Financial Data and Key Metrics Changes - Total company revenue for the quarter was $2.6 billion, with adjusted EBITDA of $531 million, resulting in a margin of 20.1% excluding foreign exchange impacts [5][11] - Free cash flow generated was $448 million, with total shareholder distributions amounting to $271 million through dividends and share repurchases [5][12] - Total company backlog at the end of the period was $16.8 billion [11] Business Line Data and Key Metrics Changes - Subsea revenue was $2.3 billion, a 5% increase from the previous quarter, driven by increased project activity, particularly in iEPCI™ projects in Africa, Australia, and the Americas [11] - Surface Technologies revenue was $328 million, up 3% sequentially, primarily due to higher activity in the North Sea and Asia-Pacific [11] Market Data and Key Metrics Changes - Subsea orders for the quarter totaled $2.4 billion, contributing to a strong commercial performance [5][11] - The company expects to secure over $10 billion in subsea orders in 2025, reflecting confidence in offshore project investments [7][9] Company Strategy and Development Direction - The company is focused on reducing cycle times and improving project returns through innovations like Subsea 2.0 and iEPCI™ [8][9] - There is a strategic shift towards offshore projects due to improved project economics and reduced costs, which is expected to sustain activity levels through the end of the decade [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong performance and maintain high levels of project execution, which is critical for securing future contracts [9][10] - The outlook for subsea revenue in 2026 is projected to be between $9.1 billion and $9.5 billion, with an adjusted EBITDA margin of 20.5% to 22% [15][16] Other Important Information - The board authorized an additional $2 billion in share repurchases, reflecting confidence in the company's outlook and commitment to maximizing shareholder value [10][12] - The company reduced debt by $258 million during the quarter, ending with $438 million in gross debt [13] Q&A Session Summary Question: Share repurchase authorization and cash return in 2026 - Management confirmed a commitment to return at least 70% of free cash flow to shareholders, with expectations for strong free cash flow generation in 2026 [22][24] Question: Subsea award intake and future announcements - Management indicated that there are more awards to be announced, governed by client discussions with local governments [30] Question: 2026 subsea guidance and backlog conversion - Management expressed confidence in the 2026 subsea guidance, highlighting strong backlog coverage and the quality of projects [38][39] Question: Surface Technologies outlook and margin drivers - Management noted that the outlook for Surface Technologies remains less certain, but they are well-positioned with clients in key regions [66][68] Question: All-electric subsea infrastructure opportunities - Management discussed progress in all-electric subsea projects, emphasizing applications in carbon capture and storage, and brownfield tiebacks [70][71] Question: Resource levels and capacity constraints - Management reassured that they do not take on work they cannot execute and are confident in their staffing levels to meet project demands [84][85]

Financial Data and Key Metrics Changes - The company reported a GAAP EPS of $1.01, up from $0.99 in the prior year's quarter, with adjusted EPS growing nearly 6% to $1.09 from $1.03 [11] - Average daily sales improved by 2.7% year-over-year in the fourth quarter, marking a return to growth in the core customer base [8][9] - Gross margin for the fourth quarter was 40.4%, down 60 basis points year-over-year and sequentially, primarily due to tariff-driven purchase cost escalation [9][10] - For the fiscal year, average daily sales declined 1.3% year-over-year, with a gross margin of 40.8%, contracting 40 basis points compared to the prior year [14][15] Business Line Data and Key Metrics Changes - Core customer daily sales improved by 4.1% year-over-year, while national accounts declined by 0.7% year-over-year [17] - Public sector sales grew by 8.5% year-over-year and 10% sequentially, although there was a negative impact from the government shutdown in October [17][18] - The installed vending count grew by 10% year-over-year, with average daily sales from vending up 10% year-over-year, representing approximately 19% of total company sales [18][19] Market Data and Key Metrics Changes - The company noted stabilization in end markets such as aerospace, while heavy equipment and agriculture markets showed signs of stabilization after being weak for two years [12][13] - Average daily sales in the quarter outpaced the industrial production index, supported by improved core customer performance and strength in the public sector [13] Company Strategy and