Financial Data and Key Metrics Changes - Combined adjusted EBITDA for Q4 2025 was $336.1 million, an increase from $289 million in Q4 2024 and $245 million in Q3 2025 [12] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [12] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [13] - For the full year 2025, core ingredients EBITDA was $922 million, up from $790 million in 2024 [12] Business Line Data and Key Metrics Changes - Core ingredients EBITDA for Q4 2025 was $278 million, compared to $230 million in Q4 2024 [12] - Feed segment EBITDA improved to $193 million in Q4 2025 from $150 million a year ago, with total sales of $1.13 billion versus $924 million [13] - Food segment total sales for Q4 2025 were $429 million, up from $362 million in Q4 2024 [14] - Fuel segment, specifically Diamond Green Diesel (DGD), achieved $57.9 million in EBITDA for Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - Demand for domestic fats in the U.S. remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million in EBITDA, or $0.21 per gallon [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on operational excellence and core strengths [5] - Plans to sharpen the portfolio may lead to asset sales, while also exploring opportunities to strengthen and expand core business [10] - The company is optimistic about the policy backdrop for renewable fuels, which is expected to enhance DGD's earning potential [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainties from evolving renewables public policy and global trade but emphasized a commitment to fundamentals [5] - The outlook for 2026 is encouraging, with positive global demand trends and expectations for improved margins in the fuel segment [8][20] - Management anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to be in the range of $240 million to $250 million [21] Other Important Information - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges of $58 million were recorded in the quarter [19] - The company ended 2025 with approximately $1.3 billion available on its revolving credit facility [17] Q&A Session Summary Question: Guidance for DGD margins and potential inclusion in future guidance - Management indicated that guidance for DGD will depend on clarity regarding the Renewable Volume Obligation (RVO) [27][28] Question: Sensitivity of the feed business to RVO changes - Management noted that the feed business is sensitive to U.S. and North American feedstock values, which are expected to be supportive [29] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [33] Question: Expectations for the food business and EBITDA - Management expressed optimism for the collagen and gelatin business, expecting a year similar to or better than the previous year [35] Question: RVO expectations and potential impact on Darling's feed business - Management supports an RVO for advanced biofuels translating to 5.25 billion to 5.61 billion gallons, which would be constructive for margins [40] Question: Rationale for the Potencei Group acquisition - Management highlighted the strategic fit of the Potencei facilities within their existing footprint and the potential for margin enhancement [68] Question: Capital allocation priorities post-leverage targets - Management emphasized that capital allocation will focus on paying down debt, with reassessment following clarity on cash flow from DGD [79]

Financial Data and Key Metrics Changes - Core FFO per diluted share for Q4 2025 was $0.35, down from $0.37 in Q4 2024, attributed to the sale of two projects and higher net interest expense [26] - AFFO generated in Q4 2025 was approximately $18.7 million [26] - 2026 annual Core FFO guidance is projected to be between $1.47 and $1.53 per diluted share, reflecting an increase of $0.08 at the midpoint over 2025 results [28][30] Business Line Data and Key Metrics Changes - Total leasing volume for 2025 reached 2.5 million sq ft, representing approximately 16% of the portfolio, the highest in over a decade [8] - In Q4 2025, approximately 679,000 sq ft of leasing was completed, with nearly 70% related to new tenants, resulting in a year-end lease percentage of 89.6%, an increase of 120 basis points over 2025 [10] - Rental rates for leases executed in Q4 increased approximately 12% on a cash basis and 21% on an accrual basis [11] Market Data and Key Metrics Changes - The number of Fortune 100 companies requiring a five-day workweek in the office rose to about 55%, compared to 5% two years ago [6] - Positive absorption was reported in 50 markets in 2025, up from 33 in 2024, marking the highest number since 2019 [6] - Sublet availability has declined, with only 4 million sq ft of new office space delivered in Q4 2025, the lowest since 2012 [7] Company Strategy and Development Direction - The company is