Financial Data and Key Metrics Changes - The company reported normalized EBITDA of $250 million for the third quarter, with distributable cash flow of $236 million benefiting from a current tax recovery of $71 million due to changes in U.S. tax legislation [11][12] - The outlook for distributable cash flow is revised to approximately $700 million for 2025, with an effective tax rate expected to range between 20-21% [11][12] - The normalized EBITDA guidance for 2025 is reaffirmed at $1.01 billion, with a forecast for 2026 normalized EBITDA of $1.03 billion, reflecting a 2% range increase [11][12] Business Line Data and Key Metrics Changes - The marketing segment is expected to see normalized EBITDA approximately $25 million higher, while InterAlberta and other segments are projected to increase by about $10 million due to BlackRod cash flows ramping up [12] - Keystone's normalized EBITDA is anticipated to decrease by approximately $15 million due to reduced planned maintenance capital expenditures [12] Market Data and Key Metrics Changes - The company is encouraged by ongoing dialogues in Canada and the U.S. regarding energy solutions, which highlight the resilience of customer businesses and the strategic positioning of the company's assets [5][6] - The company expects conditions to become more favorable for supply growth in late 2026 to early 2027, as supply growth is anticipated to exceed current egress capacity [21][22] Company Strategy and Development Direction - The company aims to grow its business and enhance competitiveness while ensuring safe operations and financial strength [4][5] - The focus is on maturing and executing a growth portfolio through both organic and inorganic opportunities, with the BlackRod project serving as a successful template [4][30] - The company is working towards exiting transition services with TC Energy by the end of 2025, which is expected to improve efficiency and cost savings [3][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning Keystone to baseline operations by 2026, with ongoing remedial actions reinforcing system integrity [7][9] - The company is optimistic about the potential for growth in customer organizations and the overall market environment, which has become more constructive since the spin-off [30][31] Other Important Information - The company has completed significant milestones in the BlackRod project, including mechanical completion and the commissioning of a natural gas lateral [9] - Legal proceedings related to variable toll disputes have been resolved, allowing the company to focus on new business opportunities [10] Q&A Session Summary Question: Update on major projects and Keystone XL discussions - The company is providing advisory support for Alberta's crude pipeline initiative but is not directly involved in the project [17][18] Question: Outlook on crude spreads and inventory normalization - The company anticipates improved conditions for egress in late 2026 to early 2027, driven by supply growth [21][22] Question: Details on tax optimization and U.S. legislation changes - Tax benefits stem from extended interest deduction legislation and accelerated tax pools, with expectations of returning to a regular tax cadence by 2027 [24][25] Question: Impact of transition agreements on efficiency and cost savings - The company is focused on optimizing processes post-transition, which is expected to enhance EBITDA but is not included in the current 2-3% growth outlook [25][27] Question: Organic growth opportunities and project types - The company is exploring various growth opportunities in both Canada and the U.S., with a focus on customer needs [30][31] Question: CapEx assumptions for 2026 - The company suggests a consistent investment of approximately $100 million annually to achieve EBITDA growth, with no sanctioned projects currently [36][38] Question: Variable toll settlements and future P&L impact - Remaining payments related to variable toll settlements will be normalized out of EBITDA, confirming the expected financial impact [40][41]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.6 million, down from $3.6 million in Q3 2024, primarily due to lower average selling prices from discontinued SKUs [10] - Gross loss for Q3 2025 was $8.9 million compared to a gross profit of $0.6 million in the same period last year, resulting in a gross margin of negative 576% versus 16% [10] - Net loss for Q3 2025 was $10.9 million, or negative $0.90 per diluted share, compared to a net loss of $3.4 million, or negative $0.33 per diluted share in Q3 2024 [11] - Adjusted EBITDA for Q3 2025 was negative $10.9 million, worsening from negative $1.9 million in Q3 2024, mainly due to inventory charges [11] - Cash and cash equivalents at the end of Q3 2025 were $387.3 million, a significant increase from $3.7 million at the end of 2024 [12] Business Line Data and Key Metrics Changes - The company has streamlined operations and reduced fixed costs, including vacating the Mockingbird facility and planning to vacate the Rock Quarry facility, leading to significant cost savings [4][5] - Payroll efficiencies have lowered monthly costs by approximately $40,000 while maintaining quality and innovation [5] Market Data and Key Metrics Changes - The company is launching two new SKUs in March 2026 with a national retailer, which will include the Caramel Crunch SKU, marking a significant retail strategy milestone [6] - There