Financial Data and Key Metrics Changes - The company reported FFO of $0.90 per share for Q4 2025, including $0.06 from land sale gains, resulting in a full-year FFO of $3.48 per share, which is 2% higher than the midpoint of the original outlook for 2025 [8][24] - Net income for Q4 was $28.7 million, or $0.26 per share [24] - The initial 2026 FFO outlook is set at a midpoint of $3.54 per share, which is 5.7% higher than the initial 2025 outlook [8][26] Business Line Data and Key Metrics Changes - The company leased 526,000 sq ft of second-generation space in Q4, including 221,000 sq ft of new leases, with a total of 3.2 million sq ft signed for the year [8][19] - The development pipeline is now 78% pre-leased, up from 72% last quarter and 56% one year ago [9] - Cash rent spreads were positive, with GAAP rent spreads in the mid-teens, and net effective rents were 20% higher than in 2024 [9][19] Market Data and Key Metrics Changes - The Sun Belt markets are experiencing strong demand, with limited new supply and positive net absorption [18][20] - Charlotte generated more nominal jobs than any other metro area except New York City in 2025, indicating robust economic activity [20] - Dallas is noted as the number one market to watch, with significant net absorption and a strong Class A office market [22] Company Strategy and Development Direction - The company is focused on investing in high-quality office and BBD locations in the Sun Belt, with a projected NOI growth potential of $50 million-$60 million across eight buildings [6][7] - Future investments are expected to drive additional growth, with approximately $800 million invested over the past 12 months [7] - The company plans to complete $190 million-$210 million of additional dispositions by mid-year 2026 to fund acquisitions and maintain a leverage-neutral position [16][26] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the next few years due to strong fundamentals in core markets, limited new supply, and ongoing demand from companies [5][6] - The company expects to drive occupancy higher by roughly 200 basis points from the end of 2025 to the end of 2026 [6] - Management noted that expansions outpaced contractions 2.5-to-1 for Q4 and over 3-to-1 for the year, indicating a positive leasing environment [19] Other Important Information - The company has filed a new S-3 shelf registration statement with the SEC, allowing for future capital market transactions [32] - The company plans to fund recent acquisitions on a leverage-neutral basis, primarily through the sale of non-core assets [25][26] Q&A Session Summary Question: When does the company expect to realize elevated growth rates from capital recycling? - Management indicated that the impact on 2026 numbers is one-time in nature, with growth expected to normalize in 2027 [34][35] Question: How is demand for the remaining leasing in the development pipeline? - Management reported strong demand, with continued progress in leasing throughout 2025 [37] Question: Has the company seen any impact from AI-related layoffs in its markets? - Management stated that they have not observed any significant impact from AI-related layoffs, with continued demand for office space [41][42] Question: What is the expected occupancy bridge throughout the year? - Management expects occupancy to improve steadily throughout the year, despite some initial drag from recent acquisitions [54][56] Question: What percentage of the $200 million non-core sales is related to land sales? - Management clarified that none of the $200 million is related to land sales, which are expected to occur later in the year [52] Question: What is the leasing target to grow occupancy? - Management indicated that approximately 700,000 to 750,000 sq ft of new leasing is needed to achieve the year-end occupancy target of 87.5% [73][75]

Financial Data and Key Metrics Changes - The company reported FFO of $0.90 per share for Q4 2025, including $0.06 from land sale gains, resulting in a full-year FFO of $3.48 per share, which is 2% higher than the midpoint of the original outlook for 2025 [8][24] - The initial 2026 FFO outlook is projected to be 5.7% higher at the midpoint compared to the initial 2025 outlook [6][8] - Net income for Q4 2025 was $28.7 million, or $0.26 per share [24] Business Line Data and Key Metrics Changes - The company leased 526,000 sq ft of second-generation space in Q4 2025, including 221,000 sq ft of new leases [8] - The development pipeline is now 78% pre-leased, up from 72% last quarter and 56% one year ago [9] - Cash rent spreads were positive, with GAAP rent spreads in the mid-teens, and net effective rents were 20% higher than in 2024 [9][10] Market Data and Key Metrics Changes - The company highlighted strong demand in its core Sun Belt markets, with limited new supply and increasing rental rates [5][6] - Charlotte generated more nominal jobs than any other metro area except New York City in 2025, indicating strong economic growth [20] - Dallas and Nashville also showed significant net absorption and rising asking rents, with Dallas being noted as the number one market to watch [22][23] Company Strategy and Development Direction - The company is focused on investing in high-quality office and BBD locations in the Sun Belt, with a projected NOI growth potential of $50 million-$60 million across eight buildings [6][7] - Future investments are expected to drive additional growth, with approximately $800 million invested over the past 12 months [7] - The company plans to complete $190 million-$210 million of additional dispositions by mid-year 2026 to fund acquisitions and improve portfolio quality [16][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth potential due to strong fundamentals in the Sun Belt markets and a favorable leasing environment [5][18] - The company anticipates occupancy gains of roughly 200 basis points from the end of 2025 to the end of 2026 [6] - Management noted that the current economic environment is conducive to well-capitalized landlords, with pricing power shifting towards them [17] Other Important Information - The company has filed a new S-3 shelf registration statement with the SEC, allowing for future capital market transactions [32] - The company expects to fund recent acquisition activities on a leverage-neutral basis, primarily through the sale of non-core assets [15][26] Q&A Session Summary Question: When does the company expect to realize elevated growth rates from capital recycling? - Management indicated that the impact on 2026 numbers is one-time in nature, with growth expected to be more significant in 2027 [34][35] Question: How is demand for the remaining leasing in the development pipeline? - Management reported strong demand, with continued progress in leasing throughout 2025 [37][38] Question: Has the company seen any impact from AI-related layoffs? - Management stated that they have not observed any significant impact from AI-related layoffs, with demand for office space remaining strong [41][42] Question: What is the expected cash flow outlook given elevated CapEx? - Management expects 2026 spending to be lower than 2025 levels, which should improve cash flow in the long term [46][48] Question: What percentage of the $200 million non-core sales is related to land sales? - Management clarified that none of the $200 million in non-core sales is related to land sales, which are expected later in the year [51][52] Question: What is the leasing target to grow occupancy? - Management indicated that approximately 700,000-750,000 sq ft of new leasing is needed to achieve the occupancy target by the end of 2026 [71][75]

Financial Data and Key Metrics Changes - The company is targeting $200 million in annual run rate cost savings by 2027, primarily from network optimization and productivity enhancements [8][39] - The revenue per available seat mile (RASM) is expected to improve by over 10% year-over-year, with positive trends observed in early bookings for the upcoming quarters [22][108] Business Line Data and Key Metrics Changes - The company has shifted back to a basic first product architecture, which has positively impacted both fare and ancillary revenue trends [80][81] - The loyalty program has seen a significant increase in engagement, with overall loyalty revenue up over 30% [104] Market Data and Key Metrics Changes - The company anticipates growth of approximately 10%, with half of this growth coming from filling existing network capacity and the other half from new markets [15][20] - The company is focusing on enhancing its operations in Atlanta, capitalizing on reduced capacity from competitors like Southwest and Spirit [87] Company Strategy and Development Direction - The strategic priorities include rightsizing the fleet, strengthening cost discipline, improving operational reliability, and enhancing customer loyalty [6][10] - The company aims to return to sustained profitability by focusing on a disciplined growth rate of around 10%, which is seen as a stable target for revenue performance [19][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for significant changes to improve operational performance and customer loyalty, emphasizing a commitment to long-term value creation [12][102] - The current economic environment is viewed as constructive, with expectations of improved revenue generation due to disciplined capacity deployment across the industry [49][90] Other Important Information - The company has entered into agreements to terminate 24 aircraft leases, which will enhance fleet productivity and reduce costs [7][58] - The delivery cadence for 2026 includes 24 aircraft, with expectations to maintain the same