focused on leveraging its portfolio of recently renovated, well-located, and amenity-rich properties to drive sustainable earnings growth [9] - The strategy includes a hospitality-infused service model to enhance tenant experience and retention [9] - The company aims to achieve mid-single-digit organic FFO growth in 2026 and 2027, supported by increased occupancy and rental rates [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the occupancy trough occurred in Q4 2025, with expectations for a rebound in leasing and occupancy rates [12] - The company is optimistic about the demand environment, driven by a shift in workplace strategies among large users [50] - Management believes that the unique positioning of their portfolio will continue to attract tenants, even in challenging markets [51] Other Important Information - The company completed significant refinancing activities, issuing $400 million in new bonds and repurchasing $245 million of higher coupon bonds, resulting in annual savings of approximately $0.04 [27] - The out-of-service portfolio is expected to stabilize and rejoin the normal operating portfolio by the end of 2026 or early 2027 [10] Q&A Session Summary Question: What is the breakdown of renewal versus new leasing in the 1.7-2 million sq ft target? - Management indicated that it is roughly 50/50 between new activity and renewal activity [34] Question: What is the potential cap on lease percentage given structural vacancies in some markets? - Management believes they can push lease percentages upwards of 91%-92% across the portfolio, despite some challenges in specific markets [40] Question: What types of products is the company targeting for disposition in 2026? - Management noted that they are looking to monetize non-core assets, particularly in Houston, and are progressing with land parcels under contract [44]

Safehold (NYSE:SAFE) Q4 2025 Earnings call February 12, 2026 09:00 AM ET Company ParticipantsBrett Asnas - CFOJay Sugarman - Chairman and CEOMichael Trachtenberg - PresidentPearse Hoffmann - Senior VP of Capital Markets and Investor RelationsSteve Wylder - EVP, Head of InvestmentsConference Call ParticipantsHarsh Hemnani - AnalystKenneth Lee - AnalystKyle Bonsey - AnalystMitch Germain - AnalystRich Anderson - AnalystRonald Kamdem - AnalystOperatorMorning, and welcome to Safehold's fourth quarter and fiscal ...

Financial Data and Key Metrics Changes - For Q4 2025, combined adjusted EBITDA was $336.1 million, up from $289 million in Q4 2024 and $245 million in the previous quarter [11] - Total net sales for Q4 2025 reached $1.7 billion, compared to $1.4 billion in Q4 2024 [11] - Gross margins improved to 25.1% in Q4 2025 from 23.5% in Q4 2024 [12] - For the full year 2025, core ingredients EBITDA was $922 million, an increase from $790 million in 2024 [11] Business Line Data and Key Metrics Changes - In the feed ingredients segment, Q4 EBITDA improved to $193 million from $150 million a year ago, with total sales of $1.13 billion compared to $924 million [12] - The food segment saw total sales for Q4 2025 at $429 million, up from $362 million in Q4 2024, with EBITDA increasing to $82 million from $64 million [13][14] - The fuel segment, specifically Diamond Green Diesel (DGD), delivered $57.9 million of EBITDA in Q4 2025, marking its strongest quarter of the year [8][15] Market Data and Key Metrics Changes - In the U.S., demand for domestic fats remains robust, supported by favorable agricultural and energy policies [8] - Internationally, the global rendering business in Europe, Canada, and Brazil showed solid year-over-year growth [8] - DGD sold approximately 1 billion gallons in 2025, earning $103.7 million of EBITDA, reinforcing its position as the lowest cost operator [9] Company Strategy and Development Direction - The company aims to be the world's largest and most profitable processor of animal byproducts, focusing on core strengths and operational excellence [5] - Strategic acquisitions are being pursued, including a stalking horse bid for three rendering facilities in Brazil, which are expected to enhance operational capabilities [10] - The company is open to opportunities that strengthen its core business, potentially leading to asset sales in the near future [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing positive global demand trends and a favorable policy backdrop for renewable fuels [8][20] - The company anticipates a modest pullback in Q1 2026 but expects core ingredients adjusted EBITDA to range between $240 million and $250 million [22] - Management highlighted the importance of regulatory clarity regarding the Renewable Volume Obligation (RVO) for future growth [90] Other Important Information - Total debt net of cash was approximately $3.8 billion at year-end 2025, down