Financial Data and Key Metrics Changes - Archrock recorded record adjusted EPS and adjusted EBITDA during the quarter, with adjusted EPS increasing by nearly 70% and adjusted EBITDA by more than 60% compared to 2024 [6][22] - The company maintained a low quarter-end leverage ratio of 3.3x, reflecting stability in cash flows and prudent acquisition financing [6][25] - Quarterly dividend per share was raised by 11% compared to the prior quarter and 27% compared to a year ago, with robust dividend coverage of 3.4x [7][26] Business Line Data and Key Metrics Changes - Contract operations revenue reached $318 million, up 6% sequentially and 41% year-over-year, driven by horsepower growth and higher pricing [23] - The aftermarket services segment reported revenue of over $60 million, the highest level since 2018, reflecting high demand for service work and contract maintenance [17][24] - Monthly revenue per horsepower reached a new record of $23.75, marking the fifteenth consecutive quarter of increases [17] Market Data and Key Metrics Changes - The demand for U.S. natural gas production is expected to increase significantly, with projections of an incremental 20 to 30 Bcf per day by 2030 [11] - The Permian basin is anticipated to see gas production volumes grow by more than 30% by 2030, outpacing oil volume growth [12] - Archrock operates more than 2.6 million horsepower in the Permian, with expectations of continued high utilization rates [14] Company Strategy and Development Direction - Archrock aims to solidify its position as the compression partner of choice, focusing on building a modern, scalable, and geographically diverse fleet [9] - The company plans to maintain a leverage ratio between 3 to 3.5 times to support its growth strategy and adapt to market conditions [20] - Investments in new build horsepower and capital expenditures are expected to continue, with a narrowed guidance for growth CapEx between $340 million and $360 million for 2025 [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market, citing strong demand for LNG exports and power generation needs as key drivers for growth [8][10] - The company anticipates continued high levels of utilization for its existing fleets and growth opportunities for new build equipment [10][14] - Management noted that the operational transformation and investments in high-quality assets are driving consistent success [28] Other Important Information - Archrock completed the sale of approximately 155 compressors for $71 million, which will help fund new build equipment investments [16] - The company has repurchased 2.7 million shares at an average price of $18.84 per share since the inception of its buyback program [7] Q&A Session Summary Question: Outlook for capacity additions in 2026 and beyond - Management indicated that the order book reflects inherent growth, with customers ordering equipment ahead of schedule due to increasing demand for natural gas [32][34] Question: Outlook for pricing and contract terms - Pricing is expected to continue increasing in the mid-single digits, with contract terms remaining stable at three to five years [35][36] Question: Update on customer activity in the Permian and other basins - The Permian remains the leading source of orders, but there is also activity in other basins like Eagle Ford and Haynesville [44] Question: Impact of tariffs on business - Management does not expect a material impact from tariffs, as the supply chain is predominantly U.S.-based [47] Question: Elasticity of demand for horsepower amid rig count drops - The order book is considered durable, with expectations for minimal shifts in spending levels [51][52] Question: Competitive dynamics outside the Permian - Archrock is viewed as the partner of choice for customers, which enhances planning cycles and operational dependability [54] Question: Capital allocation strategy moving forward - Management expects to grow both dividends and buybacks, with a focus on returning capital to investors [60][61]

Financial Data and Key Metrics Changes - Archrock recorded record adjusted EPS and adjusted EBITDA during Q2 2025, with adjusted EPS increasing by nearly 70% and adjusted EBITDA by more than 60% compared to 2024 [6][22] - The company maintained a low quarter-end leverage ratio of 3.3x, reflecting stability in cash flows and prudent acquisition financing [6][25] - Quarterly dividend per share was raised by 11% compared to the prior quarter and 27% compared to a year ago, with robust dividend coverage of 3.4x [7][27] Business Line Data and Key Metrics Changes - Contract operations revenue reached $318 million in Q2 2025, up 6% sequentially and 41% year-over-year, driven by horsepower growth and higher pricing [23] - The aftermarket services segment reported revenue of over $60 million, the highest level since 2018, reflecting high demand for service work and contract maintenance [17][24] - Monthly revenue per horsepower reached a new record of $23.75 during Q2 2025, with adjusted gross margin percentage maintained at approximately 70% for three consecutive quarters [17][24] Market Data and Key Metrics Changes - The demand for U.S. natural gas production is expected to increase significantly, with an incremental 20 to 30 Bcf a day needed by 2030 [11] - The Permian basin is projected to see gas production volumes grow by more than 30% by 2030, outpacing oil volume growth [12] - Archrock operates more than 2.6 million horsepower in the Permian, with expectations for continued high utilization rates [14] Company Strategy and Development Direction - Archrock aims to solidify its position as the compression partner of choice, with a modern, scalable, and geographically diverse fleet [9] - The company plans to maintain a leverage ratio between 3 to 3.5 times to support its growth strategy and adapt to market conditions [20] - Investments in new build horsepower and capital expenditures are expected to continue, with a narrowed guidance for growth CapEx in 2025 between $340 million and $360 million [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the market, anticipating growing LNG exports and power generation needs to drive demand for natural gas [8] - The company expects to grow its business and profits through the rest of 2025 and into 2026 and beyond, supported by strong customer demand [7][20] - Management noted that the compression market is stable, reinforced by capital discipline from customers [15] Other Important Information - Archrock completed the sale of approximately 155 compressors for $71 million, which will help fund new build equipment investments [16] - The company has a substantial contracted backlog for the second half of 2025 and is booking units for 2026 delivery [17] - Archrock's capital allocation framework remains focused on prudent and returns-based investments [18] Q&A Session Summary Question: Outlook for capacity additions in 2026 and beyond - Management indicated that the order book reflects inherent growth, with customers ordering equipment ahead of schedule [32][34] Question: Outlook for pricing and contract terms - Pricing is expected to increase in the mid-single digits, with contract terms remaining stable at three to five years [36][38] Question: Customer activity in the Permian and other basins - The Permian continues to lead the order book, but there is also activity in other basins like Eagle Ford and Haynesville [44] Question: Impact of tariffs on business - Management does not expect a material impact from tariffs, as the supply chain is predominantly U.S.-based [46] Question: Capital allocation strategy moving forward - The company expects to grow profits and return capital to investors through dividends and buybacks, with a focus on price sensitivity [60][62] Question: Strength in aftermarket services - The aftermarket service business has performed well, driven by market demand and customer maintenance efforts [70] Question: Shift in order book mix towards gas drive - There is a slight shift towards gas drive due to power availability issues, but the overall transition is not drastic [72] Question: Activity in the Haynesville basin - Management noted incremental demand in the Haynesville, supporting the business of major midstream operators [81]

Financial Data and Key Metrics Changes - The company reported a second quarter net income of $3.96 per share and returned approximately $1 billion to shareholders through dividends and repurchases [14] - Adjusted EBITDA for the quarter was approximately $3.3 billion, an increase of $1.3 billion sequentially, primarily due to increased results in the Refining and Marketing segment [14][17] - Operating cash flow excluding changes in working capital was $2.6 billion for the quarter, with capital expenditures just over $1 billion [19] Business Line Data and Key Metrics Changes - The Refining and Marketing segment achieved 97% utilization, processing 2.9 million barrels of crude per day, with adjusted EBITDA of $6.79 per barrel [15][17] - The Midstream segment delivered a year-to-date adjusted EBITDA growth of 5% over the previous year, with distributions from MPLX increasing by 12.5% year-over-year [17][18] - The Renewable Diesel segment operated at 76% capacity, with improved margins due to incremental production tax credits [18] Market Data and Key Metrics Changes - U.S. gasoline inventories are in line with five-year averages, while diesel inventories are at historically low levels, supporting strong margins [6][8] - The company expects crude differentials to widen later in the year due to higher OPEC plus production and increased Canadian supply [7][32] Company Strategy and Development Direction - The company is committed to optimizing its portfolio through strategic investments and divestitures, including the $425 million divestiture of its partial interest in ethanol production facilities [10][22] - MPLX's strategic acquisition of Northwind Midstream for under $2.4 billion is expected to enhance its growth platform in the natural gas and NGL value chain [11][12] - The company aims to maintain industry-leading capital returns through its integrated value chain and diversified assets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the refining industry, expecting demand growth to exceed the impact of capacity additions through the end of the decade [7][21] - The company anticipates continued strong diesel demand and tight inventory levels to support margins [6][100] - Management highlighted the importance of operational excellence and commercial performance