Financial Data and Key Metrics Changes - AAM's Q3 2025 sales were $1.51 billion, with adjusted earnings per share at $0.16, and operating cash flow of $143.3 million [4][12] - Adjusted EBITDA was $195 million, representing 12.9% of sales, a 130 basis point improvement year-over-year on flat sales [5][13] - GAAP net income was $9.2 million, or $0.07 per share, compared to $10 million, or $0.08 per share in Q3 2024 [17] Business Line Data and Key Metrics Changes - The driveline business unit achieved adjusted EBITDA margins of 14.9%, the highest since 2020, driven by operational efficiency and quality improvements [5][6] - Metal forming business still requires work to reach full margin potential, with ongoing assessments for optimization [5][6] Market Data and Key Metrics Changes - AAM is seeing onshoring opportunities within the metal forming group, with OEMs assessing long-range product plans due to changes in EV tax credits and emission regulations [6][8] - Demand for large trucks and SUVs remains healthy, which aligns with AAM's core products [6][7] Company Strategy and Development Direction - AAM aims for a propulsion-agnostic product portfolio to adapt to market demands, with a focus on electrification technologies [7][8] - The company completed financing for the Dauch acquisition, securing $850 million in senior secured notes and $1.25 billion in senior unsecured notes [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility and policy uncertainties while focusing on operational efficiency [11][24] - The company updated its 2025 guidance, targeting sales of $5.8 billion to $5.9 billion and adjusted EBITDA of approximately $710 million to $745 million [10][19] Other Important Information - AAM's net debt stood at $1.9 billion with a net leverage ratio of 2.6 times as of September 30, 2025 [18] - The company anticipates restructuring-related cash payments of approximately $20 million for 2025 to optimize business and reduce fixed costs [20] Q&A Session Summary Question: What drove the $9 million volume mix in EBITDA? - The strong performance on the RAM platform and elevated sales from the full-size truck franchise contributed to the mix, while declines in passenger car and crossover vehicle sales affected the overall dynamics [27][28] Question: Update on reshoring activities and customer conversations? - AAM is seeing opportunities for localization in metal forming, but cannot discuss Dauch acquisition benefits with customers until the deal closes [29][30] Question: Confidence in regulatory antitrust clearing? - AAM is confident in obtaining all necessary approvals, with Brazil and Mexico expected soon, and discussions ongoing in China [33][34] Question: Production assumptions for North America? - The production assumption of 15.1 million units reflects calibration to customer schedules and anticipated downtime [35][36] Question: Growth potential from onshoring and recent business wins? - AAM expects to benefit from onshoring in metal forming and sees opportunities for insourcing post-Dauch acquisition [41][42] Question: Factors affecting Q4 EBITDA range? - The primary factors include revenue, contribution margin, project expenses, and production volatility [45][46] Question: Sustainability of driveline margins? - Driveline margins have shown consistent strength, with expectations for continued strong performance [51][52] Question: Impact of tariffs on heavy-duty trucks? - Currently, there has been no negative impact from the expansion of tariffs on medium and heavy-duty trucks [53] Question: Breakdown of strong performance in other markets? - Two-thirds of the performance improvement is attributed to the driveline business, with expectations for continued strong operating performance [55][56] Question: Future leverage framework post-Dauch acquisition? - AAM plans to prioritize deleveraging and expects to maintain a leverage neutral position post-acquisition [71][72] Question: Integration of Dauch executives? - AAM is adjusting its management team following the Dauch acquisition, focusing on blending teams at all levels [80][81]

Financial Data and Key Metrics Changes - The company reported a net income per share of $0.69, up 6.2% from the prior year [16] - NAREIT FFO per share increased 5.8% to $1.09, while normalized FFO per share rose 28% to $1.32 [16] - FAD for the third quarter increased 26% to $62.2 million compared to the prior year [16] Business Line Data and Key Metrics Changes - The transition of seven properties to the SHOP portfolio resulted in a consolidated SHOP NOI growth of approximately 63% compared to the prior year's quarter [4] - Total SHOP NOI increased by 62.6% to $4.9 million compared to the prior year period [18] - Same store NOI for the 15 legacy Holiday properties declined by 2.2% year over year [11] Market Data and Key Metrics Changes - The company has a large incremental pipeline of