Texas Pacific Land (NYSE:TPL) Q4 2025 Earnings call February 19, 2026 10:30 AM ET Company ParticipantsChris Steddum - CFODerrick Whitfield - Managing Director and Head of Energy Equity ResearchOliver Huang - Director of Research DepartmentRobert Crain - EVP of Texas Pacific Water ResourcesShawn Amini - VP of Finance and Investor RelationsTyler Glover - CEOConference Call ParticipantsTim Rezvan - Managing Director and Equity Research AnalystOperatorGreetings, and welcome to the Texas Pacific Land Corporation ...

Brady (NYSE:BRC) Q2 2026 Earnings call February 19, 2026 10:30 AM ET Company ParticipantsAnn Thornton - CFOKeith Housum - Managing DirectorRussell Shaller - President and CEOConference Call ParticipantsSteve Ferazani - Equity AnalystOperatorGood day, and thank you for standing by. Welcome to the Brady Corporation Q2 2026 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during t ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [15] - Free cash flow for Q4 was $119 million, and for the full year 2025, record free cash flow reached approximately $498 million, an 8% year-over-year increase [15][16] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales volumes increased by 4% and produced water royalty volumes increased by 25% [15][16] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a 3-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of completed wells increased by 8% compared to the previous year, with new permitted wells averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on leveraging its strengths in water and land access to build large-scale energy campuses, aiming for multiple multi-gig energy campuses [27][28] - TPL is investing in next-generation opportunities, including data centers and produced water desalination, with a strategic investment in Bolt Data & Energy [6][7] - The company plans to invest approximately $20 million in waste heat capture and data center cooling at its desalination facility [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth pipeline for 2026, focusing on maximizing long-term intrinsic value per share despite a weak oil price environment [12][11] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12][21] - Management highlighted the importance of adapting to evolving market conditions and maintaining a resilient business model [22] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the previous quarter [16] - A shareholder event is scheduled for May 18th in Midland, Texas, to provide updates on company operations [13] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management noted that the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and promising projects [26][27] Question: Potential value from the Bolt Energy partnership - Management indicated that the water usage numbers for power generation and data centers could be substantial, depending on facility design [30][31] Question: Strength in traditional water business amid market contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years [34][35] Question: Updates on desalination process efficiencies - Management confirmed that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus [45][46] Question: Exposure to rare earth exploration in Hudspeth County - Management acknowledged ongoing exploration projects in Hudspeth County, with promising early findings [48][49]

Financial Data and Key Metrics Changes - Organic sales increased by 1.6%, marking the 20th consecutive quarter of organic sales growth [7][16] - Adjusted earnings per share grew by 9% to $1.09 from $1 in the previous year [12][13] - Gross profit margin improved to 50.6% from 49.3% year-over-year [8][12] - Operating cash flow increased by 34.7% to $53.3 million compared to $39.6 million in the prior year [13][14] Business Line Data and Key Metrics Changes - The Americas and Asia regions saw organic sales growth of 3.1%, while Europe and Australia experienced a slight decline of 1.1% [7][18] - R&D expenses rose to $24.3 million, or 6.3% of sales, up from $18.7 million, or 5.2% of sales in the previous year [11] - Segment profit in the Americas and Asia increased by 16.9% to $53.8 million, with a profit margin increase from 19.7% to 21.4% [19] Market Data and Key Metrics Changes - Sales in the Americas were $251.6 million, up 7.6% from the previous year, with organic growth of 3.1% [18] - Europe and Australia reported sales of $132.5 million, with a total growth of 7.9% driven by foreign currency translation [21] - Asia's organic sales growth was notably strong at 14.2%, with India leading at nearly 25% [18][19] Company Strategy and Development Direction - The company is focused on creating world-class products for industrial customers, with a commitment to R&D increasing from 3% to nearly 6% of revenue [6][11] - The launch of the i4311 Transportable Industrial Desktop Label Printer exemplifies the company's innovation strategy [4][6] - The company aims to provide easy-to-use solutions for complex identification requirements, adapting to changing standards and regulations [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in Europe and Australia, despite current economic headwinds [41][42] - The company anticipates organic sales growth in the low single-digit percentages for the fiscal year ending July 31, 2026 [16] - Management highlighted the importance of U.S. manufacturing capacity utilization for future