in delivering peer-leading profitability [21][68] Other Important Information - The company plans to execute a $1.25 billion standalone capital plan for 2025, with 70% targeted at high-return projects [22] - The company has a strong balance sheet with cash of nearly $300 million and MPLX cash of approximately $1.4 billion [20] Q&A Session Summary Question: Can you discuss the 105% capture achieved in the second quarter? - Management emphasized the focus on commercial performance and structural improvements that support sustainable results [26][28] Question: What is the outlook for quality discounts as OPEC increases production? - Management expects differentials to widen in the second half of the year due to increased OPEC production and bullish Canadian production [32][35] Question: How will the California refinery closures impact the company? - Management sees opportunities in accessing local California crudes and believes their integrated system provides a competitive advantage [42][46] Question: What is the expected turnaround expense for the coming years? - Management indicated that the current turnaround expenses may be at a peak, with expectations for a decrease in future years [50][51] Question: How does the company view return of capital and share buybacks? - Management reiterated their commitment to returning all free cash flow in the form of share buybacks, supported by MPLX's growing distribution [58][60] Question: What are the factors behind the recent strength in diesel cracks? - Management cited low U.S. inventories and strong demand as key drivers for the sustainability of diesel cracks [99][101] Question: Can you elaborate on the decision to divest the ethanol stake? - Management stated that the divestiture was based on a compelling offer and the opportunity to optimize the portfolio for future growth [102][105] Question: What opportunities exist in the midstream build-out? - Management highlighted ongoing optimization strategies in both NGL and natural gas sectors, with a focus on integration and growth in the Permian [110][113]

Financial Data and Key Metrics Changes - For Q2 2025, comparable diluted earnings per share (EPS) increased to $0.90 from $0.74 in Q2 2024, representing a 22% increase [10] - Comparable net earnings for Q2 2025 were $249 million, driven by higher volume and cost management initiatives, partially offset by higher interest expense and lower interest income [10][12] - The company returned $1.13 billion to shareholders through share repurchases and dividends [9] Business Line Data and Key Metrics Changes - In North and Central America, volume growth was driven by strength in energy drinks and non-alcoholic beverages, although product mix and cost to serve headwinds impacted margins [10][11] - EMEA segment comparable operating earnings increased by 14%, with robust volume performance [11] - South America saw a 38% increase in segment comparable operating earnings, supported by strong volume in Argentina and Chile [12] Market Data and Key Metrics Changes - Global beverage can shipments increased by 4.3% year-over-year in 2025 [12] - North America is expected to see volume growth near the top end of the 1% to 3% long-term range, driven by non-alcoholic categories [14] - EMEA is anticipated to achieve mid-single-digit volume growth in 2025 due to competitive advantages of aluminum packaging [14] Company Strategy and Development Direction - The company aims for 12% to 15% comparable diluted EPS growth for 2025, supported by operational efficiency and strong customer relationships [13][20] - The focus remains on operational excellence, disciplined cost control, and enhancing productivity across the global footprint [18][19] - The company is actively monitoring geopolitical conditions and tariff developments to navigate uncertainties [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive momentum despite external volatility, particularly related to geopolitical events [20] - The company anticipates global volume growth above the long-term 2% to 3% range for 2025, reflecting strong underlying demand [13] - Management highlighted the importance of executing at a high operational level to meet customer expectations reliably [20] Other Important Information - The company expects year-end 2025 net debt to comparable EBITDA to be around 2.75 times [16] - Full-year 2025 interest expense is projected to be in the range of $300 million [18] - The effective tax rate on comparable earnings for 2025 is expected to be slightly above 22% [18] Q&A Session Summary Question: What is driving the outperformance in non-alcohol categories in North America? - Management noted strong growth in energy drinks, with one strategic partner growing nearly 20%, and highlighted the importance of promotional activity and multi-pack purchases [25][26] Question: Can Europe benefit from margin expansion similar to North America? - Management indicated that while margins may not improve significantly, operational leverage is expected to be consistent, with mid-single-digit growth anticipated [32][33] Question: How are customer conversations regarding tariffs and pricing strategies evolving? - Management stated that discussions about 2026 pricing are not yet happening, but noted that customers are