Financial Data and Key Metrics Changes - The company reported net revenues of $21.8 million in Q1 2026, representing a 36.5% increase from the same period last year, driven by growth in the commercial aftermarket business and higher service revenues [10][12] - Adjusted EBITDA grew 140.9% to $7.4 million, up from $3.1 million last year, largely due to revenue growth and a more favorable revenue mix [15][16] - Gross profit increased to $11.9 million, an 80% rise from $6.6 million in the prior year, resulting in a gross margin of 54.5%, up from 41.4% [12][14] Business Line Data and Key Metrics Changes - Product sales reached $13.6 million, up from $10 million, primarily due to stronger volumes of aftermarket product upgrades [11] - Service revenue increased to $8.2 million from $6 million, driven by growth in service volumes related to specific product lines [12] Market Data and Key Metrics Changes - New orders in Q1 2026 were approximately $19 million, with a backlog of about $75 million as of December 31, 2025 [16] Company Strategy and Development Direction - The company is focused on its IA Next long-term value creation strategy, which emphasizes profitable growth, operational excellence, and disciplined capital allocation [4][5] - The long-term target includes achieving $250 million in revenue with Adjusted EBITDA margins between 25%-30% through both organic and inorganic growth [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of the F-16 platform and broader defense business, citing significant investments and a favorable backdrop for defense spending [6][7] - The company expects organic revenue to be flat year-over-year due to prior revenue pull-forwards, with second-quarter revenues projected between $20 million and $22 million [19] Other Important Information - Cash flow from operations was $8.2 million, compared to $1.8 million in the previous year, indicating strong financial discipline [17] - The company had total debt of $23.8 million and cash and cash equivalents of $8.3 million, resulting in a net debt of $15.5 million [18] Q&A Session Summary Question: What drove the increase in commercial aftermarket demand and sales? - The increase was mainly driven by new products developed for the air transport sector, including the ICAT system and software upgrades for the 757 and 767 [21][22] Question: Was there any pull forward in demand? - Management indicated that while the first quarter showed strong organic growth, they expect organic growth for the full year to be in the single digits, augmented by potential acquisitions [23][24] Question: What are the growth opportunities related to the F-16 platform? - Growth opportunities include the integration of new components and an increase in requests for proposals from Lockheed and the U.S. government for subassemblies and full units [25][26][27] Question: What surprised the company to the upside in the last quarter? - The upside was attributed to the timing of shipments, with some purchase orders arriving sooner than expected [31][33] Question: What is the outlook for defense programs outside of the F-16? - Management noted numerous opportunities for upgrades to various platforms, with a positive budget outlook for these upgrades [34] Question: Is there any acceleration in the M&A pipeline? - The company is expecting a couple of near-term opportunities, although some previous opportunities were not aligned with strategic objectives [36] Question: How is the integration of F-16 components progressing? - The integration took longer than planned due to requirements from Lockheed Martin and the U.S. government, but overall, the process is ongoing [41][43] Question: What is the market interest in UMS and automation? - There is significant interest in cockpit automation, with potential regulatory changes expected to allow for one-pilot operations in the future [45][46]

Financial Data and Key Metrics Changes - Primerica reported a record year in 2025 with a 10% increase in adjusted net operating income to $751 million and a 16% increase in diluted adjusted operating income per share to $22.92 [5][14] - The company achieved a 16% increase in fourth quarter adjusted net operating income and a 22% increase in diluted adjusted operating income per share [4][14] - The return on adjusted equity (ROAE) increased by 200 basis points to 33.1% [14] Business Line Data and Key Metrics Changes - Term life insurance sales faced challenges with a 10% decline in new policies issued for the full year compared to record levels in 2024, while estimated annualized issued term life premiums declined by 7% [8][10] - Investment and savings product (ISP) sales grew significantly, with fourth quarter sales of $4.1 billion, up 24% year-over-year, and full year sales of $14.9 billion, also up 24% [9][10] - The ISP segment represented 38% of consolidated operating revenues in 2025, up from 32% in 2022 [18] Market Data and Key Metrics Changes - Client asset values reached $129 billion, a 15% increase compared to the previous year, supported by solid annual net inflows of $1.7 billion [11] - The company ended the year with nearly 3,500 licensed representatives in the U.S. who closed over $500 million in mortgage loans, a 26% increase year-over-year [12] Company Strategy and Development Direction - Primerica aims to grow across all major product lines while strengthening recruiting and licensing to expand its distribution footprint [12] - The company is optimistic about the opportunities in 2026, focusing on accelerating momentum and improving productivity through targeted sales training [9][13] - The management emphasizes the importance of building relationships with clients, which is seen as