Financial Data and Key Metrics Changes - The company reported full-year Adjusted EBITDA of $248 million for 2025, an 8% increase from 2024, exceeding prior guidance [5][6] - Pro forma net income for the year was $89 million, or $0.57 per share, with fourth-quarter Adjusted EBITDA of $62 million and pro forma net income of $32 million, or $0.20 per share [6][9] - Cash available for distribution (CAD) increased to $199 million in 2025 from $141 million in the prior year, driven by higher Adjusted EBITDA and lower cash interest expenses [10][12] Business Line Data and Key Metrics Changes - Southern Timber segment generated fourth-quarter Adjusted EBITDA of $32 million, down 8% year-over-year due to lower stumpage realizations, despite higher harvest volumes [7][13] - Pacific Northwest Timber segment reported fourth-quarter Adjusted EBITDA of $5 million, a 24% decline from the prior year, primarily due to a 26% decrease in harvest volumes [16][17] - Real estate segment achieved Adjusted EBITDA of $127 million for 2025, significantly above guidance, with fourth-quarter revenue of $42 million from approximately 3,800 acres sold [18][19] Market Data and Key Metrics Changes - The Southern Timber segment faced challenges with pulpwood pricing, which was down 27% year-over-year due to weaker demand and recent mill closures [14][15] - In the Pacific Northwest, average delivered domestic sawlog pricing decreased 3% year-over-year, while pulpwood pricing increased 26% due to reduced availability of sawmill residuals [17] - The real estate market showed strong demand for rural and development properties, with significant premiums to timberland value, particularly in Texas and Florida [36][38] Company Strategy and Development Direction - The merger with PotlatchDeltic is expected to create a premier land resources company with a diversified timberland portfolio and enhanced operational efficiencies [3][4] - The company aims to focus on disciplined capital allocation and synergies from the merger, with an estimated $40 million in run-rate synergies by the end of year two [29][30] - The company is optimistic about long-term value creation through land-based solutions, including solar and carbon capture projects [28][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the timber and lumber markets, despite current challenges [27][52] - The company anticipates improved demand and pricing in the Southern Timber segment as supply tightens due to hurricane impacts [15][52] - For 2026, the company expects full-year harvest volumes to increase due to the merger, with a conservative outlook on pricing in the Southern Timber segment [22][23] Other Important Information - The company repurchased approximately 110,000 shares at an average price of $26.31 prior to the merger announcement, with $230 million remaining on the share repurchase authorization [11][12] - A special dividend of $1.40 per share was paid, reflecting taxable gains from the sale of a New Zealand joint venture [11][12] Q&A Session Summary Question: Can you provide insights on the real estate segment's performance and expectations for 2026? - Management noted that real estate sales are lumpy and significantly impacted by larger transactions, with strong premiums to timberland value driving outperformance [34][36] Question: What factors influenced the initial harvest guidance for the combined companies? - The guidance reflects a partial year contribution from PotlatchDeltic and aligns with Rayonier's historical sustainable yield [48][49] Question: Are there signs of stabilization in the pulpwood market? - Management indicated that while recent pressures have been challenging, they expect long-term improvements as supply tightens due to hurricane impacts [51][52] Question: What is the company's stance on M&A opportunities in the current market? - The timberland M&A market remains competitive, but the company sees share repurchases as a more attractive use of capital at this time [60][61] Question: How does the company view the integration of wood products within the timberlands portfolio? - Management believes that the integrated model will benefit shareholders over time, with a focus on maximizing returns on capital allocation [76][77]