Development Direction - The company aims to maintain momentum in high-touch solutions, re-energize the core customer base, and optimize cost to serve [5][6] - Initiatives include realigning public-facing web pricing, upgrading e-commerce experience, and enhancing marketing efforts [7][8] - The leadership transition is expected to strengthen the company's commitment to growth and customer experience [22][29] Management's Comments on Operating Environment and Future Outlook - The management characterized the operating environment as stable with pockets of improvement, despite ongoing uncertainty due to tariffs and inflation [12] - The company expects average daily sales growth of 3.5%-4.5% year-over-year for the first quarter of fiscal 2026, depending on the duration of the government shutdown [23] - Adjusted operating margin is expected to be in the range of 8.0%-8.6%, with gross margin improving from fourth quarter levels [24] Other Important Information - The company maintained a healthy balance sheet with net debt of approximately $430 million, representing roughly 1.1x EBITDA [15][16] - Free cash flow for the fourth quarter was $58 million, representing 104% of net income, with a free cash flow conversion of 122% for the fiscal year [15][16] Q&A Session Summary Question: Can you discuss the unusual surge in supplier price increases and how it was addressed? - Management noted that the concentration of price increases was unusual and occurred in a short time frame, leading to higher costs than anticipated. They have since taken pricing actions to address this [39][42] Question: What are the expectations for gross margins and SG&A as a percentage of sales? - Management expects gross margins to stabilize and incremental margins to improve throughout the year, with SG&A growth driven by necessary investments in marketing and operational efficiency [46][70] Question: How is the government shutdown impacting the business? - The public sector experienced strong growth in the fourth quarter, but sales growth turned negative in October due to the shutdown. Management expects this to be temporary [77][78] Question: What is the company's federal government exposure and its impact? - The company has about two-thirds of its government exposure in federal contracts, primarily in military and defense, with some pockets experiencing significant pullback [89][91] Question: Can you provide insights on pricing increases across product categories? - Management indicated that inflation is more pronounced in products sourced from China and those made of steel, with fasteners and OEM products seeing high levels of inflation [92]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 to $136.6 million, driven by recurring services and engineering support revenue [28] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [28] - Voice and data revenue increased by 4% to $59.9 million, reflecting price increases that drove a 4% rise in ARPU [28] - Commercial IoT revenue reached $46.7 million, up 7% year-over-year [28] - Engineering and Support revenue grew to $40.2 million, compared to $30.7 million in the prior year [32] Business Line Data and Key Metrics Changes - Commercial broadband revenue declined by 17% year-over-year, attributed to a non-maritime contract not renewed [29] - Hosting and other data services revenue increased by 14% to $18.7 million, driven by PNT growth [30] - Government service revenue rose modestly to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. government [31] - Subscriber equipment sales were $21.5 million, slightly down from the previous year [32] Market Data and Key Metrics Changes - The company anticipates service revenue growth of approximately 3% for the full year, with OEBITDA guidance narrowed to between $495 million and $500 million [33] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% year-over-year [36] - The government business is projected to generate $108 million in EMSS revenue from the U.S. Department of Defense this year [37] Company Strategy and Development Direction - The company plans to focus on unique, specialized services in the satellite industry and will not participate in price-driven commodity markets [12] - Iridium NTN Direct is being developed as a new standards-based D2D service to tap into a larger market opportunity [12] - The company aims to invest in regulated applications where demand for safety services is growing, such as maritime and aviation safety [14] - The company is exploring acquisitions in adjacent areas that complement its existing services [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the satellite market due to the proposed acquisition of EchoStar spectrum by Starlink [8] - The company remains confident in its ability to grow revenues despite the competitive landscape, citing strong partnerships and established market presence [10] - Management