active opportunities focused on senior housing, with approximately $195 million under signed LOIs [6] - Cash lease revenue increased approximately 12% year over year to $70.1 million during the quarter [13] Company Strategy and Development Direction - The company is focused on expanding its presence in private pay senior housing, which is expected to yield the greatest risk-adjusted returns [5] - The company is raising its guidance for the third time this year, projecting over 10% NFFO per share growth at the midpoint, the strongest annual growth since 2014 [4] - The company aims to double its SHOP NOI from approximately 10% to at least 20% of total adjusted NOI by 2026 [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial health of the company, stating that the industry tailwinds are strong and the company is well-positioned for future growth [8] - The company is taking corrective measures in its same store portfolio and expects it to return to double-digit growth levels in 2026 [12] Other Important Information - The company has available liquidity of over $1 billion and a net debt to adjusted EBITDA ratio of 3.6 times, indicating strong financial health [7] - The board of directors declared a $0.92 per share dividend for shareholders of record on December 31, 2025, payable January 30, 2026 [21] Q&A Session Summary Question: Can you elaborate on the remediation efforts in the SHOP portfolio? - Management indicated that they are focusing on pricing, occupancy, and ensuring the right personnel are in place to improve performance [26][27] Question: What is the current status of the NHC lease renewal? - Management clarified that there are questions regarding whether NHC is in default, which could affect their ability to renew the lease [32] Question: How is the competitive landscape affecting pricing in the SHOP market? - Management acknowledged increased competition but emphasized their strong relationships with operating partners, which provide access to off-market opportunities [47] Question: Can you quantify the one-time items that contributed to the guidance raise? - Management detailed several one-time items, including $4.6 million in cash revenues from converted properties and a $12.1 million straight-line receivable write-off [62] Question: What are the key factors for selecting operators for the SHOP portfolio? - Management highlighted the importance of operational expertise and the need for operators to demonstrate consistent performance [70]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA reached $36 million, reflecting a 23.7% year-over-year reduction, with the adjusted EBITDA margin contracting to 20.8%, a decline of 315 basis points year-over-year [5][12][16] - Net loss attributable to the owner of the company totaled ARS 8.5 billion for the quarter, compared to a net gain of ARS 27.9 billion in the same quarter last year [15][16] - Net debt declined by $9 million quarter-over-quarter to $206 million, with a net debt-to-EBITDA ratio of 1.49 times, up from 0.89 times at the end of 2024 [5][16][18] Business Line Data and Key Metrics Changes - Revenue in the cement segment declined 13.2% year-over-year, driven by a 5.4% contraction in volumes and softer pricing [8][12] - Concrete revenues remained broadly flat versus the third quarter of 2024, with a 37.8% increase in volumes offset by softer pricing dynamics [9][12] - The aggregates segment posted a slight 0.8% revenue decline, despite a 26.3% increase in sales volumes driven by higher activity in road construction [9][10] Market Data and Key Metrics Changes - Cement dispatches fell around 1% in the quarter, largely explained by a soft July, although September volumes were the highest in 22 months [6][7] - VAC cement dispatches reached 44% of total industry dispatches, showing strong performance in line with the previous quarter [7] - October's volumes showed renewed strength, with a 7.4% year-over-year increase, indicating a potential recovery in the market [7][26] Company Strategy and Development Direction - The company aims to optimize performance and support the country's development as conditions normalize, with a focus on unlocking investment projects that have been on hold [19][20] - The recent electoral outcome is expected to provide stability needed for investment projects, with management expressing optimism about higher activity levels [19][26] Management Comments on Operating Environment and Future Outlook - Management noted that key industry activity lost momentum due to a slowing economy and uncertainty around the electoral process, but expressed optimism for recovery following the elections [4][19] - The company expects to see a recovery in pricing in dollar terms with a more stable exchange rate and plans to increase prices above inflation [24][25] Other Important Information - The company began dispatching new 25-kilogram bags during the