Financial Data and Key Metrics Changes - The company reported consolidated revenue of $20.3 million for Q3 fiscal 2026, with a total of over $58 million in revenue for the nine months ending December 31, 2025 [4][14] - Adjusted EBITDA for Q3 was $2.6 million, contributing to a total of over $3.7 million for the audio division in the nine-month period [5][14] - The company posted a net loss of $4.1 million or 37 cents per diluted share for Q3 fiscal 2026 [14] Business Line Data and Key Metrics Changes - The audio division generated $52.2 million in revenue over nine months, with Q3 revenue of $18.6 million [5][14] - PodcastOne subsidiary achieved record revenue of $15.9 million and adjusted EBITDA of $2.8 million in Q3 [14][15] - Slacker subsidiary reported Q3 revenue of $2.8 million with an adjusted EBITDA of negative $0.1 million [14] Market Data and Key Metrics Changes - The company is trading at 60% of revenues, while the industry is trading over 3x revenues, indicating a significant undervaluation [6] - The B2B pipeline has grown over 30% in the last 120 days, with over 100 active enterprise opportunities [6][7] Company Strategy and Development Direction - The company is focused on expanding partnerships with major players like Amazon, Apple, and Tesla, aiming to launch three significant Fortune 500 partnerships [7][8] - A strategic shift towards owning intellectual properties and original content is underway, with over 15 original projects in the pipeline [8][9] - The company is evolving its leadership structure to enhance focus on B2B partnerships and AI initiatives [11][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for transformational growth, citing a strong B2B pipeline and improving industry dynamics [15][40] - The company anticipates reaching profitability by the end of the fiscal year, leveraging over $125 million in net operating loss carryforwards for tax efficiencies [5][6] - Management highlighted the importance of AI in enhancing personalization and optimizing monetization, driving B2B demand [10][73] Other Important Information - The company has reduced operating expenses by over 52% year-over-year and streamlined its workforce from 350 to 88 employees [4][5] - A share repurchase program is being expanded, reflecting confidence in the company's undervaluation [12] Q&A Session Summary Question: On the B2B business, can you elaborate on customization and options for customers? - Management noted that the company is uniquely positioned in the B2B space, leveraging AI for customization and offering competitive pricing [18][20] Question: What is the competitive landscape for content provision? - Management indicated that while some competition exists, the company's unique service offerings and flexibility provide a significant advantage [31][32] Question: How is the advertising revenue for Slacker's non-subscription customers progressing? - Management highlighted a robust advertising business across audio platforms and noted a partnership with DAX to enhance advertising offerings [25][26] Question: What is the timing for the 30 million subscriber deal? - Management stated that the deal is signed and expected to ramp up in the following year, with some revenue potentially starting this quarter [59][61] Question: What is the expected impact of Tesla user conversions on revenue? - Management confirmed that the conversion from ad-supported to paid subscriptions is expected to contribute significantly to revenue growth [67][68]

Financial Data and Key Metrics Changes - In 2025, the company generated a 12% return on invested capital, with adjusted EBITDA of $448 million and a free cash flow of $44 million [8][9] - For Q4 2025, adjusted EBITDA was $125 million with a margin of 14%, and free cash flow was $38 million [10][11] - The company maintained a strong financial position with a net debt to adjusted EBITDA ratio of 1.6 times [8] Business Line Data and Key Metrics Changes - Uncoated freesheet sales volume increased by 9% quarter-over-quarter in Q4 2025 [9] - Price and mix were unfavorable by $21 million in Q4, primarily due to lower paper prices in Europe and some Brazilian export markets [11] - Volume increased by $18 million, largely driven by Latin America and North America [11] Market Data and Key Metrics Changes - The European industry supply and demand environment remains challenging, but there are signs of improvement as pulp prices began to rebound in Q4 2025 [12] - In Latin America, demand is transitioning from the seasonally strong fourth quarter to the weaker first quarter, negatively impacting geographic mix [12] - North American industry operating rates are improving, with significant declines in imports throughout the second half of 2025 [14] Company Strategy and Development Direction - The company aims to achieve world-class standards in safety, employee engagement, customer centricity, operational excellence, cost leadership, and sustainability [4][5] - The focus remains on disciplined capital allocation and long-term value creation, with a commitment to attract high-quality, long-term shareholders [7][26] - The flagship growth strategy involves investing in low-risk, high-return projects to strengthen uncoated freesheet capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that 2025 and 2026 will be low points in free cash flow generation due to cyclical industry downturns