expects to generate at least $1.5 to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for strategic initiatives [24] - The company is pausing its share repurchase program to emphasize strategic growth initiatives [24] Other Important Information - The company has signed over 70 new technology and distribution partners since the beginning of the year, indicating strong growth potential [25] - The company expects to pay cash taxes of less than $10 million per year through 2027, enhancing cash generation [38] - Capital expenditures in Q3 were $21.5 million, with higher anticipated in 2024 to support Iridium NTN Direct and 5G standards [40] Q&A Session Summary Question: Follow-up on strategic options and M&A timeline - Management indicated that while they have not been a big acquisition company, they are looking at complementary areas for potential M&A, but specific timing is uncertain [46][47] Question: Insulation from competitive risks in business lines - Management stated that no business is completely insulated, but areas like cockpit safety services and PNT are relatively protected due to regulatory hurdles [55][56] Question: Breakdown of voice and data segment users - The majority of users in the voice and data segment are industrial or security-related, with minimal leisure use [62][63] Question: Update on IoT business and consumer user portion - Approximately 900,000 IoT subscribers are personal users, but the majority of the IoT business is in industrial applications [69][70] Question: Impact of D2D competition on broadband and IoT - Management clarified that the impact from D2D competition is still small, and they are optimistic about the potential of their own D2D initiatives [75][80]

Financial Data and Key Metrics Changes - The company reported a 34% growth in core EPS and a 19% increase in core EBITDA for Q3 2025, exceeding expectations across the board [9][15] - Full-year core EPS guidance was raised to $6.25-$6.35 from $6.10-$6.20, reflecting strong year-to-date performance [8][15] Business Line Data and Key Metrics Changes - Advisory services revenue grew by 16%, driven by strong performance in leasing and sales [9][10] - Global leasing revenue rose 17%, with U.S. industrial leasing increasing by 27% [10] - Property sales business delivered 28% revenue growth, with notable strength in office, industrial, and data centers [10] - Building Operations & Experience segment saw 11% revenue growth, with significant contributions from data center hyperscalers [11] - Project management segment revenue increased by 19%, supported by strong activity in the U.K., Middle East, and North America [12] - Investment management raised $2.4 billion in new capital, with AUM reaching approximately $156 billion [13] Market Data and Key Metrics Changes - Combined revenue from Japan and India rose more than 30% to nearly $400 million, indicating strong growth potential in these markets [8] - The data center asset type generated nearly $700 million in revenue, a 40% increase compared to Q3 2023 [7] Company Strategy and Development Direction - The company emphasizes its scale and breadth across asset types, client types, and geographies to drive growth and create integrated solutions for clients [7] - Focus on M&A and co-investment into real estate investments, with a patient approach to finding the right targets [20] - The company is building sustainable businesses in the data center sector, anticipating significant growth in this area over the next five years [41][44] Management's Comments on Operating Environment and Future Outlook - Management expects a longer, slower recovery in the sales part of the business, with strong pipelines and pent-up demand from both buyers and sellers [24][25] - The outlook for Q4 includes strong activity, but management acknowledges tougher year-over-year comparisons [27] - Management remains optimistic about the facilities management business, citing expanded total addressable market (TAM) due to recent acquisitions [60] Other Important Information - The company will no longer report net revenue but will focus on gross revenue in formal reporting [4] - Free cash flow for the year is expected to be approximately $1.8 billion, with net leverage at 1.2 turns [15] Q&A Session Summary Question: Did anything get pulled forward from Q4 due to Q3 strength? - Management indicated no significant pull forward across segments, but acknowledged tougher comps in Q4 [18] Question: Can you comment on the M&A pipeline? - Management stated that M&A remains a priority, and they are actively looking for well-operated targets that can benefit from being part of the CBRE platform [20] Question: Where are we in the CRE transaction market recovery? - Management expects a steady recovery in investment sales over the next couple of years, driven by pent-up demand from buyers and sellers [24] Question: How is