Company Overview - Standard Motor Products (SMP) reported 2024 revenue of $1.5 billion and adjusted EBITDA of $140 million[13] - The company's market capitalization is approximately $669 million[13] - SMP's revenue is divided into three segments: North American Aftermarket (67%), European Aftermarket (16%), and Engineered Solutions (17%)[11] Financial Performance & Capital Allocation - The company spent $10.4 million in 2024 to repurchase 321,000 shares, with $19.6 million remaining under authorization as of June 30, 2025[72] - For the six months ended June 30, 2025, the company's revenue was $907.2 million, with a gross margin of 31.1% and adjusted EBITDA of $101.9 million, representing 11.2% of net sales[82,87] - Net debt stood at $577.8 million with a leverage ratio of 3.2x as of June 30, 2025[83] Market Segments - North American Aftermarket sales reached $1.143 billion in 2024[38] - European Aftermarket sales were $277 million in 2024[44] - Engineered Solutions generated $285 million in revenue in 2024[51] Strategic Initiatives - The acquisition of Nissens is expected to be highly accretive in its first full year post-acquisition and will improve future free cash flow[22,67] - The company anticipates $8-12 million in cost synergies through the Nissens acquisition[24]

Financial Performance - Q3 2025 - Revenue increased by 9.3% to $2.237 billion, compared to $2.046 billion in Q3 2024[11] - EBITDA As Defined increased by 11.5% to $1.217 billion, compared to $1.091 billion in Q3 2024[11] - Adjusted EPS increased by 6.7% to $9.60, compared to $9.00 in Q3 2024[11] - Net interest expense increased by 25.6% to $397 million, compared to $316 million in Q3 2024[11] Market Segment Performance - Q3 2025 (Pro Forma) - Commercial Transport revenue was down 8% in OEM and up 7% in Aftermarket[9] - Business Jet/Helicopter revenue was down 6% in OEM and up 5% in Aftermarket[9] - Defense OEM outpaced Defense Aftermarket growth[9] Fiscal Year 2025 Outlook - Revenue guidance midpoint is $8.79 billion, a decrease of $60 million from prior guidance[12] - EBITDA As Defined guidance midpoint is $4.725 billion, an increase of $40 million from prior guidance[12] - Adjusted EPS guidance midpoint is $36.74, an increase of $0.27 from prior guidance[12] Capital Structure - Total secured debt is $20.309 billion, with a leverage ratio of 4.4x[17] - Total net secured debt is $17.517 billion, with a leverage ratio of 3.8x[17] - Total debt is $25.188 billion, with a leverage ratio of 5.5x[17] - Total net debt is $22.396 billion, with a leverage ratio of 4.9x[17]

Financial Performance - Westlake Corporation's net sales for 2Q 2025 were $3 billion[5], with EBITDA of $340 million[5] - The company holds $2.3 billion in cash, equivalents, and investments[5] - Sales increased by 4% QoQ but decreased by 8% YoY[7] - EBITDA increased by 18% QoQ but decreased by 54% YoY[7] Segment Performance - Housing and Infrastructure Products (HIP) sales were $1.16 billion in 2Q 2025[11], a 16% increase QoQ[11] but a 3% decrease YoY[11], with EBITDA of $275 million[7], a 35% increase QoQ[7] but an 18% decrease YoY[7] - Performance and Essential Materials (PEM) sales were $1.793 billion in 2Q 2025[22], a 3% decrease QoQ[22] and an 11% decrease YoY[22], with EBITDA of $52 million[7], a 29% decrease QoQ[7] and an 87% decrease YoY[7] Strategic Initiatives - The company achieved over $75 million in cost savings in 1H 2025 towards a 2025 target of $150 - $175 million[6] - Westlake is taking action to generate an additional $200 million of cost savings by 2026 as part of its PEM profitability improvement strategy[6] - The closure of the Pernis facility is expected to significantly improve PEM segment profitability by removing ~$100 million in annual losses[6]