is a noted shift in retailer demand towards innovative SKUs featuring proprietary textures and clean ingredients, reflecting broader market trends [8] Company Strategy and Development Direction - The company is focused on optimizing its cost structure, expanding retail distribution, and executing private label partnerships to drive long-term growth and return to profitability [13][14] - Future initiatives include digital asset strategies to enhance capital efficiency and shareholder value [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2026 with a leaner and more efficient structure, ready to scale profitably [16] - The company anticipates gradual margin improvement starting mid-2026, supported by operational efficiencies and new product launches [15] Other Important Information - The company has received commitments for additional capital, with insiders committing $1 million, reflecting confidence in the company's strategy [9] Q&A Session Summary Question: Can you provide any more details on the financial commitments that you have in hand at this point? - Management confirmed a commitment of $1 million from insiders [19] Question: What do you think your current cash burn is on a monthly basis at this point? - Management indicated that cash burn will decrease significantly after January, providing a runway for private label initiatives [22] Question: Is this million dollars coming in, is it equity, debt, or it's not formal yet at this point? - Management stated that the commitment is not formal yet but should be finalized within the next week [24] Question: When do you think you need to do revenue to break even at this point or after January? - Management noted that break-even visibility will improve around March or April, with expected monthly expenses in the $450-$550 range [26] Question: Are the economics of the Caramel Crunch business very similar to your other products? Or is it higher margin? - Management indicated that the Caramel Crunch will have similar economics, with potential for improved margins as manufacturing processes are fine-tuned [27] Question: Can you talk about how effective the expanded sales effort has been? - Management expressed satisfaction with the sales team's performance, particularly in securing private label partnerships and expanding into non-traditional retail environments [32]

Financial Data and Key Metrics Changes - Adjusted EPS for Fiscal 2025 was $4.44, a 7.5% increase from $4.13 in Fiscal 2024, reflecting growth across all segments driven by infrastructure investments [5][12] - Adjusted earnings for Fiscal 2025 totaled $275.5 million, compared to $247.4 million in the prior year [12][13] - The company invested $922 million in Fiscal 2025, with nearly 90% allocated to utilities [5] Business Line Data and Key Metrics Changes - Gas utilities earned $231 million, up nearly 5% from the previous year, driven by interest recovery in Missouri and new rates in Alabama [13] - Midstream earnings increased to $56 million, up almost $23 million from last year, due to additional capacity and asset optimization [14] - Gas marketing earnings rose to $26 million, an increase of $2.5 million, reflecting a well-positioned business despite higher storage and transportation fees [14] Market Data and Key Metrics Changes - New rates in Missouri became effective in October, and Alabama is undergoing a rate stabilization process [6][18] - The company expects total rate base and capitalization to grow to $10.7 billion by Fiscal Year 2030 from an estimated $8.2 billion at the end of Fiscal 2026 [11] Company Strategy and Development Direction - The company is focused on operational excellence, regulatory engagement, financial discipline, and strategic growth [22] - A pending acquisition of the Piedmont Natural Gas Tennessee business is expected to close in the first quarter of calendar 2026, enhancing operational capabilities [9][10] - The long-term adjusted EPS growth target is set at 5%-7%, supported by a robust capital plan totaling $11.2 billion over ten years [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Fiscal 2026 adjusted EPS guidance of $5.25-$5.45, driven by regulatory outcomes and infrastructure investments [22][23] - The company is committed to maintaining affordability for customers while investing in critical infrastructure [6][15] - Management highlighted the importance of collaboration with stakeholders in Missouri to establish a future test year rate-setting model [7][26] Other Important Information - The Board of Directors approved a dividend increase of 5.1%, bringing the annualized rate to $3.30 per share, marking the 23rd consecutive year of dividend increases [8] - The company is targeting a minimal amount of common equity issuance as part of its financing strategy [10][21] Q&A Session Summary Question: Long-term growth rate and ROEs - Management indicated expectations for continued improvement in earned ROEs, particularly in Missouri, with a future test year rate case planned [25][26] Question: Financing mix and timing - Management confirmed confidence in a balanced mix of debt and equity for financing, with ongoing evaluation of the storage business [31][32] Question: O&M assumptions and integration planning - Management aims to keep O&M expenses below inflation, leveraging best practices during integration activities [33][34] Question: Future test year rate adjustment implications - Management acknowledged