Leidos (NYSE:LDOS) Q4 2025 Earnings call February 17, 2026 08:00 AM ET Speaker8Be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker, Stuart Davis, from Investor Relations. Stuart, you may begin.Speaker11Thank you, operator, and good morning, everyone. I'd like to welcome you to our fourth quarter and fiscal year 2025 earnings conference call. Joining me today are Tom Bell, our CEO, and Chris Cage, our CFO. Today's call is being webcast on t ...

Financial Data and Key Metrics Changes - The company reported revenue of $9 billion, growing 8.7% reported and 6% organic, which is a 50 basis point acceleration from the prior quarter and 50 basis points above guidance [15][18] - Adjusted gross margin was 64.9%, ahead of expectations, with a 30 basis point benefit from pricing and a negative 100 basis points impact from mix [16][17] - Adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, also ahead of expectations [18] Business Line Data and Key Metrics Changes - The cardiovascular portfolio delivered 11% year-over-year revenue growth, with CAS growing 80% year-over-year, primarily driven by PFA [10][11] - Cardiac rhythm management (CRM) contributed 15% of total revenue and grew 5%, driven by double-digit growth in Micro and over 70% growth in Aurora EV-ICD [10] - Neuroscience portfolio grew 3%, with cranial and spinal technologies delivering mid-single-digit growth [11][12] - The diabetes business, MiniMed, delivered 15% reported and over 8% organic growth, led by strong performance in international markets [14] Market Data and Key Metrics Changes - U.S. growth was 6% year-over-year, the strongest performance since fiscal year 2019, excluding COVID comparisons [16] - In China, low single-digit growth was reported, with mid-single-digit growth excluding volume-based procurement impacts [16] Company Strategy and Development Direction - The company is focused on driving sustained innovation across its portfolio, with significant investments in R&D and M&A to capitalize on high-growth opportunities [5][22] - The launch of Hugo and the expansion of Symplicity and UltraViva are key growth drivers, with expectations for these products to significantly impact revenue in the coming quarters [8][9] - The company is committed to a two-step IPO and split for the MiniMed business, expected to be completed by the end of calendar year 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, highlighting strong contributors and businesses positioned for meaningful growth [8][22] - The company anticipates continued growth in the cardiovascular market, with expectations for high teens growth in fiscal 2027 [50] - Management acknowledged challenges in certain segments but emphasized plans to strengthen competitiveness and improve growth trajectories [9][22] Other Important Information - The company is actively pursuing M&A opportunities, focusing on tuck-in deals that align with its strategic goals [59] - The impact of tariffs on gross margin is expected to be approximately $185 million, with ongoing efforts to mitigate these effects [19][21] Q&A Session Summary Question: Comments on accelerating revenue growth next year - Management highlighted strong growth in CAS and other key drivers like Symplicity and UltraViva, expecting continued growth into FY 2027 [26][28] Question: Clarification on product launch progress for RDN and UltraViva - Management noted strong leading indicators for both products, including physician training and account openings, with plans to provide more concrete goalposts in the future [41][42] Question: Thoughts on capital allocation and M&A strategy - Management confirmed a focus on tuck-in M&A opportunities and strategic investments in high-growth areas, emphasizing a balanced approach to capital allocation [58][59] Question: Insights on CAS growth and market dynamics - Management expressed confidence in sustaining CAS growth, anticipating continued strong performance in the cardiovascular market [50][52] Question: Guidance for fiscal 2027 and EPS growth - Management reiterated high single-digit EPS growth guidance for FY 2027, factoring in various headwinds and growth drivers [66][69]

Enlight Renewable Energy (NasdaqGS:ENLT) Q4 2025 Earnings call February 17, 2026 08:00 AM ET Speaker8Good day, and thank you for standing by. Welcome to the Enlight Renewable Energy fourth quarter and full year 2025 earnings call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Limor Zohar-Megan, Director of Investor Relations. Please go ahead.Speaker4Thank you, operator. Good morning, everyone, and thank you for joining the fourth quarter and ful ...

