Financial Data and Key Metrics Changes - The company reported a Q4 EBITDA margin of 54.2%, supported by growth in the commercial aftermarket and a focus on operating strategy [7] - Fiscal 2025 revenue and EBITDA margins exceeded guidance, with a full-year free cash flow of approximately $2.4 billion [24][25] - The net debt-to-EBITDA ratio was 5.8 times at year-end, slightly improved from 5.9 times in the previous quarter [25] Business Line Data and Key Metrics Changes - Commercial OEM revenue increased by 7% in Q4 but was down 1% for the full year due to challenges from Boeing and Airbus [15] - Commercial aftermarket revenue grew approximately 11% in Q4 and 10% for the full year, with all submarkets showing positive growth [17] - Defense market revenue grew by approximately 16% in Q4 and 13% for the full year, driven by new business wins [19] Market Data and Key Metrics Changes - The commercial aerospace market trends remain favorable, with air traffic growing at 3-4% year-over-year [6] - The company expects commercial OEM revenue growth in the high single-digit to mid-teens percentage range for fiscal 2026 [11] - Defense revenue growth is anticipated in the mid-single-digit to high-single-digit percentage range for fiscal 2026 [11] Company Strategy and Development Direction - The company focuses on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns with public market liquidity [4][5] - Capital allocation priorities include reinvesting in businesses, disciplined M&A, and returning capital to shareholders [9] - The company is actively seeking small to mid-size acquisition opportunities that fit its strategic model [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position entering fiscal 2026, despite potential challenges in the OEM market [12] - The company anticipates EBITDA margins will improve throughout fiscal 2026, with Q1 expected to be the lowest margin quarter [12] - Management remains focused on operational excellence and value creation, despite the challenges in the commercial OEM market [14] Other Important Information - The company allocated approximately $7 billion in capital for M&A and shareholder returns, including a special dividend of $90 per share [8] - The integration of recent acquisitions, Servotronics and Simmons Precision Products, is progressing well [22] Q&A Session Summary Question: Future M&A strategy beyond aerospace and defense - Management indicated that while there is potential for branching out, the current focus remains on aerospace and defense components [31] Question: Trends in aftermarket sub-markets - Management noted no dramatic changes, with refurb business for interiors picking up and strong performance in engines [32] Question: Defense revenue guidance for 2026 - Management acknowledged a conservative approach to defense revenue guidance, citing the lumpy nature of defense sales [33] Question: Margin improvement from recent acquisitions - Management expressed confidence in improving margins for recent acquisitions over time, despite initial lower margins [35] Question: CapEx and headcount expectations - Management expects flat headcount despite growth in commercial and defense OEM work, with CapEx focused on productivity and automation [39] Question: Sell-in versus sell-through in aftermarket - Management reported that point of sale was up more than the underlying commercial aftermarket, with inventory levels managed effectively [52] Question: Position on new defense programs - Management indicated solid wins in new defense programs, emphasizing the company's engineering capabilities [56]

Financial Data and Key Metrics Changes - Total revenue for Q1 2026 was $21.3 million, a slight decline from $21.9 million in the same period last year, primarily due to lower realized oil and NGL prices, which decreased by 14% and 8% respectively, partially offset by a 43% increase in natural gas prices [4][15][16] - Net income for the quarter was $0.8 million, or $0.02 per diluted share, compared to $2.1 million, or $0.06 per share in the year-ago quarter [15] - Adjusted EBITDA was $7.3 million, down from $8.1 million last year, reflecting the impact of lower oil and NGL prices and higher lease operating costs [16] Business Line Data and Key Metrics Changes - The revenue mix for the quarter was 60% oil, 28% natural gas, and 12% NGLs, with an average realized price of $31.63 per BOE [15] - Natural gas revenues increased by 38% compared to the year-ago quarter, with Henry Hub averaging $3.03 for the quarter [9][15] Market Data and Key Metrics Changes - Crude oil prices are currently around $60 per barrel, with expectations that reduced CapEx budgets will eventually lead to higher prices to stimulate drilling [6][7] - The natural gas market is experiencing growing demand due to