Financial Data and Key Metrics Changes - NNN REIT reported a 2.7% growth in AFFO per share for 2025, reaching $3.44, and core FFO per share also increased by 6.1% year-over-year to $0.87 [10][11] - The company maintained a high occupancy rate of 98.3%, up 80 basis points from the previous quarter, aligning with its long-term average [12] - Annualized base rent increased by approximately 8% year-over-year to $928 million, driven by strong acquisition activity [12] Business Line Data and Key Metrics Changes - The company completed over $900 million in acquisitions, marking the highest annual volume in its history [3] - During the fourth quarter, NNN invested over $180 million across 55 properties at an initial cash cap rate of 7.4% [6] - The company sold 18 income-producing and 42 vacant properties in the fourth quarter, generating $82 million in proceeds [9] Market Data and Key Metrics Changes - The initial cap rates stabilized in the fourth quarter, remaining in line with the third quarter, with slight compression anticipated as the year progresses [5][6] - The company expects to fund its 2026 strategy through $210 million of retained free cash flow and $130 million of planned dispositions, maintaining leverage neutral [5] Company Strategy and Development Direction - NNN's strategy focuses on a disciplined bottom-up investment approach, aiming for mid-single-digit AFFO per share growth over the long term while aligning acquisitions and balance sheet management to support these objectives [4] - The company emphasizes proactive portfolio management to maintain high occupancy and renewal rates, with a goal of improving future performance [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a more uncertain macroeconomic environment in 2026, supported by a solid financial footing and a self-funding business model [4][5] - The company anticipates a slight increase in occupancy and a continued focus on resolving vacancies throughout 2026 [52][74] Other Important Information - NNN maintained a highly flexible balance sheet with no encumbered assets and $1.2 billion in total available liquidity [4][15] - The company announced a quarterly dividend of $0.60, representing a 3.4% year-over-year increase [15] Q&A Session Summary Question: Can you provide an update on proactive portfolio management and occupancy levels? - Management indicated that proactive portfolio management involves monitoring tenant renewals and addressing potential issues early, with an ideal occupancy slightly above 98% [20] Question: Why is the bad debt assumption set at 75 basis points? - The company explained that 75 basis points is a prudent starting point, reflecting no significant changes in the watchlist and historical performance [24] Question: What segments of clients are looking to grow more aggressively? - Management noted that auto services and convenience stores are currently the biggest opportunities for growth [33] Question: What is the expected trend for lease termination fees in 2026? - Management anticipates a return to more normalized levels of lease termination fees, estimating around $3 million to $4 million for the year [37] Question: How does the company view competition in the acquisition market? - Management stated that while competition exists, it has not seen significant changes, and it continues to rely on strong relationships to secure deals [39] Question: What is the expected trend for occupancy throughout the year? - Management expects occupancy to trend slightly higher, with ongoing efforts to resolve vacancies [52] Question: Can you discuss the anticipated cap rate compression? - Management believes slight cap rate compression is likely due to competitive pressures in the market [81]

Financial Data and Key Metrics Changes - NNN REIT reported a 2.7% growth in AFFO per share for 2025, reaching $3.44, and core FFO per share increased by 6.1% year-over-year to $0.87 [10][11] - The company maintained a high occupancy rate of 98.3%, up 80 basis points from the previous quarter, aligning with its long-term average [12] - Annualized base rent increased by nearly 8% year-over-year to $928 million, driven by strong acquisition activity [12] Business Line Data and Key Metrics Changes - The company completed over $900 million in acquisitions, marking the highest annual volume in its history [3] - During the fourth quarter, NNN invested over $180 million across 55 properties at an initial cash cap rate of 7.4% [6] - The company sold 18 income-producing and 42 vacant properties in the fourth quarter, generating $82 million in proceeds [9] Market Data and Key Metrics Changes - The initial cap rates stabilized in the fourth quarter, remaining in line with the third quarter, with slight compression anticipated as the year progresses [5][6] - The company reported that its portfolio of 3,692 freestanding single-tenant properties is performing well, with no concerns raised by tenants regarding their ability to meet rent obligations [7] Company Strategy and Development Direction - NNN's strategy focuses on a disciplined bottom-up investment approach, aiming for mid-single-digit AFFO per share growth over the long term while maintaining a top-tier payout ratio [4] - The company plans to fund its 2026 strategy through retained free cash flow and planned dispositions, maintaining leverage neutrality [5][16] - NNN