a competitive advantage against emerging technologies like AI [41][43] Management's Comments on Operating Environment and Future Outlook - Management noted that cost of living pressures are beginning to ease, which may improve purchasing power for middle-income families [30][46] - The company maintains a conservative outlook for term life policy growth in 2026, projecting a 2%-3% increase [9][18] - Management expressed confidence in the ISP segment's continued growth, driven by favorable demographic trends and strong demand for retirement solutions [10][11] Other Important Information - Primerica returned approximately 79% of net operating income to shareholders through share repurchases and dividends, indicating a capital-light approach to capital deployment [23] - The company is investing in technology to enhance operational efficiency and support growth in its securities business [82] Q&A Session Summary Question: What is driving the term sales outlook for 2026? - Management anticipates increasing momentum as economic conditions improve, particularly for middle-income families [29][31] Question: Why are term life and ISP showing diverging trends? - Different segments of the middle-income market react differently to economic conditions, with ISP benefiting from money in motion towards retirement accounts [32][33] Question: What is the potential impact of AI on the business model? - Management views AI as an opportunity to improve efficiencies and enhance the sales process, while emphasizing the importance of personal relationships with clients [41][43] Question: What distractions are being seen in the middle market? - Cost of living pressures and economic uncertainties have been distractions, but there are signs of improvement in purchasing power [45][46] Question: What is the outlook for recruiting and sales force growth? - Management believes there is significant market potential and expects to see growth in the sales force, although it may take time to see results [58][59]

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 17% year-over-year and 9% sequentially, driven by stabilization in industrial demand and growth initiatives [5][18] - Full-year revenue grew by 3%, marking the first full-year revenue growth since 2021 [6] - GAAP gross margin was 36.1%, while adjusted gross margin was 37.6%, impacted by lower absorption of fixed costs and tariffs [21][22] - GAAP net income was $13 million or $0.31 per diluted share, with adjusted net income at $20 million, resulting in earnings per diluted share of $0.46 [23] Business Line Data and Key Metrics Changes - Materials processing revenue increased by 17% year-over-year, with stable demand in welding and growth in battery and additive manufacturing applications [5][18] - Medical sales grew by 21% year-over-year, driven by new product traction and a major customer win [8][9] - Revenue from applications outside materials processing increased by 15%, with strong growth in medical and advanced applications [18] Market Data and Key Metrics Changes - North America sales increased by 21% sequentially and 23% year-over-year, driven by higher revenue in cutting, cleaning, medical, and advanced applications [19] - Europe saw an 8% sequential increase and 7% year-over-year growth, primarily in additive manufacturing and cleaning [19] - Asia's revenue improved by 5% sequentially and 19% year-over-year, with strong demand in battery applications in China [20] Company Strategy and Development Direction - The company is focusing on expanding its business beyond materials processing, with 14% of total revenue coming from micromachining, medical, and advanced applications [8][11] - Strategic investments are being made in core industrial applications and new non-industrial markets, aiming to create new laser applications and expand the addressable market [12][13] - The company is evolving towards a team-led operating model to enhance decision-making and accelerate product development [11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving market conditions and customer demand, despite ongoing macroeconomic uncertainties [10][28] - Strong bookings in Q4 resulted in a book-to-bill ratio above one, indicating positive demand trends [10][26] - The company anticipates revenue for Q1 2026 to be between $235 million and $265 million, with adjusted gross margin expected between 37% and 39% [26][27] Other Important Information - The company received a Prism Award for its new 8-kilowatt single-mode laser, reinforcing its position as a leader in fiber laser innovation [16] - The integration of cleanLASER has exceeded expectations, generating revenue synergies and enhancing growth in cleaning applications [14][15] Q&A Session Summary Question: Thoughts on cutting revenue stability and long-term growth targets - Management noted that cutting revenue has stabilized and is showing signs of growth, with ongoing investments in core markets [31][32] Question: Update on Directed Energy market and Crossbow product interest - Management reported strong customer interest in the Crossbow system, which targets military and civilian applications, and is seeing good traction in the market [35][38] Question: Margin improvement and revenue levels needed for fixed cost absorption - Management indicated that revenue levels above $270 million would help improve gross margins, with ongoing cost reduction initiatives in place [39][40] Question: Plans for investment in Directed Energy applications - Management confirmed a roadmap for increasing power levels in Directed Energy products, with plans for future product launches [45] Question: Expectations for new medical products in 2026 - Management expects significant growth in medical sales, with new product launches planned and a focus on doubling or tripling the business over the next few years [46][47] Question: Competitive environment and pricing pressures in Asia - Management stated that pricing pressures are minimal in differentiated markets, with strong demand in battery and advanced applications [60][61] Question: Variability in bookings by region - Management reported broad-based order activity, with North America and Asia performing well, while Europe showed signs of improvement [67]