electrification and carbon intensity reduction efforts, with forecasts indicating a demand increase of 20-30 BCF per day over the next decade [8][9] Company Strategy and Development Direction - The company closed its first acquisition focused on minerals and royalties in the Scoop Stack, enhancing exposure to high-quality reserves while maintaining a capital-light profile [4][5] - The strategy emphasizes generating sustainable free cash flow, returning capital to shareholders, and pursuing attractive acquisition opportunities [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational consistency and strength of the asset base, indicating that the company is well-positioned for the future [18] - The management team highlighted the importance of maintaining a sustainable dividend and the potential for future price increases in both oil and natural gas markets [5][10][18] Other Important Information - The company declared its 49th consecutive quarterly cash dividend of $0.12 per share for the fiscal second quarter [5][17] - Total liquidity at the end of the quarter was approximately $11.9 million, including cash and cash equivalents [16] Q&A Session Summary Question: Update on TexMex asset performance - Management acknowledged that the results from TexMex may understate its potential, with expectations for normalized lifting costs and production recovery as optimization activities progress [24][25][26] Question: M&A activity and deal flow - Management noted a healthy pipeline of attractive acquisition opportunities, with a focus on minerals deals that offer competitive multiples [30][31] Question: Natural gas hedging program - The company is over 50% hedged for the next year, with a mix of collars and swaps to protect cash flow while maintaining upside potential [45] Question: Outlook for production levels in 2026 - Management indicated that while production guidance is challenging due to various factors, a flat year-over-year production outlook is reasonable [66] Question: Capital expenditures guidance - Management confirmed a guidance range of $4-6 million for capital expenditures in fiscal 2026, with approximately $1.9 million spent in the first quarter [67][70]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 reached $1,400,000,000, with an adjusted EBITDAR margin of 31% and an operating margin of 18%, marking the second best third quarter in the company's history [10][26] - Adjusted EBITDA totaled $442,000,000, reflecting a margin of 31%, which is the second highest third quarter adjusted EBITDA on record [25][26] - Net income was $97,000,000 in Q3, representing a 7% net margin [26] - Total operating expenses increased by 2.5% year over year, primarily due to higher depreciation and amortization from fleet additions [24][25] Business Line Data and Key Metrics Changes - Passenger revenue decreased by 4.9% year over year, but showed a 1.7% improvement compared to Q2 2025 [15] - Domestic passenger unit revenue was flat, while international results were strong with profitability across all regions [16][17] - Premium unit revenue outperformed main cabin by five points year over year, indicating growing demand for premium products and services [19] Market Data and Key Metrics Changes - Domestic performance was impacted by currency, economic, and geopolitical headwinds, particularly in border cities due to changes in U.S. immigration policy [16] - U.S. capacity increased by 15% during the first half of 2025 but was flat for Q3, with expectations of continued improvement in passenger unit revenue [18][22] Company Strategy and Development Direction - The company remains focused on delivering high-quality, sustainable results, strengthening its competitive position, and creating lasting value for shareholders, customers, and employees [14][30] - Investment plans include modernization of the fleet and enhancing customer experience, with the addition of four Boeing 737 MAX aircraft during the quarter [13][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute effectively in a challenging environment, with expectations for sequential improvement in passenger revenue and unit revenue performance in Q4 [22][30] - The company anticipates passenger revenue to increase by 3% to 5% year over year in Q4, supported by favorable industry capacity trends [21][29] Other Important Information - The company reported $934,000,000 in cash on hand, complemented by a $200,000,000 undrawn revolving credit facility, resulting in total liquidity of $1,100,000,000, which accounts for 21% of revenue over the past twelve months [27] - The company is committed to maintaining strong financial flexibility and evaluating opportunities for capital distribution to shareholders in the future [47][30] Q&A Session Summary Question: Guidance on RASM and regional performance - Management expects positive unit revenue on both domestic and international fronts, with strong performance anticipated in the domestic beach portfolio and the U.S. region [33][34] Question: Confidence in U.S.