growth, currently at 77%-78% [33] Other Important Information - The company is in a net cash position of $97.8 million, allowing for continued investment in growth and shareholder value [14][15] - The company has increased its full-year adjusted diluted EPS guidance range from $4.90-$5.15 to $4.95-$5.15 [16] Q&A Session Summary Question: Concerns about organic sales growth in the Americas - Management clarified that organic growth in the Americas was 1.4%, and acknowledged a slowdown in momentum [30][31] Question: Factors influencing growth trajectory - Management indicated that growth is closely tied to U.S. manufacturing capacity utilization, which is currently low [33] Question: Margin health and pricing strategy - Management noted that margins improved due to a favorable product mix, with engineered products performing better than commoditized ones [36] Question: Confidence in European growth - Management expressed cautious optimism about modest growth in Europe, citing potential recovery signs [41] Question: Performance of recent acquisitions - Management reported that the Gravotech acquisition has met technology goals, although some segments are impacted by weak automotive markets [42] Question: Concerns about pricing for commodity products - Management acknowledged pricing pressures in the U.K. but emphasized a long-term shift away from commodity products [47]

Financial Data and Key Metrics Changes - Organic sales increased by 1.6%, marking the 20th consecutive quarter of organic sales growth [7][16] - Adjusted diluted earnings per share grew by 9% to $1.09 from $1 in the previous year [12][13] - Gross profit margin improved to 50.6% from 49.3% year-over-year [8][12] - Operating cash flow increased by 34.7% to $53.3 million compared to $39.6 million in the same quarter last year [13][14] Business Line Data and Key Metrics Changes - The Americas and Asia region saw organic sales growth of 3.1%, while Europe and Australia experienced a slight decline of 1.1% [7][18] - R&D expenses increased to $24.3 million, or 6.3% of sales, up from $18.7 million, or 5.2% of sales in the previous year [11][12] - Segment profit in the Americas and Asia increased by 16.9% to $53.8 million, with profit margin rising from 19.7% to 21.4% [19][22] Market Data and Key Metrics Changes - Sales in the Americas and Asia reached $251.6 million, up 7.6% from the previous year [18] - Organic sales in Asia grew by 14.2%, with India leading at nearly 25% organic sales growth [18][19] - In Europe and Australia, total sales were $132.5 million, with organic sales declining by 1.1% but benefiting from a 9% increase due to foreign currency translation [20][22] Company Strategy and Development Direction - The company is focused on creating new world-class products, exemplified by the launch of the i4311 Transportable Industrial Desktop Label Printer [3][4] - Investment in R&D has increased from approximately 3% to nearly 6% of revenue, indicating a commitment to innovation [5][11] - The company aims to provide easy-to-use solutions for complex identification requirements, adapting to changing market standards [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in Europe and Australia, despite current economic headwinds [41][42] - The company anticipates organic sales growth in the low single-digit percentages for the fiscal year ending July 31, 2026 [16] - Management noted that U.S. manufacturing capacity utilization is a key factor for growth, currently at 77%-78% [34][36] Other Important Information - The company is in a net cash position of $97.8 million, allowing for continued investment in growth and shareholder value [14][15] - The company has announced its 40th consecutive annual dividend increase, reflecting a strong commitment to returning value to shareholders [15] Q&A Session Summary Question: Concerns about organic sales growth in the Americas - Management clarified that organic growth in the Americas was 1.4%, with Asia contributing significantly to overall growth [30][32] Question: Confidence in Europe and Australia returning to growth - Management noted modest expectations for growth in Europe, with some regions showing improvement despite challenges [41][42] Question: Performance of recent acquisitions - Management reported that the Gravotech acquisition has met technology goals, although some segments are impacted by weak European automotive markets [43][44] Question: Issues with memory pricing or shortages - Management confirmed no current issues with memory supplies, as they are a low user of memory [45] Question: Reconciling R&D investment with organic growth - Management emphasized that R&D investments are long-term and correlate with improved gross margins, focusing on engineered products [47][48] Question: Pricing concerns for commodity products in Europe - Management acknowledged some pricing deterioration in the UK but indicated a long-term shift away from commodity products [49]

There's no substitute for silver Q 4 Q 4 - - 25 PRESENTATION TSX AG / NYSE AG / FSE FMV FEBRUARY 19, 2026 Forward Looking Statements CAUTIONARY DISCLAIMER This presentation includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework. These measures include all-in sustaining costs (or "AISC") per silver equivalent ounce, cash costs per silver equivalent ounce and free cash flow. The Company believes that these measures, together with ...

