Financial Data and Key Metrics Changes - The company reported net sales of $1.5 billion for Q3 2025, reflecting a 1% year-over-year increase, with gross margin expanding by 50 basis points to 29.6% [3][19][20] - Diluted EPS increased by 4% to $3.40 from $3.27 in the same quarter last year [22] - Operating income improved by $2 million year-over-year, totaling $178 million for the quarter [22] Business Line Data and Key Metrics Changes - Maintenance product sales performed well, particularly in parts and private label chemical volumes, contributing to overall sales growth [6][9] - Building materials sales increased by 4%, driven by private label offerings and improved customer experience [9] - Equipment sales, excluding cleaners, also rose by 4%, primarily due to steady replacement volume for critical components [10] Market Data and Key Metrics Changes - Florida experienced 1% growth, while Texas remained flat, and California and Arizona each saw a 3% decline [7] - In Europe, net sales decreased by 1% in local currency but increased by 6% in U.S. dollars, with southern countries showing growth despite challenges in France [8] - Overall permit data was down mid-single digits year-over-year through August, indicating variability across regions [5] Company Strategy and Development Direction - The company shared a strategic roadmap focused on innovation and growth, with an emphasis on enhancing customer experience through technology [4][15] - Continued investment in the POOL360 technology suite is a key differentiator, with adoption rates increasing and contributing to sales growth [12][39] - The company aims to leverage its competitive advantages through strategic investments in people, facilities, and technology [16][55] Management's Comments on Operating Environment and Future Outlook - Management noted that uncertainty around tariffs and elevated borrowing rates are impacting consumer sentiment and discretionary demand [4][5] - Despite challenges, new pool construction sales have outperformed industry permit data, indicating market share expansion [5] - The company expects full-year sales performance to be relatively flat to slightly up, with diluted EPS guidance confirmed at $10.81 to $11.31 [14][24] Other Important Information - The company completed one acquisition during the quarter, adding two locations, and opened one new greenfield, bringing the total to six sales centers year-to-date [13] - The company generated $286 million in cash flows from operations year-to-date, down from $487 million in the prior year due to higher tax payments and investments in working capital [23] Q&A Session Summary Question: What is driving the early signs of stabilization in the market? - Management indicated that permit data is sporadic, but overall activity levels seem to have firmed up, supported by growth in building materials sales [31] Question: Can you elaborate on the investments in technology and expected trends? - Investments in technology are aimed at enhancing customer experience and productivity, with a focus on the POOL360 platform and other digital tools [33][39] Question: What are the implications of customer consolidation on margins? - Customer consolidation presents an opportunity for the company to leverage its technology suite to enhance efficiency and drive growth [43][44] Question: What is the outlook for chemical sales and pricing? - Management noted slight deflation in chemical prices, particularly in sanitizers, but overall chemical sales remain stable [50][51] Question: How does the company plan to manage SG&A expenses in the coming year? - The company expects SG&A growth to be in the range of 3% to 4%, reflecting investments in technology and new locations [74]

Financial Data and Key Metrics Changes - Non-GAAP earnings per diluted share for the third quarter of 2025 were reported at $3.64, consistent with expectations and the same quarter in 2024 [5][14] - Operating cash flow generated in the third quarter was approximately $262 million, reflecting strong financial performance [5][18] - The company maintained a long-term sustainable gross profit margin range of 29% to 31% despite experiencing short-term headwinds [4][19] Business Line Data and Key Metrics Changes - Tonnes sold reached a record for the third quarter, increasing by 6.2% compared to the same quarter in 2024, significantly outperforming the service center industry which reported a decrease of 2.9% [3][8] - Non-residential construction accounted for roughly one-third of third quarter sales, driven by strong demand in public infrastructure projects [10] - Aerospace products represented approximately 9% of total sales, with demand in defense and space-related programs remaining strong despite slight declines in commercial demand [11] Market Data and Key Metrics Changes - The company's U.S. market share increased to 17.1%, up from 14.5% in 2023, attributed to a smart growth strategy and high levels of customer service [3][10] - The competitive market environment has led to pricing pressures, particularly in carbon steel products, impacting gross profit margins [4][9] - Demand in the semiconductor market remained under pressure due to excess inventory, affecting pricing and margins [11][15] Company Strategy and Development Direction - The company is focused on investing for growth and delivering value to customers and stockholders, supported by strong cash generation [7][19] - A balanced capital allocation strategy is in place, with $124 million returned to stockholders through dividends and share repurchases during the quarter [5][6] - The company