Financial Data and Key Metrics Changes - Gates Corporation achieved nearly 1% core growth in 2025, with record adjusted EBITDA dollars and adjusted EPS growing 9% to a record $1.52 [6][8] - The net leverage ratio improved to 1.85x at year-end 2025, a decrease of almost 0.4 turns compared to the previous year [6][16] - Free cash flow conversion was 238% of adjusted net income for Q4, bringing the full-year 2025 conversion to 92% [15][16] Business Line Data and Key Metrics Changes - In the Power Transmission segment, revenues were $537 million with flat core growth; Personal Mobility business grew 28% year-over-year [11] - Fluid Power segment sales were $320 million with approximately 1% core growth, driven by low double-digit growth in Off-Highway markets [11] - OEM sales expanded approximately 4%, while aftermarket sales declined about 1% [10] Market Data and Key Metrics Changes - North America core sales decreased about 2.5% in Q4, influenced by distributor inventory management [12] - EMEA core sales grew 5.8% in Q4, with double-digit growth in industrial markets [14] - South America core sales grew slightly, driven by commercial on-highway and agriculture [15] Company Strategy and Development Direction - The company is focused on strategic revenue initiatives to generate market outgrowth and is optimistic about 2026 top-line potential [23][24] - Investments are being made in personal mobility and data center markets, with expectations for significant growth in these areas [24] - The company plans to pursue logical and non-transformational M&A opportunities to enhance its portfolio [56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about an industrial demand recovery entering 2026, with improving order trends [7][22] - The company anticipates core sales growth of 1%-4% in 2026, with adjusted EBITDA guidance of $775 million-$835 million [17] - Management noted that the first quarter will face headwinds due to fewer business days and ERP transition costs, but expects recovery in subsequent quarters [20][40] Other Important Information - The company repurchased over $100 million of its shares in Q4 at an attractive valuation [7] - S&P upgraded the company's credit rating to double B from double B minus with a stable outlook [16] Q&A Session Summary Question: Can you provide more detail on the book-to-bill ratio and order acceleration? - Management noted positive order trends exiting 2025, particularly in the industrial OEM segment, indicating a strong recovery [30] Question: What impacted the Adjusted EBITDA margin in Q4? - Management indicated that production output was managed to optimize working capital, which affected margins [34] Question: What are the expectations for organic growth in Q2? - Management expects organic core growth in Q2, with a balanced seasonalization throughout the year [40] Question: Can you elaborate on the data center exposure and growth expectations? - Management anticipates significant growth in the data center business, particularly in liquid cooling products, with a target of $100-$200 million by 2028 [46] Question: How sustainable is the growth in the personal mobility segment? - Management expressed high confidence in continued growth in the personal mobility business, projecting high 20s to 30% compound annual growth through 2028 [53] Question: What does the S&P upgrade mean for the company? - Management indicated that while the upgrade may not significantly impact interest rates, it reflects the company's strong cash generation and profitability [66]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported total revenues of $394.3 million and adjusted operating income of $128 million [9] - The Sphere segment generated revenues of $274.2 million, an increase of over 60% compared to the prior year period, driven by higher revenues from the Sphere Experience [9] - Fourth quarter adjusted operating income for the Sphere segment was $89.4 million, compared to an adjusted operating loss of approximately $800,000 in the prior year quarter [10] Business Line Data and Key Metrics Changes - The Sphere Experience saw significant revenue growth due to The Wizard of Oz, with over 2.2 million tickets sold and approximately $290 million in ticket sales [8] - MSG Networks generated $120.1 million in revenues and $38.6 million in adjusted operating income, reflecting a decrease in subscribers and lower affiliate rates [11][12] Market Data and Key Metrics Changes - The company is expanding its Sphere venues, with a new 6,000-seat Sphere planned for National Harbor, Maryland, expected to open in four years or less [5][6] - The company is in discussions for additional Sphere projects in both domestic and international markets [7] Company Strategy and Development Direction - The company aims to create a global network of Sphere venues powered by proprietary technology and immersive content [5] - Continued investment in immersive technology and experiential content is a priority to maintain leadership in the market [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model, citing strong ticket sales and positive discussions with IP holders for future