Zebra Technologies (NasdaqGS:ZBRA) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Speaker9Good day, and welcome to the fourth quarter and full year 2025 Zebra Technologies Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the confere ...

Financial Data and Key Metrics Changes - Adjusted company FFO for Q4 2025 was $0.79 per diluted common share, totaling approximately $47 million, while for the full year, it was $3.15 per diluted common share, or $187 million [15] - The company provided 2026 adjusted company FFO guidance in the range of $3.22-$3.37 per common share, indicating a growth of 4.6% at the midpoint [15] - Net debt to adjusted EBITDA improved from 5.9 times to 4.9 times by year-end 2025 [6][22] Business Line Data and Key Metrics Changes - The company leased nearly 5 million sq ft in 2025, achieving attractive mark-to-market outcomes of approximately 28% on a cash basis, excluding fixed-rate renewals [6] - Portfolio occupancy increased to 97.1% at year-end 2025, up from 93.6% at year-end 2024 [16] - Same-store NOI growth for the full year was 2.9%, with flat performance in Q4 compared to the same period in 2024 [16] Market Data and Key Metrics Changes - The company’s target markets accounted for over 66% of the overall U.S. net absorption of about 54 million sq ft [6] - Larger users favored facilities exceeding 500,000 sq ft built within the last 5 years, with demand concentrated in markets like Phoenix, Indianapolis, Fort Worth, and Houston [7] Company Strategy and Development Direction - The company plans to focus on disciplined investment and external growth opportunities, particularly in its land bank, while executing opportunistic share repurchases [11] - The development program has yielded a 7.1% weighted average stabilized yield on first-generation leases, with 15 facilities developed since 2019 [11] - A new 1 million sq ft speculative project is set to break ground in Phoenix, with completion anticipated in the first half of 2027 [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving market fundamentals and the potential for significant value creation in the land bank [10][24] - The company is focused on leasing remaining vacancies and generating robust mark-to-market outcomes in 2026 [13][24] - Management noted that concessions are expected to recede as the market becomes more favorable for landlords [36] Other Important Information - The company exited five non-target markets in 2025, prioritizing investments in 12 target markets that now account for 87% of gross book value [8] - Total disposition volume for 2025 was $389 million, including $116 million from non-target market sales in Q4 [8] - The company repaid approximately $220 million of debt in 2025, including $140 million of senior notes due 2028 [22] Q&A Session Summary Question: Inquiry about development plans in Phoenix - Management indicated that the supply-demand equation is favorable, and there is interest in the facility even before completion [26][27] Question: Clarification on same-store NOI growth - The variance in same-store NOI growth was primarily due to higher property expense leakage across several properties [31][32] Question: Discussion on concessions and market environment - Management noted that concessions are expected to decrease as the market improves, leading to a more landlord-favorable environment [36] Question: Future transaction activity and capital allocation - Management mentioned ongoing negotiations for $200 million of assets in non-target markets, which could lead to favorable outcomes for capital redeployment [38][39] Question: Comments on build-to-suit opportunities - Management expressed interest in build-to-suit projects, particularly in light of favorable supply dynamics and their existing land bank [55][56]

Financial Data and Key Metrics Changes - The company achieved record high revenue of $1.9 billion in 2025, reflecting a 3% growth year-over-year, with a 10% growth in experiences and a 22% growth at TheFork, offsetting an 8% decline in hotels and other segments [3][18] - Group adjusted EBITDA was $319 million, or 17% of revenue, with Q4 adjusted EBITDA at $45 million, representing 11% of revenue, which was at the low end of expectations [3][18] - The marketplace businesses represented 61% of group revenue in 2025, up from 59% in 2022, indicating a significant shift in revenue composition [4] Business Line Data and Key Metrics Changes - In the experiences segment, bookings grew 18% in Q4, with gross booking value (GBV) increasing 16% to approximately $980 million [21][22] - TheFork's revenue in Q4 was $57 million, representing an 18% growth, while full-year revenue reached $221 million, a 22% increase [27] - Hotels and other segment revenue declined 15% in Q4 to $151 million, with a full-year decline of 8% to $750 million [29] Market Data and Key Metrics Changes - The experiences market is expected to grow by double digits over the next few years, with the online portion growing at 13% from 2019 to 