fleet size by the end of the year [30][32] Q&A Session Summary Question: Long-term growth plan and market opportunities - Management indicated that the 10% growth target is based on filling existing network capacity and exploring new markets, particularly in areas where competitors have reduced capacity [14][15] Question: RASM growth guidance - Management confirmed that high single-digit to double-digit RASM growth is necessary to achieve guidance, with confidence stemming from improved revenue trends [21][22] Question: Delivery cadence and fleet size - The company expects to maintain the same number of aircraft throughout 2026, focusing on productivity rather than expanding fleet size [30][32] Question: Cost savings and labor assumptions - Management clarified that the $200 million cost savings target does not include changes to crew costs, focusing instead on network efficiencies and rent savings [39][40] Question: Capacity strategy and market competition - Management emphasized the importance of a disciplined capacity deployment strategy to enhance profitability, particularly in light of reduced competition from Spirit Airlines [90][91] Question: Loyalty program performance - The loyalty program has seen significant engagement and revenue growth, driven by enhancements in product offerings and customer experience [104][106]

Financial Data and Key Metrics Changes - Vertiv reported a strong fourth quarter and full year 2025, with adjusted diluted EPS of $1.36, up 37% year-over-year, and adjusted operating profit of $668 million, up 33% from the prior year [9][23]. - The company achieved a trailing twelve-month organic orders growth of 81%, with fourth quarter orders up 152% year-over-year and a book-to-bill ratio of 2.9 times [8][11]. - Adjusted free cash flow for the full year was approximately $1.9 billion, with a conversion rate of 115% [9][28]. Business Line Data and Key Metrics Changes - In the Americas, sales were up 50%, with 46% organic growth, driven by strong demand across products and customer segments [25]. - APAC sales were down 10%, with a 9% organic decline, primarily due to macroeconomic conditions in China [25]. - EMEA sales decreased by 8%, with a 14% organic decline, but the company expects a return to sales growth in the second half of 2026 [26]. Market Data and Key Metrics Changes - The Americas market continues to be the primary growth engine, with expectations of high 30% sales growth [10]. - EMEA is showing signs of recovery, with improved market sentiment and pipeline growth [10]. - APAC is experiencing robust growth outside of China, particularly in India and the rest of Asia [11]. Company Strategy and Development Direction - Vertiv is focused on engineering innovation, capacity expansion, and deep customer partnerships, which are translating into strong results [5][6]. - The company is committed to maintaining a competitive edge through technological advancements and service capabilities, particularly in AI-driven infrastructure [6][17]. - Vertiv plans to increase capital expenditures to 3-4% of sales in 2026 to support growth [15][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant market opportunities and maintain strong performance in 2026 and beyond [13][33]. - The company anticipates adjusted diluted EPS of $6.02 for 2026, representing 43% growth at the midpoint, with net sales projected at $13.5 billion [29][31]. - Management highlighted the importance of addressing operational bottlenecks to convert backlog into revenue effectively [60]. Other Important Information - The company is experiencing favorable pricing conditions, with 2025 pricing exceeding inflation and expectations for the same in 2026 [14]. - Vertiv's service portfolio is a critical competitive advantage, with lifecycle services orders growing over 25% year-on-year [17][18]. Q&A Session Summary Question: Insights on order values and potential increases - Management indicated that the current framework for dollar per megawatt remains valid, with technology complexity potentially increasing order values over time [39][41]. Question: Unusual large projects in Q4 - Management confirmed that while there were large orders, they reflect market demand rather than unusual incentives or anomalies [50][52]. Question: Operational steps to convert backlog into revenue - Management emphasized ongoing capacity expansion and productivity improvements as key steps to convert backlog into sales [60][62]. Question: Changes in permitting bottlenecks in Europe - Management noted an acceleration of investment in EMEA, with improved market sentiment and expanding pipelines [67][68]. Question: Visibility into future workflows from customer relationships - Management highlighted the importance of strong relationships with data center leaders, allowing for advanced R&D and technology alignment [73][75].