focused on securing cans to drive volume [38][39] Question: What is the outlook for Brazil's performance in the second half of the year? - Management expressed confidence in recovery, citing a strong customer relationship that typically reflects market growth [55][56] Question: How is the company positioned regarding aluminum pricing and customer demand? - Management indicated that customers are currently hedged, and the company expects to see changes in buying behavior as pricing dynamics evolve [68][69] Question: What impact has immigration enforcement had on demand? - Management suggested that there may be a benefit from increased multipack purchasing in grocery channels, countering potential demand slowdowns [81][82] Question: How balanced is supply and demand in Europe? - Management acknowledged the need for incremental capacity to meet sustained mid-single-digit growth in Europe [84][85] Question: What are the expectations for manufacturing efficiency going forward? - Management reported improvements in plant performance and emphasized a long-term focus on safety and quality as key to operational efficiency [132][134]

Financial Data and Key Metrics Changes - The company reported a Q3 EBITDA margin of 54.4%, supported by growth in the commercial aftermarket and a focus on operating strategy [13][39] - Operating cash flow for Q3 exceeded $630 million, with a cash balance of nearly $2.8 billion at the end of the quarter [13][40] - Full fiscal year 2025 sales guidance was decreased by $60 million to a midpoint of $8.79 billion, while EBITDA guidance was raised by $40 million to a midpoint of $4.725 billion, reflecting a 13% increase [14][17] Business Line Data and Key Metrics Changes - Commercial OEM revenue decreased by 7% year-over-year in Q3, attributed to lower production rates at Boeing and Airbus [25][26] - Commercial aftermarket revenue increased by approximately 6% compared to the prior year, with growth across all submarkets [28][29] - Defense market revenue grew by approximately 13% year-over-year, with healthy bookings supporting continued growth [30][31] Market Data and Key Metrics Changes - The commercial OEM market is expected to see revenue growth in the flat to low single-digit percentage range, down from previous expectations [15][16] - The commercial aftermarket and defense revenue growth guidance remains unchanged, with expectations of high single-digit to low double-digit percentage growth [16][31] - The company noted that supply chain issues remain a bottleneck for OEM production ramp-up, but improvements are being observed [28][78] Company Strategy and Development Direction - The company aims to provide private equity-like returns with the liquidity of a public market, focusing on proprietary aerospace businesses with significant aftermarket content [10][11] - Recent acquisitions, including Servotronics and Simmons Precision, align with the company's strategy to enhance its portfolio [21][22] - The company maintains a disciplined approach to capital allocation, prioritizing reinvestment in businesses and accretive M&A [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the commercial OEM market, despite current challenges, and expects a return to positive growth in Q4 [62][63] - The company remains focused on operational excellence and efficient cost structures to navigate uneven demand in the commercial OEM market [19][39] - Management highlighted the importance of monitoring the aerospace and capital markets for future adjustments [18] Other Important Information - The company announced leadership transitions, with Mike Lisman set to take over as CEO on October 1 [38][39] - The company is approximately 75% hedged on its total gross debt balance, providing protection against interest rate fluctuations [41][42] Q&A Session Summary Question: About the aftermarket performance and future expectations - Management indicated that the commercial aftermarket growth is in line with expectations, and they anticipate continued growth in the high single-digit to low double-digit range [47][49] Question: Visibility into fourth-quarter growth rates - Management expressed confidence in achieving the guidance for the year, with expectations for a return to positive growth in the commercial OEM segment [60][63] Question: Supply chain improvements and potential headwinds - Management noted that supply chain conditions are improving, although some issues remain, and they are hopeful for a quick resolution to any disruptions [78][81] Question: Competitive landscape and second sourcing - Management reported no significant changes in the competitive landscape regarding second sourcing or PMA competition, maintaining a strong position in the market [102][104] Question: Insights on recent acquisitions and future opportunities - Management expressed optimism about the acquisition of Simmons and the potential for more carve-outs in the aerospace and defense sector [107][108]