from $4 billion at the end of 2024 [17] - The company recorded an income tax benefit of $11 million for Q4 2025, with an effective tax rate of -15.3% [18] - Restructuring and impairment charges amounted to $58 million in Q4 2025 [19] Q&A Session Summary Question: Guidance on DGD margins and potential RVO impact - Management indicated that guidance on DGD will depend on clarity regarding the RVO, with strong results expected to carry into Q1 [29] Question: Sensitivity of feed business to RVO changes - Management noted that the feed business is sensitive to policy changes, with supportive policies likely benefiting rendering businesses in the U.S. and Canada [30] Question: Insights on biofuels production and feedstock demand - Management stated that there hasn't been a significant increase in biofuel production yet, and better margins are needed to incentivize more production [34] Question: Expectations for food business EBITDA - Management expressed confidence in the collagen and gelatin business, expecting a strong year ahead due to rebounding demand [36] Question: RVO expectations and LCFS market dynamics - Management supports an RVO for advanced biofuels translating to 5.25 billion gallons, which would be constructive for margins [41] Question: Potential for asset sales - Management indicated that asset sales would be opportunistic, focusing on areas where the company has core capabilities [71]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted EBITDA of $232 million and free cash flow of $35 million, with full-year adjusted EBITDA slightly above the $1.1 billion midpoint of original guidance [4][24] - Total revenue for the full year 2025 was $3.3 billion, with an adjusted EBITDA margin of 30% for Q4 [24][25] - The company maintained a return of capital program, returning an additional $80 million to shareholders through a $0.50 per share quarterly dividend in Q4 [4] Business Line Data and Key Metrics Changes - The backlog increased to $7.5 billion, with significant contracts awarded including a 3-year contract with Aker BP valued at $473 million and a 2-year contract with Exxon in Nigeria valued at $292 million [5][7] - The company expects capital expenditures of approximately $160 million for the reactivation of the Noble GreatWhite rig [6] Market Data and Key Metrics Changes - The contracted UDW rig count increased to 105, up from a low of 97 early last year, with a contracted utilization rate of 95% [11] - Day rates for Tier 1 drillships have settled around $400,000 per day, with lower-spec units capturing low to high $300,000 per day [13] - The average Brent crude price of $68 per barrel in 2025 was down by 15% compared to 2024, yet the company achieved a 30% year-over-year backlog growth [20] Company Strategy and Development Direction - The company is focusing on high-end deepwater and CJ70 jackup markets, having sold five jackups to Borr Drilling for $360 million to unlock capital for fleet reinvestment [22][23] - The company aims to maintain robust shareholder capital returns and anticipates a meaningful step-up in free cash flow next year [21][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for deepwater rigs, citing a robust pipeline of open demand and a potential tightening market by 2027 [34][80] - The company noted that while there are macro uncertainties, the backlog progress has formed a strong foundation for rising utilization, EBITDA, and free cash flow [20][31] Other Important Information - The company completed the sale of five jackups and expects to close the sale of the Noble Resolve for $64 million in Q3 [22][30] - The company is committed to the CJ70 market in Norway and the North Sea, with early indications of strong utilization outlook [23] Q&A Session Summary Question: Thoughts on industry consolidation - Management acknowledged that consolidation is a path for the industry and expressed hope that it will make the industry more efficient [39][40] Question: Scale and opportunities in the floater market - Management believes they have sufficient scale and will continue to evaluate opportunities that align with their strategy [41][42] Question: Strength in the sixth-generation market - Management indicated that the recent contracts are project-specific and not driven by value decisions from customers [46][50] Question: Conditions for upward momentum in rates - Management noted that both crude prices and additional rig contracts are necessary for a tighter market, expressing optimism for 2027 [52][53] Question: Day rate expectations for 2027 - Management sees potential for day rates to improve but stops short of making it a base case, indicating a 50/50 chance [58] Question: Negotiations with Petrobras - Management is hopeful for news in the coming months regarding ongoing negotiations with Petrobras [59][60] Question: Norwegian market outlook - Management expressed cautious optimism about the Norwegian market, noting contracts and ongoing conversations with multiple customers [66][68] Question: Future of the Globetrotter and Apex rigs - Management is pursuing niche drilling applications for the Globetrotter and is evaluating opportunities for the Apex rig [70]