-Mexico resolution - Management is hopeful for a resolution regarding bilateral issues and is in close contact with government officials [36][38] Question: Capacity growth expectations for next year - Management indicated potential for growth in capacity, particularly in the summer IATA season, while not providing specific guidance for 2026 [42][44] Question: Capital allocation and shareholder distribution - Management mentioned strong free cash flow generation and the potential for evaluating additional opportunities for capital distribution to shareholders in the future [46][47] Question: Details on 2024 normalized results - Management clarified that 2024 included nonrecurring items, particularly related to unused tickets and Boeing compensation, which should be considered when comparing results [50][54]

Financial Data and Key Metrics Changes - In Q3 2025, the company generated GAAP net investment income of $0.32 per share, realized income of $0.42 per share, and core net investment income of $0.34 per share, excluding estimated excise taxes [4][11] - Net asset value per share decreased by $0.16 during the quarter, attributed to $0.08 per share in dividend payments and $0.08 per share in net unrealized losses primarily related to two debt investments [5][11] - The investment portfolio at fair value increased to $1.01 billion across 115 portfolio companies, up from $985.9 million across 112 companies as of June 30, 2025 [5][12] Business Line Data and Key Metrics Changes - The company invested $51.3 million in five new portfolio companies during the quarter and received repayments totaling $29.8 million [6][12] - 98% of loans were secured, and 90% were priced at floating rates, with an average loan per company of $9.2 million [6][12] Market Data and Key Metrics Changes - The company has loans to five portfolio companies on non-accrual, comprising 6.7% of total cost and 3.7% of fair value of the total loan portfolio, showing a slight decrease from the prior quarter [7][13] - 99% of portfolio companies are backed by private equity firms, indicating strong support and stability within the investment portfolio [6][13] Company Strategy and Development Direction - The company amended and extended its revolving credit facility, reducing the spread over the 30-day SOFR rate from 2.6% to 2.25% and extending the maturity date to September 2030 [8][14] - The company expects to maintain a portfolio in excess of $1 billion at year-end and projects $5 million in equity realizations for Q4 and Q1 of 2026 [15] Management's Comments on Operating Environment and Future Outlook - Management noted that any credit issues are company-specific and do not indicate a broader trend of weakness across the portfolio [25][26] - The competitive market has led to a reduction in spreads, with current rates around five over SOFR, and management anticipates that spreads may eventually rise again [23][49] Other Important Information - The company has paid $318 million in dividends since its IPO, representing $17.75 per share to investors who participated in the IPO priced at $15 per share [4] - The company issued approximately 531,000 shares for $7.4 million under its ATM program during the quarter, all above net asset value [5][12] Q&A Session Summary Question: Expectations for equity realizations in Q4 and Q1 - Management projects $5 million of realizations in Q4 and a similar amount for Q1 of 2026, with expected gains of $3.8 million for Q4 and $3.3 million for Q1 [20][21] Question: Mix between new and add-on opportunities in the pipeline - Management indicated that the mix remains active, with a majority of fundings expected to be on new investments, and noted a competitive environment with some tightness in spreads [22][23] Question: Signs of concern in any segments or industries of the portfolio - Management reported no increasing weakness or concerns, stating that most companies are performing well [25][26] Question: Status on the third SBA license - Management confirmed they are awaiting the issuance of the third license, which is expected soon and would add approximately $50 million in capacity [35][38] Question: Drivers of significant repayments in Q4 - Management indicated that significant repayments are primarily driven by sales of businesses, with some refinancing occurring [47]