potential improvements in earned ROE with the future test year but emphasized caution in making predictions [36] Question: Storage asset sale interest - Management noted strong interest in the storage assets but is still in the evaluation process [37][38] Question: Dividend payout ratios and growth - Management targets dividend growth in line with earnings growth, maintaining a payout ratio of 55%-65% [46] Question: Long-term capital needs and equity outlook - Management anticipates minimal equity needs, estimating $0-$50 million annually to support utility CapEx [47]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenue of approximately $1.55 million, consistent with the first two quarters of the year, but down roughly $600,000 year-over-year due to timing of larger customer orders [4][15] - Year-to-date revenue for 2025 was slightly under $5 million, reflecting a decrease compared to the previous year [4] - The net loss for Q3 2025 was $965,000 or $0.15 per share, compared to a net loss of $739,000 or $0.39 per share in Q3 2024 [17] Business Line Data and Key Metrics Changes - License fee revenue decreased to $918,000 in Q3 2025 from $1.4 million in Q3 2024, while service revenue increased slightly to $268,000 [15] - Hardware sales declined to approximately $364,000 in Q3 2025 from $436,000 in Q3 2024 due to timing of shipments [16] Market Data and Key Metrics Changes - The company experienced strong demand in the defense sector, with two of the top four largest global defense agencies using its technology [11] - The company is focusing on expanding its market reach in Europe, the Middle East, and Africa, particularly through channel sales efforts [7] Company Strategy and Development Direction - The company is finalizing a major website overhaul and developing new marketing messaging to enhance its market presence [8] - A significant update to the PortalGuard identity platform is expected to be released in late Q1 or early Q2 2026, which will modernize the platform and improve deployment capabilities [9] - The company is expanding its partner network to enhance market penetration and drive growth [22][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for 2026, citing a solid pipeline of opportunities and the potential for expanded deployments with existing customers [33][36] - The company is focused on reducing its break-even levels and achieving positive cash flow and profitability [13][44] Other Important Information - The company raised approximately $3 million net of fees through a warrant exercise transaction, significantly improving its cash liquidity [14] - Operating expenses decreased by over 10% through the first nine months of 2023, reflecting cost management efforts [13] Q&A Session Summary Question: Was the National Bank of Egypt deal a recurring revenue deal? - Yes, it was an initial deployment with expectations for expanded deployment in the future [20] Question: Are margins lower on the National Bank of Egypt project due to the partnership with Raya? - No, gross margins on software remain over 90% [21] Question: What is the current ARR? - The current ARR is estimated to be in the $6-$7 million range [26] Question: Will the company provide formal guidance for 2026? - The company is confident in its position and may provide guidance as it becomes more predictable [31][34] Question: Did the U.S. government shutdown impact the business? - No, there was no impact from the government shutdown [35] Question: What is the status of the Channel Alliance program? - The program is growing, focusing on quality partnerships that can deliver significant value [38][39]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $1.9 million, down $0.1 million sequentially but up $1.6 million from the same quarter last year. The revenue shortfall was a strategic decision to defer work [10][11] - Operating expenses for the quarter were $7.8 million, up $1.9 million from Q3 2024 but down $0.6 million sequentially. General and administrative costs were $2.9 million, a decrease of $1.4 million sequentially [10][11] - Net loss for the quarter was $6.6 million, a decrease of $0.8 million sequentially but an increase of $24.5 million from Q3 2024 [11] - Cash at the end of Q3 2025 was $5.5 million, compared to $2.7 million last quarter, driven by funding from an at-the-market offering [11][12] Business Line Data and Key Metrics Changes - The company made a strategic decision to defer near-term revenue to enhance the vehicle for specific deep-water workflows, which positions it for longer-term contracts [14] - A significant milestone was achieved with the successful operation of the Aquanaut system to a depth of 2,300 meters in the Gulf of Mexico, demonstrating the platform's capabilities [14][22] - The customer base continued to grow, with positive feedback on ROV systems and increasing interest from both commercial and government sectors [18] Market Data and Key Metrics Changes - The maritime industry is experiencing a trend towards reduced personnel deployed offshore, driven by safety, sustainability, and cost considerations, which aligns with the company's strengths in autonomy [6] - The company is exploring opportunities in the deep-sea mining sector, leveraging its autonomous capabilities for safe and cost-efficient operations [6][7] Company Strategy and Development Direction - The company is focused on scaling its technology for commercial deployment and enhancing