Financial Data and Key Metrics Changes - Net income for Q3 2025 was $9.9 million or $0.18 per diluted share, with a return on assets of 0.56% and a return on average tangible common equity of 6.16% [3][4] - Excluding adjusting items, net income was $28.4 million or $0.53 per diluted share, reflecting a significant impact from the acquisition of Bancorp Financial [4][5] - The tangible equity ratio declined by 42 basis points to 10.41%, but remains 27 basis points higher than the same period last year [5][6] - Net interest margin improved to 5.05%, a 20 basis point increase from the previous quarter and 41 basis points year-over-year [6][15] Business Line Data and Key Metrics Changes - Total loans increased by $1.27 billion, primarily due to $1.19 billion of loans acquired from Bancorp Financial [7] - Non-interest income increased by $2.1 million compared to the prior year, driven by a 26.1% increase in wealth management fees [11] - Non-interest expense rose to $19.7 million, with $11.8 million attributed to acquisition costs [12][20] Market Data and Key Metrics Changes - The loan-to-deposit ratio increased to 91.4% as of September 30, 2025, compared to 83.3% last quarter [7] - The total cost of deposits was 1.33%, up from 0.84% in the previous quarter [6] Company Strategy and Development Direction - The company is focused on the effective integration of Evergreen Bank Group and optimizing the balance sheet post-acquisition [12][22] - A 17% increase in the common dividend reflects confidence in the company's performance [22] - The company aims to maintain core expense growth around 4% into 2026, excluding acquisition impacts [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 following the successful acquisition and integration of Evergreen [22] - The company anticipates a stable loan growth outlook, with expectations of low to mid-single-digit growth heading into 2026 [80] - Concerns regarding credit quality were addressed, with management indicating that most classified assets are well-collateralized [64][68] Other Important Information - The company recorded $5.1 million in net loan charge-offs, primarily from the PowerSport portfolio [8][9] - The allowance for credit losses on loans increased to $75 million, reflecting the acquisition's impact [9] Q&A Session Summary Question: Potential runoff of exception price deposits - Management indicated a couple hundred million dollars in market-priced funding, with a goal to return to legacy Old Second types of deposits over 6 to 18 months [25][26] Question: Future originations in PowerSport - The focus remains on originating across all tiers, with a historical emphasis on the top two tiers [27][30] Question: Loan growth outlook - Management expects low single-digit growth in 2025, with robust pipelines in various sectors [58][80] Question: Charge-off trajectory - Charge-offs were higher than expected, but management remains optimistic about the overall credit quality [47][48] Question: Additional M&A opportunities - The company is open to future acquisitions, particularly focused on deposit-heavy opportunities [66][68]

Carpenter Technology (NYSE:CRS) Q1 2026 Earnings Call October 23, 2025 10:00 AM ET Speaker0Thank you for standing by. At this time, I would like to welcome everyone to today's Carpenter Technology Q1 Fiscal Year twenty twenty six Earnings Presentation. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you.I would now like to turn the call over to John Hewitt, Vice President, Investor Relations. John?Speaker1Tha ...

Ladder Capital (NYSE:LADR) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Speaker0Good morning and welcome to Ladder Capital Corp. Earnings Call for the 2025. As a reminder, today's call is being recorded. This morning, Ladder released its financial results for the quarter ended 09/30/2025. Before the call begins, I would like to call your attention to the customary Safe Harbor disclosure in our earnings release regarding forward looking statements.Today's call may include forward looking statements and ...