aims to continue its proactive portfolio management to enhance renewal rates and address potential future issues [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a more uncertain macroeconomic environment in 2026, supported by a solid financial footing and a flexible balance sheet [4][16] - The company anticipates a slight increase in occupancy and a continued focus on resolving vacancies throughout 2026 [52][74] - Management noted that the bad debt assumption for 2026 is set at 75 basis points, reflecting a prudent approach given the current economic conditions [24][53] Other Important Information - NNN's balance sheet remains strong, with no encumbered assets and $1.2 billion in available liquidity [15] - The company announced a quarterly dividend of $0.60, representing a 3.4% year-over-year increase [15] Q&A Session Summary Question: Can you provide an update on proactive portfolio management and occupancy levels? - Management indicated that proactive portfolio management involves monitoring tenant renewals and addressing potential issues early, with an ideal occupancy slightly above 98% [20] Question: Why is the bad debt assumption set at 75 basis points? - The management explained that this figure is a conservative approach based on historical performance and current tenant stability, with no significant changes on the watchlist [24] Question: What are the current tenant rent coverage levels? - Management stated that the overall rent coverage is stable, with most tenants reporting strong financials, although it varies by industry [29][30] Question: What segments of clients are looking to grow aggressively? - Management noted that auto services and convenience stores are currently the biggest opportunities in their pipeline [33] Question: What is the expected trend for lease termination fees in 2026? - Management anticipates a return to more normalized levels of lease termination fees, consistent with historical averages [37] Question: How does the company view competition in the acquisition market? - Management acknowledged ongoing competition but emphasized their strong relationships and ability to source deals effectively without being significantly impacted by market changes [39][70] Question: What is the expected cap rate trend for 2026? - Management expects slight cap rate compression due to competitive pressures in the market [81] Question: How does the company plan to manage its debt structure? - Management highlighted the importance of matching debt duration with lease duration, allowing for flexibility in financing options [68]

Financial Data and Key Metrics Changes - NNN REIT reported a 2.7% growth in AFFO per share for 2025, with core FFO and AFFO both at $0.87 per share, up 6.1% year-over-year [9][10] - The total available liquidity at year-end was $1.2 billion, with a weighted average debt maturity of 10.8 years [3][13] - Annualized base rent increased to $928 million, reflecting an 8% year-over-year growth [11] Business Line Data and Key Metrics Changes - The portfolio consists of 3,692 freestanding single-tenant properties, with occupancy rising to 98.3%, an increase of 80 basis points from the previous quarter [5][11] - 55 out of 64 lease renewals were completed ahead of the average renewal rate of 85%, with rental rates at 104% above prior levels [6] Market Data and Key Metrics Changes - The company completed over $900 million in acquisitions, marking the highest annual volume in its history [2] - The fourth quarter initial cap rate was stable compared to the third quarter, with expectations of slight compression as the year progresses [4][14] Company Strategy and Development Direction - The company maintains a disciplined bottom-up investment approach, focusing on annual dividend growth while managing a top-tier payout ratio [3] - NNN's strategy includes a self-funding business model that can deliver consistent growth in various economic conditions [4] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a more uncertain macroeconomic environment in 2026, supported by solid financial footing and proactive portfolio management [2][3] - The company anticipates a 3.2% year-over-year growth in AFFO per share for 2026, with a guidance range of $3.52-$3.58 [14] Other Important Information - The company sold 18 income-producing and 42 vacant properties in the fourth quarter, generating $82 million in proceeds [8] - G&A expenses as a percentage of total revenue were 4.9% for the quarter, with a slight increase attributed to promotions and new hires [10][61] Q&A Session Summary Question: Can you provide an update on proactive portfolio management and occupancy levels? - Management indicated that proactive portfolio management involves monitoring tenant renewals and addressing potential issues early, with an ideal occupancy slightly above 98% [18][19] Question: Why is the bad debt assumption set at 75 basis points? - The company explained that 75 basis points is a prudent starting point, reflecting no significant changes in the watchlist and historical performance [21][23] Question: What segments of existing clients are looking to grow more aggressively? - Management noted that auto services and convenience stores are currently the biggest opportunities in the pipeline [32] Question: What is the expected trend for lease termination fees in 2026? - The company