deal activity in Q4 compared to last year? - Pipelines are strong, with expectations for continued strong activity in leasing and sales [27] Question: Are you appropriately staffed in the advisory segment? - Management believes they are appropriately staffed but are also looking to add talent where necessary [32] Question: What is the outlook for the BOE segment? - Pipelines are strong, with expectations for elevated sales volume in Q4, which should reflect in revenue in the second half of next year [54] Question: How do you view the facilities management business's TAM? - Management believes they have consistently expanded their TAM through various acquisitions and are optimistic about future growth [60] Question: What is the impact of data center development sites? - Management noted that access to power is a constraint for data center development, but they are strategically acquiring and improving land to facilitate this [63] Question: What is the outlook for office leasing? - Management sees broad-based growth in office leasing, with a notable resurgence in gateway markets [66] Question: What is the expectation for EBITDA margins going forward? - Management expects steady margins in advisory and continued margin expansion in BOE and project management segments [75]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported a 9% increase in net sales, with 3% organic growth and a 3% increase in adjusted EBITDA [6][32] - In Q4, reported net sales were $369 million, a decline of 1.8% year-over-year, while organic net sales grew 3.5% [28][29] - Adjusted EBITDA for Q4 was $66.2 million, down 14.5% from the previous year, primarily due to inflationary pressures and the impact of a 53rd week in the prior year [30][32] Business Line Data and Key Metrics Changes - Quest generated nearly two-thirds of the company's net sales in Q4, with a year-over-year consumption growth of 11% and net sales growth of over 13% for the full year [16][20] - Atkins experienced a consumption decline of 12% in Q4 and 10% for the full year, largely due to distribution losses [20][21] - OWYN saw a consumption growth of 14% in Q4 and 34% for the full year, with household penetration increasing to 4.2% [22][24] Market Data and Key Metrics Changes - The nutritional snacking category grew by 13% in fiscal year 2025, reflecting a strong consumer trend towards high protein and low sugar products [7][16] - The company noted that over 70% of Americans are actively seeking more protein and fewer carbs in their diets, indicating a favorable market environment [7] Company Strategy and Development Direction - The company aims to be a leader in high protein, low sugar, and low carb food and beverage, capitalizing on a generational shift in consumer preferences [6][7] - Investments in innovation and marketing have increased, with a focus on expanding distribution and enhancing product offerings [8][9] - The company is proactively managing the Atkins brand to align shelf space with sales and support the growth of Quest and OWYN [13][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflation and distribution losses for Atkins but expressed confidence in overcoming these hurdles [10][14] - The company expects net sales growth for fiscal year 2026 to be in the range of -2% to +2%, with a stronger second half anticipated [39][40] - Management emphasized the importance of innovation and marketing investments to drive growth and improve margins in the future [39][42] Other Important Information - The company repaid $150 million of its term loan debt in fiscal year 2025 and repurchased nearly 1.6 million shares [35][36] - A non-cash impairment loss of $60.9 million was recorded related to the Atkins brand, reflecting updated revenue projections [31] Q&A Session Summary Question: Impact of OWYN product quality issues on future sales - Management confirmed that the product quality issue related to pea protein has been addressed and expressed confidence in OWYN's growth trajectory moving forward [46][47][50] Question: Competition in the high protein, low sugar market - Management acknowledged the competitive landscape but emphasized the company's agility and robust supply chain as key advantages [55][59] Question: Top-line guidance and expected growth rates - Management indicated that Quest and OWYN are expected to grow in the high single digits and double digits respectively, while Atkins is projected to decline by about 20% [65][66]

