Meritage Homes (NYSE:MTH) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsAlan Ratner - Managing DirectorAlex Barron - FounderEmily Tadano - VP of Investor RelationsHilla Sferruzza - EVP and CFOJason Sabshon - Equity Research AssociateJohn Lovallo - UBSPhillippe Lord - CEOStephen Kim - Senior Managing DirectorSteve Hilton - Executive ChairmanConference Call ParticipantsMichael Rehaut - Executive Director and Senior AnalystRafe Jadrosich - Senior Equity Research AnalystTrevor Allinson ...

Valero Energy (NYSE:VLO) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsBrian Donovan - Head of Investor RelationsEric Fisher - EVP ana CCOGary Simmons - EVP and COOHomer Bhullar - VP Investor Relations and FinanceR. Lane Riggs - Chairman, CEO and PresidentRichard Walsh - EVP and General CounselSam Margolin - Managing DirectorConference Call ParticipantsDouglas George Blyth Leggate - AnalystJason Daniel Gabelman - AnalystJean Ann Salisbury - AnalystJoseph Gregory Laetsch - AnalystMat ...

The Sherwin-Williams Company (NYSE:SHW) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Company ParticipantsBen Meisenzahl - VP of Investor RelationsChris Parkinson - Managing DirectorDavid Begleiter - DirectorGarik Shmois - Managing DirectorGreg Melich - Senior Managing DirectorHeidi G. Petz - Chair, President, and CEOJim Jaye - Head of Investor Relations and CommunicationsJohn Roberts - Managing DirectorJosh Spector - Executive Director of Chemicals Equity ResearchKevin McCarthy - PartnerVincent Andrew ...

Financial Data and Key Metrics Changes - The company reported a stable production profile throughout the year, with first-half capital expenditures (Capex) expected to account for about 60% of the total annual Capex [9] - Current production levels are generating approximately $30 million annually under the proposed guidance for the 45Z program [11] - The average drilling cost for Utica wells is approximately $1,700 per foot, with performance aligned with expectations [27] Business Line Data and Key Metrics Changes - The RMG business line has seen stable pricing in the PA Tier 1 REC market, with expectations for future price increases tied to stricter renewable energy standards [10] - The company is completing about 5 Utica laterals this year, indicating confidence in the Utica program despite a lower number of turn-in-lines than expected [17] Market Data and Key Metrics Changes - Coal mine methane volumes have experienced a modest year-over-year decline, primarily driven by underlying mining activity [30] - The company is approximately 60% hedged for 2027, targeting a weighted average NYMEX price of about $4, which is favorable for business performance [32][34] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to material changes in gas prices, with plans to potentially add frac activity in the second half of 2026 [25][26] - Long-term strategies involve waiting for infrastructure and demand projects to materialize before increasing production volumes [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in operational preparedness during extreme cold weather events, indicating no expected disruptions to operations or volumes [19] - The company is cautious about increasing production without clear visibility on future gas prices, emphasizing a long-term approach rather than reacting to short-term market fluctuations [39] Other Important Information - The company is exploring new technologies, such as AutoStep, which has been adopted for flowbacks, but currently does not contribute materially to financial results [21] - The company has a remaining inventory of approximately 40,000-50,000 acres in the core Southwest PA Marcellus area, which is expected to last into the next decade [46] Q&A Session Summary Question: Inquiry about capital and production profile - Management indicated that first-half Capex would be about 60% of the total, allowing flexibility for potential acceleration in the second half [9] Question: Outlook on RMG business line pricing - Management noted that the PA Tier 1 REC market has stabilized, with future price increases dependent on stricter renewable energy standards [10] Question: Clarification on Utica program size - Management clarified that the smaller program size is due to timing, with confidence in the Utica program remaining strong [17] Question: Expectations for operational disruptions due to weather - Management confirmed that they do not expect any disruptions, as preparations have been made [19] Question: Update on new technology business - Management stated that while AutoStep technology is being adopted, it has not yet materially impacted financial results [21] Question: Hedging strategy for 2027 - Management confirmed they are approximately 60% hedged for 2027, targeting a favorable NYMEX price [32][34] Question: Incremental takeaway and infrastructure projects - Management noted that while some projects are proposed, there is currently no material movement off maintenance production levels [42]

