Financial Data and Key Metrics Changes - The company reported record earnings with a quarterly EPS of $9.37, up 129% from the previous year, and an annual EPS of $28.88, compared to $14.60 in 2024 [5][12] - Revenue for Q4 2025 increased by 42% year-over-year to $2.6 billion, while full-year revenue exceeded $9 billion, marking a 30% increase compared to 2024 [8][12] - Gross profit for Q4 was $675 million, a $241 million increase from the previous year, with a gross profit margin of 25.5%, up from 23.2% [9][12] - Operating income for Q4 increased by 89% to $427 million, with an operating income percentage of 16.1% [11] - Full-year EBITDA was $1.45 billion, with a margin of 16% [12] Business Line Data and Key Metrics Changes - The mechanical segment revenue increased by 21%, while the electrical segment revenue surged by 62% [8][12] - Same-store revenue growth for Q4 was 35%, with overall same-store revenue increasing by 26% [5][8] - Service revenue grew by 12%, contributing to a record $1.2 billion in total service revenue for 2025 [17] Market Data and Key Metrics Changes - The backlog reached an all-time high of $12 billion, with a year-over-year increase of 93% [5][14] - Technology customers drove significant backlog growth, with technology accounting for 45% of revenue, up from 33% the previous year [15][16] - Institutional markets, including education and healthcare, represented 21% of revenue, while construction accounted for 86% of total revenue [16] Company Strategy and Development Direction - The company plans to expand its modular capacity from 3 million sq ft to approximately 4 million sq ft by the end of 2026, focusing on investments in technology and workforce training [6][14] - The company is committed to rewarding shareholders, increasing its quarterly dividend by $0.10 to $0.70 per share and repurchasing over $200 million in shares [8][13] - The company aims to maintain strong gross profit margins and leverage its operational efficiencies to support continued growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, expecting same-store revenue growth in the mid-teens to high-teens percentage range [8][12] - The company acknowledged challenges in the labor market but emphasized its ability to attract and retain talent through in-house training and contract professionals [25][26] - Management highlighted the importance of maintaining disciplined project commitments to ensure profitability and productivity [69][70] Other Important Information - The company acquired two electrical companies during Q4, enhancing its operational capabilities [7] - Capital expenditures for 2025 were $155 million, representing 1.7% of revenues, with plans for continued investment in operations [13] Q&A Session Summary Question: Clarification on backlog growth - Management clarified that backlog reflects binding commitments from projects planned 1-2 years prior, indicating a late-cycle position in the construction process [21][22] Question: Labor shortage situation - Management confirmed they have added over 7,000 employees in the last 24 months and are utilizing in-house capacity to meet labor demands [25][26] Question: Bookings in Q4 - Management noted that over half of the $2.6 billion in bookings were new modular projects, with significant activity in data centers and other sectors [33][34] Question: Modular expansion timeline - The company plans a gradual addition of modular capacity throughout 2026, with some productivity expected earlier in the year [36] Question: Same-store sales growth expectations - Management indicated that while growth is expected to be consistent, the comparables in the second half of the year are steeper due to last year's performance [43][44] Question: Impact of cooling requirements on business - Management stated that changes in cooling requirements for next-generation chips would not significantly impact their business, as the need for electricians and pipe fitters remains [80][82] Question: M&A pipeline and cash deployment - Management expressed a cautious approach to acquisitions, emphasizing the importance of conviction over opportunistic purchases [84][86]

Financial Data and Key Metrics Changes - For the full year of 2025, the company reported record sales of $1.037 billion, an increase of 8.8% compared to the prior year, marking the first time sales surpassed $1 billion [5] - Record earnings from operations reached $209 million, up 14.4%, and record Adjusted EBITDA was $275 million, an increase of 9.8% from the previous year [5] - Fourth quarter consolidated revenues were $264 million, a 9.8% increase year-over-year, with GAAP earnings from operations at $52 million, up 10.2% [12][13] - Quarterly adjusted EBITDA was $68 million, an increase of 8.1%, and consolidated net income was $39 million, reflecting a 16.8% increase [13][18] Business Segment Data and Key Metrics Changes - The human nutrition and health segment generated sales of $166 million, a 12.7% increase from the prior year, with earnings from operations of $37 million, up 8.9% [19][20] - The animal nutrition and health segment reported quarterly sales of $61 million, a 4.9% increase, with earnings from operations of $6 million, up 8.6% [20][21] - The specialty products segment delivered sales of $35 million, a 6% increase, with earnings from operations of $11 million, up 5.5% [23] Market Data and Key Metrics Changes - The company experienced healthy demand across most end markets, particularly in human nutrition and health, driven by a shift towards nutrient-dense foods [13][14] - The dairy market in animal nutrition remains strong, with modest improvements noted in the European feed-grade choline business following regulatory changes [14][22] Company Strategy and Development Direction - The company continues to focus on geographic expansion, with over half of sales growth in 2025 coming from markets outside the United States [8][74] - Strategic partnerships, such as those with the New York Jets and Bayern Munich women's soccer team, have been successful in promoting key brands and expanding market reach [9][33] - The company is committed to sustainability goals, having reduced greenhouse gas emissions by approximately 31% compared to the 2020 baseline [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and maintain growth momentum [24] - The outlook for 2026 is positive, with expectations for continued top and bottom-line growth while advancing strategic initiatives [24] Other Important Information - The company generated record free cash flow of $174 million in 2025 and invested $43 million in capital projects [6] - A dividend increase from $0.87 to $0.96 per share was announced, marking the 17th consecutive year of double-digit growth [11][12] Q&A Session Summary Question: Discussion on the partnership with the New York Jets - Management highlighted the successful partnership, which has shifted the narrative around the importance of choline for adult health, leading to increased adoption in various products [29][33] Question: Planned sales and promotional activities for 2026 - The company plans to enhance marketing efforts through social media and digital marketing, alongside existing partnerships [45][50] Question: Impact of the Supreme Court decision on tariffs - Management indicated that the company is well-positioned to manage potential disruptions from tariff changes, with a manageable impact previously estimated at around $10 million [46][49] Question: Update on international sales growth - The company is seeing improved volumes and pricing dynamics in Europe following regulatory changes, with a focus on expanding international market presence [70][74]

Financial Data and Key Metrics Changes - Hudbay achieved record annual revenues exceeding $2 billion, record adjusted EBITDA over $1 billion, and record free cash flow generation of more than $380 million in 2025 [5][6] - Fourth quarter revenues reached $733 million with adjusted EBITDA of $386 million, reflecting strong gross margins due to higher metal prices and business interruption insurance proceeds [7][8] - Net earnings for the fourth quarter were $128 million, or 32 cents per share, with adjusted earnings of 22 cents per share after accounting for insurance proceeds [8][10] Business Line Data and Key Metrics Changes - Copper production guidance was met for the eleventh consecutive year, with 33,000 tons produced in the fourth quarter, while gold production guidance was achieved for the fifth consecutive year with 84,000 ounces produced [5][31] - In Peru, operations produced 25,000 tons of copper and 33,000 ounces of gold in the fourth quarter, with significant increases in production compared to the third quarter [12][13] - Manitoba operations produced 47,000 ounces of gold, 3,000 tons of copper, and 6,000 tons of zinc in the fourth quarter, despite challenges from wildfires and power outages [17][19] Market Data and Key Metrics Changes - The company reported a significant increase in cash flow before changes in non-cash working capital to $337 million in the fourth quarter, reflecting higher sales volumes and metal prices [9] - Total liquidity at the end of the quarter was $994 million, including $569 million in cash and cash equivalents, with a net debt to EBITDA ratio improving to 0.4 times [10][11] Company Strategy and Development Direction - Hudbay secured a joint venture with Mitsubishi for the Copper World project, enhancing financial strength and reducing future equity contributions [6][28] - The company plans to sanction the Copper World project in 2026 and invest in high-return brownfield and greenfield opportunities to drive production growth [30][45] - A new quarterly dividend of $0.01 per share was introduced, marking a 100% increase over the previous semi-annual dividend [28][29] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified operating platform, achieving production guidance despite challenges such as wildfires and social unrest [5][6] - The outlook for 2026 includes a projected 5% increase in consolidated copper production and a 9% decrease in gold production due to the depletion of Pampacancha [31][32] - The company expects to maintain strong financial discipline and continue reducing total debt while