anticipates a return to more normalized levels of lease termination fees, estimating around $3 million to $4 million for the year [37] Question: How does the company view competition in the acquisition market? - Management stated that while competition exists, it has not seen significant changes, and it relies on strong relationships to secure deals [39][70] Question: What is the expected trend for occupancy throughout the year? - Management expects occupancy to trend slightly higher, with ongoing sales of vacant assets contributing to this improvement [51] Question: What is the average lease escalator in the portfolio? - The average lease escalator remains at 1.5% for modeling purposes, unaffected by recent acquisition activity [88] Question: How does the company plan to manage refinancing risks? - The company has embedded refinancing assumptions in its guidance, with expectations for a 10-year bond rate around 5.25% [82]

Financial Data and Key Metrics Changes - The fourth quarter revenue rose 3.4% in Mexican peso terms to MXN 245 billion, and was up 6.2% at constant exchange rates, with service revenue expanding 5.3% [7][8] - EBITDA increased by 4.2% in Mexican peso terms to MXN 95 billion, and was up 6.9% at constant exchange rates [8] - Net profit for the quarter was MXN 19 billion, which was four times larger than the previous year, equivalent to MXN 0.32 per share or $0.35 per ADR [9] Business Line Data and Key Metrics Changes - The company added 2.5 million wireless subscribers in the quarter, with 2.8 million postpaid net gains and 298,000 prepaid losses, ending December with 331 million wireless subscribers [5][6] - The mobile postpaid base grew by 8.4% year-on-year, while broadband accesses expanded by 5.6% [7] - Fixed line service revenue increased by 3.6% year-over-year, with fixed broadband revenue rising by 6.4% [9] Market Data and Key Metrics Changes - The dollar depreciated against most currencies in the region, declining 2.3% versus the Mexican peso and 5.7% versus the Chilean peso [5] - Brazil led in postpaid net additions with 644,000 subscribers, followed by Colombia with 276,000 and Peru with 148,000 [6] Company Strategy and Development Direction - The company aims to maintain a capital expenditure target of around 14%-15% of revenues, approximately $6.8 billion to $7 billion [15][18] - The management is focused on reducing debt and preparing for potential consolidation opportunities in the region, particularly in small companies or fiber operations [40][41] Management's Comments on Operating Environment and Future Outlook - The management noted that the U.S. government shutdown raised uncertainty about economic activity, impacting employment and economic indicators [4] - The competitive landscape in Latin America is changing, with expectations of further consolidation in the market, which could benefit the company [61][65] Other Important Information - The company reported a nearly 40% year-on-year increase in free cash flow, reaching MXN 82 billion after CapEx of MXN 131 billion [10] - Shareholder distributions reached MXN 45 billion, including MXN 12 billion in share buybacks [10] Q&A Session Summary Question: CapEx outlook for 2026 and coming years - The company targets a CapEx of around 14%-15% of revenues, approximately $6.8 billion to $7 billion, for the next few years [15][18] Question: Pre-tax, non-operating expenses - The management acknowledged the increase in non-operating expenses and suggested contacting investor relations for detailed information [22][24] Question: Telefónica's sale of operations in Chile - The company decided not to proceed with a bid for Telefónica's operations due to complexities and regulatory issues, but remains committed to competing in Chile [30][32] Question: Capital allocation strategy - The management emphasized a focus on reducing debt, preparing for M&A opportunities, and returning value to shareholders through buybacks and dividends [40][41] Question: Impact of FX on overall results - The company highlighted the complexity of managing multiple currencies and the importance of constant exchange rates for accurate financial reporting [50][51] Question: Regulatory environment and consolidation in Latin America - The management sees potential for consolidation in the market, which could be beneficial, and noted that asymmetric regulation only exists in Mexico [61][65] Question: Number portability trends in Brazil - The management indicated that both NuCel and strong postpaid operations are contributing to positive number portability trends in Brazil [70][71] Question: Sustainability of broadband growth in Mexico - The management expressed confidence in sustaining broadband growth due to successful promotions and high customer satisfaction with service bundles [78]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported distributable earnings of $37 million, or $0.26 per diluted share, compared to $139 million, or $0.98 per diluted share for the full year [4] - GAAP net income available to common stockholders was $26 million, or $0.18 per diluted share for Q4, and $114 million, or $0.81 per diluted share for the full year [4] - The total CECL allowance stood at $383 million at year-end, equating to 418 basis points of the loan portfolio's total amortized cost, down from 457 basis points a year ago [6] Business Line Data