Financial Data and Key Metrics Changes - Banco Santander Chile reported a net income of $550 million for the first half of 2025, with a return on equity (ROE) of 25.1% [19] - The bank achieved an ROE of 24.5% in the second quarter of 2025, marking the fifth consecutive quarter with an ROE above 20% [19] - The net interest margin (NIM) improved to around 4.1%, reflecting a 100 basis point increase year-on-year [10][22] Business Line Data and Key Metrics Changes - The number of current accounts increased by 10% year-on-year, contributing to a 78% growth in active clients [20] - Credit card transactions rose by 12% year-on-year, while mutual funds brokered by the bank grew by 19% [20] - The bank's efficiency ratio reached 35.3%, the best in the Chilean industry for 2025 [23] Market Data and Key Metrics Changes - The Chilean peso depreciated to around $9.70 per dollar, influenced by renewed trade tensions [6] - GDP growth for the second quarter was reported at 2.9% year-on-year, with inflation at 4.1% in June [7][8] Company Strategy and Development Direction - The bank has migrated its legacy mainstream service to the cloud, enhancing its digital strategy [14] - Initiatives such as smart POS enhancements and the launch of Santander to Comuna aim to increase transactionality and strengthen the funding base [15][16] - The bank is focusing on expanding its client base, particularly through simple savings accounts for children [16] Management's Comments on Operating Environment and Future Outlook - Management expects loan book growth to be in low single digits for the remainder of 2025 due to the political landscape and global uncertainty [30] - The cost of risk is anticipated to improve slightly, with expectations of a year-end rate around 1.35% [31] - The bank maintains a positive outlook for profitability, projecting ROEs in the range of 21% to 23% for the year [32] Other Important Information - The bank secured 18.3% of the total mortgage subsidy auction, the highest among peers [11] - The CET1 ratio reached 10.9%, well above the minimum requirement, indicating strong capital generation [28] Q&A Session Questions and Answers Question: Future Contribution of Consumer Loans and Sustainable Cost of Risk - Management expects healthy growth in consumer loans, with a cost of risk projected to be around 1.35% for the year, gradually improving in the second half [34][36] Question: Loan Growth Post-Elections - Management indicated uncertainty regarding loan growth post-elections but noted potential for acceleration depending on the political landscape [45][50] Question: Risks Around Upcoming Elections - The main risks identified include external factors such as US-China trade dynamics and potential global economic slowdowns [58][59] Question: NPL Normalization - Management expects NPLs to normalize below 3% by early 2026, with improvements anticipated primarily from the commercial portfolio [66][68] Question: Net Interest Margin Outlook - The bank expects NIM to stabilize around 4.1% for the year, with potential for similar levels in 2026, influenced by monetary policy and inflation trends [72][73]

Financial Data and Key Metrics Changes - Consolidated second quarter sales were $1.7 billion, down 3% from 2024 [7] - Net income was $62 million or $1.64 per share, compared to $112.3 million or $2.84 per share in the prior year quarter [7] - Included in the results were a $7.7 million pre-tax gain on asset sales [7] Business Line Data and Key Metrics Changes - Wood Products sales were $447.2 million, down 9% year-over-year, with segment EBITDA at $37.3 million compared to $95.1 million in the prior year [10] - Building Materials Distribution (BMD) sales were $1.6 billion, down 2% from the previous year, with segment EBITDA of $91.8 million compared to $97.1 million [10] - BMD's gross margin was 15.4%, a 60 basis point year-over-year improvement despite increased selling and distribution expenses [11] Market Data and Key Metrics Changes - U.S. housing starts and single-family housing starts decreased by 18% compared to the prior year quarter [7] - Plywood sales volume was 356 million feet, down from 383 million feet in the second quarter of 2024 [13] - Average plywood net sales price was $342 per 1,000 feet, down 6% year-over-year [13] Company Strategy and Development Direction - The company is focused on addressing near-term challenges while maintaining service standards and investing in sustainable growth opportunities [9] - The modernization project at the Oakdale Mill is substantially complete, enhancing operational efficiency and reliability [8] - The company aims to solidify and expand its market-leading national distribution presence [16] Management's Comments on Operating Environment and Future Outlook - Management expects headwinds for residential construction activity to persist, with a range of potential EBITDA outcomes for the third quarter [19] - Long-term demand drivers for residential construction remain robust, supported by structural and generational factors [22][23] - The company anticipates consumer confidence to improve with lower interest rates and greater clarity on U.S. economic policy [23] Other Important Information - Capital expenditures for the first half of 2025 were $132 million, with a commitment to a capital spending range of $220 million to $240 million for the year [15] - The company paid $18 million in regular dividends and repurchased approximately $96 million of common stock in 2025 [18] Q&A Session Summary Question: Performance gap between LVL and I-joist volumes - Management noted that LVL has better