and ongoing investments [25] - The company expects to generate over $300 million in annual free cash flow and over 15% returns on invested capital as industry conditions improve [26][72] - Management is focused on a Lean transformation to enhance customer-centricity and operational efficiency [49][71] Other Important Information - The company has discontinued providing full-year Adjusted EBITDA and free cash flow guidance to align external communications with long-term management goals [7] - Capital spending is expected to be $245 million in 2026, primarily for investments at the Eastover Mill [15] Q&A Session Summary Question: Update on operations in Europe and margin improvement - Management highlighted successful investments at the Saillat Mill to improve product mix and emphasized the need for market price improvements for margin recovery [30][32] Question: Investor discussions on capital allocation - Management noted that there has been strong support from investors regarding capital allocation priorities, reaffirming their commitment to maintaining a strong balance sheet and returning cash to shareholders [36][37] Question: Nymölla's long-term fit in the business - Management views Nymölla as a good fit due to its focus on uncoated freesheet and attractive product mix, despite current challenges [39][40] Question: Impact of Lenzing's production scale-up on fiber costs - Management confirmed that Lenzing's project will not impact fiber costs at Neenah [47] Question: Share repurchase pause rationale - Management explained that the decision to pause share repurchases was based on anticipated capital intensity and cash flow requirements for 2026 [53][56]

Financial Data and Key Metrics Changes - The company reported record performance for 2025, with sales increasing by 6% to a record $4.2 billion, driven by acquisitions and price increases [5] - Adjusted EPS rose to a record $9.87, and the company maintained last year's record adjusted operating income margin [5] - The effective tax rate increased to 21.2%, reflecting a special item tax expense [13] Business Line Data and Key Metrics Changes - Americas Welding sales increased by approximately 4%, driven by a 10.4% price increase, while volumes declined by approximately 7% [14] - International Welding segment sales increased by approximately 7%, with a 5% benefit from an acquisition and a 5% favorable foreign exchange translation, but volumes decreased by 4% [16] - Harris Products Group sales increased by 11%, driven by an 18% price increase, while volumes compressed by 9% [18] Market Data and Key Metrics Changes - Three of the five end markets grew, with notable acceleration in December, particularly in Americas Welding [8] - The Energy sector outperformed due to strong project activity in both Americas and Asia Pacific [9] - The Automotive and Heavy Industries sectors faced challenges, with transportation growth driven by consumable demand for vehicle production [10] Company Strategy and Development Direction - The company is transitioning to a new strategy named RISE, focusing on efficiency, agility, and innovation to drive growth [25][30] - The 2030 financial targets include maintaining a high single-digit to low double-digit sales growth rate, with a focus on organic sales and acquisitions [28][39] - The company aims to achieve a peak consolidated operating income margin of over 20% and an average operating income margin of 19% across the cycle [35] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about an early-stage industrial recovery, supported by OEM commentary on capital spending plans [19] - The company expects volume growth rates to improve starting in the second quarter of 2026, with a balanced approach to pricing and volume [20] - Management highlighted the importance of maintaining a neutral price-cost posture while targeting incremental operating income margin improvements [21] Other Important Information - The company generated strong cash flows from operations, with an adjusted return on invested capital of 21.3% [18] - A balanced capital allocation strategy was emphasized, with approximately 48% invested in growth and 52% returned to shareholders [38] Q&A Session Summary Question: Long-term dynamics regarding incremental margins - Management indicated that improvements in incremental margins will be driven by volume growth and enterprise initiatives, with benefits expected to flow steadily over the five-year period [42][45] Question: Expectations for organic growth and order trends - Management expects mid-single-digit organic growth, split 50/50 between price and volume, with confidence in order levels and backlog, particularly in automation [47][49] Question: Automation business expectations for 2026 - The automation business is expected to recover with a mid-single-digit growth trajectory based on order levels and backlog, with a focus on achieving a non-dilutive margin profile [58][74] Question: Impact of metal inflation on pricing - Management confirmed that pricing actions will be taken as market conditions require, with a mechanical adder in pricing methodology to address metal cost inflation [66][68] Question: Margin expansion in international markets - Management emphasized focusing on regions with favorable macroeconomic conditions for growth, with cautious expectations for core Europe [89]