2025, while the company grew 22% in the same period [8][47] - TheFork's B2B subscription revenue grew at a higher rate, driven by restaurant adoption of premium plans, highlighting strong value [27] Company Strategy and Development Direction - The company is focusing on becoming an experiences-first company, with plans to explore strategic alternatives for TheFork to unlock shareholder value [5][6] - The strategy includes leveraging AI to enhance customer experience and streamline operations, with a goal to simplify legacy offerings while investing in growth areas [5][13] - The company aims to extend its leadership in experiences globally and improve marketing efficiency to drive demand [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the experiences market, citing strong demand signals and the ability to exceed market growth rates [47][50] - The company anticipates modest consolidated revenue growth in 2026, driven by a shift towards marketplace businesses, while facing structural headwinds in legacy segments [35][41] - Management highlighted the importance of repeat bookings, which are expected to continue being the largest and fastest-growing cohort, contributing significantly to profitability [12][24] Other Important Information - The company has streamlined its corporate structure and made operational choices to focus on travel areas with the greatest long-term opportunity [4] - The company repurchased 6.1 million shares in 2025, reducing share count by approximately 21% since the end of 2024 [34] Q&A Session Summary Question: Can you characterize the incremental growth investments in the experiences business? - Management sees the experiences market as attractive and growing faster than other travel categories, with plans to invest further to drive global leadership [47][50] Question: Why not double down on customer acquisition versus giving back some on the EBITDA margin? - Management emphasized that profitability is driven by marketing efficiencies and repeat cohorts, and they are flexible in balancing growth and profitability [56][57] Question: Can you tell us more about the AI native MVP launched in Q4? - The AI native MVP aims to deliver personalized recommendations and improve user engagement, with early data showing higher engagement compared to previous efforts [66][68] Question: How are you thinking about monetizing user review data? - Management noted that user-generated content (UGC) remains stable and is being leveraged for both internal platforms and partnerships, with AI traffic showing higher intent and conversion rates [71][72]

Financial Data and Key Metrics Changes - Kimco Realty achieved NAREIT FFO per share growth of 6.7%, making it one of the few shopping center REITs to exceed 5% FFO growth in 2024 and 6% in 2025 [4] - For Q4 2025, funds from operations (FFO) were $294.3 million, or $0.44 per diluted share, representing a 4.8% increase compared to the prior year [25] - Full-year FFO was approximately $1.2 billion or $1.76 per diluted share, reflecting a 6.7% per share increase compared to 2024 [25][26] Business Line Data and Key Metrics Changes - Overall portfolio occupancy reached 96.4%, matching an all-time high, with a new leasing volume of 1.2 million sq ft, the highest in over a decade [5] - Small shop occupancy hit a record high of 92.7%, while same-site NOI growth was 3% for the full year [5][26] - The signed but not open (SNO) pipeline reached a record 390 basis points, representing $73 million of future annual base rent, a 30% increase from the previous year [5][13] Market Data and Key Metrics Changes - The shopping center sector remains fundamentally strong with limited new supply, which, combined with resilient consumer demand, supports confidence in pushing occupancy and same-site NOI higher [8][9] - The company noted that private market pricing remains constructive, creating opportunities despite uneven public REIT sentiment [9] Company Strategy and Development Direction - Kimco's strategy for 2026 focuses on proactive capital recycling to enhance long-term growth, including selling assets at attractive private market cap rates and reinvesting proceeds into higher return opportunities [10][19] - The company plans to modernize its operating platform to improve efficiency and cash flow, targeting a reduction of $3 million in G&A expenses while investing in personnel and technology [11][66] - A shift from a regional to a national leadership structure aims to streamline operations and enhance decision-making speed [66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, expecting continued demand and a strong tenant credit profile, with 87% of expiring annual base rent resolved or in negotiation for the first half of 2026 [16][29] - The company anticipates a clear and accelerating growth profile for 2026, with expectations for same-property NOI growth between 2.5% and 3.5% [28][29] Other Important Information - Kimco received a credit rating upgrade to A-minus from Moody's, reflecting