Financial Data and Key Metrics Changes - The company reported revenue of EUR 20.9 billion, an increase of 2.8%, with comparable volumes marginally ahead [12][13] - Operating profit reached EUR 2.8 billion, up 7.1%, with an operating margin of 13.4%, an expansion of around 50 basis points [14] - Earnings per share (EPS) increased to EUR 4.11, up 6.2% on a comparable basis [14] - Free cash flow was strong at just over EUR 1.8 billion, after significant capital expenditures of nearly EUR 1 billion [15] Business Line Data and Key Metrics Changes - The non-alcoholic ready-to-drink (NARTD) category grew around 6% in value terms, with volume growth in Europe up 2% and Australia Pacific Southeast Asia (APS) up 5% [7] - The energy category saw a remarkable volume growth of nearly 20%, driven by strong performance from brands like Monster [9][66] - The ready-to-drink tea segment, particularly Fuze Tea, led the category in Iberia, contributing to overall growth [10] Market Data and Key Metrics Changes - The UK market, the largest revenue contributor, experienced nearly 6% revenue growth, with significant contributions from Coca-Cola Zero and Diet Coke [16] - In Australia, top-line performance excluding alcohol was impressive at 7%, marking the strongest growth in years [17] - Indonesia faced challenges with NARTD volumes down double digits, but there was an improving performance in the second half of the year [28] Company Strategy and Development Direction - The company is focused on executing a value creation strategy, generating EUR 4 billion for retail customers and returning EUR 4 billion to shareholders through dividends and buybacks [4] - There is a commitment to maximizing returns for shareholders, with a further EUR 1 billion share buyback planned [20] - The company is investing in digital capabilities and AI to enhance operations and decision-making processes [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 7% and profit sustainability over the midterm [33] - The company anticipates revenue growth of 3%-4% for 2026, driven by volumes and revenue per unit case [34] - Management acknowledged challenges in the consumer environment but remains optimistic about the company's positioning in growing categories [36] Other Important Information - The company has been recognized as a top employer and is investing in training for digital and AI capabilities [8] - Sustainability efforts continue, with progress in packaging collection and decarbonization initiatives [12] Q&A Session Summary Question: How did Europe perform in Q4, particularly in Germany and France? - Management noted a strong exit rate in Europe, with challenges in Germany and France due to higher promotional prices and tax increases impacting volumes [39][40] Question: What tailwind is expected from the World Cup? - Management highlighted extensive activation plans for the World Cup and EPL, aiming to engage consumers through promotions and on-pack activities [46][47] Question: What is the underlying growth excluding portfolio changes? - Management indicated that backing out portfolio changes would show growth between half a point and a point, aligning with midterm guidance [58][59] Question: What is the outlook for the energy category growth? - Management expects the energy category to maintain mid-teen growth levels, supported by innovation and distribution efforts [66] Question: What is the guidance for Indonesia's performance? - Management expects Indonesia to grow in volume and revenue, but has not reflected significant upside potential in guidance yet [78]

Financial Data and Key Metrics Changes - The company reported revenue of EUR 20.9 billion, an increase of 2.8%, with comparable volumes marginally ahead [12] - Operating profit reached EUR 2.8 billion, up 7.1%, with an operating margin of 13.4%, an expansion of around 50 basis points [14] - Earnings per share (EPS) increased to EUR 4.11, up 6.2% on a comparable basis [14] - Free cash flow was strong at just over EUR 1.8 billion, after significant capital expenditures of nearly EUR 1 billion [15] Business Line Data and Key Metrics Changes - The away-from-home channel saw robust top-line growth, contributing to overall market share gains [4] - The non-alcoholic ready-to-drink (NARTD) category grew around 6% in value terms, with Europe up 2% and Australia Pacific Southeast Asia (APS) up 5% [7] - The energy category experienced a remarkable 19% volume growth, driven by strong innovation and market demand [66] Market Data and Key Metrics Changes - The UK market, the largest revenue contributor, saw revenue growth of almost 6%, with significant contributions from Coca-Cola Zero and Diet Coke [16] - In Australia, top-line performance excluding alcohol was impressive at 7%, marking the strongest growth in years [17] - Indonesia faced challenges with NARTD volumes down double digits, but showed signs of improvement in the second half of the year [27] Company Strategy and Development Direction - The company is focused on creating value through strategic portfolio changes and investments in growth, with a commitment to maximizing shareholder returns [4][20] - There is an emphasis on innovation and premiumization while maintaining affordability, particularly in developed markets [22][23] - The company is leveraging technology and digital capabilities to enhance productivity and decision-making processes [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 7% and sustainable profit growth over the midterm [33] - The company anticipates revenue growth of 3%-4% for 2026, driven by volume and revenue per unit case [34] - Management acknowledged the challenges in the consumer environment but remains optimistic about the company's positioning in profitable categories [36] Other Important Information - The company returned EUR 1.9 billion to shareholders