Financial Data and Key Metrics Changes - BGC Group reported record-breaking revenues for both the fourth quarter and full year 2025, with increases of 32% and 30% respectively, approaching $3 billion in total revenues [4] - Adjusted EPS grew by 24% under GAAP and 19% for adjusted earnings, with adjusted EPS rising by 71% to $1.18 per share since 2022 [4][7] - Pre-tax adjusted earnings grew by 24.5% to $161.3 million, representing a pre-tax margin of 21.3% [18] - Post-tax adjusted earnings increased by 21.1% to $149.6 million, resulting in a post-tax adjusted earnings per share of $0.31 [18] Business Line Data and Key Metrics Changes - Total brokerage revenues grew by 34.6% to $694.6 million, with ECS revenues increasing by 92% to $257.5 million, driven by the acquisition of OTC and strong organic growth [9] - Rates revenues increased by 16.4% to $197.4 million, while foreign exchange revenues rose by 9.8% to $102.8 million [10] - Fenics revenues increased by 15.4% to a record $163.9 million, driven by higher electronic volumes across rates products [11] - FMX UST generated record fourth quarter average daily volume of $58.7 billion, increasing market share to a record 39% [12] Market Data and Key Metrics Changes - EMEA revenue increased by 39.2%, Americas revenues increased by 25.7%, and Asia Pacific revenues increased by 24.2% [16] - FMX Futures Exchange saw record volumes in open interest, with ADV and open interest increasing 82% and 97% respectively compared to the previous quarter [12] Company Strategy and Development Direction - The company completed the first phase of its cost reduction program, expected to realize $25 million of annualized savings in 2026 [5][17] - BGC aims to focus on higher growth areas within its portfolio, having sold lower growth businesses to enhance shareholder value [28] - The company is positioned for continued success in 2026, with guidance indicating a revenue growth expectation of approximately 34% for the first quarter [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong market share gains and a favorable trading environment [25] - The outlook assumes no material acquisitions or dispositions, with expectations subject to change based on macroeconomic factors [3] - Management highlighted the importance of volatility in driving business growth, particularly in the energy sector [39] Other Important Information - The company anticipates pre-tax adjusted earnings for the first quarter of 2026 to be in the range of $202 million to $222 million, representing over 32% earnings growth [20] - Liquidity as of December 31 was $979.1 million, compared to $897.8 million at year-end 2024 [19] Q&A Session Summary Question: Inquiry about first quarter guidance and organic revenue growth - Management noted that core revenue growth has been consistent, driven by market share gains and a favorable trading environment [25] Question: Discussion on the sale of KACE and future divestitures - Management indicated that the sale was driven by shareholder value considerations and that they remain open to future divestitures if they do not meet growth expectations [28] Question: Inquiry about new client growth in the energy segment - Management confirmed an increase in new players entering the energy market, contributing to growth in the ECS business [34] Question: Question regarding FMX futures revenue recognition and treasury futures - Management stated that changes in fee structures for FMX futures will occur in the summer, and treasury futures will follow the success of SOFR [42][43] Question: Inquiry about additional fixed income products within Lucera - Management indicated that Lucera is expanding into credit markets, which could significantly contribute to future revenue growth [48]

Crane NXT (NYSE:CXT) Q4 2025 Earnings call February 12, 2026 10:00 AM ET Company ParticipantsAaron Saak - CEOChristina Cristiano - CFOMatt Roache - VP of Investor RelationsConference Call ParticipantsBobby Brooks - Equity Research AnalystIan Zaffino - Equity Research AnalystMatt Summerville - Equity Research AnalystMichael Halloran - Equity Research AnalystRobert Labick - Equity Research AnalystOperatorGood day, everyone, and welcome to Crane NXT fourth quarter and full year 2025 earnings call. At this time ...