Financial Data and Key Metrics Changes - The company has not provided specific financial data or key metrics changes in the call [2][3] Business Line Data and Key Metrics Changes - The capital expenditure (Capex) for the first half of the year is expected to be about 60% of the total annual Capex, with production remaining flat throughout the year [10] - The RMG business line's pricing outlook is stable, with a long-term expectation for prices to increase as renewable energy standards tighten [11] - Current production levels for the 45Z initiative are generating about $30 million annually, with potential adjustments pending final guidance [12] Market Data and Key Metrics Changes - The coal mine methane volumes have seen a modest year-over-year decline, primarily driven by mining activity at specific sites [29] Company Strategy and Development Direction - The company is focused on maintaining production levels while being responsive to changes in gas prices, with plans to potentially add frac activity in the second half of 2026 [24][38] - There is a strategic emphasis on long-term demand growth, particularly in relation to new infrastructure and power projects, rather than short-term production increases [38] Management's Comments on Operating Environment and Future Outlook - Management has expressed confidence in their operational preparedness for extreme weather events, indicating no expected disruptions to operations or volumes [19] - The company is optimistic about the Utica program, clarifying that the current lower number of turn-in-lines is a timing issue rather than a lack of confidence in the project [16][17] Other Important Information - The company is currently over 60% hedged for 2027, targeting an 80% hedge as they approach that year [30][31] Q&A Session Summary Question: Inquiry about capital and production profile - The company expects first-half Capex to be about 60% of the total, with a flat production profile throughout the year, allowing flexibility for potential acceleration in the second half [10] Question: Outlook on RMG business line pricing - The RMG pricing has stabilized, with long-term expectations for increases tied to renewable energy standards [11] Question: Clarification on Utica program size - The smaller program size is attributed to timing, with confidence in the Utica program remaining strong [16][17] Question: Impact of weather on operations - Management does not anticipate any disruptions from weather events, as preparations have been made [19] Question: Update on new technology business - The AutoStep technology has been adopted internally, with expectations for increased adoption in 2026, though it has not yet materially impacted financials [21] Question: Hedging strategy for 2027 - The company aims to be approximately 80% hedged for 2027, with a current average NYMEX price of about $4 [30][31]