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was $1.058 billion, marking the third consecutive quarter of sequential growth and approaching the high end of guidance [7] - Non-GAAP EPS grew over 30% to $2.14, substantially exceeding guidance due to favorable discrete tax items [7][25] - Non-GAAP operating margin expanded by 40 basis points to 5.8% [8][24] - Free cash flow for fiscal 2025 was $154 million, significantly exceeding projections, with a total of $495 million generated over the past two fiscal years [8][25] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue decreased 6% sequentially in Q4, with flat revenue for fiscal 2025 due to delays in new product launches [16][18] - Healthcare Life Sciences sector revenue increased 1% sequentially in Q4 and 5% for fiscal 2025, driven by strength in imaging and monitoring subsectors [18][19] - Industrial sector revenue was up 11% sequentially in Q4, but flat for fiscal 2025, with strong wins of $165 million in Q4 [20][22] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased by 2% sequentially to $3.7 billion, with a record high in aerospace and defense sector opportunities [22] - The company expects mid-single-digit growth in the Aerospace and Defense sector for Q1, driven by new program ramps [17] - The Healthcare Life Sciences sector is anticipated to grow high single to low double digits in Q1 due to ongoing program ramps [18] Company Strategy and Development Direction - The company aims for revenue growth in excess of 9%-12% in fiscal 2026, supported by new program ramps and market share gains [7][13] - Investments will focus on talent, technology, and facilities to enhance operational efficiency and support sustained revenue growth [7][12] - The company is committed to driving positive change and promoting sustainability through its operations and community engagement [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in future growth potential, citing substantial new program ramps and modest improvements in end markets [40] - The company is monitoring the impact of government shutdowns but has not seen any indications of slowdown in major market verticals [48] - There is optimism regarding the defense sector's growth, with expectations of increased military spending in the U.S. and Europe [114] Other Important Information - The company achieved a gross margin of 9.9% in Q4, consistent with guidance, and experienced improved fixed cost leverage [24] - The cash cycle improved to 63 days, the best result in five years, due to reduced inventory days and improved working capital management [27] Q&A Session Summary Question: Growth trajectory and investments - Management indicated increased confidence in growth trajectory due to substantial new program ramps and modest market improvements [36][40] Question: AI opportunities - The company is seeing opportunities in AI, particularly in power generation and healthcare, with several programs leveraging AI technology [41][44] Question: Impact of government shutdown - No indications of slowdown due to the government shutdown have been observed, and customer conversations remain stable [48][49] Question: Semicap and energy growth - The outlook for semicap remains similar to previous forecasts, with expectations of share gains, while energy growth is driven by infrastructure and power generation [51][52] Question: Healthcare life sciences strength - Strength in the healthcare sector is attributed to both new program ramps and the resolution of inventory overhang [55][56] Question: Customer visibility and tariffs - Customer visibility is stable, with ongoing focus on mitigating tariff-related challenges [66] Question: Margin expansion outlook - Management expects to overcome near-term headwinds and achieve better fixed cost leverage with revenue growth [102] Question: Program ramp timing - Minor delays in defense programs contributed to Q4 results, but growth is expected in Q1 and beyond [109][110]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $902 million, up 6% at constant currency, reflecting strong performance in light vehicle turbo sales for both gasoline and diesel applications [5][9] - Adjusted EBIT was $133 million, with an adjusted EBIT margin of 14.7%, which includes a 20 basis point dilution from tariff recoveries [5][11] - Adjusted free cash flow for the quarter was $107 million, contributing to a year-to-date total of $264 million [16][18] - The company raised its 2025 outlook midpoint, now expecting net sales of $3.55 billion, net income of $280 million, and adjusted EBIT of $510 million [15] Business Line Data and Key Metrics Changes - Gasoline sales grew by 10% in the quarter, driven by demand gains and new product launches [5][10] - Diesel performance was strong in Europe and North America, although there was continued weakness in aftermarket applications, particularly in North America [10][41] - The company secured over $40 million in awards for commercial vehicles and industrial turbochargers, with expectations for sales exceeding $100 million in 2025 from these products [7][17] Market Data and Key Metrics Changes - The company experienced favorable foreign currency impacts, contributing to the overall sales growth [9][10] - There was a noted recovery in diesel sales year-over-year, particularly in Europe