Financial Data and Key Metrics Changes - Overall sales for Q4 2025 reached $947 million, a 15% increase year-over-year, driven by 11% organic growth and contributions from the INC Solutions acquisition [4][5] - Operating income increased by 14%, with an operating margin of 19.7% [5][6] - Diluted earnings per share grew by 16% year-over-year, primarily due to higher A&D sales [5][6] - Free cash flow was strong at $315 million, up 13%, reflecting a 224% conversion rate [6] - For the full year 2025, diluted earnings per share increased by 21%, and adjusted free cash flow reached a record $554 million [7][8] Business Line Data and Key Metrics Changes - Aerospace and Defense (A&D) markets saw a 16% growth, with commercial aerospace sales increasing over 20% [5][6] - The defense electronics segment experienced a 17% sales growth, driven by increased demand for tactical communications equipment [12][14] - The naval and power segment's sales increased by 21%, supported by strong revenue growth in naval defense and aftermarket revenues [15][16] Market Data and Key Metrics Changes - The overall order book reached a record $4.1 billion, up 10% year-over-year, with a book-to-bill ratio of nearly 1.2 times [8][10] - New orders in Q4 increased by 18%, reflecting solid demand in naval defense and commercial nuclear markets [6][10] - Commercial nuclear sales showed tremendous growth, driven by strong demand for aftermarket equipment and advancements in SMR designs [9][21] Company Strategy and Development Direction - The company continues to execute its "Pivot to Growth" strategy, focusing on operational and commercial excellence to drive sales and profitability [4][10] - Investments in research and development are being accelerated to support future organic growth, with a commitment to grow R&D faster than sales over time [7][10] - The company is positioned to benefit from increased global defense spending and the U.S. government's focus on nuclear energy dominance [32][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, projecting organic sales growth of 6%-8% for 2026, with operating income growth expected to outpace sales growth [10][11] - The company anticipates another year of record free cash flow generation, with a target of $575 million-$595 million for 2026 [29][30] - Management acknowledged challenges in the defense market due to timing delays but remains optimistic about long-term growth opportunities [8][10] Other Important Information - The company executed a record $465 million in share repurchases in 2025 and increased its annual dividend for the ninth consecutive year [10] - Capital expenditures are projected to increase by more than 25% year-over-year, reflecting ongoing investments to support growth [29][30] Q&A Session Summary Question: Exposure to missile programs and growth opportunities - Management indicated that while there is some exposure to missile telemetry and flight test instrumentation, the primary focus remains on broader defense capabilities aligned with U.S. military priorities [43][44] Question: Clarification on expected AP1000 orders - Management stated that the first orders could come from either European customers or the U.S., with ongoing discussions with Westinghouse regarding production ramp scenarios [46][47] Question: Free cash flow guidance and working capital dynamics - Management highlighted improvements in working capital management, with a target of approximately 18% working capital as a percentage of sales for 2026 [55][57] Question: C-17 order timing and defense electronics bookings - Management confirmed that the C-17 order was booked in Q1, and noted that delayed bookings in defense electronics were due to various timing issues [60][61] Question: Operational and commercial excellence initiatives - Management emphasized that operational excellence remains a core focus, with ongoing initiatives expected to contribute positively to margins in 2026 [68][72]

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $575.2 million, an increase of 6.3% year-over-year [13] - Recurring revenues grew by 11%, with SaaS revenue growth exceeding 20% and transaction-based revenue growth at 12% [6][15] - Free cash flow reached a record high in Q4, up nearly 10%, with a free cash flow margin of 41% [6][18] - Annualized recurring revenue was approximately $2.06 billion, up 10.9% [17] Business Line Data and Key Metrics Changes - SaaS revenues grew by 20.2%, surpassing $200 million in a quarter for the first time [15] - Transaction revenues increased by 12.1% to $196.7 million, driven by higher transaction volumes and new service deployments [15] - Total SaaS bookings grew by 9.6% year-over-year, with annual contract value from flips signed in Q4 rising 64.5% over last year [17] Market Data and Key