4][7] - The company aims to enhance margins through continuous improvement and operational excellence initiatives [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for growth, citing favorable market conditions and strong infrastructure funding [5][11] - The company expects consolidated revenue for 2026 to be between $3.3 billion and $3.5 billion, with Adjusted EBITDA between $520 million and $560 million [26] - Management highlighted the importance of cost control and dynamic pricing strategies to drive future profitability [38] Other Important Information - The company invested $789 million in growth initiatives in 2025, including acquisitions and organic projects [23] - Maintenance capital expenditures were in line with expectations at 6% of revenue [24] - The company ended the year with nearly $75 million in unrestricted cash and a net leverage position of 2.2 times [25] Q&A Session Summary Question: Opportunities to build on backlog in the West region - Management acknowledged a geographic shift in backlog but expressed confidence in funding and opportunities in California, Hawaii, and Alaska [32][33] Question: Potential levers to outperform aggregate pricing expectations - Management noted strong pricing performance in 2025 and highlighted the implementation of dynamic pricing strategies as a key lever for future pricing [34][38] Question: Margin outlook for 2026 - Management indicated expectations for modest margin improvement, driven by dynamic pricing and operational efficiencies [42][44] Question: Return to year-over-year growth in Oregon - Management expects Oregon's performance in 2026 to be in line with 2025 results, contingent on public funding clarity [46][48] Question: Contribution of acquisitions to 2026 growth - Management stated that the contributions from acquisitions would offset seasonal losses and emphasized organic growth in guidance [88][90] Question: Data centers and backlog conversion - Management reported significant opportunities in data centers, primarily in material supply, with a strong pipeline of pending work [78][80]

Financial Data and Key Metrics Changes - The consolidated adjusted EBITDA for 2025 was $219.2 million, down $53.6 million from the prior year, primarily due to changes in contract and spot coke sales, lower economics on the Granite City contract extension, and lower handling volumes [5][10] - The fourth quarter net loss attributable to SunCoke was $1 per share, down $1.28 compared to Q4 2024, mainly driven by one-time items totaling $0.85 per share net of tax [8][9] - Full year net loss attributable to SunCoke was $0.52 per share, down $1.64 from 2024, influenced by one-time items including non-cash asset impairment charges [8][9] Business Line Data and Key Metrics Changes - The domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, impacted by contract and spot coke sales mix and the Algoma breach [10] - The industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting results from legacy coal mining and Brazil coke-making businesses [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22][23] - The integration of Phoenix Global is progressing well, with expectations for growth potential in this business [7][23] - The company aims to maintain strong safety and environmental performance, which is central to delivering high-quality coke and industrial services [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended coke-making contracts [15] - The company expects consolidated adjusted EBITDA to be between $230 million and $250 million in 2026, with a focus on deleveraging and maintaining a gross leverage target below 3x [15][21] - Management highlighted the impact of ongoing litigation with Algoma, expecting to recover losses from the breach of contract [28][30] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - Capital expenditures for 2025 were $66.8 million, slightly below the revised guidance of $70 million [13] Q&A Session Summary Question: Status of litigation with Algoma - Management confirmed they are pursuing arbitration against Algoma for breach of contract and expect to prevail [28][30] Question: EBITDA contribution from Phoenix Global - Management affirmed the anticipated annual EBITDA contribution from Phoenix Global is still expected to be around $60 million, with synergies of $5 million-$10 million [32] Question: Haverhill One closure and potential reopening - Management stated that Haverhill One could be restarted but would require significant capital investment and about 12-18 months [42] Question: Impact of Middletown turbine failure - Management indicated that the turbine failure will have a $10 million impact in the first quarter, with no earnings from power production until it is operational again [46][48] Question: Expected improvement in tons handled in the industrial segment - Management noted that guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [52]