its operational capabilities [4][6] - A new $250 million equity facility was announced to support emerging opportunities, particularly in deep-sea mining [6][12] - The strategic expansion into various ocean industries highlights the versatility of the company's technology [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term strategy and the support from lenders, which positions the company well for maintaining its Nasdaq listing [12] - The focus remains on executing current workflows while exploring opportunities in ocean minerals, with a strong emphasis on immediate customer contracts [41][43] - Management acknowledged the challenges of supply chain management but indicated proactive measures are in place to mitigate risks [35][82] Other Important Information - The company plans to host an Investor Day in early 2026 to showcase its technology and operations [25] - Management emphasized the importance of commercial adoption of technology over mere promotion [56] Q&A Session Summary Question: How should we think about the enhanced margin potential for software-only retrofits compared to full-stack new-build vehicle sales? - Management indicated that gross margins on software are in the 80% plus range, making it a significant opportunity for cash flow generation [29][30] Question: Would acquiring existing vehicles in operation help accelerate scaling operations? - Management is exploring the acquisition of untethered vehicles to quickly scale operations, as demand for their technology is strong [33][34] Question: What is the current environment regarding supply chain and tariff risks? - Management reported that supply chain management remains challenging but proactive measures have been taken to secure necessary parts [35][36] Question: What is the plan to address NASDAQ compliance issues? - Management is focused on achieving the necessary shareholder equity level and has commitments from lenders to support this goal [51][52] Question: How can the company improve communication with capital markets and investor relations? - Management acknowledged the need for better communication and plans to increase the frequency of updates regarding milestones and technology adoption [56][57]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 19.6%, reflecting strong performance across core businesses and contributions from the innovation portfolio [11][15][35] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits, leading to a net interest margin (NIM) of 6.6% [16][31] - The cost of risk fell to 1.7%, indicating improved asset quality and risk management [15][16][32] Business Line Data and Key Metrics Changes - Universal Banking and Insurance and Pensions delivered strong results, while Microfinance progressed towards its profitability target [11][15] - Fee-based and transactional income grew, with Yape contributing significantly to the overall revenue [11][24] - Mibanco's profitability rose to 18.8%, supported by increased loan disbursements and improved credit risk management [26] Market Data and Key Metrics Changes - Peru's GDP growth for 2025 is projected at 3.4%, driven by higher export prices and increased domestic consumption [9][18] - Inflation in Peru remains low, forecasted at 1.8% for 2025, which is within the central bank's target range [10][19] - The macroeconomic environment in the region shows signs of recovery, with positive indicators in Chile and Colombia [10][19] Company Strategy and Development Direction - The company is focused on three key pillars: scaling its digital ecosystem, unlocking growth through business synergies, and maintaining discipline in profitability and capital allocation [5][6][7] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [7][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic resilience of Peru despite political changes, emphasizing the company's diversified strategy and strong capital position [8][9] - The outlook for 2026 anticipates continued GDP growth, supported by favorable terms of trade and increased private consumption [9][18] Other Important Information - The company aims to expand its digital engagement strategy, with Yape targeting 18 million users by 2028 [24] - The insurance underwriting results showed a year-over-year increase of 23%, driven by improved performance in the life business [29] Q&A Session Summary Question: Regarding asset quality and cost of risk - Analyst inquired about the better-than-expected performance in asset quality and whether the guidance for cost of risk is too conservative [41][42] - Management acknowledged the positive results and indicated that the cost of risk is expected to be around the lower end of the guidance [45][46] Question: On operating expenses growth - Analyst asked about the growth of operating expenses and its breakdown between core business and innovation initiatives [47] - Management confirmed that operating expenses growth is within guidance and will likely slow in the core business while remaining stable in innovation [48] Question: Impact of political uncertainty on growth - Analyst questioned the potential deceleration in growth due to upcoming elections [53] - Management noted historical trends of minimal impact on long-term growth but acknowledged a possible slowdown in the first quarter [55][56] Question: Loan growth guidance - Analyst sought clarification on the loan growth guidance and whether it considers FX adjustments [70] - Management