Metrics Changes - The public sector market fundamentals remain strong, with healthy budgets supporting an active pipeline [6] - RFP and sales demo activity are at elevated levels as agencies prioritize modernization of critical systems [6] Company Strategy and Development Direction - The company focuses on four key growth pillars: completing the cloud transition, leveraging the client base, growing the transactions business, and expanding into new markets [8] - A unified payment strategy has been executed to capture greater value and drive operational efficiencies [8] - The company is transitioning to AI-enabled solutions, with plans for deeper integration into operational workflows [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustained growth through competitive strengths and digital transformation initiatives [24] - The company anticipates total revenues for 2026 to be between $2.5 billion and $2.55 billion, implying growth of approximately 8.3% [19] - The market is showing healthy demand, with strong sales activity and a high number of RFPs [53] Other Important Information - The company completed four strategic acquisitions in 2025 and announced a pending acquisition of For The Record, which is expected to enhance its courts and justice portfolio [28][29] - A new share repurchase program of up to $1 billion was authorized, reflecting confidence in the business trajectory [29] Q&A Session Summary Question: SaaS flips and future expectations - Management indicated that while they do not guide specific flip numbers, they expect flips to continue to grow from current levels, with a peak anticipated between 2027 and 2029 [33] Question: Annual Contract Value from new SaaS deals - Management noted that they expect SaaS bookings to grow in 2026, with Q4 showing solid sales numbers despite tough comparisons from large deals in the previous year [37] Question: State sales team performance - The state sales team has shown encouraging results, contributing to significant deals, and is expected to continue leveraging relationships for future sales [44] Question: AI partnerships and development - The company collaborates with major AI players like Anthropic, AWS, Microsoft, and OpenAI to enhance its product offerings [50] Question: Free cash flow and capital allocation - Management expects free cash flow to grow, with a focus on disciplined capital allocation between M&A opportunities and share repurchases [76][78]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $5.03 per share for 2025, representing an 8.6% increase from the adjusted earnings of $4.63 per share in 2024 [4][28] - The company affirmed its 2026 earnings per share guidance range of $5.25 to $5.45, indicating an expected growth of approximately 8.1% compared to the original 2025 earnings guidance midpoint [17][24] Business Line Data and Key Metrics Changes - Weather-normalized sales at Ameren Missouri grew by 1% overall, with residential and commercial classes growing by 0.5% and 1.5% respectively [29] - The company invested over $4 billion in electric, natural gas, and transmission infrastructure, including the installation of nearly 26,000 electric distribution poles and 283 miles of upgraded transmission and distribution lines [6][10] Market Data and Key Metrics Changes - The company signed 2.2 GW of large load electric service agreements in Missouri, which is expected to support significant economic development opportunities [4][20] - The economic impact study indicated that the company's operations in Missouri and Illinois generate over $20 billion in annual economic activity [10] Company Strategy and Development Direction - The company continues to focus on a three-pillar strategy: investing in rate-regulated infrastructure, advocating for constructive regulatory frameworks, and optimizing business operations [6] - The company plans to invest approximately $5.5 billion in electric, natural gas, and transmission infrastructure in 2026 to enhance the reliability and responsiveness of the energy grid [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong returns and maintain disciplined cost management, with a focus on keeping rates low for customers [11][81] - The company anticipates continued earnings growth near the upper end of the 6%-8% range from 2026 through 2030, supported by the recent large load electric service agreements [45][60] Other Important Information - The company achieved $20 million in recurring O&M savings from energy delivery process improvements over the past two years [29] - The company expects to maintain a dividend payout ratio of approximately 50%-60%, with a recent quarterly dividend increase of 5.6% [18] Q&A Session Summary Question: Can you discuss the 2.2 GW of executed ESAs and how it impacts guidance? - Management