Financial Data and Key Metrics Changes - Vertiv reported a strong fourth quarter and full year 2025, with adjusted diluted EPS of $1.36, up 37% year-over-year, and adjusted operating profit of $668 million, up 33% from the prior year [9][23]. - The company achieved a trailing twelve-month organic orders growth of 81%, with fourth quarter orders up 152% year-over-year and a book-to-bill ratio of 2.9 times [8][11]. - Adjusted free cash flow for the full year was approximately $1.9 billion, with a conversion rate of 115% [9][28]. Business Line Data and Key Metrics Changes - In the Americas, sales were up 50%, with 46% organic growth, driven by broad-based strength across products and customer segments [25]. - APAC sales were down 10%, with a 9% organic decline, primarily due to macroeconomic conditions in China [25]. - EMEA sales were down 8%, with a 14% organic decline, but the company expects a return to sales growth in the second half of 2026 [25][26]. Market Data and Key Metrics Changes - The Americas market continues to be the primary growth engine, with expectations of high 30% sales growth [10]. - EMEA is showing signs of recovery, with improved market sentiment and pipeline growth [10][26]. - APAC is experiencing robust growth outside of China, particularly in India and the rest of Asia [10][11]. Company Strategy and Development Direction - Vertiv is focused on engineering innovation, capacity expansion, and deep customer partnerships, which are translating into strong results [5][6]. - The company is committed to maintaining a competitive edge through technological advancements and service capabilities, particularly in AI-driven infrastructure [6][18]. - Vertiv plans to increase capital expenditures to 3-4% of sales in 2026 to support growth [15][29]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant market opportunities and maintain strong performance in 2026 and beyond [5][33]. - The company anticipates adjusted diluted EPS of $6.02 for 2026, representing 43% growth at the midpoint, with net sales projected at $13.5 billion [28][29]. - Management highlighted the importance of addressing operational bottlenecks to convert backlog into revenue effectively [58]. Other Important Information - The company will no longer report actual orders or backlog with quarterly earnings to reduce volatility in performance representation [12]. - Pricing has remained favorable, exceeding inflation in 2025, and is expected to continue in 2026 [14]. Q&A Session Summary Question: Insights on order values and CapEx impact - Management indicated that the current framework for dollar per megawatt remains valid, with no significant anomalies in order sizes [39][40]. - CapEx is expected to correlate with growth, moving to 3-4% of sales, which will support revenue growth [41][42]. Question: Unusual large projects in Q4 - Management confirmed that while there were large orders, they reflect market demand rather than unusual incentives [49][50]. Question: Operational steps to convert backlog into revenue - Management is focused on capacity expansion and productivity improvements to convert backlog into sales effectively [58][60]. Question: Changes in EMEA and Asia markets - Management noted improved market sentiment in EMEA and attributed current challenges in Asia to general market conditions rather than competitive dynamics [66][68]. Question: Visibility into future workflows from customer relationships - Management emphasized the importance of strong relationships with customers to anticipate future technology needs and align R&D efforts accordingly [71][73].

Financial Data and Key Metrics Changes - In 2025, Ryder achieved comparable earnings per share of $1,292, more than double the $595 reported in 2018, with a return on equity (ROE) of 17%, up from 13% in 2018 [12][25] - Operating cash flow increased to $2.6 billion in 2025, up more than 50% from $1.7 billion in 2018 [12][21] - For the fourth quarter, operating revenue was $2.6 billion, consistent with the prior year, while comparable earnings per share from continuing operations were $3.59, up 4% from the previous year [15][25] Business Line Data and Key Metrics Changes - Fleet Management Solutions (FMS) operating revenue decreased by 1%, with pre-tax earnings down to $136 million due to weaker market conditions [16][19] - Supply Chain Solutions (SCS) operating revenue increased by 3%, but earnings decreased by 8% due to lost business and production shutdowns in automotive [18][19] - Dedicated Transportation Solutions (DTS) operating revenue decreased by 4%, but EBT was above the prior year due to lower bad debt and acquisition synergies [19][25] Market Data and Key Metrics Changes - The U.S. economic growth is expected to be modest in 2026, with no significant change in freight market conditions anticipated [24][25] - U.S. Class 8 production is forecasted to decline by 4% in 2026, impacting the overall market dynamics [24] Company Strategy and Development Direction - Ryder's balanced growth strategy has been transformative, reducing reliance on used vehicle proceeds and focusing on asset-light supply chain and dedicated businesses [8][10] - The company is investing in customer-centric technology and AI to enhance operational efficiency and customer service [9][10] - Ryder aims to achieve higher returns by focusing on profitable growth opportunities and strategic investments [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver earnings growth and increased returns in 2026, driven by strategic initiatives and a strong contractual portfolio [24][25] - The company anticipates that the earnings power of its contractual businesses will offset near-term headwinds in transactional parts of the business [31][34] Other Important Information - Ryder has generated $3 billion in free cash flow since 2021 and has repurchased 24% of shares outstanding while increasing the quarterly dividend by 57% [14][23] - The company expects to generate approximately $10.5 billion from operating cash flow and used vehicle sales proceeds over the next three years, creating $3.5 billion of incremental debt capacity [21][22] Q&A Session Summary Question: Variability in Earnings Guidance for 2026 - The largest variability in earnings guidance is tied to the transactional business, particularly maintenance and omnichannel optimization initiatives [38][40] Question: Used Vehicle Sales Expectations - Used vehicle sales are expected to improve gradually throughout the year, with Q1 consistent with Q4 levels [45][46] Question: Impact of Market Conditions on Rental Business - The company has not seen meaningful improvement in rental and used vehicle sales, with guidance not reflecting significant market recovery [64][66] Question: Benefits of Baton Technology - Baton is expected to optimize fleet operations and enhance customer solutions through AI technology [67][68] Question: Flex Operating Structure in Dedicated Business - The flex operating structure is anticipated to optimize back-office resources and improve driver allocation, potentially offsetting margin headwinds [86][87]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported adjusted earnings of $0.51 per share, an increase from $0.49 in the same period last year [14] - Full-year adjusted EPS for 2025 was $1.90, up from $1.75 in 2024, reflecting strong regulatory execution and cost management [14][15] - The FFO to debt ratio improved to 16.1%, exceeding the targeted range of 14%-16% [21] Business Line Data and Key Metrics Changes - The base utility investment plan includes $21 billion over the next five years, focusing on grid modernization and safety [15] - The Amazon project at GenCo represents a capital investment of $6-$7 billion through 2032, with most falling within the five-year planning window [15] Market Data and Key Metrics Changes - The company is actively engaged in approximately 24 data center projects, reflecting strong demand in Virginia, the data center capital of the world [10] - In Indiana, the Economic Development Team managed over 140 active projects, indicating robust economic development across the service territory [10] Company Strategy and Development Direction - The company aims to deliver safe, reliable, and competitive energy while focusing on disciplined capital deployment and operational excellence [4] - A commitment to customer affordability is highlighted through regulatory and rate design tools that mitigate bill impacts [6] - The company is advancing its data center initiative, with key milestones achieved in zoning approvals and ongoing negotiations for new capacity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and highlighted the potential for significant upside in developing projects supporting data center growth [8][22] - The company anticipates continued growth in adjusted EPS, reaffirming guidance for 2026 at $2.02-$2.07 per share, representing an 8% year-over-year growth [18][22] Other Important Information - The company has maintained ISO 55001 and API 1173 certifications, emphasizing its commitment to safety management [8] - A 7.1% increase in dividends for 2026 was approved, reflecting alignment with earnings growth [20] Q&A Session Summary Question: Update on strategic negotiations for GenCo - Management indicated that the organization is focused on executing data center opportunities, expecting faster execution compared to previous deals like Amazon [26][27] Question: Pennsylvania strategy and rate case considerations - Management confirmed no current plans for a rate case in Pennsylvania, following a recent successful rate case that increased revenue [29] Question: Timing for NIPSCO gas rate case filing - Management stated that no determination has been made regarding a rate case filing for NIPSCO at this time [32] Question: Scale of future GenCo opportunities - Management noted that they are in strategic negotiations for 1-3 GW, with various sizes and shapes of contracts being considered [33] Question: Impact of Senate Bill 103 on large load customer opportunities in Ohio - Management is working on optimizing regulatory strategies based on recent legislative changes, but no upside from economic development has been incorporated into current forecasts [35] Question: Update on Schahfer coal plant operations - Management confirmed that they will comply with federal orders regarding the Schahfer plant and are prepared to operate it reliably [39] Question: Coordination between electric and gas operations - Management highlighted ongoing efforts to improve coordination between gas and electric operations across the U.S. for better reliability [41] Question: Future reporting for GenCo - Management anticipates breaking out GenCo as its own segment in future financial reports, likely starting in 2026 [43]