and North America, although the overall trend for diesel remains slowly declining [41] Company Strategy and Development Direction - The strategic priorities focus on developing differentiated, high-speed, and highly efficient technologies to meet customer needs and generate robust returns for shareholders [16] - The company is seeing increased interest in turbochargers for hybrids and range-extended electric vehicles, as well as in zero-emission technologies [6][7] - The company aims to achieve $1 billion in revenue from zero-emission technologies by 2030, with significant contributions expected from e-power trains and eco-link compressors [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive industry's improved forecast for the second half of the year, which has influenced the raised outlook for 2025 [6][15] - The company is monitoring the developments in the penetration of zero-emission technologies closely, with positive signs of customer interest and project wins [33][34] - Management acknowledged cyclical effects impacting the aftermarket and commercial vehicle segments but remains optimistic about future recovery [22][24] Other Important Information - The board approved a 33% increase in the quarterly dividend, raising it to $0.08 per share for Q4 2025 [6][14] - The company repurchased $84 million worth of shares during the quarter, targeting a distribution of 75% of adjusted free cash flow to shareholders over time [14][50] Q&A Session Summary Question: Insights on volume mix and geographic performance - Management clarified that the mix impact is primarily due to the growth in gasoline versus commercial vehicles and ongoing weakness in the aftermarket, particularly in the commercial vehicle off-highway segment [20][21] Question: Details on commercial vehicle market stabilization - Management noted some signs of stabilization in the commercial vehicle market, particularly in China, although the overall outlook remains soft [23][24] Question: Progress on zero-emission technologies and revenue targets - Management discussed three key technologies contributing to the $1 billion revenue target, emphasizing the e-power train and eco-link compressors as significant growth areas [29][30][33] Question: Recovery in diesel sales - Management indicated a year-over-year recovery in diesel sales, particularly in Europe and North America, while acknowledging the overall trend of declining diesel demand [41] Question: Future expectations for stationary power revenue - Management highlighted the growth potential in stationary power applications, with current sales expected to exceed $100 million this year [43][48] Question: Capital allocation strategy moving forward - Management reiterated the commitment to returning capital to shareholders, with variability in share buybacks depending on market conditions [50][59]

Financial Data and Key Metrics Changes - Operational EBITDA increased by 10% in Q3 to $136.6 million, driven by revenue from recurring services and engineering support [27] - Service revenue rose by 4% to $138.3 million, primarily due to growth in commercial IoT, PNT, and voice and data services [27] - Voice and data revenue increased by 4% to $59.9 million, reflecting price increases implemented in July, resulting in a 4% rise in ARPU [27] - Commercial IoT revenue reached $46.7 million, up 7% year-over-year [27] - Government service revenue modestly increased to $26.9 million, reflecting a step-up in the EMSS contract with the U.S. government [30] Business Line Data and Key Metrics Changes - Commercial broadband revenue decreased by 17% year-over-year, attributed to a non-renewed contract from the previous year [28] - Hosting and other data services revenue grew by 14% to $18.7 million, driven by PNT services [29] - Subscriber equipment sales were $21.5 million, slightly down from the previous year [31] - Engineering and support revenue increased to $40.2 million, reflecting growth from contracts with the Space Development Agency [31] Market Data and Key Metrics Changes - The company anticipates service revenue growth of approximately 3% for the full year, with OEBITDA guidance narrowed to between $495 million and $500 million [32] - The decline in broadband revenue is expected to continue into Q4, trending closer to 8% year-over-year [35] - The government business is projected to generate $108 million in EMSS revenue from the Department of Defense this year [36] Company Strategy and Development Direction - The company plans to focus on unique, specialized services in the satellite industry and will not participate in price-driven commodity markets [12] - Iridium NTN Direct is being developed as a new D2D service to tap into a larger market opportunity [12] - The company aims to invest in regulated applications where demand for safety services is growing, particularly in maritime and aviation [14] - Iridium is exploring acquisitions in adjacent areas that complement its existing services [14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increased competition in the satellite market due to the proposed acquisition of EchoStar spectrum by Starlink [8] - The company remains confident in its ability to grow revenues despite the evolving competitive landscape [10] - Management expects to generate at least $1.5 billion to $1.8 billion in total cash flows from 2026 through 2030, providing flexibility for growth initiatives [24] - The company is committed to deleveraging its balance sheet while continuing its quarterly dividend program [24] Other Important Information - The company has paused its share repurchase program to emphasize strategic growth initiatives [24] - Iridium's cash and cash equivalents balance was $88.5 million as of September 30, with net leverage at 3.5x OEBITDA [39] - The company expects to pay cash taxes of less than $10 million per year through 2027 [37] Q&A Session Summary Question: Follow-up on strategic options and M&A - Management indicated that while they have not been a big acquisition company, they are looking at complementary areas for potential M&A [45][46] Question: Business lines insulated from competitive risk - Management stated that no business is completely insulated, but areas like cockpit safety services and PNT are relatively protected due to regulatory hurdles [54][55] Question: Breakdown of voice and data segment users - Most users in the voice and data segment are industrial or security-related, with minimal leisure use [61][62] Question: Update on IoT business and D2D initiative - The IoT subscriber base includes about 900,000 personal users, but the majority are industrial users [68][69] Question: Clarification on Deutsche Telekom agreement - The agreement with Deutsche Telekom relates to Iridium NTN Direct, which is a new narrowband IoT solution [81][82]

Financial Data and Key Metrics Changes - Horizon Bancorp Inc. reported net interest margin expansion for the eighth consecutive quarter, with an exit run rate in September above 4% [5][16] - The net interest margin increased by 29 basis points to 3.52% for the quarter, with expectations to expand further in Q4 to a range of 4.15% to 4.25% [19][26] - The allowance for credit losses decreased to $50.2 million, representing an allowance to credit loss to loans held for investment of 1.04% [11][12] Business Line Data and Key Metrics Changes - Net loan total for investment decreased to $162 million, primarily due to a $210 million impact from the runoff and sale of indirect auto loans, while commercial loans grew by $58 million [9][10] - The combined relationship-based fee income categories of service charges, card, and mortgage income increased from the previous quarter [5] Market Data and Key Metrics Changes - The core relationship balances in the deposit portfolio remained resilient despite planned outflows from higher-rate transactional accounts [14] - The company anticipates a decline in deposit balances in Q4, primarily due to the targeted reduction of high-cost non-relationship balances [26] Company Strategy and Development Direction - The company is focused on creating durable returns and sustainable long-term value for shareholders through disciplined capital management and profitable loan growth [6][30] - Horizon Bancorp Inc. is considering M&A opportunities that are accretive to its community banking platform, with a focus on franchises that enhance profitability [37][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering superior community banking performance and capital generation metrics moving into 2026 [6][30] - The company is monitoring economic conditions closely, with future provision expenses driven by anticipated loan growth and credit quality trends [12] Other Important Information - The company executed a balance sheet restructuring that exceeded initial expectations, optimizing securities and loan portfolios [4][6] - Non-interest income was impacted by a $299 million loss in the sale of securities and a $7.7 million loss on the sale of the indirect auto loan portfolio [22] Q&A Session Summary Question: What is the new narrative for Horizon Bancorp Inc.? - Management indicated that the company is positioned to generate capital at a greater pace and will focus on measured deployment strategies for growth, including potential M&A opportunities [35][36] Question: Are there any other potential outlets for capital outside of organic loan growth and M&A? - Management confirmed that M&A will be a focus, targeting franchises that add to the current profitable platform, with potential sizes ranging from $300 million to several billion dollars [38][40] Question: How does the company support its rate-neutral position? - Management explained that while the balance sheet is modestly asset-sensitive, they do not expect significant impacts from rate changes due to their deposit positioning [44][45] Question: What are the trends in credit quality? - Management noted that non-performing loans increased slightly, but overall credit quality remains satisfactory, with no significant areas of stress identified [70][74] Question: What is the outlook for loan growth in 2026? - Management anticipates mid-single-digit growth primarily from organic commercial growth, with no immediate need for significant headcount increases [87][88]