Financial Data and Key Metrics Changes - The company reported record third quarter revenue performance, significantly exceeding expectations, with a guidance range for full year EBIT of $600 million to $800 million [8][23][24] - CASM Ex (Cost per Available Seat Mile excluding special items) increased by 2.5%, beating the midpoint of guidance by two points, indicating strong cost discipline [20][21] - The company finished the quarter with $3 billion in cash, aligning with its liquidity target of $4.5 billion and maintaining a gross leverage ratio of 2.1 times [22][23] Business Line Data and Key Metrics Changes - The rollout of assigned extra legroom seating began in July, resulting in a four-point improvement in customer net promoter score on aircraft with this new configuration [5][18] - Loyalty revenue increased by 7% in the third quarter, with double-digit growth in co-brand card acquisitions year over year [15][54] - The company expects to generate over $1 billion of incremental EBIT from assigned extra legroom seating in 2026, reaching a full run rate of approximately $1.5 billion in 2027 [11][18] Market Data and Key Metrics Changes - The demand environment showed a positive inflection beginning in early July, with sustained momentum throughout the quarter [14][15] - Corporate travel demand improved sequentially, particularly in September, contributing to a higher load factor year over year [14][71] - The company plans for fourth quarter capacity growth of approximately 6%, compared to a low base in the previous year [16][21] Company Strategy and Development Direction - The company is actively looking to widen its product offerings, enhance the Rapid Rewards loyalty program, and explore premium revenue opportunities, including airport lounges and long-haul international destinations [7][10] - The strategic transformation plan is progressing well, with a focus on operational reliability, cost discipline, and customer experience enhancements [4][24] - Future initiatives include free Wi-Fi for Rapid Rewards members and new market launches, indicating a commitment to evolving customer preferences [6][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving fourth quarter and full year guidance, emphasizing the strong execution of initiatives and operational performance [24][23] - The company acknowledged potential uncertainties due to the government shutdown but remains committed to proactive measures to ensure financial targets are met [40][41] - Management highlighted the importance of continued innovation and investment in operations and customer experience to drive loyalty and revenue growth [13][24] Other Important Information - The company executed an accelerated share repurchase program of $250 million under a previously announced $2 billion authorization, reflecting confidence in its strategy and commitment to returning value to shareholders [22][23] - The company is not providing 2026 guidance at this time but is optimistic about the opportunities ahead and the benefits from its portfolio of initiatives [10][24] Q&A Session Summary Question: Sequential improvement into the fourth quarter - Management noted that the sequential improvement is due to added capacity and the decision to delay retrofits, allowing for extra revenue during peak demand periods [33][34] Question: Stats on initiatives and load factor improvements - Management confirmed that load factors improved year over year due to enhanced connectivity and the rollout of basic economy, with positive trends in customer engagement [49][51] Question: Corporate growth and sales numbers - Management indicated that corporate sales for future travel improved by 5% year over year, with expectations for additional growth from assigned seating [70][71] Question: RASM guidance and core business performance - Management clarified that while RASM may appear to be declining, the core business is showing positive trends in customer engagement and loyalty [76][82] Question: Shareholder returns and leverage targets - Management emphasized the importance of maintaining headroom within leverage targets while ensuring strong liquidity for shareholder returns [92][94] Question: EBIT contribution from initiatives - Management provided insights into the expected EBIT contributions from various initiatives, including bag fees and assigned seating, while noting that detailed guidance for 2026 is not yet available [96][98]

Financial Data and Key Metrics Changes - Total reported revenue for Q3 2025 was $1,176 million, with a net loss attributable to common shareholders of $36 million or $0.10 per share, and an adjusted net loss of $21 million [23] - Adjusted EBITDA for the quarter totaled $219 million, with total operating expenses of $23 million, including $20 million related to personal injury claims [23] - The company generated $146 million of adjusted free cash flow during the first three quarters of the year [23] Business Line Data and Key Metrics Changes - Drilling Services segment revenue for Q3 was $380 million, with an adjusted gross profit of $134 million; the average operating rig count was 95 rigs [25] - Completion Services segment revenue totaled $705 million with an adjusted gross profit of $111 million, showing flat activity on a pump hour basis compared to Q2 [26] - Drilling Products revenue was $86 million with an adjusted gross profit of $36 million, impacted by lower activity in Saudi Arabia [27] Market Data and Key Metrics Changes - U.S. contract drilling activity stabilized, with recent