projects [8][44] - The company anticipates a strong convention season next year, which will influence show scheduling and revenue growth [28] Other Important Information - The company has refinanced its credit facility related to Sphere in Las Vegas, extending the maturity for a new five-year term [12] - The company is focused on managing SG&A expenses efficiently while supporting growth initiatives [32] Q&A Session Summary Question: How many sphere expansion projects are expected in the next few years? - Management indicated they could handle 5 to 6 projects simultaneously, assuming they are profitable [15][16] Question: Have elevated construction costs impacted conversations with potential partners? - Management stated that the investment model remains viable despite increased costs, and they are exploring new construction methods to lower expenses [17] Question: Can you provide more details on the National Harbor location selection? - The location was chosen due to competitive offers and a favorable site, which expedited the decision-making process [21] Question: How are ticket sales for The Wizard of Oz trending during the winter? - Management noted strong growth despite seasonal headwinds and is confident in future demand [28] Question: What is the outlook for SG&A expenses in 2026? - Management is focused on cost-saving opportunities while ensuring infrastructure supports growth, with fluctuations expected due to non-recurring expenses [32] Question: What is the status of the residency pipeline through 2027? - The company is nearly fully booked for 2026 and has limited availability in 2027, focusing on long weekends to maximize attendance [48] Question: Can you update on the sponsorship strategy and Exosphere progress? - The company is seeing strong growth in sponsorships and has debuted interactive experiences, with plans for more announcements throughout the year [56][57]

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] - Fourth-quarter Adjusted EBITDA was $62 million, down from $95 million in the prior year period [10][6] - Pro forma net income for the full year was $89 million, or $0.57 per share, while fourth-quarter pro forma net income was $32 million, or $0.20 per share [6][9] 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 net stumpage realizations [7][12] - 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][12] - Real estate segment achieved full-year Adjusted EBITDA of $127 million, significantly above guidance, with fourth-quarter Adjusted EBITDA of $33 million [18][19] Market Data and Key Metrics Changes - The company noted that rural HBU markets remained strong, contributing to the real estate segment's performance [6][19] - Pulpwood pricing in the Atlantic region faced downward pressure due to increased supply and mill closures, impacting overall demand [15][52] - The Pacific Northwest is expected to see tightening log markets due to improving demand from sawmills and constraints on Canadian supply [18][17] 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 plans to focus on disciplined capital allocation and synergies from the merger to create long-term shareholder value [4][29] - The leadership team is implementing best practices from both companies to optimize organizational structure and enhance operational efficiency [4][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term value creation potential from the merger, despite current market challenges in timber and lumber [28][29] - The company anticipates improved demand and pricing in local markets as sawmills ramp up production in response to higher lumber prices [15][18] - Management highlighted the importance of addressing the underbuilt housing stock in the U.S. as a long-term driver for timber demand [52] Other Important Information - The company repurchased approximately 110,000 shares at an average price of $26.31 per share prior to the merger announcement [11] - The company paid a special dividend of $1.40 per share due to taxable gains from the sale of its New Zealand joint venture [11] - The company finished 2025 with $843 million in cash and $1.1 billion in debt, maintaining a conservative leverage profile [12] Q&A Session Summary Question: Can you provide insights on the drivers for real estate sales in 2026? - Management noted that real estate sales are lumpy and significantly impacted by larger transactions, with strong premiums to timberland value driving performance [34][36] Question: What factors influenced the initial harvest guidance for the combined companies? - Management indicated that 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 acknowledged challenges in the southern timber segment but expressed optimism for long-term demand growth due to housing market dynamics [51][52] Question: What is the company's stance on M&A opportunities in the current market? - Management stated that while the timberland M&A market remains competitive, the focus is on share repurchases as the best 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 evaluating investment opportunities based on return potential [76][77]