a disciplined approach to its balance sheet [4] - The company has established a commercial paper program to enhance its financing strategy [27] - A leadership transition is underway with the retirement of the Chief Accounting Officer, ensuring continuity and expertise within the team [34] Q&A Session Summary Question: Discussion on potential special dividend and balancing earnings growth - Management clarified that while a special dividend may be necessary if gains cannot be shielded through exchanges, the focus remains on closing the valuation gap between public and private markets [36][38] Question: Insights on capital allocation priorities - Management emphasized leasing as the top priority, followed by redevelopment opportunities and structured investments, with a focus on achieving double-digit returns [41][44] Question: Trends in tenant health and performance - The tenant credit profile is reported to be strong, with notable improvements in previously struggling retailers, indicating a positive outlook for the sector [55][58] Question: Guidance on same-store NOI components - Management acknowledged that the first quarter may be challenging due to prior year comparisons but remains confident in the overall guidance based on the SNO pipeline [61] Question: Ground lease portfolio size and disposition plans - The ground lease segment constitutes about 9% of annual base rent, with plans to accelerate dispositions in 2026, driven by increased demand from private investors [80][82]

Financial Data and Key Metrics Changes - The company recorded $1.4 billion in group property EBITDA for the full year of 2025, growing by 17% compared to 2024 [3] - Group-wide adjusted property EBITDA for Q4 2025 grew 12% year-over-year to approximately $331 million [6] - Macau property EBITDA grew 24% year-over-year in Q4 and 25% for the full year compared to 2024 [3] Business Line Data and Key Metrics Changes - In Macau, the company focused on enhancing customer experience, leading to significant EBITDA growth [3] - City of Dreams Mediterranean and satellite casinos in Cyprus achieved 78% year-over-year growth in property EBITDA to $21 million for Q4 2025 [5] - The Philippines faced competitive pressures, but positive developments such as visa-free travel for Chinese nationals were noted [4] Market Data and Key Metrics Changes - Macau market GGR was up by 24% year-over-year, with an increase in market share observed in early 2026 [3] - The company expects Macau daily operating expenses to rise to approximately $3.2 million in Q1 2026 due to increased marketing activities [8] Company Strategy and Development Direction - The company plans to implement new initiatives in 2026, including the opening of the renovated Countdown Hotel, expected to set a new benchmark in Macau [4] - A revamp of the retail area at COD and upgrades to food and beverage offerings are also in the pipeline [4] Management's Comments on Operating Environment and Future Outlook - Management noted that competition in Macau remains intense but is expected to stabilize [21][26] - The company is confident in its ability to manage operating costs and maintain EBITDA margins throughout 2026 [27] Other Important Information - The company had available liquidity of approximately $2.4 billion and consolidated cash on hand of approximately $1.2 billion as of the end of 2025 [8] - Total CapEx for 2026 is projected at $450 million, with significant investments in the Countdown Hotel and other properties [33] Q&A Session Summary Question: Impact of House of Dancing Water on visitation and revenue - Management noted a meaningful uptick in property visitation since reopening the show, driving additional spending across non-gaming segments [15][16] Question: Competitive intensity in Macau and EBITDA margin expectations - Management acknowledged intense competition but expressed confidence in maintaining margins due to disciplined cost management [21][27] Question: Clarification on operating expenses related to non-recurring items - Management quantified additional bad debt at approximately $5 million and anniversary-related expenses at about $6 million for the quarter [31] Question: CapEx breakdown for major projects - Total CapEx for 2026 is $450 million, with $375 million allocated to Macau and significant funds for the Countdown Hotel [33]