is pursuing M&A opportunities to enhance geographic reach and expand value-added capabilities [5][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying margin profile of the business despite current market challenges, anticipating stabilization in pricing for most products entering the fourth quarter [4][19] - The company expects overall demand in the fourth quarter to remain stable, with tons sold estimated to increase by 3.5% to 5.5% compared to the fourth quarter of 2024 [19][20] - Management highlighted the importance of maintaining service levels and operational efficiency to navigate the competitive environment [57] Other Important Information - The company generated $81 million in capital expenditures during the third quarter, with a total capital expenditure budget of $325 million for 2025 [5][18] - The net debt to EBITDA ratio remains favorable at less than 1, providing significant liquidity for capital allocation priorities [18][19] Q&A Session Summary Question: Is any of the gross profit margin compression attributable to the focus on growing volumes? - Management acknowledged the unique market conditions affecting margins and emphasized that while volume growth is important, the primary impact on margins has been from market dynamics and specialty product performance [23][24] Question: Can you discuss the inventory levels on the balance sheet? - Management explained that inventory levels have increased due to pricing and higher tonnes sold, allowing the company to better service customers while competitors have pulled back on inventory [27] Question: When do you expect to see appropriate levels of inventory? - Management indicated that destocking is ongoing, with signs of improvement in lead times for certain products, suggesting a potential inflection point in inventory levels [31][32] Question: How does Reliance win new business? - Management highlighted that winning new business is primarily through execution and service rather than price, with a focus on expanding processing capabilities and customer education [33][34] Question: What is the outlook for the aerospace and semiconductor markets? - Management expects continued improvement in the supply chain for high-value products in aerospace and semiconductors, with a positive long-term outlook [39][40] Question: How do you view the M&A landscape? - Management noted a steady flow of M&A opportunities, with reasonable valuations and a favorable environment for potential acquisitions [55] Question: How are you managing SG&A expenses amidst gross profit margin headwinds? - Management is focused on operational efficiencies and has reduced headcount while maintaining service levels to protect operating margins [57][58] Question: What is the expected impact of seasonality on the business? - Management anticipates typical seasonal trends, with Q1 and Q2 being the strongest quarters, and expects a bounce back in Q1 2026 after the usual Q4 decline [81][82]

Financial Data and Key Metrics Changes - Expro reported quarterly revenue of $411 million and EBITDA of $94 million, representing a 22.8% margin, with adjusted free cash flow of $46 million, or 11% of revenue, marking the highest in the company's history [4][23][24] - The EBITDA margin increased by approximately 50 basis points from the previous quarter and 270 basis points year-over-year [23] - The company raised its annual guidance for EBITDA and free cash flow for 2025, expecting adjusted EBITDA between $350 million and $360 million and adjusted free cash flow between $110 million and $120 million [25][26] Business Line Data and Key Metrics Changes - North and Latin America (NLA) revenue was $151 million, up $8 million quarter-over-quarter, driven by higher well construction and flow management revenue [26] - Europe and Sub-Saharan Africa (ESA) revenue decreased by $7 million to $126 million, primarily due to lower well flow management and subsea well access revenue [27] - Middle East and North Africa (MENA) revenue was $86 million, slightly lower than Q2, with an EBITDA margin of 35% [28] - Asia-Pacific (APAC) revenue decreased by $8 million to $49 million, with an EBITDA margin of 21%, reflecting decreased activity [29] Market Data and Key Metrics Changes - The company has a $2.3 billion backlog, providing solid revenue visibility and demonstrating a diverse portfolio across regions [5][6] - Despite a softer commodity price environment, the outlook for Expro's core markets remains constructive, with expected recovery in upstream investments in 2026 and beyond, particularly in offshore projects in Latin America, the Middle East, and West Africa [8][10] Company Strategy and Development Direction - Expro's strategy focuses on maximizing free cash flow through operational efficiency, disciplined capital allocation, and targeted acquisitions [19][20] - The company aims to expand its wallet share with existing customers and enhance service offerings, leveraging technology to drive profitability [12][21] - Expro is committed to technology leadership, investing in digitalization and artificial intelligence to deliver innovative solutions [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Expro's ability to deliver resilient performance despite softer market conditions, emphasizing a diversified business mix and strong customer relationships [33][34] - The company anticipates continued growth in free cash flow generation in 2026, supported by ongoing cost efficiencies and margin accretive growth [34] Other Important Information - Expro repurchased around 2 million shares for approximately $25 million, achieving