indicated that the 2.2 GW of executed ESAs represents upside to the sales growth embedded in the 6%-8% guidance, providing greater confidence in achieving the upper end of that range [41][45] Question: How do you view the use of hybrid securities in your financing plan? - Management noted that hybrid securities might be slightly accretive in the short term, but the overall impact would need to be evaluated over time [47][48] Question: What is the breakdown of the lag between rate base growth and earnings growth? - Management explained that the primary difference is due to equity dilution from planned issuances, and that sales growth from hyperscalers could help reduce this lag [53][56] Question: Are there concerns about potential cancellations of ESAs? - Management expressed no concerns regarding the ESAs, emphasizing the protective provisions in place for customers [59][61] Question: How does the updated plan impact customer bills, particularly in Missouri? - Management highlighted a focus on affordability and disciplined cost control, ensuring that new data centers pay their fair share without burdening existing customers [79][80]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $79 million, or $1.54 per dilutive share, and adjusted EBITDA of $103 million, which includes $25 million of fire and idle costs from Leer South and $11 million from West Elk [13][14] - For the full year 2025, the net loss was $153 million, or $2.98 per dilutive share, with adjusted EBITDA of $512 million, impacted by $101 million related to Leer South fire and idle costs and $11 million from West Elk idle costs [15][16] - The company returned a total of $245 million to stockholders in 2025, constituting nearly 100% of free cash flow generation [8][9] Business Line Data and Key Metrics Changes - The Leer South mine resumed longwall mining in mid-December 2025 after a combustion event in early 2025, achieving its production target in January 2026 [5][6] - The West Elk mine transitioned to the B seam, which has shown significantly improved mining conditions, and is expected to run at high productivity levels in 2026 [7][8] Market Data and Key Metrics Changes - U.S. utility coal consumption increased by 12% in 2025 compared to 2024, with coal-fired generation in the PJM and MISO areas rising over 19% and 15%, respectively [16][17] - Global coal demand rose by approximately 0.5% to 8.9 billion metric tons in 2025, indicating a multi-year growth pattern [18] Company Strategy and Development Direction - The company is focused on capturing synergies from the merger, operational excellence across its segments, and establishing a safety-driven culture [4][5] - The company plans to return approximately 75% of free cash flow to shareholders, with a significant portion directed to share repurchases and a quarterly dividend of $0.10 per share [8][9] - The company is also advancing efforts in rare earth elements and critical materials, with ongoing projects in the PRB and Northern Appalachia [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational performance for 2026, expecting strong results from both Leer South and West Elk mines [27][28] - The company anticipates a reduction in idling costs and an increase in insurance recovery compared to 2025, contributing to improved financial performance [24][28] Other Important Information - The company is benefiting from supportive coal policies under the current administration, including a production tax credit for coal and delayed retirements of coal-fired generation units [10][11] - The company is optimistic about the growth in demand for coal driven by the expansion of data centers, particularly in the Americas [17][18] Q&A Session Summary Question: Can you break out the high CV committed and priced for the PAMC portion? - The company has approximately 20.5 million tons committed for high CV, with 12 million domestic and 8.5 million for export, linked to API2 pricing [33][34] Question: What is the outlook for the order book in outer years? - The company contracted over 38 million tons last quarter, with pricing in contango for forward years [38][39] Question: What does the 45X credit mean for shareholder returns? - The company expects higher insurance proceeds and a reduction in idling costs, which will positively impact cash flow and shareholder returns [40][44] Question: How are synergies showing up in the P&L? - Synergies are primarily seen in headcount reductions and improved marketing and logistics, but overall market conditions have impacted their full realization [51][52] Question: What tangible steps have been taken to improve operational delivery for 2026? - The company has all assets running and has implemented schedule changes and production strategies to enhance efficiency [90][91]