Financial Data and Key Metrics Changes - AMG reported full-year economic earnings per share of $26.05, a 22% increase year-over-year, driven by strong organic growth and capital allocation strategy [5][29] - Adjusted EBITDA for the fourth quarter was $378 million, growing 34% year-over-year, while full-year Adjusted EBITDA reached $1.1 billion, up 11% from 2024 [28] - Economic earnings per share for the fourth quarter were $9.48, reflecting a 45% year-over-year growth [29] Business Line Data and Key Metrics Changes - AMG's affiliates generated approximately $29 billion in annual net client cash flows, representing an organic growth rate of 4% [5] - The company added approximately $97 billion in alternative assets under management (AUM), a 35% increase, with $74 billion in net inflows from existing affiliates and $23 billion from new partnerships [6][11] - Fee-related earnings grew 20% year-over-year for the fourth quarter and 8% for the full year, driven by positive investment performance and organic growth [28] Market Data and Key Metrics Changes - AMG's alternatives business raised $23 billion in net inflows during the fourth quarter, contributing to a record total of $74 billion for the year, which offset $45 billion in outflows from active equities [20] - Private markets affiliates raised $9 billion in the fourth quarter, bringing full-year fundraising to $24 billion, reflecting an 18% annualized organic growth rate [21] - Global wealth AUM at AMG and affiliates exceeded $100 billion, growing organically at over 100% in 2025 [26] Company Strategy and Development Direction - AMG's strategy focuses on expanding its footprint in private markets and liquid alternatives, with a commitment to invest in high-quality affiliates and innovative product development [14][24] - The company aims to maintain a balance between growth investments and returning capital to shareholders, with plans to repurchase at least $400 million in shares in 2026 [37] - AMG's unique partnership approach is designed to enhance the long-term success of its affiliates while preserving their independence [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of the business, highlighting the strong momentum entering 2026 and the expectation of continued growth from existing affiliates [15][19] - The company noted that it is still in the early stages of its growth story, with significant opportunities ahead [14] - Management emphasized the importance of product innovation and distribution expansion to drive organic growth [14][75] Other Important Information - The company repurchased approximately $700 million of its shares in 2025, representing 11% of shares outstanding [5][6] - AMG's strategic engagement in liquidity events resulted in over $730 million in pre-tax distributions, highlighting the underlying value of its affiliates [10] - The company announced a new partnership with Highbrook and a follow-on investment in Garda, both expected to be accretive to earnings in 2026 [9][10] Q&A Session Summary Question: Outlook for AQR in 2026 - Management noted that AQR is expected to be a more meaningful contributor in 2026, with strong organic growth and positive momentum dynamics [40][70] Question: Pipeline for Private Markets - Management discussed the strong pipeline for private markets and the innovative products being developed to attract both U.S. and non-U.S. investors [49][51] Question: Global Wealth Management Growth - Management highlighted significant growth in the U.S. wealth management platform, while also acknowledging opportunities for growth in international markets [60][62] Question: Performance Fees Outlook - Management indicated that performance fees are expected to grow over time, particularly as AUM from strategies that earn higher management fees increases [68][72]

Financial Data and Key Metrics Changes - Fourth quarter revenue increased by 12%, with core EPS rising by 18%, both reaching record levels for the company [4][11] - Core EBITDA rose by 19% for the quarter, reflecting strong performance across various business segments [11] - The company expects core EPS for 2026 to be in the range of $7.30-$7.60, indicating a 17% growth at the midpoint [5][17] Business Line Data and Key Metrics Changes - Advisory services saw double-digit growth in leasing and sales, with leasing revenue growing 14% globally [11] - The building operations and experience segment experienced revenue growth driven by local facilities management and data center solutions, with data center solutions revenue growing over 20% [13][14] - Project management delivered solid revenue growth, supported by new real estate projects for hyperscalers [14] Market Data and Key Metrics Changes - In the U.S., leasing revenue grew 12%, with significant contributions from data centers and industrial sectors [11] - EMEA led leasing growth with Continental Europe up 29% and the UK up 16% [11] - Outside the U.S., strong sales were reported in India and the UK, with mortgage origination fees growing over 20% [12] Company Strategy and Development Direction - The company is focused on building businesses that benefit from secular tailwinds, such as the acquisition of Pearce Services to enhance technical services capabilities in the digital infrastructure market [4][5] - The integrated data center solutions business is expected to reach $2 billion in revenue by 2026, growing at 20% per year [5] - The company is investing in AI to improve efficiency and create a knowledge advantage, leveraging its extensive real estate data [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustained growth, citing strong demand for office space and the