Financial Data and Key Metrics Changes - Consolidated revenues for Q4 2025 were approximately $212 million, with an adjusted EBITDA of $178 million and an adjusted EBITDA margin of 84% [14] - Free cash flow for Q4 was $119 million, contributing to a record free cash flow of approximately $498 million for the full year 2025, representing an 8% year-over-year increase [14][15] - Full year 2025 oil and gas royalty production increased by 29% year-over-year, while water sales daily volumes increased by 4% and produced water royalty daily volumes increased by 25% [15] Business Line Data and Key Metrics Changes - Oil and gas royalty production grew 23% year-over-year in Q4 2025, while water sales volumes exceeded 1 million barrels per day for the first time, growing 36% year-over-year [4] - Produced water royalty volumes grew 22% year-over-year [4] - The company achieved a 3-year compounded annual growth rate of 17% for oil and gas royalty production, 18% for water sales volumes, and 30% for produced water royalty volumes [5] Market Data and Key Metrics Changes - The Permian Basin experienced a decline in rig activity, with the horizontal rig count down approximately 26% [17] - Despite lower rig counts, production growth was sustained through a drawdown of drilled but uncompleted wells (DUCs), with an estimated 600 DUCs drawn down in 2025 [17][18] - The average lateral lengths of wells completed on TPL royalty acreage increased by 8% compared to the previous year, with new permitted wells averaging 35% longer than in 2024 [19] Company Strategy and Development Direction - The company is focused on leveraging its strengths in land, water, and energy to build large-scale data center and power generation solutions, particularly through its partnership with Bolt Data & Energy [6][8] - TPL aims to develop multiple multi-gig energy campuses, emphasizing the importance of scale in its operations [27] - The company is also investing in desalination projects to provide sustainable solutions for produced water management, with a facility in Orla, Texas nearing completion [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth pipeline for 2026, highlighting the ability to drive growth and extract value even in a weak oil price environment [11] - The company maintains a debt-free balance sheet and a $500 million undrawn credit facility, providing flexibility to invest opportunistically [12] - Management anticipates capital expenditures of approximately $65 million to $75 million for 2026, with a focus on water sales business improvements and desalination facility enhancements [20] Other Important Information - The company announced a regular dividend of $0.60 per share, representing a 12.5% increase from the prior quarter [16] - TPL is actively exploring opportunities in rare earths in Hudspeth County, with promising early-stage findings [47] Q&A Session Summary Question: Thoughts on power and data center development opportunities - Management believes the opportunity set for power and data center development has evolved significantly, with ongoing commercial negotiations and several projects in the pipeline [26][28] Question: Updates on the Bolt Energy partnership - Management indicated that Bolt aims to build a 10-gigawatt data center campus, with potential water revenue for TPL being substantial [29][30] Question: Current outlook for water business amidst broader activity contraction - Management attributed the strength in produced water volumes to legacy contracts and strategic implementation over the past few years, allowing for market capture despite activity level fluctuations [34][36] Question: Desalination process efficiencies and power intensity - Management clarified that the goal is to reduce energy consumption in desalination, with waste heat capture being a key focus to lower operational costs [44][45] Question: Exposure to rare earth exploration in Hudspeth County - Management confirmed ongoing exploration projects in Hudspeth County, with promising early-stage findings [47]

