Financial Data and Key Metrics Changes - Total sales for Q4 2025 reached $221 million, an 8% year-over-year increase, with base sales growth of 2% [6] - Operating earnings grew by 10% year-over-year, with operating profit margins increasing by 40 basis points to 19.5% [9] - Consolidated EPS was $1.14, a 10% increase from $1.04 in the prior year quarter [12] - Record quarterly free cash flow of $50.8 million, up approximately $3.4 million year-over-year [12] Business Line Data and Key Metrics Changes - Utility water product line sales increased by 9% year-over-year, or 2% excluding SmartCover [6] - Flow instrumentation product line sales were flat year-over-year, with modest growth in water-focused end markets [9] - SmartCover generated $40 million in sales for 2025, representing a 25% annualized growth [21] Market Data and Key Metrics Changes - The U.S. market for meters is approximately 6 million units per year, with Badger Meter holding about 30% market share [35] - 85% of the U.S. market is replacement-driven, indicating a stable demand for Badger Meter's products [63] Company Strategy and Development Direction - The company aims to leverage its cellular AMI technology as a foundation for real-time insights and analytics, expanding through the Blue Edge suite of smart water management solutions [14] - The PRASA AMI project is expected to be one of the largest deployments globally, with a focus on E-Series ultrasonic meters and ORION cellular AMI radios [15] - The company is committed to maintaining a clean balance sheet with over $225 million in cash, allowing for organic and inorganic growth investments [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving high single-digit sales growth over the next five years, despite potential project pacing dynamics in 2026 [24] - The company does not foresee significant impacts from federal funding constraints on its growth trajectory [23] - Management highlighted the importance of long-term trends in the water industry, which support demand for smart water management solutions [22] Other Important Information - The company successfully integrated SmartCover into its operations, with expectations for earnings accretion in 2026 [21] - SG&A expenses in Q4 were $49.9 million, with a year-over-year increase primarily due to the SmartCover acquisition [11] Q&A Session Summary Question: Did the company see the full impact of project conclusions in Q4? - Management noted that project pacing can vary, and the second half of the year was expected to show lower growth due to fewer working days and project completions [27][28] Question: What is the expected growth rate for 2026? - Management anticipates a lower growth rate in the first half of 2026, with a higher growth rate expected in the second half due to awarded projects [30][31] Question: How does the company view the U.S. market size and its share? - Management confirmed that the U.S. market size is around 6 million meters per year, with Badger Meter's share remaining approximately 30% [35][38] Question: What is the expected impact of the PRASA project on revenue? - Management refrained from sizing the revenue impact of the PRASA project, emphasizing the variability in project deployment timelines [18][19] Question: How does the company manage pricing in relation to tariffs? - Management indicated that pricing adjustments have primarily been through list price increases, without temporary tariff add-ons, maintaining a clean pricing strategy [56][57]

Financial Data and Key Metrics Changes - The company reported record adjusted net income of $37 million, or $2.21 per diluted share for Q4 2025, and record full-year adjusted net income of $130 million, or $7.64 per diluted share [15] - Net interest income increased by $4 million, or 22% annualized in Q4, and $23 million, or 10% for the year, driven by margin expansion [15] - The net interest margin (NIM) increased by 6 basis points from the previous quarter, supported by a 14% increase in average earning assets [16] Business Line Data and Key Metrics Changes - The wealth management business added nearly 500 new client relationships, bringing in over $1 billion in new assets under management, with a five-year compound annual growth rate of 10% for both assets and revenue [7] - The LIHTC lending business performed exceptionally well, with significant demand for affordable housing and the addition of 18 new developer partners [8][9] - Total loans grew by $304 million, or 17% annualized in Q4, with traditional loan portfolio growth of $92 million, or 8% annualized [23] Market Data and Key Metrics Changes - The company experienced strong deposit growth, with total core deposits increasing by $64 million, or 4% annualized in Q4 [24] - Average deposit balances rose by $237 million, or 13% annualized compared to the previous quarter [24] - The company maintained excellent asset quality, with total criticized loans declining to their lowest level since June 2022 [25] Company Strategy and Development Direction - The company aims to advance its digital transformation, expand its wealth management business, and continue growing its LIHTC lending platform [14] - The multi-charter model allows the company to outperform competitors and gain market share [6] - The company is focused on maintaining a disciplined expense management strategy while investing in technology and talent to enhance scalability [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, supported by strong loan and deposit pipelines and a stable credit outlook [14] - The company expects additional core margin expansion in Q1 2026, with guidance of 3-7 basis points [18] - Management highlighted the importance of improving the right side of the balance sheet and enhancing operating leverage to support future growth [93] Other Important Information - The company executed share repurchases totaling approximately $13 million in Q4, returning nearly $22 million to shareholders for the full year [26] - The effective tax rate for Q4 was 8%, down from 10% in the prior quarter, reflecting a lower pretax income and an increase in tax-exempt income [29] - The company is strategically planning to execute additional LIHTC construction loan sales and securitizations to enhance capital markets revenue [11] Q&A Session All Questions and Answers Question: Guidance on capital markets revenues - Management indicated that Q1 is historically the slowest quarter for capital markets revenue, with expectations set accordingly [34] Question: Update on securitization plans - Management confirmed plans for a securitization of approximately $300 million-$350 million in the first half of 2026 [37] Question: Guidance on earning assets for Q1 - Management stated that earning assets heading into Q1 would be consistent with the end of Q4, with robust loan growth expected [43] Question: Deposit gathering expectations - Management emphasized the focus on improving core deposit growth and the mix, with strategies in place to enhance non-interest-bearing deposits [56] Question: Long-term growth opportunities in LIHTC business - Management expressed optimism about the future of the LIHTC business, highlighting the importance of maintaining a conservative approach to guidance while preparing for growth [69]