Financial Data and Key Metrics Changes - Hudbay's adjusted EBITDA for Q3 2025 was $143 million, a decrease compared to the previous quarter primarily due to operational interruptions and lower sales volumes [8] - Cash generated from operating activities was $114 million, with operating cash flow before changes in non-cash working capital at $70 million [8] - Adjusted net earnings were $0.03 per share, after adjusting for various non-cash items [9] - Consolidated cash costs increased to $0.42 per pound, while sustaining cash costs rose to $2.09 per pound compared to the prior quarter [9][10] - Total liquidity at the end of the quarter was $1.04 billion, including $611 million in cash and cash equivalents [12] Business Line Data and Key Metrics Changes - Consolidated copper production was 24,000 tons and gold production was 54,000 ounces in Q3, lower than Q2 due to wildfire disruptions and temporary production interruptions in Peru [6][10] - Manitoba operations produced 22,000 ounces of gold, 800 tons of copper, 500 tons of zinc, and 102,000 ounces of silver, lower than the previous quarter due to wildfire evacuations [17] - Peru operations produced 18,000 tons of copper and 26,000 ounces of gold, with cash costs at $1.30 per pound, decreasing from the prior quarter [13][16] - British Columbia operations produced 5.2 thousand tons of copper and 4.8 thousand ounces of gold, with cash costs at $3.21 per pound, higher than the prior quarter [21][24] Market Data and Key Metrics Changes - The company faced mandatory wildfire evacuations in Manitoba and social unrest in Peru, impacting operations [4][13] - The Copper World project secured a strategic partnership with Mitsubishi, reducing future equity contributions and enhancing financial strength [5][25] Company Strategy and Development Direction - Hudbay aims to reduce long-term debt while reinvesting in high-return growth initiatives [4] - The company is focused on advancing the Copper World project towards a sanctioned decision in 2026 and first production in 2029 [5][26] - A threefold strategy is being executed in Snow Lake to enhance near-term production and extend mine life [27][30] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in the team's resilience amid operational challenges and reaffirmed production guidance despite interruptions [10][14] - The fourth quarter is expected to be the strongest for copper and gold production in Peru, with confidence in achieving full-year guidance [15][50] - The company anticipates a significant increase in copper production from the Copper World project, enhancing its position as a major copper producer [31][32] Other Important Information - The company has submitted a business interruption insurance claim related to wildfire downtime [18] - Total capital expenditures are expected to be $35 million lower than originally guided, with deferrals to 2026 [10][11] Q&A Session Summary Question: Construction decision timeline for Copper Mountain - Management expects to complete the feasibility study and make a construction decision in mid-2026, with pre-construction spending planned [34][35] Question: Clarification on sustaining CapEx - Sustaining CapEx for 2026 is expected to be similar to this year's guidance, with some deferrals due to operational interruptions [38][39] Question: Impact of informal mining in Peru - Informal mining is not seen as a material impediment to permitting processes, though it complicates the social environment [40][41] Question: Performance of Copper Mountain - Management remains confident in the acquisition of Copper Mountain, noting ongoing optimization efforts despite recent challenges [44][46] Question: Confidence in Constancia's production - Management is confident in achieving high production levels at Constancia for the remainder of the year, supported by strong grades from Pampakancha [49][50] Question: Insurance claim related to wildfires - The company has good coverage for property and business interruption, but it is premature to provide a specific claim amount [55]

Financial Data and Key Metrics Changes - The total shares voted were at least 24.8 million shares, representing at least 68% of the issued and outstanding shares as of the record date, confirming a quorum for the transaction of business [11] - In the matter of the election of 10 directors, each nominee received at least 22 million votes, indicating substantial majority support [11] - At least 98% of shareholders voted in favor of the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the current fiscal year [11] - Over 86% of shareholders voted in favor of the advisory vote on executive compensation of Adtalem's named executive officers [11] Business Line Data and Key Metrics Changes - No specific data on business line performance or key metrics was provided in the meeting records Market Data and Key Metrics Changes - No specific market data or key metrics changes were discussed in the meeting records Company Strategy and Development Direction