resiliency due to diverse application opportunities, while I-joist is more limited [27] Question: EWP destocking and its impact - Management indicated that purchase profiles are changing, with less mill directs and more activity in distribution [47] Question: Operating rates and EWP pricing outlook - Operating rates were in the low 80s for EWP, with expectations of a decline to 65-70% depending on demand [49] Question: Update on the strike at the Billings facility - The strike involves 19 employees at one BMD location, with no anticipated material impact on operations [51][52] Question: General line business performance - General line categories performed well, with expectations to remain strong due to customer reliance on distribution inventories [58]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $1.85 in Q2 2025, down from $2.07 in the same period last year, reflecting a decline in earnings [7][23] - Despite the decline, the midpoint of the 2025 earnings guidance was increased to $6.26 from $5.88 due to better-than-expected performance in the Plastics segment [8][29] - The company maintains its original earnings guidance for all other segments, with an expected year-over-year growth of over 7% for the electric segment [30] Business Line Data and Key Metrics Changes - Electric segment earnings increased by $0.02 per share in Q2 2025, driven by timely recovery on capital investments and favorable weather conditions [23][24] - Manufacturing segment earnings decreased by $0.08 per share primarily due to lower product pricing and decreased sales volumes [25] - The Plastics segment experienced a decline in earnings of $0.18 per share, attributed to a 15% decrease in sales prices, although sales volumes increased by 11% [26][27] Market Data and Key Metrics Changes - The company continues to have some of the lowest electric rates in the nation, with 2024 rates being 30% below the national average and 16% below regional peers [18] - The construction and lawn and garden end markets are improving, while recreational vehicle and agricultural end markets are still facing challenges due to high inventory levels [19] Company Strategy and Development Direction - The company is focused on a significant capital investment plan totaling $1.4 billion over five years, aimed at benefiting customers and driving earnings growth [9][30] - The electric segment is projected to have a compounded annual growth rate of 9% through 2029, with a focus on customer-centric investments [12][31] - The company is also working on expanding its manufacturing capabilities, including the BTD Georgia facility and Vinyltech expansion [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the manufacturing segment despite current down cycles, emphasizing a strong track record of performance during market rebounds [25][31] - The company is monitoring legislative changes that may impact renewable energy projects but expects its current capital investment plan to remain intact [9][10] Other Important Information - The company filed a request with the South Dakota Public Utilities Commission to increase base electric rates for the first time since 2018, proposing to increase net revenues by approximately $5.7 million [11] - The company is finalizing a cost of service analysis in Minnesota and anticipates filing a rate case later this year [12] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions in the queue and concluded the call [35][37]

Financial Data and Key Metrics Changes - Total asset footprint increased to $986 billion, representing a 5% year-over-year growth [4] - Assets Under Management (AUM) grew by $11 billion or 9% year-over-year, reaching $141 billion [5] - Assets Under Administration (AUA) rose by $35 billion or 4% year-over-year, totaling $845 billion [5] - Quarterly GAAP EPS was $1.28 based on $54 million of GAAP net income, while non-GAAP EPS was $1.31 based on $72 million of adjusted net income [6] - Fee-related earnings for the quarter increased by 31% compared to the prior year period [6] Business Line Data and Key Metrics Changes - Total fee-earning AUM stood at $74 billion, growing by $6.7 billion or 10% year-over-year [8] - Customized separate account fee-earning AUM reached $40 billion, growing by $2.1 billion or 5% year-over-year [10] - Specialized funds fee-earning AUM increased to $34 billion, reflecting a 16% growth year-over-year [12] - Evergreen platform AUM approached $12.5 billion, marking a nearly 65% growth over the last twelve months [16] Market Data and Key Metrics Changes - The company continues to see strong momentum in its semi-liquid Evergreen products, contributing to the growth of total fund net asset value [9] - The company has maintained a strong backlog of business, with significant committed and contractual dry powder available for deployment [11] Company Strategy and Development Direction - The company is focused on expanding strategic partnerships and enhancing its global distribution strategy [18] - New product offerings have been launched, including infrastructure products and a fund focused on Asian private market investments [18] - The company emphasizes a long-term growth strategy, viewing its investments alongside clients as crucial for continued growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory, highlighting