Financial Data and Key Metrics Changes - The company reported a record full-year Adjusted EBITDA of $613.8 million and Distributable Cash Flow (DCF) of $385.7 million, both representing significant achievements for the company [3][11] - In Q4 2025, net income was $27.8 million, operating income was $76.6 million, and net cash provided by operating activities was $139.5 million [10] - The average pricing per horsepower reached an all-time high of $21.69, marking a 1% increase sequentially and a 4% increase year-over-year [10] Business Line Data and Key Metrics Changes - The total fleet horsepower at the end of Q4 was approximately 3.9 million, with an average utilization rate of 94.5% [10][11] - Expansion capital expenditures for Q4 were $40 million, while maintenance capital expenditures were $7.8 million [11] - The company plans to budget approximately 105,000 new horsepower for 2026, representing a 2% increase in active horsepower [6] Market Data and Key Metrics Changes - Natural gas production increased approximately 9% year-over-year, while oil production flattened in the latter half of the year due to lower oil prices [4][5] - The average natural gas price was $3.52 per MMBTU, a 56% increase from the prior year [5] - Lead times for new equipment have increased to over two years, presenting both opportunities and challenges for the company [5] Company Strategy and Development Direction - The acquisition of J-W Power is expected to enhance the company's presence across major oil and gas basins in the U.S. and improve service quality [3][4] - The company aims to achieve annual run-rate synergies of approximately $10 million to $20 million by the end of 2027 through operational optimizations [7][8] - The focus will be on increasing customer retention and extending average contract durations while integrating the J-W assets [8] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the long-term prospects of the Permian Basin despite a slowdown in development pace due to lower oil prices [4] - The company is optimistic about the fundamentals of the compression industry, which continues to maintain strong margins and a disciplined approach to new capital [5] - Management highlighted the importance of managing debt levels and improving distribution coverage, with a target leverage ratio of 3.75x [14][25] Other Important Information - The company has refinanced its ABL and senior notes, significantly reducing borrowing costs and improving strategic flexibility [3][14] - The integration of a new ERP system is planned for Q1 2026, which will facilitate the integration of J-W assets [7] Q&A Session Summary Question: Growth CapEx guidance breakdown - The growth capital budget of $250 million includes approximately $205 million tied to the typical compression business, with $150 million for new units [19][21] Question: Balance sheet improvement and distribution coverage - The company aims for a normalized distribution coverage of 1.55x, with expectations to grow beyond 1.6x in the coming year [25] Question: Timing of new capacity delivery - Most of the new horsepower is expected to come online in the back half of the year, primarily from July onward [28] Question: Impact of lead times on pricing - Lead times for new packages are currently over 120 weeks, which complicates planning but will not affect 2026 growth [37] Question: Evaluation of distributed power space - The company is continuously evaluating opportunities in the distributed power space but has not yet found suitable candidates [33]

Financial Data and Key Metrics Changes - The company reported a record full-year Adjusted EBITDA of $613.8 million and Distributable Cash Flow (DCF) of $385.7 million, both representing significant achievements for the company [3][11] - In Q4 2025, net income was $27.8 million, operating income was $76.6 million, and net cash provided by operating activities was $139.5 million [10] - The average pricing per horsepower reached an all-time high of $21.69, marking a 1% increase from the previous quarter and a 4% increase year-over-year [10] Business Line Data and Key Metrics Changes - The total fleet horsepower at the end of Q4 was approximately 3.9 million hp, with an average utilization rate of 94.5%, slightly up from the prior quarter [10][11] - Expansion capital expenditures for Q4 were $40 million, while maintenance capital expenditures were $7.8 million [11] - The company plans to budget approximately 105,000 new horsepower for 2026, representing a 2% increase in active horsepower [6] Market Data and Key Metrics Changes - Natural gas prices averaged $3.52 per MMBTU, a 56% increase from the prior year, contributing to growth in major gas basins [5] - The company noted that while oil production flattened, natural gas production increased by approximately 9% year-over-year [4] Company Strategy and Development Direction - The acquisition of J-W Power is expected to enhance the company's presence across major oil and gas basins in the U.S. and improve service reliability [3][4] - The company aims to achieve annual run-rate synergies of approximately $10 million to $20 million by the end of 2027 through operational optimizations [7][8] - The focus will be on increasing customer retention and extending average contract durations while integrating J-W assets [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the Permian Basin despite short-term challenges due to lower oil prices [4] - The company anticipates