confirmed that the guidance is nominal and includes adjustments for Bolivia's restatement [72] Question: Future contributions from Yape - Analyst inquired about the potential for Yape's contribution to reach double digits by 2026 [64] - Management expressed confidence in achieving this target [65] Question: Outlook for Bolivia post-political shift - Analyst asked about the potential positive impacts of the new government in Bolivia [80] - Management indicated optimism regarding the new government's pro-market stance and its potential benefits for operations in Bolivia [82]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 19.6%, reflecting strong performance across core businesses and contributions from the innovation portfolio [11][15] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits, leading to a net interest margin (NIM) of 6.6% [16][34] - The non-performing loan (NPL) ratio improved to 4.8%, with a cost of risk falling to 1.7% due to enhanced risk management [15][16] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions delivered strong results, while microfinance progressed towards profitability targets [11][15] - In retail banking, loans grew by 3% year-over-year, with NPL volumes declining, particularly among individuals and SMEs [20][22] - Mibanco's profitability rose to 18.8%, supported by increased loan disbursements and improved credit risk management [26] Market Data and Key Metrics Changes - Peru's GDP growth for 2025 is projected at 3.4%, driven by higher export prices and increased domestic consumption [9][18] - Inflation in Peru remains low, forecasted at 1.8% for 2025, allowing for a stable economic environment [10][19] - The macroeconomic environment in the region shows signs of recovery, with Colombia's GDP expected to grow by 2.3% in 2025 [10] Company Strategy and Development Direction - The company is focused on three strategic pillars: scaling its digital ecosystem, unlocking growth through business synergies, and executing with discipline to enhance profitability [5][6][7] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [7] - The company aims to deepen financial inclusion and expand monetization through platforms like Yape, Tempo, and Guarda [6][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic outlook despite political uncertainties, citing strong private investment and consumption [17][18] - The company expects to navigate the dynamic external environment with a focus on long-term value creation [8][11] - Future loan growth is anticipated to be robust, supported by favorable economic conditions and strategic initiatives [37] Other Important Information - The company aims to expand its user base for Yape to 18 million by 2028, with significant room for monetization [24] - The insurance underwriting results showed a year-over-year increase of 23%, driven by improved performance in the life business [29][30] - The efficiency ratio for the first nine months of the year stood at 45.7%, reflecting disciplined cost management [35] Q&A Session Summary Question: Regarding asset quality and cost of risk - Analyst inquired about the better-than-expected NPLs and cost of risk, questioning if the guidance was too conservative [41][42] - Management acknowledged the positive results due to improved risk management and a dynamic economic backdrop, expecting cost of risk to be around 1.8% [45][46] Question: On operating expenses growth - Analyst asked about the growth of operating expenses and its breakdown between core business and innovation initiatives [47] - Management indicated that operating expenses growth was planned and expected to be lower in the core business while remaining stable in innovation [48] Question: On growth expectations for the first quarter of the next year - Analyst expressed concerns about potential deceleration due to political uncertainty and asked about ROE levels [53] - Management noted that while there may be a slowdown in the first quarter, the overall economic indicators remain strong [56][58] Question: Regarding loan growth guidance - Analyst sought clarification on whether the loan growth guidance was nominal and if it would be achieved [69][72] - Management confirmed that the guidance is nominal and considers the adjustment from Bolivia's restatement, expressing confidence in achieving the target [72] Question: On Bolivia's political changes and their impact - Analyst asked about the potential positive effects of Bolivia's new government on the company's operations [80] - Management expressed optimism about the new government's pro-market stance and its potential benefits for BCP Bolivia [82] Question: On capital returns and dividends - Analyst inquired about future capital returns and dividend expectations [85] - Management indicated an expectation for higher payout ratios in the coming years, with a focus on increasing ordinary dividends [87]