and Industry Competition - The company continues to focus on maintaining strong governance with the election of directors and the ratification of independent auditors, which reflects a commitment to transparency and accountability [6][12] - The advisory vote on executive compensation indicates a focus on aligning management incentives with shareholder interests [9][10] Management's Comments on Operating Environment and Future Outlook - No specific comments from management regarding the operating environment or future outlook were provided in the meeting records Other Important Information - The meeting was conducted virtually, and a support line was available for technical difficulties [1] - The company expressed appreciation to shareholders for their participation and proxy submissions [4] Q&A Session Summary - No questions were submitted during the Q&A session, and the meeting concluded without any additional inquiries [14]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported net sales of $62.4 million, a decrease from $64.9 million in Q3 2024, indicating a decline of approximately 3.9% year-over-year [2] - The operating loss for Q3 2025 was $2.0 million, slightly improved from an operating loss of $2.1 million in Q3 2024 [2] - The net loss from continuing operations was $4.0 million, or $0.28 per diluted share, compared to a net loss of $3.7 million, or $0.26 per diluted share in the same quarter of the previous year [2] - Gross margins were reported at 24.8%, slightly up from 24.6% in Q3 2024, while year-to-date margins improved to 27% from 25.7% [4] Business Line Data and Key Metrics Changes - Soft surface net sales were down less than 1% year-over-year, outperforming the industry which declined approximately 4% in Q3 [11] - The hard surface segment saw net sales increase over 17% year-over-year for the first nine months [12] - The company introduced new products in the third quarter, including two new Duracil polyester carpet styles and six new decorative carpet styles, contributing to positive growth in high-end segments [11] Market Data and Key Metrics Changes - The flooring industry has faced a downturn, with a reported 30% decline in units over the past three years due to low home sales and high housing prices [9] - The company noted that residential remodeling is a primary driver of sales, as flooring is often replaced before homes are listed or after purchase [9] Company Strategy and Development Direction - The company has implemented a profit improvement plan aiming for $10 million in cost reductions, with 90% of the plan expected to be in place by year-end [10] - The focus remains on high-end customer service, design-focused product introductions, and operational excellence to navigate industry challenges [12] - The company has reduced costs by nearly $60 million over the past three years through restructuring and operational efficiencies [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of declining interest rates and higher home prices on flooring purchases [13] - The company is closely monitoring market conditions and is prepared to take additional financing actions if necessary [22] - Management highlighted the importance of managing working capital and minimizing capital expenditures to maintain liquidity [10][22] Other Important Information - The company has entered into a memorandum of understanding to settle two PFAS-related lawsuits, with an estimated liability recorded in Q3 results [12][13] - Legal expenses related to these lawsuits are included in administrative expenses, and some of these costs are not expected to recur in the next quarter [19][20] Q&A Session Summary Question: Impact of price increases on future quarters - Management indicated that the price increases implemented in late September and October would have a muted impact in Q4 but are expected to contribute approximately $6 million in the following year [16] Question: Performance trends in September and October - Management noted that their business typically strengthens in October, with a run rate 12% above Q3, aligning closely with the previous year [17] Question: Clarification on cost reductions - The $10 million in cost reductions mentioned is incremental to previous reductions and includes the impact of price increases [18] Question: Liquidity and financing strategies - Management expressed comfort with current liquidity levels but is considering additional financing options to cushion against potential market fluctuations [21][22]