and Key Metrics Changes - The company committed $1.3 billion to new loans in Q4, with $1.1 billion funded at close, and completed approximately $200 million of gross add-on fundings for previously closed loans [7] - Loan repayments and sales totaled $852 million in Q4 and $2.9 billion for the full year, reflecting continued portfolio rotation [8] - The loan portfolio increased by approximately $1.6 billion year-over-year on an amortized cost basis, ending the year with a total loan portfolio of approximately $8.8 billion [8] Market Data and Key Metrics Changes - Over 60% of the loan portfolio is now represented by post-2022 origination, indicating a shift in the company's lending strategy [8] - The weighted average unlevered all-in yield of the loan portfolio was 7.3%, with 99% first mortgages and 96% floating rate exposure [8] Company Strategy and Development Direction - The company is focused on improving cash flow and maximizing value at exit for its real estate owned (REO) portfolio, including a newly built Class A multifamily tower in Brooklyn [2] - Management is exploring options to unlock additional value from adjacent land parcels and is implementing cost-saving initiatives at its hotel properties [2][3] - The company is evaluating various strategies for future capital deployment, including potential dissolution or other growth-oriented strategies [12][30] Management's Comments on Operating Environment and Future Outlook - Management received positive feedback from investors regarding efforts to unlock value, but there are questions about future capital strategies [11] - The company is assessing the market environment for potential asset monetization, particularly for The Brook and its hotel properties [19][20] - Management emphasized the importance of creating a sustainable earnings stream that could trade above book value, considering various investment strategies [30] Other Important Information - The company ended the year with $151 million of total liquidity and held over $430 million of unencumbered assets [8][9] - Book value per share was $12.14 at year-end, relatively flat compared to the prior quarter [9] Q&A Session Summary Question: Feedback from investors regarding the transaction value and stock trading - Management noted overwhelmingly positive feedback but acknowledged questions about future capital strategies and the disconnect between book value and stock price [11][12] Question: Marketing of REO assets and timing for monetization - Management indicated that stabilization of The Brook is expected later this year, and the decision to monetize will depend on market conditions [18][19] Question: Dividend policy post-portfolio sale - Management envisions paying a Q1 dividend of $0.25 per share, subject to board approval, and will discuss future dividends as they approach Q2 [25][26] Question: Strategy for creating an entity that trades above book value - Management is considering various strategies, including a focus on earnings streams and potential investments that offer higher returns [30]

Financial Data and Key Metrics Changes - Fourth quarter overall net sales decreased 12% year-over-year to $1.1 billion, down from $1.2 billion in the prior year [25] - Adjusted EBITDA margins for the fourth quarter were 17%, consistent with expectations despite a weaker outage environment [4] - Gross profit margin decreased to 36.3% from 40.6% in the prior year, primarily due to unfavorable sales mix and a $15.6 million net inventory provision [28] Business Line Data and Key Metrics Changes - Residential product sales decreased 23% to $572 million compared to $743 million in the prior year, driven by lower shipments of home standby and portable generators [26] - Commercial and industrial (CNI) product sales increased 10% to $400 million, primarily due to revenue from products sold to data center customers [26] - International core total sales increased 5% during the fourth quarter, with significant Adjusted EBITDA margin expansion to 16.1%, an all-time record for the international segment [16] Market Data and Key Metrics Changes - The backlog for data center products grew to approximately $400 million, indicating strong future demand [6] - Home standby shipments decreased 25% year-over-year, attributed to the lowest level of total outage hours in a decade [17] - The average power prices in the U.S. have increased nearly 40% over the last five years, with expectations to double again in the next decade [10] Company Strategy and Development Direction - The company is focusing on expanding its manufacturing capacity for large megawatt generators to become a key supplier for the growing data center market [7] - Significant investments have been made in manufacturing facilities to support future growth, including the acquisition of a new facility in Wisconsin [7] - The company aims to double its CNI product sales in the coming years, capitalizing on the generational growth opportunity presented by data center investments [24] Management's Comments on Operating Environment and Future Outlook - Management expects 2026 to be an inflection point for the company, with strong growth anticipated in CNI product sales driven by data center customers [17] - The company believes it is well-positioned to address the energy challenges posed by increasing power outages and rising energy costs [11] - Management anticipates a return to more normalized power outage levels in 2026, which will support growth in residential products [23] Other Important Information - The company reported a GAAP net loss of $24 million for the fourth quarter, compared to net income of $117 million in the prior year [32] - Cash flow from operations was $189 million in the current quarter, down from $339 million in the prior year [33] - The company has initiated 2026 net sales guidance projecting strong year-over-year growth, expecting consolidated net sales to increase at a mid-teens rate [37] Q&A Session Summary Question: Progress with hyperscalers - Management confirmed that while there are no significant orders yet, they are in pilot phases with two hyperscale customers and expect to sign long-term supply agreements soon [50][52] Question: Competitive environment in the data center market - Management indicated that the competitive landscape for large megawatt diesel generators remains stable, with limited new entrants due to high investment requirements [58][60] Question: Growth profile for the data center market - Management estimates the total addressable market for large megawatt diesel backup generators could be as much as $15 billion annually, with a target market share of 10%-15% [64][66] Question: Residential market dynamics - Management highlighted a projected mid-teens growth rate for residential products, with half of the growth expected from price realization and the other half from volume increases as outages normalize [75][77]

Financial Data and Key Metrics Changes - InvenTrust reported Same Property NOI growth of 5.3% for 2025, marking the second consecutive year above 5% and the fifth consecutive year of growth exceeding 4% [4][10] - Core FFO finished at $1.89 per share, representing a 6.2% year-over-year growth [4][11] - Total liquidity at year-end was $480 million, with a net debt to adjusted EBITDA ratio of 4.5 times, which is a sector-low [11][12] Business Line Data and Key Metrics Changes - Same Property NOI for the fourth quarter was $44.3 million, up 3% year-over-year [10] - Nareit FFO for the full year totaled $147.8 million, or $1.89 per diluted share, reflecting a 6.2% increase over 2024 [10][11] - The company completed two acquisitions in the fourth quarter totaling $109 million, funded through available liquidity and property-level debt [12] Market Data and Key Metrics Changes - Top-performing retail markets in 2025 included Charlotte, Tampa, Orlando, and Dallas, with Charlotte showing robust population growth and job creation [8] - Retail sales increased, and announced store openings exceeded closures, indicating sustained confidence in physical retail [15] Company Strategy and Development Direction - The company aims to expand its portfolio in Sun Belt markets, focusing on grocery-anchored assets and maintaining a disciplined acquisition approach [6][8] - Redevelopment initiatives are expected to contribute approximately 50-100 basis points of incremental NOI growth annually over the next couple of years [7] - The company plans to grow its business thoughtfully while enhancing operational footprint and value creation through leasing and asset management [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the retail landscape's resilience, despite increased store closures, due to low new retail construction and improved retailer decision-making [7][8] - For 2026, the company expects core FFO per share growth in the mid-single-digit range and net investment activity of approximately $300 million [8][12] Other Important Information - The board approved a 5% increase in the annual cash dividend for 2026, raising the rate to $1 per share [12] - The company is focused on maintaining a strong balance sheet while being opportunistic in funding acquisitions [25][26] Q&A Session Summary Question: Funding sources for $300 million net acquisition activity - Management indicated they have ample room on the balance sheet and plan to use their line of credit and possibly issue private placement debt [21][24] Question: Impact of Amazon Go and Fresh store closures on Whole Foods - Management stated that Whole Foods locations in their portfolio are performing well and are not at risk from Amazon's store closures [28][29] Question: Expectations for CapEx requirements in 2026 - Management expects renewals to be a larger part of the business, leading to lower CapEx requirements [31][32] Question: Acquisition pipeline and pricing - Nearly half of the $300 million acquisition guidance is either under contract or awarded, with a competitive market for assets [35][36] Question: Disposition strategy for 2026 - Management indicated that dispositions will be a source of capital once acquisition opportunities are identified, with one asset in California expected to close in 2026 [38][39] Question: Revenue impact from signed-not-open pipeline - Management expects most of the signed-not-open revenue to come online this year, with minimal impact from weather events [41] Question: Competitive market dynamics - Management noted that competition remains strong, but they have had success in finding opportunities that fit their criteria [54][55]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported revenues of $176 million and an EBITDA-equivalent cash flow of $109 million, with a total