Financial Data and Key Metrics Changes - The company achieved sales of $6.3 billion in Q2 2026, representing a 12% year-over-year increase and a 7% sequential increase [12] - Adjusted diluted earnings per share reached $1.05, exceeding the high end of guidance and growing nearly four times compared to the previous quarter [15] - Gross margin for the quarter was 10.5%, remaining stable year-over-year and slightly up sequentially [13] Business Line Data and Key Metrics Changes - Electronic components sales increased by 11% year-over-year and 7% sequentially, with constant currency sales up 9% year-over-year [12] - Farnell sales grew 24% year-over-year and 7% sequentially, with constant currency sales up 20% year-over-year [12] - Operating margin for electronic components was 3.2%, while Farnell's operating margin was 4.7%, marking the highest for Farnell since fiscal 2023 [15] Market Data and Key Metrics Changes - Sales in Asia increased by 17% year-over-year, accounting for over 50% of total sales, compared to approximately 48% in the previous quarter [12] - EMEA sales grew 8% year-over-year, showing signs of recovery across most end markets [12] - The Americas saw a 5% year-over-year sales increase, with aerospace and defense leading the growth [12] Company Strategy and Development Direction - The company is focused on expanding operating margins, optimizing inventory, and generating cash flow while investing in future growth [4] - There is an emphasis on demand creation, supply chain services, and embedded solutions to drive growth and margin expansion [8] - The company aims to improve return on working capital and overall return on invested capital [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a diverse supplier line card and a stable leadership team [10] - Demand signals are improving globally, with lead times trending higher across most product categories, driven by data center and AI demand [5] - The company anticipates continued growth and margin expansion in 2026, supported by a favorable regional mix and improving market conditions [21] Other Important Information - The company generated $208 million in cash flow from operations during the quarter and reduced inventory by $126 million [18] - Working capital days decreased to 88 days, indicating improved efficiency [16] - The company paid a quarterly dividend of $0.35 per share, totaling $28 million [19] Q&A Session Summary Question: Can you discuss the linearity of orders during the quarter and the duration of the backlog? - Management noted that bookings typically tail off in December, but billings continued strongly, with positive book-to-bill ratios [24][25] - There is an increasing trend of customers placing orders within lead times, indicating improved visibility [26] Question: What are the pricing pressures in specific end markets? - Management indicated that pricing pressures are emerging in memory, storage, and certain capacitors, driven by increased demand from data centers [32][33] Question: How does the guidance for the March quarter compare to previous years? - Management expects typical seasonality with growth in the West, while Asia may see a less significant decline due to Lunar New Year [35][36] Question: Will core business margins grow year-over-year for the remaining quarters? - Management anticipates continued momentum in operating margins, especially as the West recovers [44][45] Question: How do supplier price increases impact revenues and margins? - Price increases affect average selling prices, with contracted customers absorbing costs, while spot buys can lead to higher margins [47][48] Question: Can Farnell margins accelerate with the recovery in Europe? - Management expects incremental improvements in Farnell margins, potentially exceeding 50-100 basis points as revenues increase [50][51]