quarter, which were well received by customers [19] - Cash flow generation from operating activities totaled ARS 32 billion, reflecting higher working capital requirements and lower operational results [16][17] Q&A Session Summary Question: Pricing outlook for the company - Management indicated that pricing dynamics are expected to improve, with plans to increase prices above inflation in the coming months, especially with a more stable exchange rate [22][24] Question: Capital allocation and dividend distribution - Management stated that due to the macroeconomic situation in Argentina, they have not advanced with dividend payments this year but plan to reassess the situation for 2026 [24][25] Question: Early call orders or volumes for the fourth quarter - Management noted a recovery in volumes for October, driven by pre-election investment hesitance and a favorable exchange rate, expressing optimism for continued volume growth [26][27]

Financial Data and Key Metrics Changes - The company reported an EBITDA of negative $28 million for Q3 2025, a decrease from negative EBITDA of $21 million in Q2 2025, primarily due to lower pulp pricing and demand [3][9] - The consolidated net loss for Q3 was $81 million, or $1.21 per share, compared to a net loss of $86 million, or $1.29 per share, in Q2 [9] - Cash consumption increased to $48 million in Q3 from $35 million in Q2, driven by lower EBITDA [10] Business Segment Data and Key Metrics Changes - The pulp segment had a negative EBITDA of $13 million, while the solid wood segment reported a negative EBITDA of $9 million [3][23] - Pulp sales volumes increased by 26,000 tons to 453,000 tons, while pulp production remained flat at 459,000 tons [5][20] - Lumber production decreased by about 4% to 150 million board feet, and lumber sales volumes decreased by about 9% to 110 million board feet [6][23] Market Data and Key Metrics Changes - Average published prices for MBSK and MBHK pulp decreased across all markets compared to Q2, with the MBSK net price in China at $690 per ton, down $44, and the European average at $1,497 per ton, down $56 [4][5] - Lumber pricing in the U.S. remained stable, with the benchmark price for Western SPF No. 2 Stud averaging $477 per 1,000 board feet, a modest increase from $472 [6] - Electricity sales totaled 204 gigawatt hours, a 6% decrease from Q2, while pricing increased to about $106 per megawatt hour [7][8] Company Strategy and Development Direction - The company is focused on its "One Goal 100" program, targeting $100 million in cost savings and operational efficiencies by the end of 2026, with an expected $30 million in savings by the end of 2025 [9][12] - The company aims to transform its pulp mills into biorefineries, enhancing resilience during commodity downturns [30][31] - The mass timber business is expected to grow, with a backlog of projects valued at about $80 million and increasing interest in sustainable construction [27][50] Management's Comments on Operating Environment and Future Outlook - Management highlighted significant industry headwinds due to trade uncertainty, impacting demand for both paper and lumber [11][29] - The company expects modest NBSK price improvements late in Q4 2025 and into Q1 2026, driven by curtailments and market dynamics [20][29] - Management remains optimistic about the long-term value of its products and the potential for market recovery as economic conditions improve [29][30] Other Important Information - The company plans to reduce capital expenditures in 2026, focusing on maintenance and essential projects [28][45] - The company is actively engaging in discussions with banks regarding liquidity and financing options [41][56] Q&A Session Summary Question: Potential asset sales to expedite deleveraging - Management is considering asset sales but acknowledges that current market conditions are not ideal for divestitures [32] Question: Industry supply-demand balance and capacity adjustments - Management indicated that closures of pulp mills may be necessary to right-size the industry, especially in Canada and Finland [33] Question: Substitution issues in the pulp market - Substitution has been ongoing, with a recent increase attributed to a significant price differential between hardwood and softwood pulp [35][38] Question: Liquidity-enhancing actions - Management is exploring various liquidity-enhancing actions, including discussions with banks and potential asset divestitures [41][43] Question: Industry supply pressures from sawmill closures - Management noted that the situation regarding chip access is already tight, and closures of sawmills could further impact pulp mills [54]