EBITDA of $450 million over the past 12 months, indicating strong operational stability [3][14] - The net result for the quarter was a loss of approximately $4.7 million or $0.04 per share, impacted by non-recurring and non-cash items [16] Business Line Data and Key Metrics Changes - Charter revenue from the fleet was approximately $176 million, with the container fleet contributing around $81 million, the car carrier fleet generating approximately $26 million, and the tanker fleet generating about $42 million [14][15] - The overall utilization of the shipping fleet in Q4 was about 98.6%, with adjusted utilization at 99.8% [12] Market Data and Key Metrics Changes - The company noted a significant strengthening in the tanker market, with the Suezmax segment expected to benefit from high charter rates due to correlations with the VLCC market [8][25] - The market for secondhand vessels is currently strong, with broker reports indicating a modern Suezmax tanker could command rates in the high $40,000s to over $60,000 per day [36] Company Strategy and Development Direction - The company aims to build a diversified, high-quality fleet and has secured long-term agreements with strong counterparties, enhancing its charter backlog to approximately $3.7 billion [3][9] - The company is focused on investing in efficiency upgrades and exploring new long-term charter opportunities, particularly in the tanker market [4][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about securing new employment for the Hercules rig, citing recent industry consolidations and increasing demand for premium rigs [9][42] - The company remains disciplined in its approach to capital deployment, focusing on sustainable cash flows and long-term contracts [30][31] Other Important Information - The company declared its 88th consecutive dividend of $0.20 per share, representing a dividend yield of around 9% [9][17] - The company has a solid liquidity position with cash and cash equivalents totaling approximately $151 million and an additional $46 million available on credit facilities [16][17] Q&A Session Questions and Answers Question: How is the company thinking about the Suezmax vessels given the strong crude tanker spot market? - Management finds the Suezmax market interesting and is looking for long-term charters while also benefiting from the current spot market [20][25] Question: What is the outlook for the dividend over the next 12 months? - Management indicated that the board does not guide on dividends but emphasized the importance of sustainable cash flows and disciplined capital deployment [28][31] Question: What was the rate on the previous contract for the terminated charters? - The previous charter rates for the sold vessels were around $27,000 per day, and the company sold them for $57 million each [35][36] Question: What is the status of the Hercules rig? - The Hercules rig has been idle since November 2024, but management sees signs of improving market dynamics and potential employment opportunities [42] Question: What is the size of the new rig financing facility? - The new financing facility for the Hercules rig is expected to be in the amount of $100 million [48]

Financial Data and Key Metrics Changes - The fourth quarter revenue rose 3.4% in Mexican peso terms to MXN 245 billion, and was up 6.2% at constant exchange rates, with service revenue expanding 5.3% [8][9] - EBITDA increased by 4.2% in Mexican peso terms to MXN 95 billion, and was up 6.9% at constant exchange rates [9] - Net profit for the quarter was MXN 19 billion, which was four times larger than the previous year, equivalent to MXN 0.32 per share or $0.35 per ADR [10] - Free cash flow for the year 2025 was MXN 82 billion, representing a nearly 40% year-on-year increase [11] Business Line Data and Key Metrics Changes - The company added 2.5 million wireless subscribers in the quarter, with 2.8 million postpaid net gains and 298,000 prepaid losses, ending December with 331 million wireless subscribers [5][6] - The mobile postpaid base grew by 8.4% year-on-year, while broadband accesses expanded by 5.6% [8] - Fixed line service revenue increased by 3.6% year-over-year, with fixed broadband revenue rising by 6.4% [10] Market Data and Key Metrics Changes - The dollar depreciated against most currencies in the region, declining 2.3% versus the Mexican peso and 5.7% versus the Chilean peso [5] - Brazil led in postpaid net additions with 644,000 subscribers, followed by Colombia with 276,000 and Peru with 148,000 [6] Company Strategy and Development Direction - The company aims to maintain a capital expenditure target of around 14%-15% of revenues, approximately $6.8 billion to $7 billion for 2026 [16][20] - The management is focused on reducing debt and preparing for potential consolidation opportunities in the region, particularly in small fiber companies [40][41] Management's Comments on Operating Environment and Future Outlook - The management noted that the U.S. government shutdown raised uncertainty about economic activity, impacting employment and economic indicators [4] - The competitive landscape in Latin America is changing, with expectations of further consolidation in the market, which could benefit the company [66] Other Important Information - The company disconnected 79,000 voice lines in the fixed line segment, while adding 