revenue per day for drilling rigs remaining in the low to mid-$30,000 range [13] - International revenue declined mainly in Saudi Arabia, while revenue outside of Saudi Arabia was strong, with expectations for an increase in Q4 [20] - The company noted a strong recovery in Canadian revenue post-spring breakup, despite total industry activity being slightly below expectations [20] Company Strategy and Development Direction - The company is focused on enhancing commercial strategies through service and product line integration and performance-based agreements while lowering costs [5] - Investments are being made in technologies that are in high demand, with expectations of strong returns on incremental investments [11] - The company aims to maintain high demand portions of its fleet while investing in new technologies and returning at least 50% of annual free cash flow to shareholders [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unique challenges of the current business environment but expressed confidence in the company's ability to adapt and generate healthy free cash flow [6] - The outlook for natural gas appears favorable, with anticipated growth in LNG demand driving higher drilling and completion activity [8] - Management expects lower capital expenditures in 2026 compared to 2025 while maintaining operational quality and competitive edge [11][12] Other Important Information - The company closed Q3 with $187 million in cash and an undrawn $500 million revolving credit facility, with no senior note maturities until 2028 [30] - The fourth quarter is expected to deliver the strongest free cash flow of the year, enhancing capital flexibility heading into 2026 [12][30] - The company has returned $162 million to shareholders through dividends and share repurchases in 2025 [30] Q&A Session Summary Question: Completion services pricing trends - Management noted that their teams are executing well, with high-end work driving performance and minimizing pressure to reduce pricing [40][41] Question: Fleet renewal programs for 2026 - The company is excited about the 100% natural gas direct drive systems and plans to continue investing in high-end equipment while allowing lower-tier equipment to attrition [42][43] Question: Power market opportunities - Management discussed their expertise in power generation but emphasized a cautious approach to entering larger power markets due to competitive dynamics [48][50] Question: Customer discussions amid macro uncertainty - Customers are seeking to maintain production levels despite a softer commodity environment, leading to requests for more technology and efficiency [62][63] Question: Pricing in the completion market for next year - Management indicated that while there may be some pricing movement, overall demand for natural gas services is strong, which should support pricing stability [81] Question: Capital allocation strategy - The company remains committed to returning at least 50% of free cash flow to shareholders while also investing in technology and maintaining a strong balance sheet [87][88]

Valero Energy (NYSE:VLO) Q3 2025 Earnings Call October 23, 2025 10:00 AM ET Speaker0Greetings, and welcome to Valero Energy Corp. Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Homer Bhullar, Vice President, Investor Relations and Finance. Thank you. You may begin.Speaker1Good mo ...

Financial Data and Key Metrics Changes - Consolidated freight revenue increased by 4% or approximately $10.2 million to $268.9 million [3] - Consolidated adjusted operating income shrank by 22.5% to $15 million primarily due to increases in the combined truckload segment [3] - Net indebtedness increased by $48.6 million to $268.3 million compared to December 31, 2024, yielding an adjusted leverage ratio of approximately 2.1 times and a debt to capital ratio of 38.8% [3] - Return on average invested capital was 6.9% versus 8.1% in the prior year [4] Business Segment Performance - The expedited segment had an adjusted operating ratio of 93.6%, which increased by 160 basis points year-over-year [4] - The dedicated segment's adjusted operating ratio was 94.7%, falling short of expectations, but the fleet grew by 136 tractors, approximately 9.6% compared to the prior year [5] - Managed freight exceeded both revenue and adjusted operating income compared to the prior year but fell sequentially due to the loss of a short-term customer [6] - The warehouse segment experienced slightly below prior year freight revenue and adjusted operating income, yielding an adjusted operating ratio of 92.1% [6] Market Data and Key Metrics Changes - The average fleet size in the expedited segment shrunk by 31 units or 3.4% to 861 average tractors [4] - The company anticipates a challenging fourth quarter due to a soft rate market and company-specific factors impacting volumes [8] Company Strategy and Industry Competition - The company plans to improve margins through rate increases, exiting less profitable business, and adding more profitable business [5] - The management is optimistic about the freight market recovery pace despite current challenges [9] - Recent government policies regarding driver regulations are expected to accelerate capacity exiting the market, which may lead to tighter supply and improved rates in the future [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about increased claims accruals, the impact of the U.S. government shutdown on volumes, and customer bankruptcies affecting business [8] - The company is optimistic about