Financial Data and Key Metrics Changes - Total investment income decreased to $1.6 million from $2.2 million year-over-year, reflecting both debt repayments and a slowdown in origination dynamics [13][14] - Net investment income increased to $993,000 compared to $887,000 in the same quarter last year, demonstrating effective expense management [15] - Net asset value (NAV) declined to $53.6 million or $18.06 per share from $19.10 per share sequentially, primarily due to valuation adjustments and dividend payments [16] Business Line Data and Key Metrics Changes - The investment portfolio's fair value was $44.3 million across 19 companies, down from year-end, largely due to significant repayments and valuation adjustments [6][7] - The portfolio mix consisted of 83% debt and 17% equity, with a weighted average yield of 12.2% [7] - 39% of investment income was attributable to non-cash PIK interest, up from 24% in the prior year [14] Market Data and Key Metrics Changes - The market for new deal origination remains sluggish, with borrowers facing tighter credit conditions and higher financing costs [4] - The company noted a greater use of PIK interest by borrowers as they adapt to the current financing environment [4] Company Strategy and Development Direction - The company aims to maintain its dividend through disciplined expense management and strong liquidity, even during periods of muted investment activity [6][17] - The focus is on being selective in deal origination while remaining prepared to capitalize on opportunities as market conditions improve [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging lending environment, highlighting a strong balance sheet with no debt and significant liquidity [18] - There are early signs that anticipated interest rate reductions could stimulate deal origination in the future [19] Other Important Information - The company declared and paid a regular quarterly dividend of $0.29 per share, maintaining this level for three consecutive quarters [5][17] - The company experienced a realized loss of $2.9 million on Tilson Technology Management following its Chapter 11 process [10] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

Financial Data and Key Metrics Changes - The company reported a net sales growth of 9.4% in Q4 2025, reaching $380.8 million, driven by strong volume gains and improved pricing [7][18] - For the full year, net sales increased by 8.7% to over $1.4 billion, with adjusted EBITDA growing 14.6% year-over-year to a record $326 million [9][10] - Adjusted net income per share rose 73% year-over-year to $0.38 in Q4 and increased approximately 37% year-over-year to $1.31 for the full year [8][10] Business Line Data and Key Metrics Changes - The Water Management Solutions (WMS) segment saw net sales increase by 10.4% year-over-year to $163.3 million, driven by volume growth in hydrants and repair products [21] - The Water Flow Solutions (WFS) segment reported net sales growth of 8.6% year-over-year to $217.5 million, supported by volume growth in iron gate and specialty valves [21] Market Data and Key Metrics Changes - The company anticipates a slowdown in residential construction, projecting a decline in the high single-digit range, while municipal repair and replacement growth is expected to be in the low to mid-single-digit range [34][35] - The municipal market remains resilient, with strong volume growth observed in 2025, particularly in iron gate valves and specialty products [35] Company Strategy and Development Direction - The company plans to continue investing in capital expenditures, targeting 4-5% of net sales over the next three years to enhance domestic capabilities and expand production [16][26] - Strategic investments will focus on operational efficiencies, digital customer experience, and new product offerings to drive future growth [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued net sales growth and margin expansion in 2026, despite external uncertainties [10][28] - The company expects consolidated net sales for 2026 to range between $1.45 billion and $1.47 billion, reflecting year-over-year growth of 1.4% to 2.8% [24][25] Other Important Information - The company achieved a record gross margin of 36.1% for the full year, an increase of 120 basis points compared to the prior year [19] - Free cash flow for the year exceeded expectations at $172 million, representing 84% of adjusted net income [23] Q&A Session Summary Question: How did Muni and residential market sales shake out in fiscal 2025? - Management indicated that residential construction is expected to decline in the high single-digit range, while municipal repair and replacement growth will be in the low to mid-single-digit range [34] Question: Can you provide more detail on the anticipated benefits of the initiatives and investments? - Management noted that capital investments in iron foundries will not yield immediate margin benefits but are expected to support future growth and capacity [36] Question: How should we think about inventory in the channel and backlog? - Management believes channel inventory is normalized for most product lines and is monitoring for any tariff-related buying ahead [56] Question: What impact has the government shutdown had on the business? - Management stated that most spending comes from the municipal level and they have not seen any noticeable impacts from the government shutdown [68] Question: Can you provide an update on the warranty charge? - The warranty charge is related to metering products within the WMS segment, with adjustments made based on historical failure rates [70]