Financial Data and Key Metrics Changes - The company generated record free cash flow supported by record gold production and price, with net income for the quarter at $49.3 million or $0.15 per share, and adjusted earnings at $73 million or $0.22 per share [14][32] - The average realized price for gold sold was $3,417 per ounce, with a total revenue of approximately $270 million for the quarter [13][14] - Cash flow from operating activities before changes in non-cash working capital was $113 million or $0.13 per share [14] Business Line Data and Key Metrics Changes - At Musselwhite, 326,000 tons of ore were mined with a production of nearly 58,000 ounces of gold at a mill head grade of 5.87 grams per ton [6][8] - Camino Rojo produced 22,059 ounces of gold during the quarter, with a total of 2.8 million tons of ore placed on the heap leach pad at an average grade of 0.4 grams per ton [8][10] - South Railroad is moving towards final permits and construction start, with project updates expected soon [4][10] Market Data and Key Metrics Changes - The company reported a strong cash position of $327 million, with total liquidity of $357 million, positioning it well for future growth [15] - The gold price hovered around $4,100, influencing capital allocation strategies [60] Company Strategy and Development Direction - The company is focused on a "growth-for-longer" vision, emphasizing resource growth, expanded production, and mine life extension at Musselwhite [3][16] - The South Railroad project aims to establish an operating presence in Nevada, targeting annual production closer to 500,000 ounces at competitive costs [4][10] - The exploration strategy includes aggressive growth of the resource base to unlock opportunities for increased annual production and extended mine life [20][24] Management Comments on Operating Environment and Future Outlook - Management highlighted operational resilience and significant advancements in the growth pipeline, with optimism regarding the permitting process for South Railroad and Camino Rojo [32] - The company remains committed to responsible mining practices and community engagement, with strong support from stakeholders for projects [26][30] Other Important Information - The transition and integration activities at Musselwhite are nearly complete, moving towards a more decentralized model [12] - The company is actively engaging with local, state, and federal stakeholders to sustain momentum in the permitting process in the U.S. [10][30] Q&A Session Summary Question: Confirmation on Musselwhite's new scope in the Red Wings area - Management confirmed that the new scope is in the higher portions of the ore body, which will help increase throughput at the mill [34][36] Question: Significance of being a FAST-41 covered project for South Railroad - Management explained that being a covered project provides access to different departments and accelerates the permitting process, potentially allowing for earlier production [45][46] Question: Update on permitting at Camino Rojo - Management expressed confidence in the near future granting of permits due to positive engagement with Mexican authorities and the importance of the permit for expansion and underground exploration [49][50] Question: Guidance on all-in sustaining costs at Camino Rojo - Management indicated that while some cost pressures may continue into Q4, there will be relief from the Newmont systems and TSA payments by the end of the month [56][58] Question: Capital allocation strategy in light of strong free cash flow - Management noted that the strong gold price has led to considerations for accelerated debt repayment and potential returns to investors through dividends [60][61]

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 fiscal 2026 was $18.8 million, with a net loss of $5.7 million or $0.52 per diluted share [14][12] - The audio division generated $18.2 million in revenue and adjusted EBITDA of $0.7 million [14] - Adjusted EBITDA for the consolidated entity was negative $1 million [14] Business Line Data and Key Metrics Changes - PodcastOne subsidiary achieved record revenue of $15.2 million and adjusted EBITDA of $1.1 million [14][15] - Slacker subsidiary reported revenue of $3.1 million with an adjusted EBITDA loss of $0.4 million [14] Market Data and Key Metrics Changes - The company has converted over 60% of the 2 million Tesla cars, resulting in nearly 1 million free cars re-subscribing [6][12] - The average revenue per user (ARPU) increased by 60%, reaching over $5 compared to the previous $3 [8] Company Strategy and Development Direction - The company is focusing on B2B partnerships, having closed its seventh deal and expanded its partnership with Amazon from $16.5 million to over $20 million [6][10] - The company anticipates significant growth in the audio industry, with expectations of reaching over $100 million in revenues again [13][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for substantial revenue growth driven by B2B deals and partnerships [11][17] - The company