the long-term demand recovery driven by government investments and easing monetary policies [9][24] - Management noted that the freight market has not seen rate increases in four years, but recent bids have shown increases of 2.5% to 4% [30] Other Important Information - The minority investment in Tel contributed pretax net income of $3.6 million for the quarter compared to $4 million in the prior year [7] - The company is in a wait-and-hold mode regarding fleet purchases due to uncertainty in pricing [68] Q&A Session Summary Question: Insights on market capacity exits - Management discussed the complexities of capacity exits and the regional variations in spot rates, noting that enforcement of regulations is leading to tighter capacity in certain states [12][14] Question: Impact of government shutdown on DOD business - Management indicated that about half of the DOD business would be lost during the shutdown, with some freight potentially coming back once the government reopens [72][75] Question: Expectations for Q4 performance - Management expects Q4 to be softer than Q3 due to various challenges, including the government shutdown and market conditions [46][48] Question: Pricing and bid activity - Management noted that while low single-digit increases are being discussed, significant inflation in costs necessitates higher rates [60][61] Question: Share repurchase strategy - Management acknowledged the potential for share repurchases given the current undervaluation of shares, but emphasized a cautious approach [108][110]

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $377 million, up from $302 million in Q2 2025, with a gross profit of $66 million compared to $15 million in Q2 [6][7] - Net income for Q3 2025 was $22 million, a significant improvement from a net loss of $3 million in Q2 2025 [6] - Adjusted EBITDA for Q3 2025 was $104 million, with positive operating cash flow of $24 million and free cash flow of $23 million [6][7] - Year-to-date revenues reached $957 million, with gross profits of $109 million and net income of $23 million [7] Business Line Data and Key Metrics Changes - The well intervention segment saw high utilization of the Q4000 in the Gulf of Mexico, with a multi-well program for Shell [9] - Robotics had a strong quarter, operating seven vessels and achieving high utilization across trenching and site survey work [11] - The shallow water abandonment business experienced increased activity levels, with 790 days of utilization compared to 614 days in Q2 [12] Market Data and Key Metrics Changes - Brazil operations showed strong utilization with three vessels operating effectively [8] - The Gulf of Mexico shelf experienced improved results following a later start to the season [8] - The UK North Sea faced market turmoil, leading to the Seawell remaining warm stacked [10] Company Strategy and Development Direction - The company is positioned in a cyclical oil and gas market, currently in the early development cycle, with expectations of moving into a production enhancement cycle [21][22] - Plans to hedge utilization risk for the Q4000 by considering a West Africa campaign in 2026 [24] - The company aims to manage rising supply chain and labor costs while maintaining focus on operational efficiency [26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in 2025 but highlighted strong Q3 results as a glimpse of earnings potential [16][22] - Seasonal impacts are expected in Q4, particularly in the North Sea and Gulf of Mexico [16] - The outlook for 2026 is cautiously optimistic, with expectations of increased activity in shallow water abandonment and robotics [25][26] Other Important Information - The company reported a strong balance sheet with $338 million in cash and negative net debt of $31 million [15] - Year-to-date share repurchase spend was $30 million, aligning with the target of at least 25% of expected free cash flow [20] Q&A Session Summary Question: Outlook for Q4000 and potential work deferrals - Management indicated that while there is always a risk of deferrals, visibility for 2026 is stronger than in 2025, with plans to hedge risks through potential West Africa campaigns [31][33] Question: Expectations for shallow water abandonment in 2026 - Management expects increased activity in 2026 but at reduced rates due to competitive pressures and added capacity in the market [36][37] Question: Update on subsea robotics for Q4 - The company anticipates a drop in trenchers utilized in Q4 due to seasonal weather, but expects strong utilization in the North Sea [42][43] Question: Rising supply chain costs and mitigation strategies - Management noted rising costs across labor and materials, with plans to consolidate suppliers and manage costs effectively [54] Question: Market conditions in Brazil - Brazil remains a buoyant market with strong contracts in place for the CM Helix 1 and 2, and the Q7000 [58]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Net revenues for the third quarter were $885 million, a 5% increase year-over-year, while adjusted earnings per unit rose 12% to $0.86 [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income increased by 15% to $303 million, reflecting strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform reached $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [5][6] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [6][8] - Active equities experienced outflows of over $6 billion, primarily due to growth-oriented redemptions [6][7] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in