Financial Data and Key Metrics Changes - The company delivered $200 million of operating cash in Q3 2025, with year-to-date free cash flow exceeding $100 million [7] - The latest dividend levels were adjusted down by 65%, resulting in approximately $60 million of cash requirements for the dividend next year, down from $115 million [9][49] - The company is on track to complete a $100 million cost reduction program, which includes the elimination or relocation of over 600 positions and the closure of seven sites, primarily in Europe [6][7] Business Line Data and Key Metrics Changes - The performance products division is expected to see modest recovery starting in 2026, with new capacities being introduced and improvements in contracts within automotive segments [56][57] - The maleic anhydride market remains strong in North America, with the company positioned as the low-cost producer [67] - Performance products volumes have been running down close to double digits, but the reduction is significantly influenced by the closure of the Moors site in Germany [66][68] Market Data and Key Metrics Changes - The U.S. economy is under pressure due to high inflation and rising interest rates, impacting consumer durables and home building [4][5] - Consumer confidence and spending in China are low, while European deindustrialization continues due to high business costs and regulations [5][6] - The U.S. MDI market is experiencing a sluggish demand, with a year-over-year growth of about 6% in Q3 2025 [36][72] Company Strategy and Development Direction - The company plans to continue calibrating its cost structure to align with market realities and manage cash flow during prolonged downturns [6][7] - There is a focus on sourcing energy-intensive raw materials from regions with more competitive costs, while maintaining a strong presence in profitable markets like aerospace and automotive [7][8] - The company is exploring opportunities for consolidations and rationalizing capacities to enhance competitiveness [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a potential recovery in the U.S. and China economies as trade tensions ease and consumer confidence returns [5][6] - The company anticipates typical seasonality in Q4 2025, coupled with higher-than-average destocking, particularly in Europe [10] - Management emphasized the importance of protecting the balance sheet for long-term stability and growth [8][9] Other Important Information - The company is not planning to take on more debt to increase dividends and will consider dividend increases only when market conditions improve [9] - The company is actively managing working capital and has been aggressive in reducing inventory levels [13][15] Q&A Session Summary Question: Cash flow and inventory reduction actions in Q3 - Management indicated that inventory reduction actions may lead to lower utilization rates in Q4, but they aim to calibrate production to actual demand as they enter 2026 [13][17] Question: Risk of European manufacturing capacity leaving - Management is closely monitoring the situation and believes that their supply chain remains strong, particularly in Rotterdam, despite potential risks [22][24] Question: U.S. MDI imports from Europe - Management hopes that the increase in U.S. MDI imports from Europe is not a structural change, as it may not make economic sense in the long term [30][31] Question: Performance products market demand - Management expects gradual improvement in the maleic market and flat to positive performance in ethyleneamines, despite competitive conditions [66][67] Question: Future MDI growth rates - Management anticipates MDI growth to align with GDP growth, plus additional growth from product substitution, estimating a growth rate of about 1.5 times GDP [89]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GAAP net income of approximately $5 million or $0.08 per diluted common share, with distributable earnings of approximately $6 million or $0.10 per diluted common share, which excludes a realized loss of $1.6 million [14][15] - The net debt-to-equity ratio, excluding CECL, decreased to 1.1 times, down from 1.2 times quarter over quarter and 1.8 times year over year [16] - Outstanding borrowings were reduced to $811 million, a decrease of 9% quarter over quarter and 40% year over year [16][17] - The CECL reserve declined to $117 