that the addition of J-W assets will initially reduce aggregate gross margins but aims to align these margins with its own over the next two years [14][15] - The management is optimistic about the overall gas industry, driven by demand from data centers and LNG [43] Other Important Information - The company has refinanced its ABL and senior notes, significantly reducing borrowing costs and improving strategic flexibility [3][14] - Lead times for new equipment have increased to over two years, presenting both opportunities and challenges for the company [5] Q&A Session Summary Question: Growth CapEx guidance breakdown - Approximately $205 million of growth capital is tied to the typical compression business, with about $150 million allocated for new units [19] Question: Balance sheet improvement and distribution coverage - The normalized distribution coverage is about 1.55x, with expectations to reach 1.6x+ in the coming year [25] Question: Timing of new capacity delivery - Most of the new horsepower is expected to come online in the back half of the year, primarily from July onward [28] Question: Impact of lead times on pricing - Lead times are primarily driven by demand for Caterpillar engines, and an increase in equipment costs is anticipated later in the year [31] Question: Evaluation of distributed power space - The company is continuously evaluating opportunities in the distributed power business but has not yet found suitable candidates [33]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 2025 was $56.7 million, down $9.4 million year-over-year, primarily due to lower coke sales volumes and market conditions [9][10] - Full-year consolidated adjusted EBITDA was $219.2 million, a decrease of $53.6 million compared to the previous year [9][10] - The net loss attributable to SunCoke for Q4 2025 was $1 per share, down from $1.28 per share in Q4 2024, driven by one-time items totaling $0.85 per share net of tax [8] - Full-year net loss attributable to SunCoke was $0.52 per share, down from $1.64 per share in 2024, impacted by one-time items totaling $0.97 per share net of tax [8] Business Line Data and Key Metrics Changes - Domestic coke business delivered full-year adjusted EBITDA of $170 million, down $64.7 million from the prior year, affected by contract and spot coke sales mix changes and lower contract economics [10] - Industrial services segment, including Phoenix Global, delivered full-year adjusted EBITDA of $62.3 million, an increase of $11.9 million year-over-year, primarily due to the addition of Phoenix Global [11] - Corporate and other expenses increased by $800,000 year-over-year to $13.1 million, reflecting costs from legacy operations [11] Market Data and Key Metrics Changes - The domestic coke segment is expected to deliver adjusted EBITDA between $162 million and $168 million in 2026, with sales of approximately 3.4 million tons [16][18] - Industrial services adjusted EBITDA is projected to be between $90 million and $100 million in 2026, reflecting expectations for improved market conditions [19][20] Company Strategy and Development Direction - The company plans to utilize free cash flow to support capital allocation priorities, including paying down revolver balance and maintaining dividends [22] - Focus on seamless integration of Phoenix Global and exploring new growth opportunities across all business areas [23] - The company aims to maintain strong safety and environmental performance as a competitive advantage [22] Management's Comments on Operating Environment and Future Outlook - Management anticipates a meaningful recovery in 2026, supported by an optimized coke fleet and extended contracts [15] - The company expects to generate positive free cash flow in 2026, with gross leverage targeted around 2.45x, below the long-term target of 3x [15] - Management highlighted challenges in 2025 due to market conditions but remains optimistic about future performance [15] Other Important Information - The company returned approximately $41 million to shareholders via dividends in 2025 and plans to continue this in 2026 [7] - The integration of Phoenix Global is progressing well, with expectations for significant contributions in 2026 [15] Q&A Session Summary Question: Status of litigation with Algoma regarding contract breach - Management confirmed ongoing arbitration with Algoma, expecting to recover losses from the breach, which could amount to up to $70 million [28][29] Question: Anticipated EBITDA contribution from Phoenix Global - Management affirmed expectations of an annual EBITDA contribution of roughly $60 million from Phoenix Global [31] Question: One-time integration costs incurred with Phoenix Global - One-time costs included site closure costs of about $3.9 million and transaction costs of approximately $600,000 [32] Question: Permanence of Haverhill One closure and potential reopening - Haverhill One closure is permanent unless significant capital investment is made, which is not currently justified [40] Question: Expected improvement in tons handled in the industrial segment - Guidance includes a full year of the new KRT contract and modest recovery across both KRT and CMT [49]