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 19.6%, reflecting strong performance across core businesses and contributions from the innovation portfolio [10][13] - Total assets contracted by 2.1% year-over-year due to the revaluation of Bolivia's balance sheet [13] - Net interest income increased by 2.7%, supported by a contraction in interest expenses and an increase in low-cost deposits [15][31] Business Line Data and Key Metrics Changes - Universal banking and insurance and pensions delivered strong results, while microfinance progressed towards its profitability target [10] - Fee-based and transactional income grew, with gains on foreign exchange transactions rising by 23.4% [15][33] - Yape contributed 6.6% of Credicorp's risk-adjusted revenue, with plans to expand its user base and revenue streams significantly by 2028 [24][25] Market Data and Key Metrics Changes - Peru's GDP growth for 2025 is projected at 3.4%, driven by higher export prices and increased domestic consumption [8][17] - Inflation in Peru is forecasted to remain below 2%, with the central bank's policy rate cut to 4.25% [9][18] - Economic conditions in Chile and Colombia are improving, with GDP growth expected to rise in both countries [9][18] Company Strategy and Development Direction - The company is focused on three key pillars: scaling its digital ecosystem, unlocking growth through business synergies, and executing with discipline on profitability and capital allocation [4][5] - The medium-term targets include an ROE of 19.5% and an efficiency ratio around 42% over the next three to four years [5] - The company aims to deepen financial inclusion and scale monetization through its digital platforms [24] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the economic resilience of Peru despite political changes, emphasizing a strong capital and liquidity position [6][7] - The macroeconomic environment is stable, with expectations for continued growth supported by favorable terms of trade and domestic demand [8][9] - The company anticipates a gradual increase in the cost of risk as it shifts towards higher-yield segments in its loan portfolio [41] Other Important Information - The efficiency ratio for the first nine months of the year stood at 45.7%, with operating expenses growing primarily due to investments in innovation [34][36] - The company expects to maintain its full-year ROE guidance at around 19%, reflecting solid core performance and disciplined risk management [38] Q&A Session Summary Question: Regarding asset quality and cost of risk - The company noted that asset quality has improved, with NPLs and cost of risk performing better than expected, and guidance for cost of risk is around 1.8% [40][41] Question: On operating expenses growth - Management indicated that operating expenses growth is planned and will likely be lower in the core business while remaining stable in innovation initiatives [42] Question: About growth expectations in the first quarter of the upcoming year - Management expects some slowdown in the first quarter due to elections but does not anticipate a significant reduction in long-term growth [43][45] Question: Impact of the eighth pension fund withdrawal - The withdrawal is expected to have a positive impact on local funding but may reduce loan growth by about half a percentage point next year [57] Question: Update on Yape's unit economics - The company is scaling multi-installment loans in Yape, which are showing positive business metrics [59]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported a net loss of $2.2 million, compared to a loss of $0.8 million in Q3 2024 and $4.7 million in Q2 2025, indicating improved financial performance year-over-year [11][12] - Cash and short-term liquid investments increased to $2.7 million at the end of Q3, up by $2.1 million from the previous quarter [12] - The company announced a $10 million share buyback program, with 19,700 shares repurchased, reflecting confidence in its intrinsic value [13] Business Line Data and Key Metrics Changes - The company operationalized two new ArrivePoints into monthly service, leading to an increase in recurring subscription revenue [11] - Project-based consulting revenue is expected to fluctuate, as these projects typically last three to four months and culminate in recurring subscriptions [11] Market Data and Key Metrics Changes - The company expanded partnerships with AllMart, ACT Antigua, and Skye Air Mobility in India for international module deployment, indicating growth in international markets [7][14] - Regulatory momentum from the FAA's proposed beyond visual line of sight rule is seen as a key enabler for autonomous operations in the U.S. [7] Company Strategy and Development Direction - The five-year roadmap positions the company as a critical autonomous logistics management network, aiming for a 20x valuation increase by year five [8] - The focus is on commercialization and operational excellence, productizing the third-generation AP3 units, and refining the platform for scale [19][20] - The company is pursuing an America-first manufacturing strategy to strengthen domestic production capacity and reduce dependency on foreign supply chains [15] Management's Comments on Operating Environment and Future Outlook - Management believes the company is at the precipice of several catalyzing events that could lead to substantial share price appreciation [19] - The transition from pilot programs to scalable deployments is emphasized, with ongoing projects serving as proof points for nationwide expansion [19] - The company is focused on executing strategic priorities, including team expansion and advancing the AP3 line for scalability and cost efficiency [20] Other Important Information - The company secured its ninth U.S. patent, reinforcing its leadership in autonomous delivery innovation [17] - The legal and compliance infrastructure has been expanded to manage data, privacy, and cybersecurity across