exploring capital redeployment opportunities [30][34] Other Important Information - The company is advancing the installation of pebble crushers in Peru to enhance mill throughput starting in the second half of 2026 [16] - Hudbay's operations in British Columbia are focused on ramping up mining activities and implementing standardized practices to improve efficiency [19][20] Q&A Session Summary Question: Capital allocation framework in volatile markets - Management emphasized the importance of the new capital allocation framework to balance growth opportunities and returns, especially in the current volatile market [51][52] Question: SAG rehabilitation work in British Columbia - Management provided details on the planned replacement of the SAG mill feed head, indicating a project period of several weeks with expected stabilization of operations [55][56] Question: Production guidance and technical report for Manitoba - Management clarified that the updated three-year production guidance would not include new drilling and that a technical report for Manitoba is not yet determined [62][63]

Financial Data and Key Metrics Changes - For the full year of 2025, the company reported record sales of $1.037 billion, an increase of 8.8% compared to the prior year, marking the first time sales surpassed $1 billion [5] - Record earnings from operations reached $209 million, up 14.4%, and record Adjusted EBITDA was $275 million, an increase of 9.8% from the previous year [5] - Q4 consolidated revenues were $264 million, a 9.8% increase year-over-year, with GAAP earnings from operations of $52 million, up 10.2% [12][13] - Q4 Adjusted EBITDA was $68 million, an increase of 8.1%, with a net income of $39 million, reflecting a 16.8% increase [13][18] Business Segment Data and Key Metrics Changes - The Human Nutrition and Health segment generated sales of $166 million, a 12.7% increase from the prior year, with earnings from operations of $37 million, up 8.9% [19][20] - The Animal Nutrition and Health segment reported sales of $61 million, a 4.9% increase, with earnings from operations of $6 million, up 8.6% [20][21] - The Specialty Products segment delivered sales of $35 million, a 6% increase, with earnings from operations of $11 million, up 5.5% [23] Market Data and Key Metrics Changes - More than half of the sales growth in 2025 came from markets outside the United States, indicating a strong international demand [8] - The dairy market remains healthy, particularly for dairy protein, while the European market for feed-grade choline has shown modest improvement following anti-dumping duties [14][22] Company Strategy and Development Direction - The company continues to invest in strategic growth priorities, including expanding sales and marketing reach both domestically and internationally [8] - Significant investments were made in plant and equipment to support growth, including a new microencapsulation manufacturing facility [10] - The company aims to reduce greenhouse gas emissions and water usage by 25% by 2030, having already surpassed its 2030 goal for emissions reduction [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and maintain growth momentum [24] - The company is well-positioned to deliver continued top and bottom-line growth in 2026, supported by strong competitive positions and a differentiated product portfolio [24] Other Important Information - The company repurchased approximately 685,000 shares at an average cost of $158 per share, marking a commitment to returning capital to shareholders [11] - The annual dividend was increased from $0.87 to $0.96 per share, representing a 10% year-over-year increase [11][12] Q&A Session Summary Question: Discussion on the partnership with the New York Jets - Management highlighted the successful partnership, which has helped change the dialogue around the importance of choline for adult health, leading to increased adoption in various products [29][30] Question: Planned sales and promotional activities for 2026 - The company plans to continue its partnerships with the Jets and Bayern Munich, while also increasing social media and digital marketing efforts [45][51] Question: Impact of the Supreme Court decision on tariffs - Management expressed confidence in managing potential disruptions, noting that the theoretical impact of tariffs was manageable and that they have strategies in place to mitigate risks [46][48] Question: Update on international growth and pricing dynamics in Europe - Management confirmed improvements in Europe following the final ruling on anti-dumping duties, with increased volumes and firming prices expected [71][72]