through dividends and buybacks, including a new EUR 1 billion share buyback program [15][20] - The company has been recognized as a top employer and is investing in digital and AI training for its workforce [8] Q&A Session Summary Question: How did Europe perform in Q4, particularly in Germany and France? - Management noted a strong exit rate in December, with challenges in Germany and France due to higher promotional prices and tax increases impacting volumes [39][40][41] Question: What is the expected free cash flow guidance for 2026? - The company guided for at least EUR 1.7 billion in free cash flow for 2026, reflecting increased CapEx investments [42] Question: What tailwind is expected from the World Cup? - Management highlighted extensive activation plans for the World Cup and EPL, aiming to engage consumers through promotions and on-pack activities [46][47] Question: What is the outlook for energy category growth? - Management expects the energy category to maintain mid-teen growth levels, supported by innovation and distribution improvements [66] Question: What is the potential for revenue growth management in mature markets? - Management sees significant opportunities for revenue growth through smarter pricing and promotional strategies, with ongoing flexibility in pack formats [73][74]

Financial Data and Key Metrics Changes - The company reported revenue of EUR 20.9 billion, an increase of 2.8%, with comparable volumes marginally ahead [12] - Operating profit reached EUR 2.8 billion, up 7.1%, with an operating margin of 13.4%, an expansion of around 50 basis points [13] - Earnings per share (EPS) increased to EUR 4.11, up 6.2% on a comparable basis [13] - Free cash flow was strong at just over EUR 1.8 billion, after significant capital expenditures of nearly EUR 1 billion [14] Business Line Data and Key Metrics Changes - The away-from-home channel saw robust top-line growth, contributing to overall market share gains [4] - The non-alcoholic ready-to-drink (NARTD) category grew approximately 6% in value terms, with Europe up 2% and Australia Pacific Southeast Asia (APS) up 5% [6] - The energy category experienced a remarkable 19% volume growth, driven by strong brand performance and innovation [64] Market Data and Key Metrics Changes - Great Britain (GB) reported nearly 6% revenue growth, with significant contributions from Coca-Cola Zero and Diet Coke [16] - APS delivered top-line performance, excluding alcohol, of 7%, marking its strongest growth in years [17] - Indonesia faced challenges with a double-digit decline in NARTD volumes, although there was an improvement in the second half of the year [28] Company Strategy and Development Direction - The company is focused on creating value through strategic portfolio changes and investments in growth, with a commitment to maximizing shareholder returns [4][20] - There is an emphasis on innovation and premiumization while maintaining affordability, particularly in developed markets [24] - The company is leveraging technology and digital capabilities to enhance operational efficiency and customer engagement [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 7% and sustainable profit growth over the midterm [34] - The company anticipates revenue growth of 3%-4% for 2026, driven by volume and revenue per unit case [34] - Management acknowledged challenges in certain markets but remains optimistic about recovery and growth potential [36] Other Important Information - The company returned EUR 1.9 billion to shareholders through dividends and buybacks, including a new EUR 1 billion share buyback program [15][20] - The company has been recognized as a top employer and is investing in digital and AI training for its workforce [8] Q&A Session Summary Question: How did Europe perform in Q4, particularly in Germany and France? - Management noted a strong exit rate in Q4, with challenges in Germany and France primarily due to higher promotional prices and tax increases impacting volumes [39][41] Question: What tailwind is expected from the World Cup? - Management highlighted extensive activation plans for the World Cup and EPL, aiming to engage consumers through promotions and on-pack activities [46][48] Question: What is the outlook for energy category growth? - Management expects the energy category to maintain mid-teen growth levels, supported by innovation and distribution improvements [64][66] Question: How is the company addressing revenue growth management in mature markets? - Management sees significant opportunities for revenue growth through smarter pricing and promotional strategies, with ongoing efforts to optimize pack offerings [72][74] Question: What is the outlook for Indonesia's market performance? - Management indicated a stronger finish to the year in Indonesia, with expectations for growth in both volume and revenue, while remaining cautious about guidance [77][78]

Financial Data and Key Metrics Changes - The company reported a 1.5% growth in RevPAR, indicating resilience in its operating model and brand strength [2][3] - Gross system growth was 6.6% and net system growth was 4.7%, attributed to record hotel openings and development activity [3] - EBIT increased by 13% and adjusted EPS grew by 16%, supported by a $900 million share buyback completed in 2025 [3] Business Line Data and Key Metrics Changes - The company signed over 102,000 rooms across 694 hotels, marking a 9% increase compared to 2024, excluding acquisitions [3] - Fee margin expanded by 360 basis points due to operating leverage and increases in ancillary fee streams [3] Market Data and Key Metrics Changes - The company noted strong trading performance across all three regions in early 2026, indicating positive market conditions [4] - In China, RevPAR is approximately half of that in the U.S., but the company is