Gates Industrial (NYSE:GTES) FY Conference Summary Company Overview - **Company**: Gates Industrial Corporation - **Industry**: Motion Control Industry Key Points Industry and Economic Outlook - The U.S. industrial economy shows signs of recovery, particularly in the industrial OEM sector, which has exceeded expectations [2][10] - The book-to-bill ratio for Gates was reported at 1.06, indicating strong demand [4] - Recovery is noted in commercial construction equipment and agricultural machinery, with cautious optimism for 2026 [10][12] Demand Drivers - The industrial economy has faced over three years of negative performance, with PMIs being negative for approximately 38 months [12][14] - The recent uptick in demand is attributed to a post-COVID restock and a general recovery in specific end markets [16][20] - The recovery is not characterized as a V-shaped recovery but rather a gradual firming of demand [21] Distributor Insights - Strength from large equipment manufacturers typically translates to smaller OEMs, which are serviced by industrial channel partners [22][24] - A lag is expected in distributor confidence, which usually follows OEM performance by one to two quarters [26][30] Personal Mobility and Data Center Markets - Gates has seen significant growth in personal mobility, with expectations of a 30% compound annual growth rate from 2025 to 2028, targeting $300 million in revenue by 2028 [42][44] - The data center market is projected to be a $2 billion opportunity by 2028, with a focus on liquid cooling applications [44][48] Automotive Sector - Automotive OE exposure has decreased to about 8% of revenue from 15% in 2018, with a strategy of selective participation in profitable segments [50][56] - The automotive aftermarket is expected to grow at GDP plus rates, supported by an aging car fleet [62][70] Operational Efficiency and Cost Management - The European ERP rollout is progressing well, with orders being processed and manufacturing operations stabilizing [75][78] - There will be some efficiency headwinds for about one to one and a half quarters due to the ERP implementation [81][83] - The company is focused on optimizing its manufacturing footprint, with completion expected in the second to third quarter of 2026 [91][92] Financial Performance and Guidance - The company anticipates a level-loaded year in 2026, with organic growth projected at 2.5% [109][118] - EBITDA margins are expected to be around 23.5% by the end of the year, with improvements from footprint realignment [113][115] - Incremental margins are projected to be 45%-50% in the first 12 months post-implementation of operational changes [120][123] Capital Deployment and M&A Strategy - Gates has reduced leverage to 1.8 times and has over $800 million in cash on the balance sheet [130][132] - The company plans to focus on share buybacks due to the stock being undervalued, while remaining disciplined in M&A activities [133][134] Market Sentiment - Current ownership is around 65%, with a positive bias towards the company despite low ownership levels [136] This summary encapsulates the key insights and projections discussed during the Gates Industrial FY Conference, highlighting the company's strategic focus on recovery, operational efficiency, and market opportunities.