ongoing recovery in the market [39] - The company anticipates continued double-digit revenue growth in both resilient and transactional businesses for 2026 [17][18] - Management acknowledged potential long-term impacts of AI on office space demand but emphasized current strong demand across various markets [39] Other Important Information - The company raised over $11 billion in capital in 2025, with assets under management (AUM) ending the year at $155 billion [16] - Free cash flow generated in 2025 was nearly $1.7 billion, reflecting an 86% conversion on core net income [17] - The company is focused on maintaining operational efficiency while investing in future growth opportunities [19] Q&A Session Summary Question: Can you provide more detail on the pipeline in capital markets and the impact of interest rates? - Management indicated that they do not expect capital markets activity to be driven by interest rate cuts, noting a balance between asking and offering prices [25] Question: Can you elaborate on the one-time expenses affecting project management margins? - Management stated that they expect these one-time expenses to be reversed in the first quarter, leading to margin expansion [27] Question: What are the risks of AI disintermediating the brokerage business? - Management expressed confidence that the brokerage business is driven by strategic thinking and relationships, which are not easily replaced by AI [31] Question: How do you see the long-term demand for office space in relation to AI? - Management acknowledged that while AI may reduce some office needs, current demand remains strong as companies use office space to attract talent [39] Question: What is the outlook for margins in the BOE and project management businesses? - Management expects BOE margins to remain flat in 2026 due to investments, while project management is anticipated to see margin expansion [68]

Financial Data and Key Metrics Changes - Getty Realty reported an annualized base rent growth of nearly 12% in 2025, with AFFO per share increasing by 5% for Q4 and 3.8% for the full year, reaching the high end of the increased earnings guidance [6][21] - For Q4 2025, AFFO per share was $0.63, FFO was $0.64, and net income was $0.45 per share [21] - The full year 2025 results showed AFFO per share at $20.43, FFO at $20.34, and net income at $1.35 per share, reflecting a 3.8% increase compared to 2024 [21] Business Line Data and Key Metrics Changes - The company invested approximately $270 million in 2025, achieving an initial cash yield of 7.9% [7] - Significant investments included a $100 million sale-leaseback for a convenience store portfolio and $82.5 million for the construction of collision centers [9][10] - The portfolio included 1,169 net lease properties with a 99.7% occupancy rate and a weighted average lease term of 9.9 years [14] Market Data and Key Metrics Changes - Over 75% of 2025 investment activity was concentrated in top 100 markets across the U.S., with increased exposure to cities like Atlanta, Dallas, and Houston [10] - The company underwrote a record $6.8 billion of potential investments, with 54% focused on non-convenience store properties [16] Company Strategy and Development Direction - Getty Realty aims to diversify its portfolio, with nearly 30% of annual base rent now derived from non-convenience and gas properties [20] - The company is focused on maintaining a healthy investment pipeline, currently consisting of approximately $100 million of investments under contract [11] - The management transition is set to occur with RJ Ryan succeeding Mark Olear as Chief Investment Officer, indicating a continuity in strategic direction [12][13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the investment pipeline and the potential for increased investment volume in 2026 due to improved cost of capital [30][31] - The company is confident in the health of its portfolio, with full occupancy and strong rent collections [55] - Management noted that the current guidance does not include prospective investment activities, indicating potential for future growth [47][26] Other Important Information - The company reported a net debt to EBITDA ratio of 5.1 times, well within the target leverage range [23] - Fixed charge coverage for the period was 3.8 times, indicating strong financial health [23] Q&A Session Summary Question: Can you provide more detail on the $100 million investment pipeline? - Management indicated that about 80% of the pipeline is focused on auto service properties, with the majority being development funding [29] Question: Do you think you can do more investment volume this year relative to last year? - Management expressed optimism, noting that they are off to a great start with significant opportunities already under consideration [30][31] Question: Can you speak about the cadence of the $100 million pipeline? - Management clarified that about 20% of the pipeline consists of regular acquisitions expected to close within 60-90 days, while development funding will be deployed over the next 12 months [35] Question: What is driving the increased emphasis on potential sales? - Management highlighted active sourcing of opportunities and a more active selling pool in the market as key drivers [40] Question: Can you speak about the dip in coverage? - Management explained that the dip was primarily due to rounding and historical high fuel margins dropping off, with overall tenant health remaining strong [53][55] Question: Can you provide color on the dispositions made in Q4? - Management noted that some properties were sold back to existing tenants for tactical reasons, while others were opportunistic sales [61]