Financial Data and Key Metrics Changes - The company achieved a strong fourth quarter performance with organic revenue growth of 4% and adjusted EPS growth of 10% [6][11] - Free cash flow remained robust, supporting strategic M&A, dividends, and share repurchases [4][5] - The company reported a record backlog of $7.8 billion, with exceptional enterprise organic bookings up 22% [6][8] Business Line Data and Key Metrics Changes - Americas Commercial HVAC bookings increased by over 35% year-over-year, contributing significantly to the overall growth [6][10] - Applied Solutions bookings surged more than 120%, achieving a record book-to-bill ratio of 200% [6][10] - EMEA HVAC bookings grew mid-teens, while residential bookings were up mid-single digits, but revenues declined mid-teens due to inventory normalization [10][11] Market Data and Key Metrics Changes - The Americas Commercial HVAC market showed strong growth, while residential markets faced challenges with a projected decline of up to 5% [10][14] - EMEA transport markets are expected to be flat to modestly lower, while Asia Pacific faced challenges, particularly in China, with double-digit declines in bookings and revenue [10][15] Company Strategy and Development Direction - The company emphasizes a purpose-driven strategy focused on sustainability and performance, positioning itself to meet growing energy demands through innovation [3][4] - Continued investment in services and digital capabilities is expected to drive growth, particularly in the commercial HVAC sector [9][18] - The acquisition of Stellar Energy is aimed at enhancing modular design capabilities and addressing supply chain constraints [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong growth for 2026, driven by exceptional bookings and a robust backlog [10][14] - The outlook for the residential market is cautious, with expectations of a gradual recovery in the second half of 2026 [14][15] - Management highlighted the importance of disciplined execution and innovation in maintaining competitive advantage [3][21] Other Important Information - The company plans to deploy between $2.8 billion and $3.3 billion in 2026, with a focus on strategic M&A and share repurchases [18][19] - The company expects to maintain a strong balance sheet and free cash flow conversion of 100% or greater [16][17] Q&A Session Summary Question: Guidance on revenue for Americas Commercial HVAC - Management indicated strong bookings growth in the second half of 2025, expecting revenue growth of 7%-8% in Q1 2026, increasing to low teens in the second half [22][24] Question: Confidence in U.S. Residential HVAC inventory and pricing - Management confirmed that inventory levels are normalized and pricing has not faded, with expectations of flat to down 5% in 2026 driven by volume [25][26][28] Question: Broadening of orders among end markets - Management noted broad-based growth across multiple verticals, including data centers, with encouraging signs in previously weak sectors like retail and office [33][34] Question: Impact of customer lead times on orders - Management stated that there have been no significant changes in lead times, maintaining competitiveness in delivery [39][40] Question: European margins and price-cost dynamics - Management expects European margins to improve in 2026, with a target of 25% or better organic incrementals across segments [48][50] Question: Biopharma reshoring visibility - Management is optimistic about large pharma projects related to reshoring, tracking several mega projects in the pipeline [78][80] Question: Data center HVAC content and future trends - Management believes the fraction of spending on HVAC in data centers will remain stable, with innovations in thermal management systems expected [87][88]

Financial Data and Key Metrics Changes - In 2025, the company achieved nearly $18 billion in total revenue, with a 33% year-over-year earnings growth and a record 9.4 million vacations delivered [4][19] - Adjusted earnings per share (EPS) for the fourth quarter was $2.80, exceeding guidance, while full-year adjusted EPS grew 33% to $15.64 [8][19] - Operating cash flow for the year was approximately $6.5 billion, with $2 billion returned to shareholders through dividends and share buybacks [4][19] Business Line Data and Key Metrics Changes - The fourth quarter saw net yields grow by 2.5% on a constant currency basis, driven by both new and existing hardware [18] - Total revenue growth in the fourth quarter was 13%, with adjusted EBITDA growing by 17.6% to just over $7 billion [18][19] - The company is expanding its Celebrity River Cruises fleet with a commitment for 10 additional ships, increasing the fleet to 20 vessels by 2031 [5][15] Market Data and Key Metrics Changes - The Caribbean represents 57% of the company's capacity, with an 8% growth compared to last year, and Caribbean yields have increased by 35% since 2019 [21] - European capacity is growing by 5% year-over-year, with strong demand from both American and European consumers [22] - Alaska is expected to account for 5% of total capacity, up 3% from last year, with premium hardware deployed in the region [22] Company Strategy and Development Direction - The company is focused on creating a lifetime of vacations for guests by strengthening its ecosystem, which includes differentiated experiences, exclusive destinations, and an industry-leading loyalty program [13][14] - Investments in technology and AI are aimed at enhancing guest experiences and operational efficiency, with a 25% year-over-year increase in active users on the app [15][16] - The launch of the new Discovery Class ships is part of the company's innovation roadmap to enhance guest experiences and maintain leadership in the vacation space [6][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, with a strong start to 2026 and record booking rates [10][12] - The company anticipates double-digit revenue growth for 2026, with adjusted EPS expected to be in the range of $17.70-$18.10, representing a 14% year-over-year increase [13][25] - Management noted that consumer demand remains strong, with 40% of consumers planning to increase leisure travel spending in the next year [11] Other Important Information - The company is committed to investing $5 billion in strategic growth initiatives while maintaining an investment-grade balance sheet [25][26] - Fuel efficiency is improving, with a projected fuel expense of approximately $1.17 billion for the year, and 60% of fuel consumption is hedged [24] Q&A Session Summary Question: Can you elaborate on the further acceleration and momentum into 2026? - Management noted strong consumer demand and an increase in loyalty program participation, which is driving high-quality demand [30][31] Question: What is the current state of the Caribbean market regarding pricing and capacity? - Management indicated strong demand trends in the Caribbean, with pricing higher than last year, despite concerns about increased capacity [36][39] Question: How does the company view its organic versus inorganic growth? - Management stated that half of the yield growth will come from new hardware, with the other half from like-for-like improvements [42][44] Question: Can you discuss the new Discovery Class ship order? - Management expressed excitement about the Discovery Class ships, indicating they will be a game changer, but provided limited details at this time [51][53] Question: What is the outlook for net cruise costs? - Management expects net cruise costs to follow their established formula, with a focus on maintaining a spread between yield growth and cost growth [54][55]