Financial Data and Key Metrics Changes - For 2025, the company reported adjusted operating earnings per share of $2.77, exceeding expectations and continuing a track record of exceeding the midpoint of guidance each year as a standalone utility [6][17] - The company achieved a 7.4% annual earnings growth rate and 8% rate base growth since 2021, demonstrating its ability to navigate changes and execute consistently [6][13] - The company reported GAAP earnings of $2.73 per share for the full year and $0.58 for the fourth quarter, with non-GAAP earnings of $2.77 and $0.59 respectively, reflecting strong year-over-year growth [17][18] Business Line Data and Key Metrics Changes - The company maintained top quartile reliability metrics across its utilities, ranking first, second, fourth, and seventh among peers based on 2024 benchmarking data [7][8] - The company plans to invest $41.3 billion in capital over the next four years, with over 70% of the increase driven by transmission investments [10][24] - The company expects to achieve annualized earnings growth of 5%-7% through 2029, with a projected rate base growth of approximately 8% [13][34] Market Data and Key Metrics Changes - The company anticipates load growth exceeding 3% through 2029, supported by a large load pipeline and an increasing number of signed Transmission Security Agreements [11][12] - The company reported that its average customer bill as a percentage of median income has remained relatively flat since 2021, growing only 10 basis points while maintaining top quartile reliability [31][32] Company Strategy and Development Direction - The company is focused on executing its capital plan efficiently, maintaining industry-leading operational performance, and driving affordability through disciplined cost management [40][41] - The company is actively partnering with federal, RTO, and state leaders to address high supply prices and emerging reliability risks, advocating for policies that support energy security and affordability [15][33] - The company emphasizes a customer-focused approach and aims to capture meaningful opportunities for sustainable growth while maintaining a strong balance sheet [16][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to lead the energy transformation and meet unprecedented demand, highlighting the importance of continuous improvement and targeted investments [5][6] - The management acknowledged the challenges posed by high supply prices but remains optimistic about the national focus on advancing policies to incentivize new generation and improve affordability [15][16] - The company is committed to maintaining a strong balance sheet while funding its capital needs and achieving a balanced funding strategy [37][38] Other Important Information - The company executed a $60 million customer relief fund to support low and moderate-income customers facing higher supply costs [14] - The company has made significant progress on the regulatory front, achieving key milestones in rate cases and filings [10][21] Q&A Session Questions and Answers Question: Could you comment on the rate-based growth and financing lag? - Management noted that actual rate base growth has been about 8% and earnings growth at 7.4%, indicating a continuation of this track record [46] Question: How is the regulatory strategy for 2026 being approached? - Management is in constant conversations with stakeholders and is considering the best approach for rate cases in Pennsylvania and Maryland, focusing on affordability and reliability [49] Question: What is the company's stance on supply challenges and the RBA process? - Management supports the development of a reliability backstop option and emphasizes the need for utility-generated power to lower customer costs and improve reliability [53][54] Question: How are legislative conversations progressing regarding affordability? - Management is actively engaging with legislators across jurisdictions to find collaborative solutions to the affordability dilemma [68][69]

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] - Adjusted operating earnings for the full year were $3.54 per share [9] 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] 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 North America, industry operating rates are improving, with a significant decline in imports throughout the second half of 2025 [13] 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 flagship growth strategy focuses on investing in low-risk, high-return projects to strengthen uncoated freesheet capabilities and grow earnings and cash flow [25][26] 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 [26] - 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][70] Other Important Information - The company has discontinued providing full-year Adjusted EBITDA and free cash flow guidance to focus on long-term value creation [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 [31][32] Question: Investor interest in 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: Impact of Lenzing's production scale-up on costs - Management confirmed that Lenzing's project will not impact fiber costs at Nymölla [47] Question: Share repurchase pause reasoning - The decision to pause share repurchases was based on anticipated capital intensity and cash requirements for 2026 [53][56] Question: Clarification on negative impacts for 2026 - Management confirmed that the $10 million charge is in addition to the previously mentioned $85 million negative impact, totaling $95 million for one-time costs [61]