Summary of Wheels Up Experience FY Conference Call Company Overview - **Company**: Wheels Up Experience (NYSE: UP) - **Industry**: Private Aviation - **Business Model**: Membership-based and global charter brokerage Key Points Business Evolution - Wheels Up has evolved from a U.S.-based membership business to a global company with two main segments: programmatic membership in the U.S. and a global charter business, being the largest global charter broker [4][5] - The company has a strategic partnership with Delta Air Lines, integrating private and commercial aviation offerings [5] Fleet Transition - The fleet is transitioning from legacy Citation jets to a modern fleet of Phenom 300s and Bombardier Challenger 300s and 350s, with 40% of the transition completed and expected to finish by the end of 2026 [7][8] - This transition aims to reposition the company towards a more premium and corporate-centric market [8] Revenue Model - Membership revenue is approximately $600 million annually, with a membership fee of $500 per month or $6,000 per year [10][12] - The charter business also generates around $600 million in net revenue, leading to a total revenue of approximately $1.2 billion [14][15] Financial Performance - The U.S. operations currently have a gross margin of 19%, with a goal of achieving 30%+ contribution margins post-fleet transition [16][20] - The company reported a positive EBITDA for the first time, reversing a previous loss of over $200 million annually [19][68] Cost Management - Inflation impacts various costs, including labor and fuel, but the company has been able to pass these costs through to customers due to strong demand [22] - The company does not have a pilots' union, which may provide flexibility in managing labor costs [21] Strategic Partnership with Delta - The partnership with Delta allows Wheels Up to market to Delta's 40,000 corporate customers, enhancing their corporate sales segment, which has grown at a compound rate of 25% [24] - Delta's SkyMiles loyalty program presents additional opportunities for customer acquisition [25] Market Position and Competition - Wheels Up positions itself uniquely in the market, combining membership and charter services, unlike competitors who operate in silos [52] - Major competitors include NetJets, FlexJet, and VistaJet, but Wheels Up aims to capture market share from the fractional ownership model by offering more flexible solutions [53] Future Growth and Goals - The company aims to increase operational efficiency, targeting 70+ hours of revenue per month per plane, which could significantly enhance profitability [66] - Long-term goals include transitioning to a more traditional public equity base and attracting new investors as the company matures [71] Customer-Centric Approach - The company emphasizes a customer-centric model, tailoring aviation solutions to meet specific customer needs, which is expected to enhance customer experience and retention [46][48] Operational Strategy - The company is balancing its customer base between corporate and leisure clients to optimize fleet utilization [41][42] - The charter business operates globally, with a presence in major markets including the U.S., Europe, and Asia [44] Additional Insights - The integration of sales teams from membership and charter services aims to streamline customer interactions and improve service delivery [49][51] - The company is focused on creating a flexible and accessible private aviation experience, addressing historical barriers to entry in the market [36]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $1.8 billion, a 34% increase from 2024, and record free cash flow of over $350 million [4][10] - The average realized price for gold sold in 2025 was $3,372 per ounce, with total cash costs of $1,077 per ounce and all-in sustaining costs of $1,524 per ounce, which were above annual guidance [10][12] - Operating cash flow before changes in non-cash working capital increased 27% to a record $924 million for the full year [11] Business Line Data and Key Metrics Changes - Production from the Island Gold District totaled 250,400 ounces in 2025, a 33% increase year-over-year, but slightly below the low end of revised annual guidance [15] - Young-Davidson produced 153,400 ounces for the full year, below revised guidance due to lower mining rates and grades [23] - The Mulatos District produced 141,600 ounces, in line with annual guidance, generating record quarterly mine site free cash flow of $92 million [24] Market Data and Key Metrics Changes - The company expects a 12% increase in production for 2026, driven by ramp-up at Island Gold and Young-Davidson [5] - The Island Gold District is projected to average 534,000 ounces per year post-expansion at a cost of $1,025 per ounce, significantly lower than 2025 costs [21] Company Strategy and Development Direction - The company aims to nearly double annual production to over 1 million ounces by the end of the decade, with a focus on internal funding for growth [5][9] - A 60% increase in dividends was announced, reflecting strong free cash flow and a commitment to returning value to shareholders [7][13] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in operational improvements and production growth, anticipating a significant increase in free cash flow [14][18] - The company highlighted the successful exploration program, contributing to a 32% increase in mineral reserves to 16 million ounces [26] Other Important Information - The company has eliminated half of the legacy hedges inherited from Argonaut Gold, increasing exposure to rising gold prices [13][14] - The exploration budget for 2026 has been increased to nearly $100 million, reflecting the company's commitment to growth [27] Q&A Session Summary Question: Exploration targets and mineralization styles - The exploration team is focusing on higher-grade mineralization in different lithologies, including conglomerates and syenite dikes, with potential for higher grades in the hanging wall [33][36] Question: Key deliverables for PDA project in 2026 - Key components include establishing portal entrances and preparing for commissioning of the mill complex, with construction tracking on schedule for mid-2027 [39][41] Question: Market reward for increased dividend - Management believes there is room for further dividend growth and emphasizes a balanced approach between dividends and share buybacks [42][44]