Financial Data and Key Metrics Changes - In fiscal Q2 2026, total revenues were $20.7 million, up 2% year-over-year, primarily due to a 6% increase in production and higher realized natural gas prices, offset by lower oil and NGL pricing [13] - Adjusted EBITDA increased by 41% year-over-year to $8 million, reflecting stronger natural gas revenues, realized gains on derivative contracts, and lower lease operating costs [14] - Net income for the quarter was $1.1 million, or $0.03 per diluted share, compared to a net loss of $1.8 million, or $0.06 per share, in the year-ago period [13] Business Line Data and Key Metrics Changes - The company continues to benefit from a balanced mix of oil and natural gas assets with low base decline and modest capital requirements, contributing to improved profitability and cash flow [6][4] - Incremental contributions from minerals and royalty investments have been significant, with three wells converted to producing status during the quarter and 16 additional wells in progress [10] Market Data and Key Metrics Changes - Realized natural gas pricing improved compared to the prior year, although results were partially impacted by wider regional differentials due to mild winter conditions in the Western U.S. [12] - The company anticipates meaningful contributions from newly acquired Haynesville-Bossier Shale mineral and royalty assets, with production expected to ramp up quickly [20] Company Strategy and Development Direction - The company aims to build a portfolio that can perform across commodity price cycles, emphasizing diversification by commodity, basin, and operating partner to reduce concentration risk [6][4] - The strategy includes prioritizing assets with durable cash flow characteristics, modest capital requirements, and attractive risk-adjusted returns, while remaining opportunistic with acquisitions [9] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate commodity cycles while continuing to reward shareholders, highlighting the importance of operational flexibility and disciplined capital management [8][9] - The company remains focused on maintaining operational flexibility, managing costs, and deploying capital where returns are most compelling, especially in a volatile price environment [12] Other Important Information - Cash on hand totaled $3.8 million, with borrowings under the credit facility at $54.5 million, leading to total liquidity of approximately $13.5 million [15] - The board declared a quarterly cash dividend of $0.12 per share, totaling $4.2 million in dividends paid during the quarter [15] Q&A Session Summary Question: Update on minerals acquisitions and natural decline rate - Management noted that minerals acquisitions will add incremental production without additional costs, contributing positively to the company's performance [19] Question: Production levels from Haynesville-Bossier acquisitions - Management confirmed that these acquisitions will have a significant impact on production in the upcoming quarters, with many wells currently being completed [20] Question: Performance of the Delhi Field without CO2 injection - Management indicated that the field remains profitable despite reduced injection volumes, with expectations for production to stabilize as operational issues are resolved [29] Question: Interest in Northeast basins like Utica and Marcellus - Management acknowledged the potential of these basins but highlighted takeaway capacity constraints as a significant concern [54] Question: Outlook on reducing overall debt levels - Management stated a long-term target of 1x net debt, with plans to reduce leverage over time while maintaining comfort with current debt levels [57]

Financial Data and Key Metrics Changes - The company is targeting $200 million in annual run rate cost savings by 2027, primarily from network optimization and productivity enhancements [8][36] - The revenue per available seat mile (RASM) is expected to improve by over 10% year-over-year, with positive trends observed in early bookings for the upcoming quarters [22][106] Business Line Data and Key Metrics Changes - The company is focusing on rightsizing its fleet, with a non-binding agreement to terminate 24 aircraft leases, which is expected to enhance fleet productivity and efficiency [7][8] - The company has shifted back to a basic fare structure, which has positively impacted both fare and ancillary revenue trends [77][78] Market Data and Key Metrics Changes - The company anticipates a growth rate of approximately 10%, with half of this growth coming from filling existing network capacity and the other half from new markets [15][19] - The company is seeing opportunities in markets previously occupied by Spirit Airlines, particularly in the West of the United States, due to reduced capacity from competitors [86] Company Strategy and Development Direction - The strategic priorities include rightsizing the fleet, strengthening cost discipline, improving operational reliability, and enhancing customer loyalty [6][10] - The