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 earnings per share guidance for 2026 is affirmed in the range of $5.25 to $5.45, indicating an expected growth of approximately 8.1% compared to the original 2025 earnings guidance midpoint [16][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 in 2025, including the installation of nearly 26,000 electric distribution poles and 31 new or upgraded substations [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 contribute positively to future sales and earnings forecasts [4][20] - The economic impact study indicates that the company's operations generate over $20 billion in annual economic activity in Missouri and Illinois [10] Company Strategy and Development Direction - The company’s three-pillar strategy focuses on 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 infrastructure from 2026 to 2030, targeting a compound annual rate base growth of 10.6% [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving near the upper end of the 6%-8% earnings growth guidance for 2026-2030, supported by the recent large load electric service agreements [5][45] - The management highlighted the importance of disciplined cost management and continuous improvement to keep customer rates low while investing in infrastructure [11][80] Other Important Information - The company’s dividend was increased by 5.6%, marking the thirteenth consecutive year of dividend growth [17] - The company has a robust investment pipeline exceeding $70 billion, aimed at enhancing the safety, reliability, and resiliency of the energy grid [25][26] 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 upper-end targets [41][45] Question: How does the company view hybrid securities in the 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 from hyperscalers could help reduce this lag [53][56] Question: Are there concerns about potential cancellations of projects with ESAs? - Management expressed no concerns regarding the ESAs, emphasizing the protective measures in place for customers and the significant milestones ahead for project development [59][61] Question: How does the company view affordability in relation to customer bills? - Management highlighted a focus on disciplined cost control and ensuring that new data centers pay their fair share of costs, aiming to prevent any burden on existing customers [78][80]

Financial Data and Key Metrics Changes - In 2025, the company achieved record financial results with distributable earnings before realizations of $5.4 billion, representing an 11% increase over the prior year, and total distributable earnings of $6 billion [7][15] - The total net income for the year was $3.2 billion, with a fee-related earnings increase of 22% to $3 billion [15][21] - The company raised $112 billion of capital during the year, reflecting continued investor demand for its fund offerings [15][21] Business Line Data and Key Metrics Changes - The asset management business generated $2.8 billion of distributable earnings, or $1.17 per share, while the wealth solutions business delivered $1.7 billion of distributable earnings, representing a 24% increase over the prior year [15][16] - The operating businesses generated distributable earnings of $1.6 billion, or $0.68 per share, supported by strong underlying fundamentals [17] - The insurance asset base grew to $145 billion, with $20 billion of annuity sales during the year [6][16] Market Data and Key Metrics Changes - The market environment showed strong business fundamentals, with improved capital markets and a return of liquidity in both debt and equity markets [8] - The company signed nearly 17 million square feet of office leases globally, with net rents averaging 18% higher than expiring leases [18] - In major global markets, tenant demand has continued to grow, translating into strong leasing activity and meaningful rent growth for high-quality assets [19] Company Strategy and Development Direction - The company is focused on streamlining and consolidating its market capitalizations, with plans to merge Brookfield Corporation with its paired sister insurance entity, BNT [12][13] - The strategic initiatives advanced in 2025 are expected to fuel meaningful momentum, with a strong liquidity position and multiple avenues for growth [22] - The company aims to maintain excess capital to navigate market cycles and focus on long-term value creation [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue delivering financial results and compounding value for shareholders, anticipating 2026 to be another strong year [14] - The company highlighted the importance of avoiding disruption to the compounding process and maintaining a long-term investment mindset [9][10] - Management noted that the real estate market is beginning to realign with fundamentals, with muted new supply and growing demand [11] Other Important Information - The company returned $1.6 billion to shareholders in 2025 through dividends and share buybacks, repurchasing more than $1 billion of Class A shares [21] - A 17% increase in the quarterly dividend to $0.07 per share was declared, reflecting a commitment to returning capital to shareholders [23] Q&A Session Summary Question: Scaling the P&C business and its profitability - Management discussed the challenges of acquiring businesses in a hard market and the strategy to reposition them for future growth, indicating a strong outlook for the protection business [32][34] Question: Decision to simplify the structure and collapse BNT - Management explained that the decision to streamline was based on the evolution of public markets and the growth potential of the insurance business, aiming for a single listed entity [38][41] Question: Outlook for the P&C business and its size relative to life and annuity - Management indicated a path to significantly increase the float of the protection business, projecting growth to $20 billion-$25 billion by the end of the decade [35] Question: Dividend increase and its implications - Management clarified that the dividend increase was not a shift in strategy but a result of share splits and a low payout ratio, maintaining a focus on reinvesting capital [66][67] Question: Growth initiatives in Asia and Europe - Management highlighted ongoing efforts in Japan and other Asian markets, while noting the regulatory challenges in Europe that would require a cautious approach [59][60]