Financial Data and Key Metrics Changes - The company reported a record performance in Q4 2025, achieving a 17% year-over-year growth in revenue, with total revenue reaching $1.84 billion, an increase of $262 million compared to the previous year [3][19] - For the full year 2025, revenue increased 12% to $6.9 billion, Adjusted EBITDA grew 15% to $2.6 billion, and AFFO increased 15% to $1.5 billion [3][23] - Adjusted EBITDA margin improved to 38.3%, the highest level reported to date, with Adjusted EBITDA of $705 million in Q4, up 17% year-over-year [21][22] Business Line Data and Key Metrics Changes - Data center revenue increased by 30% in 2025, with a remarkable 39% growth in Q4 alone, driven by strong leasing activity [4][26] - Asset Lifecycle Management (ALM) revenue surged 63% in total for 2025, with 40% organic growth, and 56% organic growth in Q4 [6][27] - Digital solutions revenue surpassed $500 million in 2025, reflecting double-digit growth, with a strong pipeline for future contracts [7] Market Data and Key Metrics Changes - The company anticipates over 25% revenue growth in the data center segment for 2026, supported by a strong backlog and leasing momentum [5][31] - The physical storage business achieved record revenue growth at a mid-single-digit rate, marking the 37th consecutive year of organic storage rental revenue growth [9][24] Company Strategy and Development Direction - The company aims to sustain industry-leading revenue and earnings growth into 2026 and beyond, capitalizing on robust demand in the data center industry and expanding its ALM and digital solutions businesses [4][10] - The company is focused on cross-selling opportunities within its existing customer base, leveraging its established relationships to drive growth [9][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another record year in 2026, with guidance for total revenue between $7.625 billion and $7.775 billion, representing a year-on-year growth of 12% at the midpoint [31] - The company highlighted the importance of its legacy physical storage business as a strong foundation for cash flow and growth investments [8][10] Other Important Information - The company declared a quarterly dividend of $0.864 per share, a 10% increase from the previous year, reflecting its commitment to returning value to shareholders [28] - The company plans to invest $2.0 billion in growth capital expenditures in 2026, focusing on pre-leasing strategies before commencing construction [29] Q&A Session Summary Question: Can you discuss the data center pipeline and leasing activity? - Management noted strong momentum with over 40 megawatts of leasing in Q4 and highlighted key markets such as Northern Virginia, Richmond, Madrid, and India as areas of significant interest [35][36] Question: What is the momentum in the ALM business for organic growth this year? - Management indicated a strong outlook for the ALM business, forecasting upwards of 20% organic growth, driven by both new customer acquisitions and increased penetration within existing accounts [40][45] Question: How much of the ALM growth came from volumes versus pricing? - Management stated that the growth was balanced between hyperscale and enterprise segments, with strong pricing trends contributing positively to revenue [48][50] Question: Can you elaborate on gross margin trends in the services business? - Management explained that while total gross margin is affected by mix, services gross margin improved significantly, indicating strong operational execution and pricing strategies [52][54] Question: What is the M&A landscape for ALM and data centers? - Management expressed that while they do not foresee significant M&A activity in the data center space, they remain open to opportunities in the ALM market to expand their global footprint [57][61] Question: What are the expectations for the U.S. Department of Treasury contract? - Management expects to generate at least $45 million from the Treasury contract in 2026, with potential for this to ramp up to around $100 million as the outsourcing process progresses [76][78]

Cognex (NasdaqGS:CGNX) Q4 2025 Earnings call February 12, 2026 08:30 AM ET Speaker8Greetings, and welcome to the Cognex Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Greer Aviv, He ...