Southwest Airlines (NYSE:LUV) Q4 2025 Earnings call January 29, 2026 10:00 AM ET Speaker13Hello, everyone, and welcome to the Southwest Airlines Fourth Quarter 2025 conference call. My name is Jamie, and I will be monitoring today's conference call, which is being recorded. A replay will be available on southwest.com in the Investor section. After today's remarks, there's an opportunity to ask questions. To queue up for an opportunity to ask a question, please press Star and One. To withdraw your question, ...

Financial Data and Key Metrics Changes - ConnectOne Bancorp ended 2025 with $14 billion in assets and a market cap exceeding $1.4 billion, marking a significant transition beyond the $10 billion asset threshold [4] - The bank's net interest margin widened significantly over the past quarter and year, with operating earnings for the current quarter representing an 18.6% increase sequentially over the third quarter [9][10] - The tangible common equity ratio increased to 8.62 as of year-end, with expectations to reach 9% [15][22] Business Line Data and Key Metrics Changes - Client deposits increased by approximately 5% on an annualized basis during the second half of 2025, reflecting strong relationship inflows and a reduction in broker deposits [5] - The loan portfolio grew by an annualized 5%, driven by strong originations, although offset by elevated payoffs due to higher refinancing rates [6][12] - The percentage of non-interest-bearing demand deposits increased from 17% to over 21%, while brokerage deposits declined from 12% to 6% of total assets [8] Market Data and Key Metrics Changes - The bank's performance metrics improved significantly, with a quarterly operating return on assets rising to 1.24% and a return on tangible common equity reaching 14.3% [9] - The bank anticipates modest loan portfolio growth in the 3%-5% range due to expected higher payoffs [12] Company Strategy and Development Direction - ConnectOne Bancorp is focused on maintaining a client-first culture and optimizing its balance sheet while leveraging its size and scale for sustainable growth [16] - The company plans to consolidate five branch locations as part of its branch rationalization efforts, aiming for improved revenue and operating synergies [7][11] - The management emphasizes a disciplined approach to M&A, focusing on opportunities within the New York Metro market [78] Management's Comments on Operating Environment and Future Outlook - Management recognizes competitive pressures, political developments, and broader market sentiment as ongoing challenges but remains committed to executing its long-term vision [7] - The bank expects to continue seeing margin expansion and improved operating efficiencies, with a focus on generating profitable growth [9][10] Other Important Information - The effective tax rate was adjusted downward to 26% for the quarter, with expectations of a go-forward rate of 28% [14] - The bank recorded a relatively low provision for loan losses this quarter, with a slight increase in the non-performing asset ratio to 0.33 from 0.28 [13][14] Q&A Session Summary Question: Capital stack and preferred redemption - Management focuses on tangible common equity and aims to reach a ratio of 9% to enable dividend increases and stock buybacks [22] Question: M&A likelihood in 2026 - M&A activity is increasing, but decisions will depend on financial discipline and the value of potential transactions [23][24] Question: Cash balances and loan deployment - The bank will continue to transition cash into loan balances, expecting higher growth in loans than in assets [25] Question: Expense outlook and branch rationalization timing - Branch closures will occur at the end of Q1, with staff changes expected mid-year, leading to a sequential increase in expenses [32] Question: Deposit competition and rising costs - Competition for deposits has intensified, but the bank is prepared to adjust rates as necessary [35] Question: Loan pipeline size and average rate - The loan pipeline is approximately $600 million with an average weighted rate of 6.2% [43] Question: Loan growth outlook and payoffs - Loan growth is expected to be modest due to competitive pressures and higher payoffs [67] Question: Use of new technologies and AI - The bank is leveraging AI and technology to improve operational efficiencies and reduce labor costs [71][73] Question: M&A market and potential targets - The focus remains on the New York Metro market, with flexibility to consider compelling opportunities outside this area [78]