Financial Data and Key Metrics Changes - The company reported record earnings with a quarterly EPS of $9.37, up 129% from the previous year, and an annual EPS of $28.88, compared to $14.60 in 2024 [5][12] - Fourth quarter revenue increased by 42% year-over-year to $2.6 billion, while full year revenue exceeded $9 billion, marking a 30% increase compared to 2024 [8][12] - Gross profit for Q4 was $675 million, a $241 million increase from the previous year, with a gross profit margin of 25.5%, up from 23.2% [9][12] - Operating income for Q4 rose by 89% to $427 million, with an operating income percentage of 16.1% [11] - Full year EBITDA increased by 78% to $1.45 billion, with an EBITDA margin of 16% [12] Business Line Data and Key Metrics Changes - The Mechanical segment revenue increased by 21%, while the Electrical segment revenue surged by 62% [8][9] - Same-store revenue growth for the quarter was 35%, with overall same-store revenue increasing by 26% [5][8] - Service revenue grew by 12%, contributing to a record $1.2 billion in total service revenue for 2025 [16] Market Data and Key Metrics Changes - The technology sector accounted for 45% of total revenue, up from 33% the previous year, driven by data center work [15][16] - The industrial sector, including technology, represented 67% of total volume in 2025 [15] - Institutional markets, such as education and healthcare, contributed 21% of revenue [16] Company Strategy and Development Direction - The company plans to increase its modular capacity from 3 million sq ft to approximately 4 million sq ft by the end of 2026, with investments in technology and workforce training [6][15] - The company has acquired two electrical companies to enhance its service offerings and expand its market presence [7] - The focus remains on maintaining strong relationships with technology customers and expanding in the modular construction space [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued strong performance in 2026, supported by unprecedented backlog and strong project pipelines [17] - The company anticipates same-store revenue growth in the mid-teens to high-teens percentage for 2026, with a heavier contribution expected in the first half of the year [10][12] - Management acknowledged challenges in the labor market but emphasized their ability to attract and retain talent through various initiatives [24] Other Important Information - The company increased its quarterly dividend by $0.10 to $0.70 per share and returned over $200 million to shareholders through share repurchases [8][13] - The backlog reached an all-time high of $12 billion, with significant growth in technology-related bookings [5][14] Q&A Session Summary Question: Clarification on backlog growth - Management clarified that backlog reflects binding commitments from projects planned 1-2 years prior, indicating they are late-cycle players in the construction process [20][21] Question: Labor shortage situation - Management confirmed they have added over 7,000 employees in the last 24 months and are employing various strategies to meet labor demands [23][24] Question: Bookings in Q4 - Management noted that over half of the $2.6 billion in bookings were new modular bookings, with significant activity in data centers and other sectors [32][33] Question: Modular expansion timeline - The company plans a gradual addition of modular capacity throughout 2026, with some productivity expected to begin shortly after procurement [35] Question: Impact of cooling requirements on business - Management stated that changes in cooling requirements for next-generation chips would not significantly impact their business, as demand for electricians and pipe fitters remains strong [77][78] Question: M&A pipeline and cash deployment - Management indicated a strong M&A pipeline but emphasized the need for conviction in acquisitions, balancing cash generation with strategic investments [81][82]

Financial Data and Key Metrics Changes - Hudbay achieved record annual revenues exceeding $2 billion, record Adjusted EBITDA over $1 billion, and record free cash flow generation of more than $380 million in 2025 [5][6] - Fourth quarter revenues reached $733 million, with Adjusted EBITDA of $386 million, and net earnings of $128 million, or 32 cents per share [7][8] - Consolidated cash costs were -63 cents per pound, with sustaining cash costs at 94 cents per pound, showing significant improvement compared to the previous quarter [8][10] Business Line Data and Key Metrics Changes - Copper production for the fourth quarter was 33,000 tons, while gold production was 84,000 ounces, despite operational challenges [7][12] - In Peru, copper production increased by 38% and gold production by 25% compared to the third quarter, driven by high-grade Pampacancha ore [12][13] - Manitoba operations produced 47,000 ounces of gold and 3,000 tons of copper in the fourth quarter, with a focus on stabilizing production post-wildfires [17][19] Market Data and Key Metrics Changes - Revenue from gold represented 41% of total revenues in the fourth quarter, indicating a growing contribution from gold sales [9] - The company reported total liquidity of $994 million, including $569 million in cash and cash equivalents, and a net debt to EBITDA ratio improved to 0.4 times [10][11] Company Strategy and Development Direction - Hudbay secured a joint venture with Mitsubishi for the Copper World project, enhancing financial strength and reducing future equity contributions [6][25] - The company plans to sanction the Copper World project in 2026 and invest in high-return