Financial Data and Key Metrics Changes - FBRT reported GAAP net income of $18.4 million, or $0.13 per fully converted common share, with distributable earnings of $17.9 million, or $0.12 per fully converted share [16] - The company decided to reset the quarterly dividend to $0.20 per common share starting Q1 2026 to stabilize book value and better match current earnings to dividends [9][10] - Book value per share ended the quarter at $14.15, reflecting the dividend outpacing earnings [18] Business Line Data and Key Metrics Changes - The core portfolio finished Q4 at approximately $4.4 billion, with 77% of loans backed by multifamily assets [23] - During Q4, the company originated 37 loans at a weighted average spread of 284 basis points, with multifamily representing 76% of new loan originations [23] - The agency volume came in at $1.1 billion of new loan originations in the quarter, with expectations for agency volumes to be between $4.5 billion and $5.5 billion in 2026 [19] Market Data and Key Metrics Changes - Market conditions are improving, with abundant liquidity and tighter spreads, the tightest seen since pre-GFC days [13] - Regional banks are slowly returning to the market, primarily in the multifamily space, but the company is cautious about chasing current market spreads [14][15] Company Strategy and Development Direction - The company has transitioned from being a pure play mortgage REIT to a commercial real estate investment platform, focusing on sustainable dividend coverage, book value growth, and durable earnings [10][12] - The acquisition of NewPoint is expected to provide steadier recurring servicing and fee revenue, which typically trades at a lower yield but offers more consistent cash flow [11] - The company aims to balance attractive current income with disciplined book value growth, positioning itself with a differentiated mix of dividend yield, stability, and growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow earnings, despite current challenges, and indicated that the earnings potential remains unchanged [31][32] - The company is navigating a significantly better market than two years ago, but the timing of asset sales and borrower behavior has delayed progress [32][63] - Management believes that the disconnect between book value and share price is inexplicable and is committed to demonstrating the company's value in 2026 [63][64] Other Important Information - The company completed a $1 billion CLO that increased non-recourse financing capacity and is expected to lower financing costs in 2026 [17] - Share buybacks continued in Q4, repurchasing $14.4 million of common stock, contributing $0.05 to book value [18] Q&A Session Summary Question: How should we think about capital allocation this quarter? - Management indicated that they are not slowing down origination but are focusing on a mix of business areas to avoid tight spreads in the market [29][30] Question: Should we expect the dividend reset to be a good baseline for run rate earnings going forward? - Management expects to grow earnings over the next several quarters and aims to return to a higher dividend coverage level [31][32] Question: Will the company have some percentage of capital in direct real estate investments going forward? - Management confirmed that they have multiple equity investments and expect to allocate a slightly higher percentage of capital to equity investments over the next few years [39][40] Question: How is the multifamily volume progressing year to date in 2026? - Management noted that the business is highly sensitive to interest rates, and any movement could significantly impact volume [59] Question: Are most of the repayments behind the company? - Management indicated that they are cycling through the legacy portfolio and expect to continue addressing legacy positions while maintaining a strong credit quality [62][63]

American Electric Power Company (NasdaqGS:AEP) Q4 2025 Earnings call February 12, 2026 09:00 AM ET Company ParticipantsBill Fehrman - Chairman, President and CEOCarly Davenport - VP of Equity ResearchDarcy Reese - VP of Investor RelationsDavid Arcaro - Executive Director of Equity ResearchJulien Dumoulin-Smith - Managing DirectorKate Dixon - SVP, Controller and Chief Accounting OfficerShar Pourreza - Managing Director and Head of North American Power, Infrastructure, and UtilitiesTrevor Mihalik - EVP and CF ...