its annual target of $40 million ahead of schedule [5][24] - The company received several industry awards for safety and technology innovation, reinforcing its commitment to operational excellence [14][15] Q&A Session Summary Question: What are the drivers for margin expansion in 2026 despite flat to slightly lower revenue? - Management highlighted the full-year effect of the Drive25 initiative, internationalization of recent acquisitions, and rollout of new technologies as key drivers for margin expansion [36] Question: What regions are expected to see activity increase in the second half of 2026? - Management indicated that West Africa and the Gulf of Mexico are expected to see increased activity, while Asia-Pacific may lag behind [38][39] Question: What does the share repurchase achievement mean for future repurchases? - Management stated that they will continue to evaluate opportunities for share repurchases in line with their capital allocation framework [40][41] Question: What is driving the expected softness in the first half of 2026? - Management noted cautious sentiment among customers due to commodity pricing and geopolitical factors, along with typical seasonal slowdowns in the northern hemisphere [46][48] Question: How will the production solutions business contribute to cash generation? - Management explained that projects transitioning from construction to operational phases will generate predictable cash flows, enhancing free cash flow generation [55][58] Question: What impact will the geographic mix have on margins in 2026? - Management emphasized that the mix of regions, particularly growth in the Middle East, will significantly influence margin expansion [66]

Reliance (NYSE:RS) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Speaker0Greetings and welcome to the Reliance Inc. Third Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. You may be placed in the question queue at any time by pressing star, one on your telephone keypad.It's now my pleasure to turn the call over to Kim Orlando with ADDO Investor Relations. Kim, ple ...

Financial Data and Key Metrics Changes - The company reported net sales of $1.5 billion for Q3 2025, reflecting a 1% increase year-over-year, with gross margin expanding by 50 basis points to 29.6% [4][24] - Diluted earnings per share (EPS) increased by 4% to $3.40 from $3.27 in the same quarter last year [27] - Operating income improved by $2 million year-over-year, totaling $178 million for the quarter [26] Business Line Data and Key Metrics Changes - Maintenance product sales performed well, particularly in parts and private label chemical volumes [7] - Building materials sales increased by 4%, driven by private label offerings and improved customer experience [12] - Equipment sales, excluding cleaners, also rose by 4%, primarily due to price benefits and steady replacement volume [13] Market Data and Key Metrics Changes - Florida experienced 1% growth, while Texas remained flat, and California and Arizona saw declines of 3% each [8] - In Europe, net sales decreased by 1% in local currency but increased by 6% in U.S. dollars [10] - The company noted that permit data was down mid-single digits year-over-year, indicating variability across different regions [6] Company Strategy and Development Direction - The company is focused on innovation and investment in its POOL360 applications, which are gaining adoption among customers [5] - A strategic roadmap for the next year was shared with the management team, emphasizing innovative products and growth plans [5] - The company aims to leverage its technology suite to enhance customer experience and drive future growth [16][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the team's ability to adapt to macroeconomic challenges, including elevated borrowing rates and consumer sentiment [6][20] - The outlook for 2025 remains cautious, with expectations for full-year sales performance to be relatively flat to slightly up [19] - Management highlighted the importance of further interest rate cuts to stimulate demand for new pool construction [6] Other Important Information - The company completed one acquisition during the quarter, adding two locations in key markets, and opened one greenfield site, bringing the total to six new sales centers year-to-date [17][18] - The company confirmed its diluted EPS guidance for the year to a range of $10.81 to $11.31, reflecting $0.11 in realized ASU benefits year-to-date [19][31] Q&A Session Summary Question: What is driving the early signs of stabilization in the market? - Management noted that permit data is sporadic but overall activity levels seem to have firmed up, with positive comments from builder and remodel customers [36] Question: Can you elaborate on the investments in innovation and technology? - Management emphasized that investments in technology are aimed at enhancing customer experience and productivity, with tools like POOL360 being central to this strategy [39][40] Question: How does customer consolidation impact margins and what levers are available? - Management indicated that customer consolidation presents an opportunity to leverage their technology suite, which can help larger customers operate more efficiently [50] Question: What is the outlook for chemical pricing and deflation? - Management acknowledged slight deflation in the sanitizer category but stated that overall chemical sales remain stable, with no alarming trends [56][58] Question: What are the expectations for sales and EPS in the fourth quarter? - Management expects fourth-quarter sales to