Financial Performance - Q3 FY25 adjusted earnings were $001 per share, compared to $(014) in Q3 FY24[8] - The company affirms FY25 adjusted EPS guidance range of $440 to $460[8] - Q3 YTD FY25 capex reached $700 million, driven by Gas Utility investment[26] - The company raised FY25 capex target to $875 million from $840 million[26] Strategic Initiatives - The company entered into an agreement to acquire the Piedmont Natural Gas Tennessee business from Duke Energy for $248 billion[8] - Combined investment opportunities related to the Piedmont Natural Gas Tennessee acquisition are estimated at $44 billion over five years (2025-2029)[10] - The company's 10-year capex plan remains at $74 billion (FY25-FY34)[8, 30] Regulatory Updates - A unanimous settlement agreement was filed on August 4, 2025, in the Missouri rate case, projecting a $210 million annual revenue increase[8, 15] - The Missouri Public Service Commission (MoPSC) approved $190 million in Infrastructure System Replacement Surcharge (ISRS) revenues, effective May 2025[8] - The new rates in Missouri are expected to be effective October 24, 2025, leading to an average residential customer bill increase of approximately 11%, or around $9 per month[15] Growth Outlook - The company maintains a long-term adjusted EPS growth target of 5-7%, using the original FY24 guidance midpoint of $435 as a base[8, 9]

Financial Performance - Revenue for Q1 FY26 increased by $55 million, or 11%, reaching $555 million[11, 18] - Gross profit for Q1 FY26 increased by $24 million, or 19%, with gross margin expanding by 170 bps to 265%[11, 24] - Adjusted EBITDA for Q1 FY26 increased by 33% to $68 million, resulting in an Adjusted EBITDA margin of 123%[11, 26] - Net income for Q1 FY26 increased by 55% to $46 million[11] Orders and Backlog - Q1 FY26 orders totaled $1259 million, leading to a book-to-bill ratio of 23x[11] - Record backlog reached $4829 million[11] - Defense sector accounts for 87% of the backlog, while Energy & Process represents 11%, and Space comprises 3%[39] Financial Outlook for FY26 - Net sales are projected to be between $225 million and $235 million[44] - Adjusted EBITDA is expected to be in the range of $22 million to $28 million[44] - Capital expenditures are estimated at $15 million to $18 million[44]

Financial Performance & Growth - Core FFO and AFFO per diluted share grew by 1.2% year-over-year, reaching $0.84 and $0.85 respectively[10] - Increased ABR (Annual Base Rent) by 6.7% compared to the previous year[10] - The company announced a 3.4% increase in the third quarter 2025 quarterly dividend to $0.60 per share[10] - Strategy generated 3.8% average annual Core FFO per share growth since 2019[16] Investment & Acquisition - Closed $232.5 million in investments with an initial cash cap rate of 7.4% and a weighted average lease term of 17.8 years[10] - Sold 23 properties for $51.2 million, including $24.7 million of income-producing properties at a weighted average cap rate of 6.2%[10] - Relationship acquisitions accounted for 74% ($7.493 billion) of the acquisition volume from 2010-Q2 2025, with an average cap rate of 7.4%[35] - Market/Auction acquisitions accounted for 26% ($2.701 billion) of the acquisition volume from 2010-Q2 2025, with an average cap rate of 7.1%[34] Portfolio & Lease Management - Only 6.1% of leases expire through YE 2026[17] - The portfolio consists of 3,663 properties (38.3 million SF) across 50 states, with over 400 national and regional tenants[17] - Top 20 tenants account for 46.8% of the rent and average 1,729 stores each[17] Balance Sheet & Debt - The company has $1.4 billion of total available liquidity[10] - The company's gross debt is $4.7 billion, representing 36.7% of the total capital, with a weighted average maturity of 11.1 years and a weighted average effective interest rate of 4.2%[23] - Equity accounts for 63.3% of the total capital, amounting to $8.1 billion[22, 23]