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted EBITDA of $232 million and free cash flow of $35 million, with full-year adjusted EBITDA slightly above the $1.1 billion midpoint of original guidance [4][24] - Total revenue for 2025 was $3.3 billion, with an adjusted EBITDA margin of 30% [24] - The total backlog as of February 11 stands at $7.5 billion, with approximately $2.3 billion scheduled for revenue conversion during the remainder of 2026 [25] Business Line Data and Key Metrics Changes - The company has seen strong booking levels across its fleet, with significant contracts awarded, including a 3-year contract with Aker BP valued at $473 million and a 2-year contract with Exxon in Nigeria valued at $292 million [5][7] - The company anticipates capital expenditures of approximately $160 million for the reactivation of the Noble GreatWhite rig [6] Market Data and Key Metrics Changes - The contracted UDW rig count has increased to 105, up from a low of 97 early last year, with a contracted utilization rate of 95% [11] - Day rates for Tier 1 drillships have settled around $400,000 per day, with lower-spec units capturing low to high $300,000 per day [13] - The average Brent crude price of $68 per barrel in 2025 was down by 15% compared to 2024, yet the company achieved a 30% year-over-year backlog growth [20] Company Strategy and Development Direction - The company is focusing on high-end deepwater and CJ70 jackup markets, having completed the sale of five jackups to Borr Drilling for $360 million [22][23] - The company aims to maintain robust shareholder capital returns while investing strategically in fleet upgrades and reactivations [21][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, anticipating a meaningful step-up in free cash flow next year, even in a flat market [21][31] - The company expects to see an upward bias in day rates due to improving utilization across the global fleet and encouraging leading indicators on forward demand [36] Other Important Information - The company has made significant strategic investments to support its offshore strategy, including modifications to the GreatWhite rig to enhance its capabilities [33] - The company is optimistic about the Norwegian market, with contracts secured for its CJ70 rigs and ongoing discussions with multiple customers [69] Q&A Session Summary Question: Thoughts on industry consolidation - Management acknowledged that consolidation is a path for the industry and expressed hope that it will make the industry more efficient [39][40] Question: Scale and opportunities in the floater market - Management believes they have sufficient scale and will continue to evaluate opportunities that align with their strategic focus [41][42] Question: Recent strength in the sixth-generation market - Management noted that the demand for sixth-generation rigs is project-specific and sustainable, not driven by value decisions from customers [46][50] Question: Conditions for upward momentum in rates - Management indicated that both crude prices and additional rig contracts are necessary for a tighter market, expressing optimism for 2027 [52][54] Question: Day rate expectations for 2027 - Management sees a possibility for day rates to improve into the mid-$400,000s range, depending on market conditions [58] Question: Negotiations with Petrobras - Management is hopeful for news in the coming months regarding ongoing negotiations with Petrobras, which are complex due to multiple dynamics [60][61] Question: Outlook for the Norwegian market and jackup fleet - Management expressed cautious optimism about the Norwegian market, noting contracts secured and potential for incremental demand [68][69] Question: Future of specific rigs in the fleet - Management is exploring opportunities for the Globetrotter and Apex rigs, with a focus on intervention and niche drilling applications [70][71] Question: Potential for more spot work in the U.S. Gulf - Management is optimistic about securing more opportunities for the BlackRhino rig in 2027, both domestically and internationally [77][78] Question: Concerns about project delays - Management acknowledged the risk of project delays but expressed confidence in the current backlog and market conditions for 2027 [80][81]

Financial Data and Key Metrics Changes - The company achieved record sales, operating margin, and earnings per share for both Q4 and the full year 2025, with organic sales rising 8% and reported sales up 16% in Q4 [3] - Adjusted operating margin climbed 220 basis points to 19% in Q4, while for the full year, adjusted operating margin improved by 190 basis points to 19.6% [3][14] - Free cash flow reached a record $356 million for 2025, up 7%, with a conversion rate of 105% [4][16] Business Line Data and Key Metrics Changes - In the Americas, organic sales grew by 10% and reported growth was 17%, driven by favorable pricing and volume [11] - Europe saw organic sales rise by 1% and reported sales increase by 10%, benefiting from favorable pricing and positive foreign exchange effects [11] - APMEA experienced organic sales growth of 9%, with acquisitions contributing an additional 6% for a total reported sales growth of 15% [12] Market Data and Key Metrics Changes - The Americas region showed strong performance, while Europe faced challenges with a 5% decline in organic sales for the full year [14] - The company anticipates a mixed outlook for non-residential new construction in the Americas, with indicators suggesting subdued market conditions [7] - In Europe, new residential and non-residential construction is expected to remain sluggish due to uncertainties surrounding inflation and trade policies [7] Company Strategy and Development Direction - The company continues to focus on strategic M&A, high-return organic investments, competitive dividends, and steady share buybacks [4] - The data center initiative is a key growth