brownfield and greenfield opportunities [29][30] - A new quarterly dividend of $0.01 per share was introduced, marking a 100% increase over the previous semi-annual dividend [28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified operating platform, achieving production guidance despite challenges like wildfires and social unrest [5][6] - The outlook for 2026 includes a 5% increase in consolidated copper production and a 9% decrease in gold production due to the depletion of Pampacancha [31][32] - The company expects to maintain historically low cash costs and strong margins, benefiting from higher gold production as a by-product [34][35] Other Important Information - The company is advancing the installation of pebble crushers in Peru to enhance mill throughput starting in the second half of 2026 [16] - Hudbay's exploration strategy includes a significant focus on the Snow Lake region, with plans for extensive drilling and resource estimation [40][41] Q&A Session Summary Question: Capital allocation framework in volatile markets - Management emphasized the importance of a holistic capital allocation framework to balance growth opportunities and shareholder returns, especially in volatile markets [51][52] Question: SAG rehabilitation work in British Columbia - Management provided details on the planned replacement of the SAG mill feed head, expecting minimal disruption to operations during the process [55][56] Question: Production guidance for Manitoba - Management clarified that the upcoming three-year production guidance will not include new drilling results, but updates will be provided as exploration progresses [62][63] Question: Pre-feasibility study for Mason - Management indicated that a pre-feasibility study for Mason is underway, with completion expected later next year, and no current plans for partnership [71][72]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $202 million, exceeding the top end of guidance and increasing 3% sequentially, despite a flat global rig count [13] - Adjusted EBITDA for the quarter was $23 million, at the top end of guidance, driven by higher revenue and cost reductions [13] - Free cash flow generation was strong, totaling $80 million for the full year, with a free cash flow conversion rate of 76% when excluding sale-leaseback proceeds [16][19] Business Line Data and Key Metrics Changes - Drilling and completion revenue increased by 8% to $127 million, while subsea product line revenue rose by 25% due to ROV projects and a significant rescue submarine order [14] - Coiled tubing revenue was up 13%, supported by strong sales in North America [14] - The artificial lift and downhole segment had a book-to-bill ratio of 107%, with revenue of $75 million, down 4% sequentially [15] Market Data and Key Metrics Changes - International revenue increased by 8%, marking the second consecutive quarter where international revenue exceeded U.S. revenue, which declined by 2% [13] - The company reported a full year book-to-bill ratio of 113%, with a nearly 190% book-to-bill for the subsea product line [6][10] Company Strategy and Development Direction - The company is focused on its strategic vision, FET 2030, aiming for market share gains through customer engagement, product innovation, and geographic expansion [5] - New product development is central to the company's strategy, with 10 new products commercialized in 2025, including the Secura Series stage collars and DuraCoil 95 [8][9] - The company expects to double revenue in five years, driven by an expanding addressable market and targeted market share gains [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a bullish long-term outlook, anticipating increased oil and natural gas demand over the next five years [10] - The company expects revenue growth of 6% and EBITDA to increase by 16% for the full year 2026, with guidance for revenue between $800 million and $880 million [11][12] - Management highlighted the importance of maintaining margin and cost discipline while navigating a challenging operating environment [10] Other Important Information - The company ended the year with a net debt of $107 million and a net leverage ratio of 1.2x, with liquidity of $108 million [16] - The credit facility maturity was extended to February 2031, providing significant flexibility for strategic initiatives [16] Q&A Session Summary Question: Can you talk about the trajectory in the subsea business for 2026 and 2027? - Management indicated strong demand in energy and defense, with expectations to convert backlog in 2026 and add for 2027 and beyond [26] Question: Where do you see the biggest benefit for FET in unconventional oil or gas development globally? - Management highlighted opportunities in Argentina and Saudi Arabia, focusing on adopting advanced technology [27] Question: What were the pluses and minuses in the quarter that led to exceeding guidance? - Management noted solid execution and no significant end-of-year slowdown, particularly in the subsea product line [33][36] Question: How do you achieve strong free cash flow guidance in a growth market? - Management explained that cash flow guidance is based on effective working capital management and revenue growth [41][42] Question: What is the impact of the recent tariff ruling? - Management stated that while some tariffs were struck down, others remain in place and have impacted steel supply [95] Question: What are the expectations for M&A opportunities? - Management noted an increase in companies being marketed for sale, with a focus on finding businesses that fit their strategic criteria [63][64]