million, representing approximately 9% of the total outstanding principal balance of loans held for investment [17][18] Business Line Data and Key Metrics Changes - The office portfolio was reduced to $495 million, a decrease of 6% quarter over quarter and 26% year over year, driven by repayments and strategic restructuring [5] - The company closed five new loan commitments totaling $93 million across multifamily and self-storage properties during Q3, with continued momentum into Q4, closing over $270 million of loans [11][12] Market Data and Key Metrics Changes - The multifamily sector showed strong demand, with absorption rates significantly higher than historical averages, indicating a positive outlook despite stagnant rent growth [37] - The company noted that the office market continues to face headwinds, impacting the overall lending environment [28] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet while addressing risk-rated 4 and 5 loans, with a focus on capital deployment to diversify the loan portfolio [4][5] - The strategy includes leveraging the ARES Real Estate platform to participate in larger institutional assets while maintaining a focus on middle-market lending [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term earnings potential, emphasizing the importance of resolving non-accrual loans and reinvesting proceeds to expand the loan portfolio [13] - The company anticipates a return to portfolio growth in the first half of 2026, supported by a strong liquidity position and ongoing repayments [16][19] Other Important Information - The board declared a regular cash dividend of $0.15 per common share for Q4 2025, payable on January 15, 2026 [18] - The company highlighted the benefits of co-investing with other ARES Real Estate funds, resulting in a more diversified portfolio [12] Q&A Session Summary Question: Comments on the mix of new loans and market focus - Management acknowledged the small dataset affecting average loan sizes and emphasized a focus on self-storage assets while also participating in larger transactions through the ARES platform [24][25] Question: Timeline for resolving risk-rated five loans - Management indicated ongoing progress and a focus on balancing resolution speed with principal recovery, with a commitment to resolving these assets [33][34] Question: Drivers behind multifamily downgrades and market outlook - Management noted that upcoming maturity dates were significant factors in downgrades, while overall demand in the multifamily sector remains strong, with a positive outlook for the next few years [36][37]

Financial Data and Key Metrics Changes - Constellation Energy reported third-quarter GAAP earnings of $2.97 per share and adjusted operating earnings of $3.04 per share, an increase of $0.30 per share compared to the same period last year [5][17][22] - The company experienced fewer nuclear outage days, both planned and unplanned, contributing to higher generation volumes and lower O&M expenses year-over-year [18][19] - The stock has appreciated over 50% year-to-date, benefiting shareholders but creating O&M headwinds from stock compensation plans [22][26] Business Line Data and Key Metrics Changes - The nuclear fleet achieved a capacity factor of 96.8%, consistently outperforming the industry average by about 4% [19] - Renewable energy capture was at 96.8%, and power dispatch matched at 95.5% during the quarter [19] - The commercial team reported strong performance with sales margins above long-term averages, although a decline in CNI gas renewal rates was noted due to the loss of a large low-margin customer [20][21] Market Data and Key Metrics Changes - The market for nuclear energy is experiencing increased public support, with nearly three-quarters of the public favoring nuclear energy and nine out of ten supporting the extension of licenses for existing plants [10][11] - The company is seeing a significant increase in interest from sophisticated customers in the data economy, indicating a shift in buyer maturity [6][7] Company Strategy and Development Direction - Constellation is focused on closing the Calpine transaction and integrating the two companies to enhance value for customers and shareholders [27] - The company is actively pursuing opportunities in the data economy and is committed to providing clean, reliable energy solutions [28] - The strategic emphasis is on maintaining a strong balance sheet, delivering annual dividend growth, and pursuing growth opportunities that meet a double-digit unlevered return threshold [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute transactions in the data economy and highlighted the importance of practical reforms for connecting large loads to the grid [8][10] - The company remains cautious yet optimistic about new nuclear construction, emphasizing the need for durable PPAs and clear pricing [46][47] - The overall