Financial Performance & Contract Coverage - The company added $397 million in contracted revenues in 1H 2025[16, 17, 22], achieving 96% forward contract cover for 2025 and 80% for 2026[16, 17] - Revenue for 1H 2025 was $382.8 million, up from $354.6 million in 1H 2024[17, 29] - Net income for 1H 2025 reached $214.1 million, compared to $175.1 million in 1H 2024[17, 29] - Adjusted EBITDA for 1H 2025 was $266.5 million, an increase from $247.7 million in 1H 2024[17, 29] - Normalized net income for 1H 2025 was $189.4 million, up from $175.7 million in 1H 2024[17, 29] - Contracted revenues as of June 30, 2025, stood at $1.73 billion, with an average remaining contract cover of 2.1 years[22] Capital Allocation & Balance Sheet - The company's annualized dividend increased to $2.10 per share[16, 17, 23, 24], and $57.0 million has been allocated to share buy-backs to date[23, 24] - Gross debt increased to $768.5 million, up from $691.1 million at the end of 2024[29] - Cash reserves totaled $511.1 million, with $430.6 million available for liquidity, covenants, working capital, and fleet renewal[29] - The weighted average debt maturity is 4.9 years, with a cost of 4.18%[29, 70] - The company's average daily break-even rate is $9,366 per vessel[70] Market Dynamics & Fleet - Approximately 74% of global containerized trade volume is in non-Mainlane trades, predominantly served by mid-sized & smaller ships[46, 47] - The overall orderbook for all containerships has a 29.6% orderbook to fleet ratio, while the company's focus segments (2,000 – 9,999 TEU) have a 12.0% orderbook to fleet ratio[64]

Financial Performance - The adjusted net investment income per share remained solid at $0.39, resulting in an adjusted NII ROE of 10.4%[10] - Adjusted earnings per share were $0.34, yielding an adjusted ROE of 9.1%[10] - The company declared a quarterly base distribution of $0.39 per share for FY 2025 Q3, with a distribution coverage of approximately 100%[10] - As of June 30, 2025, the dividend yield was 10.4% based on the NAV[10] Portfolio and Credit Quality - The investment portfolio modestly increased to $9.0 billion at fair value, with $305.8 million in exits/sales and $556.8 million in new investment commitments (of which $410.8 million were funded at close)[10] - Net funds increased by $340.3 million, representing a 4% increase in portfolio size from March 31, 2025[10] - Approximately 90% of the total investment portfolio had internal performance ratings of '4' or '5'[10, 40] - Non-accrual investments remained low, accounting for 0.6% of total investments at fair value[10, 40] Balance Sheet and Liquidity - The net asset value was $15.00 per share, a decrease of $0.04 per share from $15.04 as of March 31, 2025[10] - The company repurchased approximately 2.4 million shares of its common stock at an aggregate price of $13.99 per share[10] - The GAAP debt-to-equity ratio, net increased to 1.26x, with an average of 1.21x for the quarter; 42% of debt funding is unsecured debt, and 82% is floating rate debt funding[10] - The weighted average cost of debt was 5.7%[10] - Total available liquidity amounted to $947.1 million[10]

Financial Performance - GAAP gross revenue reached $3 billion, showing a year-over-year increase of 51%[10] - Adjusted net revenue was $22 billion, up 70% year-over-year[10] - GAAP net income increased significantly to $181 million, a 1186% rise year-over-year[10] - Adjusted net income grew to $195 million, representing a 192% increase year-over-year[10] - Adjusted EBITDA stood at $314 million, a 135% increase year-over-year, with an adjusted EBITDA margin of 141% on adjusted net revenue[10] - GAAP EPS was $156, up 1364% year-over-year, and adjusted EPS was $162, a 246% increase year-over-year[10] Backlog and Cash Flow - The company reported a Q3 Book-to-Bill ratio of 12x, with a trailing twelve-month (TTM) ratio also at 12x[10] - Q3 FY 2025 cash flow from operations (CFFO) was $293 million[19] - Q3 FY 2025 free cash flow (FCF) amounted to $271 million[19] Segment Performance - Infrastructure and Advanced Facilities (I&AF) operating profit was $236 million, a 134% increase year-over-year, representing 124% of adjusted net revenue[18] - PA Consulting operating profit was $72 million, a 152% increase year-over-year, remaining at 218% of revenue[18] Outlook - The company is raising its FY 2025 adjusted EPS guidance to $600-$610[23] - The company anticipates adjusted net revenue growth of approximately 55% year-over-year[23]

Second Quarter 2025 Earnings Presentation August 5, 2025 Second Quarter 2025 Earnings Presentation 1 Cautionary Statements Regarding Forward-looking Statements This presentation may contain (and verbal statements made by MSA® Safety Incorporated ("MSA Safety") may contain) "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance and involve various assumptions, known and unknown risks ...