confident in the recovery trajectory, with positive indicators in Q1 2026 [12][22] Company Strategy and Development Direction - The company announced a new $950 million share buyback program and launched the Noted Collection brand, focusing on expanding its portfolio [4] - Management emphasized a disciplined approach to cost management and capital deployment, aiming for sustainable growth without relying solely on M&A [29][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market for 2026, citing strong GDP growth, low unemployment, and positive consumer spending trends [68][70] - In China, management noted a gradual recovery, with expectations for continued positive performance in RevPAR and strong signings [22][71] Other Important Information - The company is focused on enhancing its loyalty program, IHG One Rewards, which has grown to 160 million members, contributing to increased engagement and revenue from credit card fees [32] - Management highlighted the potential for branded residences to significantly contribute to revenue starting in 2027 [43][76] Q&A Session Summary Question: Future EPS growth without cost savings and boosts - Management acknowledged that while EPS growth may slow without extraordinary boosts, they expect continued growth in ancillary revenues and strong cost control [16][17] Question: Key money and unit growth expectations - Management indicated that some key money investments may roll over into 2026, but they remain confident in their growth trajectory and system size [10][11] Question: Margins in China and RevPAR concerns - Management confirmed that while margins were slightly down in China, they expect RevPAR to improve as the market recovers [21][22] Question: Fee business overheads and cost efficiencies - Management stated that cost efficiencies were broad-based across regions and emphasized a strategic approach to cost management rather than reactive measures [28][29] Question: Branded residences and future growth - Management expressed excitement about the branded residences segment, expecting substantial increases in revenue starting in 2027 [43][76] Question: Share buyback allocation and cash flow generation - Management explained their capital allocation strategy, prioritizing business investments and maintaining a strong dividend before returning surplus capital to shareholders [57][58]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, indicating resilience in the operating model and geographic footprint [2] - Gross system growth was 6.6% and net system growth was 4.7%, driven by record hotel openings and development activity [3] - EBIT increased by 13% and adjusted EPS grew by 16%, supported by a $900 million share buyback [3] Business Line Data and Key Metrics Changes - The company signed over 102,000 rooms across 694 hotels, a 9% increase compared to 2024, excluding acquisitions [3] - Fee margin expanded by 360 basis points due to operating leverage and increases in ancillary fee streams [3] Market Data and Key Metrics Changes - The company reported strong trading performance across all three regions in early 2026 [4] - In China, RevPAR is approximately half of that in the U.S., with indications of gradual improvement [12][14] Company Strategy and Development Direction - The company announced a new $950 million share buyback program and launched the Noted Collection brand [4] - The focus remains on expanding the brand portfolio, particularly in premium and luxury segments, without the need for M&A to grow [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market for 2026, citing strong GDP growth, low unemployment, and positive consumer spending trends [71][72] - In China, management noted a U-shaped recovery with positive indicators for RevPAR growth [74][75] Other Important Information - The company is focused on maintaining a disciplined approach to cost management, achieving a cost reduction of 3% in 2025 [17][30] - The loyalty program, IHG One Rewards, has grown to 160 million members, contributing to increased engagement and spending [33] Q&A Session Summary Question: Future EPS growth without cost savings and boosts - Management acknowledged that while EPS growth may slow without these boosts, they have other levers to pull to maintain growth [6][15] Question: Key money and unit growth expectations - Management indicated that some key money may roll over into 2026, but they remain confident in growth track records and unit growth potential [10][11] Question: Margins in China and RevPAR concerns - Management noted that RevPAR in China is gradually improving, with confidence in the economic trajectory and hotel performance [12][22] Question: Fee business overheads and cost efficiencies - Management confirmed that cost efficiencies were broad-based across regions and functions, not just targeted at one area [27][30] Question: Credit card fees and ancillary fees growth - Management expressed confidence in the growth of credit card fees, expecting significant increases in the coming years [32][33] Question: Branded residences income and future projections - Management indicated that while current income from branded residences is modest, substantial increases are expected starting in 2027 [46][47] Question: Net unit growth expectations - Management is optimistic about net unit growth returning to around 1.5%, supported by strong signings and brand demand [47][50] Question: Effective royalty rate and new properties - Management clarified that the take rate is not reducing, attributing changes to strategic shifts in brand positioning and key money [86]