power demand is expected to grow, and Constellation's existing fleet is well-positioned to meet future energy needs [28] Other Important Information - A landmark agreement was reached with the state of Maryland for the continued operation of Conowingo Dam for the next 50 years, ensuring a vital source of clean energy [9] - The company is exploring energy options for Maryland and the region, including the potential for new dispatchable generation resources [15] Q&A Session Summary Question: Update on hyperscaler deals - Management is focused on front-of-the-meter deals and expects to complete transactions soon, potentially before the next quarterly call [30] Question: Concerns about Calpine asset sale delays - Management is confident about the timeline for asset sales and is not in a hurry, ensuring the right assets are targeted for divestiture [36] Question: Insights on power market dynamics - Management noted that energy prices are rising, which is favorable for asset sales and contract negotiations [41][42] Question: Demand response initiatives - The company is seeing strong interest from industrial customers in demand response programs, aiming to provide innovative solutions [52][53] Question: Retail margins in PJM - Retail margins remain strong, with some competitive pressures noted, but overall margins are above historical averages [55]

Financial Data and Key Metrics Changes - Q3 adjusted net earnings from continuing operations were $71.7 million, up approximately 10% from $64.9 million in Q3 2024 [11] - Adjusted net earnings per share for Q3 were $0.09, up 13% from $0.08 in Q3 2024 [12] - Net earnings for the regulated services group increased year-over-year, driven by approved rate implementations and favorable weather [11] Business Line Data and Key Metrics Changes - Net earnings for the Hydro Group were essentially flat for the quarter [11] - The corporate group saw a decrease of $14.7 million primarily due to the removal of dividends from the company's investment in Atlantica, which was sold in Q4 2024 [11] Market Data and Key Metrics Changes - The company has pending rate requests totaling $326.4 million, with $73.6 million related to two specific cases [6] - The company is committed to balancing necessary investments with affordability for customers [8] Company Strategy and Development Direction - The company is focused on a back-to-basics pure-play regulated strategy, emphasizing cost reduction, operational performance, and stakeholder engagement [9] - Future opportunities must enhance the regulated pure-play strategy, either through EPS accretion or risk reduction [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial outlook remaining unchanged despite some expected reversals in operating expenses in Q4 [5][18] - The company is committed to improving customer service and transparency in regulatory proceedings [6][8] Other Important Information - A leadership update was announced, with Robert Stefani joining as Chief Financial Officer effective January 5, 2026 [4] - The company is in the early stages of restructuring efforts, with expectations for gradual roll-off of restructuring costs [23] Q&A Session Summary Question: What were the main drivers of OpEx improvement and is it sustainable? - Management indicated ongoing cost-cutting measures and improvements in efficiency, but noted a potential reversal in Q4 [17][18] Question: Any updates on conversations with data center players or large projects? - Management stated they are focused on increasing transmission capacity and stabilizing the generation portfolio but did not disclose specific customer conversations [19][20] Question: Should we expect the $9 million of cost reductions to push into Q4? - Management acknowledged that timing aspects for Q4 would be an item to consider, but the exact amount is uncertain [22] Question: When do you expect restructuring costs to roll off? - Management indicated they are still in the early innings of restructuring efforts, suggesting it could be a multi-year process [23][24] Question: Did the portfolio optimization review consider the company's domicile? - Management confirmed that domicile is an active consideration as part of their strategy for sustainable value [26] Question: Are the settlements at various utilities better or worse than expected? - Management refrained from commenting on specific outcomes but emphasized the importance of stakeholder engagement before regulatory filings [27][28] Question: How does the company plan to update the market on cost-cutting and rate cases? - Management indicated that updates would be considered if there were material changes, especially with the new CFO starting in January [32] Question: How is the customer and billing system operating currently? - Management expressed encouragement regarding progress made in customer service improvements and system operations [36][37]