domestic and international markets [18] Q&A Session Summary Question: What is the thought of the next expansion step after current hospital testing? - The next step involves linking Hancock's satellite facilities to the main hospital autonomously [26] Question: What competitive advantages does the company have in the drone space? - The company is future-proofed by a multimodal strategy that is agnostic to delivery methods, enhancing utility with regulatory support [31] Question: What is the detailed growth plan for Arrive AI in the next few years? - The growth strategy includes establishing a network paradigm with major partners and rolling out geographically, similar to Uber's approach [35] Question: How is the company balancing innovation with governance and transparency? - The company maintains a culture of transparency and regular updates, ensuring compliance and operational readiness [36] Question: What is the timeline for the availability of ArrivePoints for customers? - The rollout will take several years, focusing on establishing network capabilities with partners before reaching end users [40] Question: What is the target pricing for ArrivePoints? - The company is innovating on pricing models, aiming for low price points and potential sponsorships to make them affordable [43] Question: How is the growth being financed given the current revenue trajectory? - The company is using proceeds from its equity line to fund operations and R&D, with a runway extending into 2027 based on current forecasts [86]

Financial Data and Key Metrics Changes - The company reported an EBITDA of COP 12.3 trillion for the third quarter, with an EBITDA margin of 41% and a net income of COP 2.6 trillion, reflecting a recovery from the previous quarter [28][29] - Year-to-date investment reached nearly $4.2 billion, representing 72% of the annual target [8][37] - Cumulative EBITDA for the year reached COP 36.7 trillion, demonstrating strong adaptability despite external pressures [29] Business Line Data and Key Metrics Changes - The exploration and production segment achieved a total accumulated production of 751,000 barrels of oil equivalent per day, aligning with the target range of 740,000-750,000 [12][29] - The refining segment saw throughput rebound to approximately 429,000 barrels per day, marking the second highest quarterly level in its history [16][17] - The midstream segment transported an average of 1,118,000 barrels per day, reflecting a 1% increase compared to the third quarter of 2024 [15] Market Data and Key Metrics Changes - The average production for the year was 751,000 barrels per day, supported by strong contributions from domestic and international operations [4][12] - The company reported a 15% decline in Brent prices year to date, impacting overall financial performance [28] Company Strategy and Development Direction - The company is focused on reinforcing core business operations, maintaining financial discipline, and advancing strategic projects related to energy transition [4] - A multimodal logistics initiative was launched to enhance export capabilities, with projected annual benefits of $1 million-$2 million [7] - The company is committed to sustainability, having reduced greenhouse gas emissions by 379,000 tons of CO2 equivalent and increased renewable energy capacity to 234 megawatts [8][9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and maintaining operational stability despite external pressures [28] - The company anticipates a challenging price environment in 2026 but remains committed to maintaining low lifting costs and capital discipline [38] - The management emphasized the importance of energy security and the ongoing integration of renewable energy sources [39] Other Important Information - The company achieved ISO 37001 certification, reflecting its commitment to ethical business conduct [9] - The workplace environment index improved from 60 to 68, indicating a focus on employee well-being and sustainable growth [9] Q&A Session Summary Question: Clarification on the potential sale of the Permian asset - Management clarified that there is no formal instruction or political request to sell the Permian asset, and any decision will be rigorously analyzed by the board [40][42] Question: Impact of a senior management member potentially being on the OFAC list - The company has a robust compliance system in place to monitor risks and ensure operational continuity [43][44][45] Question: Exchange rate impact on operating earnings - A sensitivity analysis indicated that a COP 100 variation in the exchange rate could affect net profit by COP 700 billion, with current rates positively impacting EBITDA [48][52] Question: Government assistance for the Sirius project - The company is working closely with the government to facilitate the Sirius project, with a timetable established for consultations [49][56] Question: Production growth outlook for 2026 amid oil price volatility - Management expects to maintain production levels similar to 2025, with ongoing assessments of the investment plan [65][67] Question: Refining margins and future expectations - The company is focused on improving operational efficiency and maximizing valuable products to enhance refining margins [69][83] Question: Dividend policy amid lower net income - The company plans to maintain its dividend distribution policy within the range of 40% to 60% of distributable profit [86]