be flat to slightly up, with weather conditions playing a significant role in construction and remodel activities [79][82]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated revenue of $743 million, a 9% increase compared to Q3 2024, and operating income rose 21% to $86.5 million [5] - Consolidated adjusted EBITDA reached $111 million, the highest quarterly performance since Q4 2015 [4] - Free cash flow improved, generating $77 million after investments of $24.2 million, with an ending cash position of $506 million [5] Business Segment Data and Key Metrics Changes - Subsea Robotics (SSR) revenue and operating income were flat, with an EBITDA margin of 36%. ROV revenue per day increased to $11,254 from $10,576, despite a fleet utilization of 65% [5][6] - Manufactured products saw operating income of $24.7 million, with a 16% operating income margin, doubling on a 9% revenue increase [7] - Offshore Projects Group (OPG) operating income increased 17% to $23.7 million on a 16% revenue increase, with a flat operating income margin of 14% [8] - AdTech operating income increased by 36% to $16.6 million on a 27% revenue increase, with a slight improvement in operating income margin to 13% [9] Market Data and Key Metrics Changes - The company maintained a 60% share of the contracted floating rig market, with ROV contracts on 78 of the 131 floating rigs [6] - The backlog as of September 30, 2025, was $568 million, with a book-to-bill ratio of 0.82 for the trailing 12-month period [7] Company Strategy and Development Direction - The company plans to continue share repurchases in 2026, with approximately 5.8 million shares remaining under the existing repurchase authorization [13] - The focus remains on growth opportunities across all markets, driven by long-term commodity prices and increasing demand for mobile robotics technologies [14] Management's Comments on Operating Environment and Future Outlook - The company expects revenue to decrease in Q4 2025 due to lower international OPG projects, projecting consolidated EBITDA in the range of $80 to $90 million [10] - For 2026, the company initiated consolidated EBITDA guidance in the range of $390 to $440 million, anticipating significant growth in AdTech and stable activity levels across energy-focused businesses [12][13] Other Important Information - Alan Curtis, the CFO, plans to retire on January 1, transitioning to an advisory role, with Mike Sumrold introduced as the new Senior Vice President of Finance [16][17] Q&A Session Summary Question: Discussion on Ocean Intervention II capabilities - The company highlighted the advantages of simultaneous autonomous survey operations, emphasizing efficiency and improved data quality [19][20] Question: Market outlook for Subsea Robotics in Brazil - The market in Brazil is robust, with significant opportunities expected, and the company anticipates an increase in market share [21][22] Question: Growth of AdTech business and capital competition - The AdTech business is low capital intensity, allowing for significant scaling without heavy investment, with increasing international opportunities noted [23][26] Question: Revenue expectations for manufactured products in Q4 - The company clarified that while revenue may decline, the quality of earnings is expected to improve due to backlog execution and operational excellence [29][30] Question: Cadence of AdTech growth in 2026 - The company expects to ramp up revenue throughout 2026, driven by new large-scale projects and ongoing contractor onboarding [33][34]

FirstService (NasdaqGS:FSV) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Speaker0Welcome to the FirstService Corporation Third Quarter Investors Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Today's call is being recorded. Legal counsel requires us to advise that the discussion scheduled to take place today may contain forward looking statements that involve known and unknown risks and uncertain ...

Financial Data and Key Metrics Changes - Bankwell reported GAAP net income of $10.1 million or $1.27 per share, an increase from $9.1 million or $1.15 per share in the previous quarter [6] - Pre-provision net revenue was $13.9 million or $1.77 per share, representing a 21% increase from the second quarter [10] - Net interest margin (NIM) expanded to 3.34%, up 24 basis points from the prior quarter, driven by a rise in loan yields and improved deposit costs [10][11] Business Line Data and Key Metrics Changes - The SBA division generated $1.4 million in gains on sale for the quarter, contributing to a year-to-date non-interest income of $6 million [8] - Loan originations totaled $220 million for the quarter, with year-to-date fundings exceeding $500 million, surpassing full-year totals for 2023 and 2024 [7][17] - Non-performing assets (NPA) as a percentage of total assets decreased to 56 basis points from 78 basis points in the previous quarter [8][15] Market Data and Key Metrics Changes - The company experienced a growth of $20 million in low-cost deposits over the prior quarter, with a total increase of $64 million or 16% since 2024 [7] - Interest-bearing deposit costs improved by 37 basis points from 2024, contributing to the expansion of NIM [11] Company Strategy and Development Direction - The company aims to diversify income streams, improve the deposit base, and attract talented banking professionals [21] - A strategic increase in variable rate loans from over 20% to 35% is expected to mitigate the impact of future interest rate changes [13] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook on credit trends, with