Financial Data and Key Metrics Changes - The company achieved ongoing earnings of $1.81 per share, reflecting a 7.1% growth from the previous year and aligning with the midpoint of the forecast [5][30] - GAAP earnings for 2025 were reported at $1.59 per share, compared to $1.20 per share in 2024, indicating significant year-over-year improvement [30] Business Line Data and Key Metrics Changes - Kentucky results increased by $0.09 per share, driven by higher sales volumes and additional capital expenditures [30] - Pennsylvania results increased by $0.04 per share, led by higher transmission revenue and distribution rider recovery [30] - Rhode Island results decreased by $0.02 per share due to higher operating costs, although higher distribution revenue partially offset this decline [30] Market Data and Key Metrics Changes - The company reported a significant increase in data center interconnection requests, totaling approximately 25.2 gigawatts, a 23% increase since the last quarterly update [18] - In Kentucky, the current pipeline reflects over 9 gigawatts of potential new load, with data center requests exceeding 8 gigawatts [19] Company Strategy and Development Direction - The updated business plan extends the company's growth outlook while maintaining a focus on customer affordability and a strong credit profile [7] - The capital investment plan is projected at $23 billion from 2026 to 2029, an increase from the previous $20 billion, aimed at strengthening networks against severe weather impacts [9][10] - The company is committed to a dividend growth rate target of 4%-6% while issuing equity to fund its capital plan [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for new, reliable generation resources to meet growing demand, particularly from data centers [42][43] - The company remains focused on minimizing bill increases for customers while ensuring financial strength to support economic growth [44] Other Important Information - The company outperformed its O&M savings target by about $20 million, achieving approximately $170 million in run rate savings from the 2021 baseline [6] - The commission approved an aggregate increase of approximately $233 million in annual electric and gas revenues in Kentucky, which aligns with the company's business plan [12] Q&A Session Summary Question: Insights on Pennsylvania rate case process - Management indicated that discussions are ongoing and the focus is on the impact of data centers on customer affordability, with a constructive outcome not hinging on a settlement [49][53] Question: Updates on joint venture and potential contracts - Management stated that significant events related to the joint venture could be communicated outside of earnings calls, and they are evaluating participation in upcoming auctions [62][63] Question: Data center backlog and generation sources - Management noted that hyperscalers are focused on speed to connect to the grid and are not overly concerned about the specific sources of generation, as they typically procure energy through market mechanisms [72][73]

Financial Data and Key Metrics Changes - The company reported fourth quarter total revenue of $4.1 billion, a slight increase from $4 billion in the fourth quarter of 2024 [18] - Adjusted net earnings for the fourth quarter were $382 million, or $1.41 per diluted share, compared to $366 million, or $1.34 per share, for the same period in 2024 [20] - The Title segment generated adjusted pre-tax earnings of $401 million in the fourth quarter, with a margin of 17.5%, compared to 16.6% in the prior year quarter [22] Business Line Data and Key Metrics Changes - The Title segment generated $2.3 billion in total revenue in the fourth quarter, excluding net recognized losses, compared to $2.1 billion in the fourth quarter of 2024 [21] - Direct premiums in the Title segment increased by 21% year-over-year, while agency premiums increased by 7% [21] - F&G's assets under management grew to $73.1 billion at year-end, up 12% over the prior year [15] Market Data and Key Metrics Changes - The company reported a 21% increase in commercial refinance orders opened for the full year 2025 compared to the prior year [9] - National daily orders opened were up 9% over the fourth quarter of 2024, while local market daily orders opened increased by 8% [8] - The National Association of Realtors indicated that 2025 home sales were among the lowest levels since 1995, with expectations for a return to historical averages in the coming years [10] Company Strategy and Development Direction - The company aims to enhance its technology capabilities, with a