company aims to modernize its commercial offerings, including digital tools and customer experience enhancements, to attract more customers while maintaining low fares [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need for significant changes to return to sustained profitability and is committed to creating long-term value for stakeholders [5][12] - The company is optimistic about the revenue environment, citing improved unit revenues and a disciplined capacity deployment across the industry [86][106] Other Important Information - The company has entered into a non-binding framework agreement with Airbus to revise its delivery profile, supporting a more sustainable long-term growth rate [8] - The company has seen a significant increase in loyalty program engagement, with loyalty revenue up over 30% [101] Q&A Session Summary Question: Long-term growth plan and market opportunities - The company expects growth to be concentrated in filling existing network capacity and entering new markets, with a disciplined approach to capacity deployment [15][19] Question: RASM growth guidance - Management confirmed that high single-digit to double-digit RASM growth is needed to achieve guidance, with confidence stemming from improved revenue trends [21][22] Question: Delivery cadence for aircraft - The company has 24 aircraft scheduled for delivery in 2026, with plans to maintain the same number of aircraft by the end of the year [29][30] Question: Cost savings and labor assumptions - The $200 million cost savings target does not include changes to crew costs, focusing instead on network shape and operational efficiencies [36][38] Question: Capacity and market strategy - The company is leveraging reduced competition in markets like Atlanta to enhance its operations and increase daily departures [83][86] Question: Loyalty program performance - The loyalty program has seen significant engagement, with revenue from co-brand cards and subscription programs contributing to overall growth [101][102]

Financial Data and Key Metrics Changes - For the fourth quarter of 2025, the company reported adjusted earnings of $0.51 per share, compared to $0.49 for the same period last year, bringing the full-year adjusted EPS to $1.90, up from $1.75 in 2024 [15][19] - The company achieved a full-year FFO to debt ratio of 16.1%, an increase of 150 basis points, exceeding the targeted guidance range [22] Business Line Data and Key Metrics Changes - The base business continues to deliver strong results, with adjusted EPS surpassing guidance and a focus on disciplined capital deployment and operational excellence [6][15] - The capital plan includes $21 billion of base utility investment over the next five years, focusing on grid modernization and gas infrastructure replacement [16] Market Data and Key Metrics Changes - The company is actively engaged in supporting over 140 active projects across its service territory in Indiana, reflecting strong economic development [12] - In Virginia, the company has fielded more than 40 data center inquiries in 2025, with approximately 24 active data center projects [12] Company Strategy and Development Direction - The company aims to deliver safe, reliable, and competitive energy while focusing on customer affordability and stakeholder value [5][7] - A significant agreement with Amazon is expected to return approximately $1 billion in value to Indiana customers over 15 years, demonstrating the company's commitment to affordability [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction and highlighted the importance of regulatory support in achieving financial goals [21][23] - The company anticipates continued growth in adjusted EPS, with a guidance range of $2.02-$2.07 for 2026, representing approximately 8% year-over-year growth [19][20] Other Important Information - The company has maintained ISO 55001 and API 1173 certifications, underscoring its commitment to safety management [10] - The company is focused on keeping O&M costs flat over the planned horizon to support sustainable operations [20] Q&A Session Summary Question: What should investors look for regarding the strategic negotiator for GenCo? - Management indicated that the organization focused on executing data center opportunities is now better structured, which should lead to faster execution of future transactions [29][30] Question: Can you provide an update on Pennsylvania's strategy? - Management confirmed that there are currently no plans for a new rate case in Pennsylvania, following a recent successful rate case [32] Question: What is the timing for the NIPSCO gas rate case filing this year? - Management stated that no determination has been made regarding a rate case filing at this time [40] Question: Can you discuss the scale of opportunities for future contracts? - Management noted that they are in strategic negotiations for 1-3 GW of new capacity, which could involve multiple sizes and shapes of contracts [44] Question: What is the significance of Senate Bill 103 for large load customer opportunities in Ohio? - Management explained that they are currently optimizing their regulatory strategy based on the new law, but no upside from economic development has been incorporated into the current forecasts [48]