Financial Data and Key Metrics Changes - CBRE reported a 34% growth in core EPS and a 19% increase in core EBITDA for Q3 2025, exceeding expectations across the board [9][15] - The company raised its full-year core EPS outlook to $6.25 to $6.35 from a previous range of $6.10 to $6.20, reflecting strong performance and confidence in the fourth quarter [8][15] Business Line Data and Key Metrics Changes - Advisory services revenue grew by 16%, driven by strong performance in leasing and sales [10] - Global leasing revenue increased by 17%, with U.S. industrial leasing up by 27% and data center leasing more than doubling year-over-year [10][11] - Property sales revenue rose by 28%, with notable strength in office, industrial, and data centers [10] - The Building Operations & Experience segment saw an 11% revenue growth, supported by data center hyperscalers and expansions in technology and healthcare sectors [11] - Project management revenue increased by 19%, with broad-based growth across regions [12] - Investment management raised $2.4 billion in new capital, with AUM reaching approximately $156 billion, up $500 million for the quarter [13] Market Data and Key Metrics Changes - Revenue from Japan and India combined rose more than 30% to nearly $400 million, indicating strong growth potential in these markets [8] - The U.S. office leasing market showed a resurgence, particularly in gateway cities like New York and San Francisco [66] Company Strategy and Development Direction - CBRE's strategy focuses on leveraging its scale across various asset types, client types, and geographies to drive growth [7] - The company is actively pursuing M&A opportunities while prioritizing capital allocation towards resilient business areas [20] - There is a strong emphasis on enhancing relationships with occupiers to drive cross-selling opportunities across different service lines [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a steady recovery in the commercial real estate market, driven by pent-up demand from both buyers and sellers [24][25] - The company anticipates continued strong activity in the fourth quarter, although it acknowledges tougher year-over-year comparisons [18][27] - Management highlighted the importance of real estate as a strategic asset for companies, which is expected to drive ongoing demand [67] Other Important Information - The company will no longer report net revenue but will focus on gross revenue in its formal reporting [4] - CBRE expects to generate approximately $1.8 billion of free cash flow for the year, with net leverage at 1.2 turns [15] Q&A Session Summary Question: Did anything get pulled forward from Q4? - Management indicated no significant pull forward across segments, but acknowledged tougher comparisons in Q4 [18] Question: Can you comment on the M&A pipeline? - Management confirmed that M&A remains a priority, with a focus on well-operated targets that can benefit from CBRE's platform [20] Question: Where are we in the CRE transaction market recovery? - Management expects a longer, slower recovery in the sales segment, with strong pipelines and pent-up demand from both buyers and sellers [24] Question: How is deal activity in Q4? - Pipelines are strong, with expectations for continued strong activity in leasing and sales [27] Question: Are you appropriately staffed in the advisory segment? - Management stated they are appropriately staffed but are also looking to add talent where necessary [31] Question: What is the outlook for the BOE segment? - Management reported strong pipelines and expects elevated sales volume in Q4, with revenue growth anticipated in the second half of next year [53] Question: What is the ultimate TAM for facilities management? - Management noted that the TAM has consistently expanded due to various acquisitions and the growing importance of data centers [59] Question: What are the constraints for data center development sites? - The primary constraint is access to power, which has become increasingly competitive [63] Question: How is the leasing market performing? - Management observed broad-based growth in office leasing, with a resurgence in gateway markets [66] Question: What is the outlook for EBITDA margins? - Management expects steady margins in advisory and continued margin expansion in BOE and project management segments [77]