Financial Data and Key Metrics Changes - In 2025, the company delivered 8,921 homes and recorded revenue of $4.4 billion, with pre-tax income of nearly $590 million, down 20% from the previous year's record of $734 million [5][6] - The net income was $403 million, or $14.74 per share, with a return on equity of 13.1% and shareholders' equity increased by 8% year-over-year to $3.2 billion [6][10] - Gross margins for the full year were 24.4%, down 220 basis points from 2024, primarily due to higher incentives and lot costs [6][10] Business Line Data and Key Metrics Changes - The financial services segment achieved a record capture rate of 93% and pre-tax income of $56 million for the year [5][16] - The Smart Series product, which is the most affordably priced, accounted for 49% of total company sales in the fourth quarter, down from 52% a year ago [7] Market Data and Key Metrics Changes - New contracts in the Southern Region increased by 13% year-over-year, while the Northern Region saw a 4% increase [8] - Deliveries in the Southern Region represented 57% of the company-wide total, with a slight increase in homes delivered compared to the previous year [8] Company Strategy and Development Direction - The company is focused on maintaining quality and customer service while navigating economic challenges, and it is well-positioned in its 17 markets [3][10] - The company plans to continue using mortgage rate buydowns as incentives on a community-by-community basis to drive sales [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the industry despite current challenges, stating that the company is in the best financial condition in its history [10] - There is optimism regarding the early traffic improvements and demand as the selling season begins [45][90] Other Important Information - The company ended the year with a cash balance of $689 million and zero borrowings under its unsecured credit facility, resulting in a strong debt-to-capital ratio of 18% [10][18] - The company owns approximately 26,000 lots, with an additional 24,000 lots controlled via option contracts, providing flexibility to respond to market conditions [9] Q&A Session Summary Question: Can you address the 13% growth in the South and bifurcate that into Texas and Florida? - Management noted solid sales across various markets, with Florida's Orlando market performing well and Texas showing mixed results, particularly with Dallas and Houston remaining solid while Austin and San Antonio were weaker [24][25] Question: Can you comment on margin pressures and the differential between intra-quarter closings and backlog? - Management acknowledged that margins are under pressure but noted that a significant portion of sales now comes from spec sales, which have lower margins compared to to-be-built homes [26][35] Question: What is the strategy regarding mortgage rate buy-downs? - The company has been successful with a 4.875% 30-year fixed mortgage rate and offers temporary buydowns to attract buyers [72][74] Question: How is the company structuring its land purchases and development? - Management indicated that land purchases and development spending increased, reflecting confidence in demand, but emphasized that there is no specific strategy driving this increase [64][66] Question: What is the outlook for margins and community openings? - Management did not provide specific guidance on margins but expressed optimism about maintaining a strong sales pace and improving margins through operational efficiencies [82][92]

M/I Homes (NYSE:MHO) Q4 2025 Earnings call January 28, 2026 10:30 AM ET Company ParticipantsAlan Ratner - Managing DirectorAlex Barron - PresidentBob Schottenstein - CEO and PresidentBuck Horne - Managing DirectorDerek Klutch - President of Mortgage OperationsJay McCanless - Managing DirectorPhil Creek - CFOConference Call ParticipantsKen Zener - Senior AnalystOperatorGood morning, ladies and gentlemen, and welcome to the M/I Homes fourth quarter and year-end earnings conference call. At this time, all line ...

Summary of Werner Enterprises Conference Call on FirstFleet Acquisition Company and Industry - **Company**: Werner Enterprises (NasdaqGS: WERN) - **Industry**: Trucking and Transportation Key Points and Arguments Acquisition Announcement - Werner Enterprises announced the acquisition of FirstFleet, a leading dedicated trucking company in the U.S., for **$245 million** [2][14] - The acquisition is expected to strengthen Werner's platform and position the company for sustainable, profitable growth [3][12] Strategic Importance - The acquisition establishes Werner as the **fifth-largest dedicated carrier** in the U.S. and expands its scale across the eastern half of the country [3][6] - FirstFleet generated over **$615 million** in annual revenue for the twelve months ending September 30, 2025, operating approximately **2,400 tractors** and **11,000 trailers** [5][6] - The combined revenues of Werner and FirstFleet are projected to increase from approximately **$3 billion** to **$3.6 billion**, marking a **20% increase** in total revenues [6][12] Revenue Mix Shift - The acquisition shifts Werner's revenue mix towards dedicated trucking, increasing its share from **43%** to **52%** of total revenues [6][8] - One-way truckload and logistics will account for approximately **22%** and **24%** of total revenues, respectively [6] Customer Base and Market Diversification - FirstFleet has strong relationships with top-tier customers, enhancing Werner's exposure to resilient end markets such as grocery, bakery, and corrugated packaging [9][11] - The average tenure of FirstFleet's top 10 customers is **17 years**, indicating strong customer loyalty [10] Financial Impact - The acquisition is immediately accretive to EPS, with expected annual synergies of approximately **$18 million**, primarily from procurement efficiencies and operating efficiencies [14][16] - The transaction is expected to drive a **30% increase** in TTS and almost a **50% increase** in dedicated revenues [6][12] Integration and Future Plans - FirstFleet will operate as a business unit within Werner's TTS segment, with its management team largely remaining in place [14][15] - The integration is expected to enhance operational efficiencies and improve asset utilization [10][12] Cultural Fit and Long-term Strategy - There is a strong cultural alignment between Werner and FirstFleet, focusing on safety, service, and innovation [17][12] - Werner aims to continue its transition towards a dedicated business model while maintaining its one-way fleet size [39][40] Market Outlook - The dedicated trucking market is estimated to be a **$30 billion+** addressable market, with opportunities for growth as market conditions improve [8][53] - Werner plans to leverage FirstFleet's capabilities to enhance service offerings and customer satisfaction [88][89] Additional Important Information - The acquisition was funded using cash on hand and existing credit facilities, with modest leverage expected post-acquisition [14][23] - The average age of FirstFleet's fleet is similar to Werner's, with no significant CapEx catch-up anticipated [94][99] - The branding strategy for FirstFleet will be evaluated over time, with no immediate plans to change the brand name [96][97] This summary encapsulates the key points discussed during the conference call regarding Werner Enterprises' acquisition of FirstFleet, highlighting the strategic, financial, and operational implications of the deal.