area, with an addressable market exceeding $1 billion and sales from this sector growing at a double-digit rate [9] - The company plans to phase out underperforming products, identifying $10-15 million of European sales and $25-30 million in the Americas to eliminate during 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expects reported sales growth of 8%-12% and organic sales growth of 2%-6% for 2026, with pricing and repair/replacement activity driving growth [17] - The company anticipates challenges in Europe, projecting organic sales to range from a 4% decline to flat [18] - Management remains cautious about the operating environment, particularly in Europe, while expressing confidence in the company's ability to leverage its strengths for growth [62] Other Important Information - The company completed two acquisitions, Superior Boiler and Saudi Cast, which are expected to be accretive to adjusted EPS in 2026 [4][5] - The company returned $83 million to shareholders through dividends and share repurchases, increasing the annual dividend payout by approximately 20% [16] Q&A Session Summary Question: M&A Strategy and Revenue Contribution - Management emphasized that M&A is a key part of the strategy, with a focus on targets that fit the company's culture and financial criteria [27][28] Question: Data Center Growth - Management indicated that the data center market is a key focus, with expectations for high growth driven by ongoing construction [30][31] Question: Organic Growth Guidance - Management confirmed that the 80/20 revenue is included in the organic growth guidance, with expectations for price to be low single digits and volume to be muted [39][41] Question: Product Rationalization - Management clarified that the product rationalization efforts are focused on underperforming channels, not divestitures [88][89] Question: Capacity to Meet Data Center Demand - Management stated that they are leveraging global supply chains and facilities to meet demand from the data center market [100]

Financial Data and Key Metrics Changes - In 2025, the company achieved dollar-based EPS growth of 6% and a 9.4% increase in constant currency, with underlying EPS reaching $3.73 per share [22][26] - EBITDA increased by 4.9%, with margin expansion of 101 basis points, resulting in a revenue per hectoliter increase of 4.4% and top-line growth of 2% [7][21] - Free cash flow was maintained at $11.3 billion, allowing for increased share buybacks and a proposed final dividend representing a 15% increase year-over-year [23][24] Business Line Data and Key Metrics Changes - The Mega Brands and premium portfolio grew ahead of the overall business, with Beyond Beer and non-alcohol beer portfolios increasing revenue by 23% and 34%, respectively [6][15] - The BEES Marketplace GMV increased by 61% to reach $3.5 billion, indicating strong growth in the digital marketplace segment [6][17] Market Data and Key Metrics Changes - Revenue increased in 65% of the company's markets, with notable performance in the U.S., Mexico, and Colombia, while China experienced a low teens revenue decline [8][9][11] - In the U.S., the company gained market share in both beer and spirits, with significant growth from brands like Michelob ULTRA and Cutwater [9][10] Company Strategy and Development Direction - The company continues to focus on premiumization, innovation, and expanding its digital ecosystem, with a strong emphasis on the growth of Beyond Beer and non-alcohol segments [12][15][19] - The company aims to leverage its diversified geographic footprint to capture future industry growth, particularly in emerging markets where 70% of EBITDA is generated [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for 2026, citing improved momentum in key markets and the upcoming FIFA World Cup as significant opportunities for growth [26][33] - The company remains committed to its long-term strategy, focusing on disciplined revenue management and brand investment despite challenges faced in 2025 [5][26] Other Important Information - The company invested $7.4 billion in sales and marketing in 2025, with a focus on enhancing brand power and market presence [12][13] - The company has a strong innovation pipeline, with new product launches and expansions planned for both the Beyond Beer and non-alcohol segments [15][16] Q&A Session Questions and Answers Question: Insights on the role of beer in consumer culture - Management emphasized that beer brings people together and creates moments of celebration, highlighting the importance of moderate consumption [30][31] Question: Optimism for 2026 and strategy execution - Management noted that the positive outlook for 2026 is due to consistent application of strategy and early signs of market recovery [32][33] Question: Turnaround strategies in the U.S. market - Management discussed the importance of consistency and long-term investment in the U.S. market, with a focus on portfolio rebalancing and brand innovation [38][39] Question: Progress in China and market dynamics - Management acknowledged challenges in China but noted improvements in market share and execution, particularly in the off-trade channel [43][46] Question: Competitive dynamics in Brazil - Management highlighted the return to growth in Brazil, attributing it to improved weather conditions and effective brand execution [47][48] Question: Margin outlook for 2026 - Management indicated that there are opportunities for further margin expansion, driven by premium brands and operational efficiency [52][56] Question: Beyond Beer business potential - Management expressed confidence in the growth potential of the Beyond Beer segment, with significant headroom for expansion in the U.S. market [60][61] Question: CapEx sustainability and efficiency - Management reassured that the current level of CapEx is sustainable, supported by technology and efficiency improvements [68][69]