Financial Data and Key Metrics Changes - RevPAR grew by 1.5%, indicating resilience in the operating model and geographic footprint [2][3] - Gross system growth was 6.6% and net system growth was 4.7%, driven by record hotel openings and development activity [3] - EBIT increased by 13% and adjusted EPS grew by 16%, supported by a $900 million share buyback [3] Business Line Data and Key Metrics Changes - The company signed over 102,000 rooms across 694 hotels, a 9% increase compared to 2024, excluding acquisitions [3] - Fee margin expanded by 360 basis points due to operating leverage and increases in ancillary fee streams [3] Market Data and Key Metrics Changes - Early trading performance in all three regions for 2026 has been positive, indicating strong market conditions [4] - In China, RevPAR is gradually improving, with indications of a positive trend continuing into 2026 [12][22] Company Strategy and Development Direction - The company announced a new $950 million share buyback program and launched the Noted Collection brand [4] - The focus remains on strategic growth through brand expansion and maintaining a strong pipeline of hotel openings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the enterprise platform and long-term growth outlook, despite challenges in 2025 [3][11] - Positive indicators for 2026 include strong GDP growth, low unemployment, and increased consumer spending in the U.S. [70][72] Other Important Information - The company is committed to maintaining a disciplined approach to cost management, with a projected cost increase of only 1% in 2026 [16][30] - The branded residences segment is expected to see substantial growth starting in 2027, contributing positively to future earnings [45][77] Q&A Session Summary Question: What are the levers to ensure EPS growth if RevPAR does not improve? - Management indicated that ancillary revenues are expected to continue growing, and cost control measures will remain in place [15][16] Question: What is the scope of deferred key money into 2026? - Management noted that some investments may roll over from 2025 into 2026, but they remain confident in growth prospects [10][11] Question: How does the company view margins in China? - Management acknowledged slight declines in margins but expressed confidence in improving unit economics and RevPAR in the region [21][22] Question: What is the outlook for branded residences? - Management is optimistic about the growth potential of branded residences, with significant increases expected starting in 2027 [45][77] Question: How does the company plan to address the decline in fee revenues? - Management clarified that the take rate is not reducing and attributed some changes to strategic shifts in brand positioning and key money [85]

Financial Performance and Key Metrics - The company reported a 1.5% growth in RevPAR, driven by rate and occupancy gains, reflecting a strong global footprint and diversified demand drivers [3][4] - Gross system growth was 6.6%, and net system growth was 4.7%, marking the fourth consecutive year of accelerating growth [4] - The fee margin increased by 360 basis points to 64.8%, contributing to a 13% increase in EBIT and a 16% growth in adjusted EPS [4][8][19] - Adjusted Free Cash Flow rose to $893 million, a year-on-year increase of $238 million, with Free Cash Conversion at 115% of adjusted earnings [20] Business Line Performance - Revenue from the fee business was $2.5 billion, with EBIT growing 7% and 13% respectively [8] - The Americas RevPAR grew 0.3% for the year, while EMEA RevPAR increased by 4.6% [10][11] - In Greater China, RevPAR declined by 1.6%, with a notable recovery in Q4 [11][12] Market Performance - The U.S. market saw a gross opening of 156 hotels, with a pipeline of 233 hotels, indicating strong owner confidence [41] - In EMEA, particularly Germany, the company doubled its presence to 190 hotels and signed 25 more into the pipeline [43] - The company celebrated its 50th anniversary in Greater China, reaching 882 open hotels and a pipeline of 582 hotels [42] Company Strategy and Industry Competition - The company launched a new premium collection brand, Noted Collection, and acquired Ruby to strengthen its portfolio in the premium segment [5][30] - The brand portfolio has expanded from 10 to 21 brands over the past decade, capturing a wider customer mix and enhancing loyalty program value [29] - The company aims to achieve fee revenue growth of high single digits while controlling overhead growth to a low single-digit increase per year [19] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in continuing to deliver on the growth algorithm, targeting 12%-15% adjusted EPS growth as a compound annual growth rate [60] - The company highlighted the strength of its business model and the resilience demonstrated despite turbulent trading conditions [5][59] - Management noted that the overall margin achievement in 2025 was unusually strong, driven by ancillary fee streams and cost actions [19] Other Important Information - The company announced a new $950 million share buyback program, expected to return over $1.2 billion to shareholders in 2026 [4][27] - The loyalty program, IHG One Rewards, grew to over 160 million members, with loyalty penetration now at approximately 66% of all room nights booked [54][55] - The company is leveraging AI and technology to enhance guest experiences and operational efficiencies [49][51] Q&A Session Summary Question: What are the growth prospects for the new Noted Collection brand? - The company expects Noted Collection to scale rapidly, with initial discussions already underway with multiple owners [36] Question: How is the company managing costs in the current environment? - The company has maintained a disciplined approach to cost management, achieving sustainable savings through process redesign and technology [15][19] Question: What is the outlook for the Greater China market? - Management remains confident in the long-term structural growth drivers in Greater China, with a significant under-penetration of hotels per capita [42]