is leveraging AI to enhance marketing strategies and improve subscriber conversion rates [8][49] Other Important Information - The company has cut its workforce from 350 to 95, significantly reducing costs from $22 million to $6 million [6][10] - The launch of LiveOne Africa is expected to tap into a market projected to surpass the U.S. market in the coming years [10] Q&A Session Summary Question: Details on the B2B partner with 30 million subscribers - Management indicated that the initial launch was successful and similar to the Tesla relaunch, with expectations for further details by year-end [20][21] Question: Incremental revenue from the $52 million B2B revenue - Management stated that the $52 million is not included in the current revenue and guidance will be provided before year-end [21][22] Question: Premium versus paid subscribers for Slacker - The total paid subscribers are between 250,000-275,000, with ongoing efforts to convert free subscribers [23][25] Question: Gross margin recovery expectations - The decrease in gross margin is attributed to changes in customer relationships and volume from Slacker, with expectations for improvement in future quarters [29][30] Question: Stock-based compensation impact on costs - Stock-based compensation has increased in cost of sales compared to the previous year, with a shift in categories noted [34][36] Question: Continued growth expectations for PodcastOne - Management confirmed expectations for continued growth in the PodcastOne subsidiary, with an increase in guidance [39][41]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q3 2025 reached $115 million, with year-to-date EBITDA at $206 million [3][6] - Gross sales totaled $323 million in Q3, reflecting a 29% year-over-year decline due to lower volumes and prices [6] - Year-to-date sales stood at $1 billion, with adjusted EBITDA at $206 million, indicating lower consolidated results primarily due to lower global prices and higher costs in USD terms [6][11] Business Line Data and Key Metrics Changes - In the sugar, ethanol, and energy business, crushing volume was 4% lower year-over-year, but a new quarterly record of 4.9 million tons was achieved, representing a 20% year-over-year increase [7][8] - The farming business saw a 13% year-over-year increase in total production, attributed to higher planted area and record productivity in rice operations [7] - Adjusted EBITDA for the farming business totaled $1 million in Q3, with year-to-date EBITDA at $19 million, impacted by lower international prices and higher costs [12][13] Market Data and Key Metrics Changes - In Brazil, the company achieved a record quarterly crushing volume and produced 40% more ethanol than the previous year [3] - In Argentina and Uruguay, the price-cost scenario remains challenging, leading to adjustments in crop mix and leased area [3][4] Company Strategy and Development Direction - The company is focusing on efficiency and being the lowest-cost producer to navigate the challenging market environment [5] - A strategic shift towards maximizing ethanol production was made due to better margins compared to sugar, with an ethanol mix of 58% compared to 45% the previous year [8] - The acquisition of a 50% stake in ProFertil, the largest producer of granular urea in South America, is expected to diversify operations and reduce result volatility [4][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the tough year but emphasized the need to remain focused on efficiency [5] - The company expects crushing volumes to improve in 2025-2026, with a potential increase of 5%-6% due to better yields and conditions [24] - Cost reductions of 15%-20% are anticipated for the upcoming year, driven by higher yields and efficiencies [24] Other Important Information - Net debt increased by 35% year-over-year to $872 million, with a net leverage ratio of 2.8 times [16] - The shareholder distribution program for 2025 amounted to $45 million, including $10 million in share repurchases and $35 million in cash dividends [17] Q&A Session Summary Question: Future crushing volumes and CAPEX expectations - Management indicated that crushing volumes could see growth in 2025-2026, with CAPEX being revised downwards due to compressed EBITDA margins [20][22] Question: Actions to reduce leverage and crop area reduction rationale - Management explained that reducing leased area is aimed at lowering costs and focusing on high productivity farms, with expectations for improved EBITDA next year [27][29] Question: Financing details for ProFertil acquisition and dividend expectations - The acquisition is fully financed at competitive rates, and while it is too early to provide specific dividend guidance for 2026, management remains optimistic about future cash flows [38][40]