Financial Data and Key Metrics Changes - Consolidated sales in Q4 2025 increased by a mid-single-digit percentage, with a low single-digit contribution from the Suvinil acquisition [3] - Adjusted diluted net income per share in the quarter increased by 6.7% [3] - Adjusted EBITDA in the quarter grew 13.4% and expanded 100 basis points to 17.7% as a percentage of sales [3] - Free cash flow conversion in the quarter was 90.1% [3] - Full-year net operating cash grew 9.4% to $3.5 billion, or 14.6% of sales [9] - Free cash flow for the year was $2.7 billion, with a conversion rate of 59% [10] - The company ended 2025 with a net debt to adjusted EBITDA ratio of 2.3x [11] Business Segment Data and Key Metrics Changes - Paint Stores Group sales increased by a low single-digit percentage, with high single-digit growth in Protective and Marine [11] - Consumer Brands Group sales grew by a low single-digit percentage, driven by the Suvinil acquisition, while underlying sales decreased by low single digits [12] - Performance Coatings Group sales were flat overall, with strength in packaging and auto refinish, and adjusted segment margin improved by 150 basis points to 19% [5][12] Market Data and Key Metrics Changes - The residential repaint segment remains a significant growth opportunity, despite a challenging demand environment [17] - The new residential market is expected to decline at least in the mid-single-digit range due to negative single-family starts [18] - The Architectural Billings Index has continued its long run of negative readings, indicating a challenging commercial segment [19] Company Strategy and Development Direction - The company focuses on creating opportunities and controlling costs amid a challenging operating environment [9] - Strategic investments continue, including the acquisition of Suvinil and the opening of a new global headquarters [10] - The company aims to outperform the market despite a difficult demand backdrop, emphasizing share gains and customer relationships [21][28] Management's Comments on Operating Environment and Future Outlook - The management anticipates a softer demand environment to persist into 2026, with cautious consumer sentiment providing little support for recovery [16] - The company remains committed to its customer-first strategy and is focused on winning new business and maintaining pricing discipline [28] - Management expressed confidence in the company's ability to navigate challenges and generate growth despite market conditions [27] Other Important Information - The company plans to open 80-100 net new stores in the U.S. and Canada in 2026 [26] - An annual dividend increase of 1.3% to $3.20 per share is recommended, marking the 48th consecutive year of dividend increases [26] Q&A Session Summary Question: Performance Coatings segment margin outperformance - Management attributed the margin outperformance to discipline and focus on SG&A control, with strong new business wins contributing to improved margins [32][34] Question: SG&A outlook for 2026 - SG&A is expected to grow by a low single-digit percentage, factoring in the reinstatement of the 401(k) match and cost control measures [37][40] Question: Impact of severe winter weather on demand trends - Management noted that weather impacts are typical and do not raise concerns for current demand trends [61] Question: Residential Repaint sales performance - Management indicated that while sales were up low single digits, they remain confident in the segment's potential for share gains [74][75] Question: Consumer Brands performance expectations - Management highlighted challenges in the North American DIY market but remains optimistic about the Suvinil acquisition and its integration [78][82]