Investor Presentation Fourth Quarter 2025 Cautionary Note on Forward Looking Statements This presentation, and the remarks by Prosperity's management on the conference call may contain statements regarding the proposed transaction between Prosperity Bancshares, Inc. ("Prosperity") and Stellar Bancorp, Inc. ("Stellar"); future financial and operating results; benefits and synergies of the proposed transaction; future opportunities for Prosperity; the issuance of common stock of Prosperity contemplated by the ...

Financial Data and Key Metrics Changes - In 2025, the company delivered 8,921 homes and recorded revenue of $4.4 billion, with pre-tax income of nearly $590 million, down 20% from last year's record of $734 million [5][6] - The net income was $403 million, or $14.74 per share, with a return on equity of 13.1% [6] - Full-year gross margins, excluding inventory and warranty charges, were 24.4%, down 220 basis points from 2024 [6][14] - The company ended the year with cash of $689 million and zero borrowings under its $900 million unsecured revolving credit facility, resulting in a strong debt-to-capital ratio of 18% [11][19] Business Line Data and Key Metrics Changes - The financial services segment achieved a record capture rate of 93% and pre-tax income of $56 million for the year [5] - The Smart Series, the company's most affordably priced product, comprised 49% of total sales in Q4, down from 52% a year ago [7] - The average closing price for Q4 was $484,000, a 1% decrease from the previous year's average of $490,000 [13] Market Data and Key Metrics Changes - New contracts in the Southern Region increased by 13% year-over-year, while the Northern Region saw a 4% increase [9] - Deliveries in the Southern Region represented 57% of the company-wide total, with a slight increase in homes delivered compared to the previous year [9] - The company owns approximately 26,000 lots, with 30% in the Northern Region and 70% in the Southern Region, and controls an additional 24,000 lots via option contracts [10] Company Strategy and Development Direction - The company is focused on maintaining quality and customer service while navigating economic challenges, positioning itself well in 17 markets [3][4] - The strategy includes using mortgage rate buydowns as incentives to promote sales, particularly in response to affordability challenges [6][35] - The company plans to open more communities in 2026, estimating a 5% increase in average community count compared to 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the industry despite current challenges, noting a slight improvement in demand and traffic as they enter 2026 [11][46] - The company anticipates that margin pressures may not be as severe in 2026 as they were in 2025, with expectations for improved demand in the early months of the year [47][48] - Management acknowledged the impact of impairments primarily in entry-level communities and indicated a focus on addressing these issues to stabilize margins [48][52] Other Important Information - The company spent $524 million on land purchases and $646 million on land development in 2025, up from $1.1 billion in 2024 [19] - The average mortgage amount increased to $414,000 in Q4 2025, with a loan-to-value ratio of 83% [18] Q&A Session Summary Question: Can you address the 13% growth in the South and bifurcate it into Texas and Florida? - Management noted solid sales across various markets, with Florida's Orlando and Tampa markets performing well, while Texas markets showed mixed results [25][26] Question: Can you comment on margin pressures and the differential between intra-quarter closings and backlog? - Management indicated that a significant portion of sales now comes from spec sales, which generally have lower margins compared to to-be-built homes [34][36] Question: What is the outlook for margins and incentives in the upcoming quarter? - Management refrained from providing specific guidance on margins but acknowledged that incentives had increased slightly in Q4 [80] Question: How is the company structuring mortgage rate buydowns? - The company has been successful with a 4.875% 30-year fixed mortgage rate and temporary buydowns to attract buyers [71][72] Question: What are the trends in Florida markets and overall inventory? - Management expressed optimism about Florida markets, particularly Orlando and Tampa, and indicated that inventory levels are being managed carefully [66][100]