77,000 pay TV units [7] - The comprehensive financing costs were roughly half those of the previous year [10] Q&A Session Summary Question: CapEx outlook for 2026 - The company targets a CapEx of around 14%-15% of revenues, approximately $6.8 billion to $7 billion for 2026 [16][20] Question: Pre-tax non-operating expenses - The management acknowledged the increase in pre-tax non-operating expenses and suggested contacting investor relations for detailed information [24][26] Question: Telefónica's sale of operations in Chile - The company decided not to proceed with a bid for Telefónica's operations due to regulatory complexities and high leverage concerns, but remains committed to competing in Chile [32][34] Question: Capital allocation strategy - The management emphasized a focus on reducing debt and preparing for potential M&A opportunities, while also considering shareholder returns through buybacks and dividends [39][41] Question: Impact of FX on results - The management discussed the complexities of managing multiple currencies and emphasized the importance of constant exchange rates for accurate financial reporting [52][54] Question: Regulatory environment and consolidation in Latin America - The management sees potential for consolidation in the market, particularly in mobile and fixed services, and believes this will be beneficial for the company [61][66] Question: Brazilian number portability trends - The management indicated that both NuCel and the company's postpaid operations are contributing to strong number portability trends in Brazil [72][73] Question: Sustainability of broadband growth in Mexico - The management expressed confidence in sustaining broadband growth due to successful promotions and high customer satisfaction with service bundles [80]

Financial Data and Key Metrics Changes - The company reported net operating revenues of $21.3 billion for 2025, with consolidated adjusted EBITDA of $4.57 billion, representing a 14% growth over 2024 [5][13] - The adjusted EBITDA margin for the full year was 21.4%, an improvement of 210 basis points from the prior year [14] - In Q4 2025, total net operating revenues were $5.5 billion, with consolidated adjusted EBITDA of $1.183 billion, a 13% increase year-over-year [12] Business Line Data and Key Metrics Changes - The USPI segment's adjusted EBITDA grew 12% in 2025 to $2.026 billion, with same-facility revenues increasing by 7.2% [6][14] - The hospital segment's adjusted EBITDA increased by 16% to $2.54 billion, with same-store revenues per adjusted admission up 5.3% [7][14] - Same facility revenues grew 7.5%, driven by double-digit growth in total joint replacements in ASCs [7] Market Data and Key Metrics Changes - The company experienced strong same-store revenue growth, exceeding the long-term goal of 3%-6% organic growth [7] - The company anticipates a 20% reduction in overall enrollment due to the expiration of enhanced premium tax credits, which may impact the hospital segment significantly [10][11] Company Strategy and Development Direction - The company plans to continue focusing on organic growth supplemented by accretive M&A, particularly in the USPI segment, with a target of $250 million in annual M&A [8][22] - The company is also investing in technology and operational efficiencies to enhance expense management and improve clinical throughput [28][45] - The company aims to leverage its capabilities to serve patients better and expand service lines, particularly in high acuity areas [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong core earnings growth for 2026, despite anticipated headwinds from the expiration of enhanced premium tax credits [11][19] - The company expects adjusted EBITDA for 2026 to be in the range of $4.485 billion to $4.785 billion, driven by ongoing demand and acuity [9][18] - Management highlighted the importance of monitoring enrollment levels and effectuation rates as they navigate the changing healthcare landscape [11][72] Other Important Information - The company repurchased approximately 22% of its outstanding shares for around $2.5 billion since the share repurchase program began in Q4 2022 [8] - The company generated $367 million of free cash flow in Q4 2025, totaling $2.53 billion for the full year [15] Q&A Session Summary Question: Can you expand on the same-store hospital volume performance in the quarter? - Management noted that while acuity was good, the respiratory season was weaker than expected, impacting volumes [25] Question: What do you mean by tackling expense management more structurally? - Management explained that they are focusing on technology deployment for sustainable expense reduction, including automation and clinical throughput improvements [27][28] Question: Can you provide more details on the hospital admission growth guidance of 1%-2%? - Management indicated that the guidance reflects anticipated impacts from exchange exposure and investments in higher acuity capabilities [32] Question: Is the growth type sustainable in future years? - Management believes that while achieving 10% growth is ambitious, their track record of acuity growth and margin expansion supports this outlook [39][40] Question: What is the payer mix for USPI in Q4? - Management reported a consistent payer mix with net revenue per case growth of 5.5% and EBITDA margins above 40% [84]