the third quarter [11] - Emerging markets outperformed, while global developed equities underperformed the U.S. [11][12] - The firm observed a rebound in client flows into American Income, reflecting renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and enhancing its leadership in global insurance asset management [8] - A strategic alliance with Equitable is expected to provide a competitive advantage, allowing the company to scale higher-fee, longer-dated private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging partnerships and expanding capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The company is optimistic about capturing market share in Asia, particularly in taxable fixed income, despite geopolitical tensions [46][47] - Management emphasized the importance of innovation in retirement planning, with a focus on custom target date funds and lifetime income solutions [17][18] Other Important Information - The company is lowering its non-compensation expense projection for the full year to $600 to $610 million, reflecting enhanced operational efficiency [27] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed, with positive results expected [37][41] Question: What is the current state of credit quality in private credit? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][44] Question: How is the Asia business performing post-trade conflicts? - Management reported improvement in the Asia business, particularly in taxable fixed income, with strong engagement from institutional clients [46][47] Question: What is the capital allocation strategy regarding buybacks? - Management indicated that the light buyback this quarter was due to timing and not related to Equitable, with plans to fund deferred compensation [58] Question: How is the company positioned to benefit from bond reallocations? - Management highlighted strong demand for taxable fixed income in Asia and noted the company's success in the tax-exempt SMA space, indicating readiness to capture market share [60][61]

Financial Data and Key Metrics Changes - The company reported a net income of $100 million for Q3 2025, reflecting a 13% growth in normalized earnings per share compared to the prior year [4][12] - Return on average assets for the quarter was 2.1%, significantly higher than the previous quarter [12] - Net interest income reached $217.9 million, an 8% increase compared to Q3 2024 [15] Business Line Data and Key Metrics Changes - Total loans grew by $181 million or 5.6% linked quarter annualized, surpassing $13 billion in total loans for the first time since 2010 [5] - Core franchise deposits increased by $140 million, despite higher competition in the market [7] - The commercial and construction lending segments showed steady loan production, mitigating the slowdown in consumer credit demand [6] Market Data and Key Metrics Changes - Total retail sales in the industry were down 7% year to date as of September, with Q3 sales down 17% compared to the same period last year [6] - The company experienced a 7% reduction in non-performing assets, indicating stable asset quality [8][24] Company Strategy and Development Direction - The company plans to continue executing its growth strategy, focusing on organic growth and regional diversification [10][11] - An additional $200 million share buyback program was authorized, reflecting the strategy of returning 100% of annual earnings to shareholders [9][25] - The company is considering M&A opportunities in the Florida market to enhance its franchise [50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resiliency of the labor markets in Puerto Rico and the ongoing expansion of the manufacturing sector [10] - The company anticipates loan growth guidance for the year to be closer to the 3% to 4% range, influenced by evolving market conditions [11] - Management noted that while consumer credit demand has slowed, stability is expected in the consumer portfolio [31] Other Important Information - The effective tax rate for the full year is estimated to be around 22.2%, reflecting some expected improvements [91][92] - The company recorded a $16.6 million reversal of valuation allowance on deferred tax assets due to new legislation in Puerto Rico [13] Q&A Session Summary Question: Is the tax situation a one-time benefit? - Management indicated that while the reversal of deferred tax assets is a one-time event, there will be ongoing benefits from normal operating losses [28] Question: What is the health of the consumer in Puerto Rico? - Management noted that auto sales are normalizing and consumer credit demand is lower, but overall stability is expected in the consumer portfolio [30][31] Question: What are the expectations for deposit costs with upcoming rate cuts? - Management expects some reduction in deposit costs due to rate cuts, but noted that the timing of these changes may vary [46] Question: How does credit performance at other banks influence the company's reserves? - Management stated that they maintain a firm risk appetite and focus on their own portfolio performance, without seeing systemic impacts from competitors [47][48] Question: What are the company's priorities for capital deployment? - The company prioritizes organic growth but is open to M&A opportunities that complement its existing franchise [50] Question: Has there been any new competition from outside Puerto Rico banks? - Management confirmed that competition is primarily from smaller local players rather than new entrants from outside [56]