strong execution across all business fronts [8] - The company is focused on meeting diverse customer needs through various distribution channels, including digital and traditional methods [33] - Management noted that while recent quarters have seen lighter incentive fees, a positive macroeconomic environment could lead to increased exit opportunities [49] Other Important Information - Management and advisory fees decreased by 4% year-over-year, primarily due to retro fees [20] - Total expenses decreased by $8 million compared to the prior year period, with total compensation and benefits down by $9 million [23] Q&A Session Summary Question: Insights on DBS private banking relationship - Management described the relationship as an expansion of existing strategies, focusing on diverse distribution methods and meeting customer needs [31][36] Question: Status of fund secondary fund six and marketing for fund seven - Management confirmed that fund six is more than halfway invested and that marketing for fund seven has not yet started [38][39] Question: Drivers of customized separate account growth - Management indicated that growth was driven by new sales, re-ups, and increased investment activity, with a significant pipeline of business in progress [44] Question: Outlook on incentive fees and market conditions - Management agreed that a positive macro backdrop could enhance exit opportunities, with expectations for increased activity in the latter half of the year [48] Question: Institutional demand for Evergreen Fund - Management noted that approximately 15% of flows into Evergreen are from institutional investors, with the remainder from traditional retail wealth [52][55] Question: G&A expense outlook - Management projected G&A expenses to be around $33 million per quarter, with some increases expected due to revenue-related expenses [58]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.01 per share, a significant increase from a loss of $0.14 per share a year ago, reflecting growth across all business segments [7][8] - Adjusted earnings for the third quarter totaled $4.1 million, an increase of over $8 million compared to the previous year [18] Business Line Data and Key Metrics Changes - The Gas Utilities segment had an adjusted loss of $10 million in the third quarter, which was $1 million better than the prior year, driven by higher contribution margin at Spire Missouri [18] - Earnings in the Gas Marketing segment increased by over $4 million, indicating strong performance [19] - The Midstream segment saw strong earnings growth due to additional capacity and asset optimization at Spire Storage, despite higher operating costs [19] Market Data and Key Metrics Changes - Year-to-date capital expenditures totaled $700 million, with a nearly 20% increase in utility CapEx year-over-year, focusing on upgrading distribution infrastructure [20] - The capital investment target for fiscal 2025 has increased to $875 million, reflecting a $10 million increase in Midstream and a $25 million increase in Spire Missouri [21] Company Strategy and Development Direction - The company is committed to a long-term EPS growth target of 5% to 7%, supported by a ten-year $7.4 billion capital investment plan [11][22] - The recent acquisition of the Piedmont Natural Gas business in Tennessee is seen as a strategic move to enhance scale and diversify the regulated utility portfolio [12][13] - The company aims to maintain a strong balance sheet while supporting long-term adjusted EPS growth and dividend growth [14][27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial and operational goals, emphasizing the importance of delivering safe and reliable natural gas service [26][28] - The company is focused on achieving constructive regulatory outcomes and strengthening recovery mechanisms to support continued investment [27] Other Important Information - A unanimous stipulation and agreement has been filed for an annual revenue increase of $210 million in Missouri, pending approval [10][15] - The company anticipates adjusted earnings at the Utility segment to be significantly higher in 2026 due to new rates and improved regulatory frameworks [24] Q&A Session Summary Question: Is the FFO to debt target of 15% to 16% still applicable? - Management confirmed that these targets remain relevant, although achieving them may be slower during the acquisition transition [34] Question: How much of the midstream results is attributable to storage expansion? - Approximately 90% of the increase in midstream results year-over-year is attributed to storage [39] Question: Will the strong marketing results continue into Q4? - Management indicated that Q4 is typically quieter, but they feel confident about the operations and targets for the marketing business [41] Question: Does the long-term 5% to 7% growth rate include impacts from the Missouri rate case? - The growth rate is primarily based on capital deployment, with potential catch-up from previous recovery delays in Missouri [57] Question: How does the company plan to manage O&M expenses going forward? - The target is to keep O&M expenses at or below the rate of inflation, with current year-to-date O&M running less than 1% higher than the prior year [61]