Financial Data and Key Metrics Changes - The company reported net earnings of $83 million or $0.64 per share for the fourth quarter, with an annualized return on average assets of 1.34% and an adjusted return on average tangible common equity of 17.6% [3][10] - Pre-provision net revenue reached a record $111 million, representing an ROA of 1.78%, and revenue increased to a record $226 million, driven by record net interest income of $197 million and non-interest income of $28.3 million [3][10][14] - Average earning assets increased by $307 million or an annualized 5.4%, while the average yield on assets decreased by 10 basis points to 5.66% [11] Business Line Data and Key Metrics Changes - The commercial loan team generated total new loan production of $3.2 billion in 2025, with net commercial loan growth of 5.5% for the year [4] - Non-interest income increased to $28.3 million, with significant contributions from the insurance agency and SBA loan sales [7][8][14] - The average cost of total deposits decreased by four basis points to 2.1%, while total deposits increased by $182 million for the quarter, or an annualized 3.8% [13] Market Data and Key Metrics Changes - The company experienced favorable trends in both commercial and consumer segments, contributing to a 2% annualized growth in average non-interest-bearing deposits [5] - Non-performing assets improved to 0.32%, with a decline of $22 million or 22% [13] - The company maintains a strong position in the CRE market, with a healthy outlook despite some concerns regarding rent-controlled properties in New York [41][42] Company Strategy and Development Direction - The company plans to continue investing in revenue-producing talent across various platforms, including middle market banking, treasury management, and wealth management [8][72] - A core system conversion is scheduled for Labor Day weekend of 2026, aimed at enhancing scalability and digital capabilities [9][84] - The company is focused on organic growth as its primary strategy, with potential for future dividend considerations and stock buybacks [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum and improving profitability, with expectations for loans and deposits to grow in the 4%-6% range in 2026 [17] - The competitive landscape for deposits remains challenging, but the company believes it can maintain its market share through effective strategies [35] - Management noted that the CRE market is showing signs of health, with a positive outlook for 2026 [40][41] Other Important Information - The company announced a new share repurchase authorization allowing for the buyback of an additional 2 million shares [8] - The effective tax rate is projected to be approximately 29% for 2026, influenced by tax credit investments [17][22] Q&A Session Summary Question: Inquiry about the effective tax rate and tax credit investments - Management clarified that the $54 million tax credit investments will reduce the effective tax rate in 2026, with benefits spread throughout the year [22][23] Question: Priorities for deploying excess capital - Management indicated that organic growth remains the primary focus, with potential for dividend adjustments and stock buybacks as secondary options [24][25][26] Question: Competition in deposit markets - Management acknowledged heightened competition but emphasized their ability to grow deposits effectively [35] Question: Trends in the CRE market - Management noted a healthier CRE market and expressed no interest in acquiring portfolios from competitors, focusing instead on organic growth [40] Question: Potential for loan yield increases - Management indicated that there is potential for slight improvements in loan yields due to repricing [45] Question: Plans for geographic expansion - Management confirmed interest in expanding into adjacent markets, including Long Island and the Philly suburbs [50] Question: Core systems conversion details - Management provided details on the timeline and expected benefits of the core systems conversion scheduled for 2026 [84]

Financial Data and Key Metrics Changes - The special meeting of shareholders confirmed that there were 314,603,664 shares of common stock outstanding and entitled to vote, with approximately 85% of these shares represented at the meeting [4][6]. Business Line Data and Key Metrics Changes - The only proposal on the agenda was the approval of Omnicom's 2026 Incentive Award Plan, which was unanimously recommended by the board and subsequently approved by the shareholders [5][6]. Market Data and Key Metrics Changes - No specific market data or key metrics were discussed during the meeting [9]. Company Strategy and Development Direction - The approval of the 2026 Incentive Award Plan indicates a focus on aligning employee incentives with company performance, which may suggest a strategy aimed at enhancing productivity and retention [5][6]. Management Comments on Operating Environment and Future Outlook - There were no specific comments from management regarding the operating environment or future outlook during this meeting [9]. Other Important Information - The final voting results will be reported in a current report on Form 8-K, in accordance with SEC rules and regulations [6]. Q&A Session Summary - There were no questions from shareholders during the Q&A session [9].