focus on the inHere digital transaction platform, which engaged 80% of residential sale transactions [11] - The strategy includes maintaining a disciplined operating model to manage business trends and deliver industry-leading results [11] - F&G is transitioning to a more fee-based, higher-margin, and less capital-intensive model, which is expected to support long-term shareholder value [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, anticipating an increase in existing home sales and refinance opportunities as mortgage rates remain low [34] - The company is well-positioned to benefit from a potential turn in the housing market, should mortgage rates drop further [10][83] - Management highlighted the importance of technology investments in driving efficiency and maintaining competitive margins [12][14] Other Important Information - The company returned approximately $800 million of capital to shareholders during 2025, including common dividends and share repurchases [27] - F&G's quarterly common stock dividend was increased by 14% in the fourth quarter, reflecting strong cash generation [16] Q&A Session Summary Question: Margin outlook for 2026 - Management is optimistic about margins in 2026, expecting an uptick in purchase volumes and refinance opportunities due to lower mortgage rates [34] Question: Agent split changes - The slight increase in agent split was attributed to geographic mix rather than significant changes in business strategy [35] Question: Commercial revenue growth expectations for 2026 - Management indicated that commercial revenue should continue to grow, supported by increased order volume and strong pipeline activity [40] Question: Home price growth forecasts - Management believes that home prices have stabilized and will likely remain stable in the near future, with affordability driven primarily by interest rates [49] Question: Capital allocation and M&A outlook - The company plans to be active in acquisitions and stock buybacks, with expectations for more opportunities in the Title agent space [70]

Financial Data and Key Metrics Changes - The company achieved ongoing earnings of $1.81 per share, representing a 7.1% growth from the previous year and aligning with the midpoint of the forecast [5][30] - GAAP earnings for 2025 were $1.59 per share, compared to $1.20 per share in 2024, indicating significant year-over-year improvement [30] Business Line Data and Key Metrics Changes - Kentucky results increased by $0.09 per share due to higher sales volumes and additional capital expenditures, while Pennsylvania results increased by $0.04 per share driven by higher transmission revenue and distribution rider recovery [30][31] - Rhode Island results decreased by $0.02 per share due to higher operating costs, but this was partially offset by increased distribution revenue [30] Market Data and Key Metrics Changes - The company reported a significant increase in data center interconnection requests, totaling approximately 25.2 GW, which is a 23% increase since the last quarterly update [18] - In Kentucky, the economic development pipeline reflects over 9 GW of potential new load, with data center-related requests exceeding 8 GW [19] Company Strategy and Development Direction - The updated business plan extends the company's growth outlook while maintaining a focus on customer affordability and a strong credit profile [7] - The company projects capital investment needs of $23 billion from 2026 to 2029, up from $20 billion in the previous plan, to support reliability and resilience against severe weather [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of new generation resources to meet growing demand, particularly from data centers, and highlighted the need for increased capital investments to support this [24][42] - The company remains committed to affordability, having reduced O&M costs by nearly 3% annually, which has helped fund significant capital investments without increasing customer bills [21][22] Other Important Information - The company modified its annual dividend growth rate target to 4%-6% while issuing equity to fund its capital plan [11] - The company has engaged with stakeholders to support economic development, including a $3.5 billion investment by Eli Lilly in Pennsylvania [7] Q&A Session Summary Question: Update on Pennsylvania rate case process - Management indicated that discussions are ongoing and that the focus has been on the impact of data centers on customer affordability, with a constructive outcome expected regardless of whether it resolves through settlement or commission decision [49][54] Question: Contracts for GenCo and JV participation in auctions - Management stated that significant events would be communicated outside of earnings calls and that participation in special auctions would be evaluated based on risk profiles [61][63] Question: Data center backlog and generation sources - Management noted that hyperscalers are focused on speed to connect to the grid and are increasingly engaged in discussions about resource adequacy, with no signs of them pulling out of the region [70][75]