expectations for further improvement in non-performing assets [6][21] - The company anticipates a flat loan growth for the year due to elevated payoffs, while affirming guidance for non-interest income and net interest income [20] Other Important Information - The efficiency ratio improved to 51.4%, down from 56.1% in the previous quarter, indicating better operational efficiency [9][14] - The company’s total assets reached $3.2 billion, with capital ratios expanding during the quarter [16] Q&A Session Summary Question: Update on loan pricing and elevated payoffs - Management indicated that loan originations have a weighted average rate of 7.86% and that elevated payoffs are expected to continue into 2026 [25][26] Question: Core deposit initiative progress - Management reported that newly hired teams are beginning to produce deposits, with full production expected by 2026 [30][31] Question: Deposit beta in response to Fed rate cuts - Management explained that approximately $1 billion of non-maturity interest-bearing deposits are indexed to Fed funds, with a 50% beta achieved on $1 billion of deposits [32] Question: SBA contributions and potential government shutdown effects - Management noted that the impact of a government shutdown on SBA contributions depends on its duration, but they are positioned to continue underwriting SBA credits [38][39]

Financial Data and Key Metrics Changes - The company reported a net income of $16,900,000 for Q3 2025, an increase of 8.3% compared to the previous year, resulting in a return on assets (ROA) of 1.41% and a return on equity (ROE) of 15.1% [9][10] - Net interest income rose by $15,000,000 or 3% from the previous quarter, primarily due to an improved net interest margin and growth in average earning assets of $229,000,000 [10] - The efficiency ratio improved to 53.05% for the third quarter, indicating enhanced operational efficiency [8] Business Line Data and Key Metrics Changes - Average loans increased by $158,000,000 compared to Q2 2025, with period-end loans up by $85,400,000 [10] - Deposits increased by $92,000,000 for the quarter, resulting in a loan-to-deposit ratio of 95% [10] - Capitalized loan fees reached a record $19,900,000, contributing to the overall loan growth [11] Market Data and Key Metrics Changes - The company surpassed $5,000,000,000 in total assets for the first time, achieving a compound annual growth rate of 19.3% since its IPO in November 2021 [6] - The yield on the investment securities portfolio was reported at 6.07% as of September 30, 2025 [10] Company Strategy and Development Direction - The company announced a definitive merger agreement with Keystone Bancshares, expected to close in 2026, which will create a combined entity with total assets exceeding $6,000,000,000 [16][17] - The merger aims to enhance market presence and operational efficiency, leveraging shared commitment to relationship banking and customer service [17][18] - The company remains focused on organic growth while being opportunistic in pursuing additional M&A opportunities that align with its strategic goals [59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting loan growth targets of $50,000,000 to $100,000,000 in Q4 2025, supported by a strong loan pipeline [17][29] - The company anticipates continued strong performance in the remainder of 2025, with a disciplined approach to underwriting and portfolio management [18] - Management highlighted the stability of credit quality, with non-accrual loans declining for the second consecutive quarter [13] Other Important Information - The company received international recognition for its securitization transactions, winning the SCI Risk Sharing Award for North American Transaction of the Year [7] - The efficiency improvements and stable expenses contributed to a total net income of $18,100,000 for the quarter [8] Q&A Session Summary Question: Integration process timeline for the Keystone merger - Management expects a straightforward integration process with core conversion planned for early Q2 2026 due to operational compatibility [21][22] Question: Loan growth expectations for Q4 - Management remains comfortable with the loan growth target of $50,000,000 to $100,000,000, citing strong demand and quality of the loan pipeline [24][29] Question: EPS accretion expectations from the merger - EPS accretion estimates are based on consensus, with management confident that synergies will enhance the financial benefits of the merger [33][36] Question: Near-term securitization strategy - A third securitization is being considered for Q1 2026, with the timing dependent on customer demand [37] Question: Future M&A opportunities - The company will remain disciplined in pursuing M&A, focusing on cultural fit and financial rewards, while continuing to execute its organic growth strategy [56][59] Question: Fee income outlook - Management anticipates a potential step down in fee income for Q4 due to seasonal factors, but remains optimistic about ongoing fee income initiatives [48] Question: Hiring efforts to support growth - The company is selectively hiring top talent to support growth, focusing on high productivity and cultural fit [52]

Amalgamated Financial (NasdaqGM:AMAL) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Speaker1Good morning, ladies and gentlemen, and welcome to the Amalgamated Financial Corp. Third Quarter 2025 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions with instructions to follow at that time. A telephonic replay of this call and the presentation slides to complement today's discussion are avail ...