NiSource (NYSE:NI) Q3 2025 Earnings Call October 29, 2025 11:00 AM ET Company ParticipantsLloyd Yates - CEO and PresidentNick Amicucci - VP of Equity ResearchBill Appicelli - Executive DirectorDurgesh Chopra - VP of Investor RelationsEli Jossen - VP of Equity ResearchShar Pourreza - Managing DirectorShawn Anderson - EVP and CFOMichael Luhrs - EVP of Technology and Customer and Chief Commercial OfficerChristopher Jeffrey - Equity Research Senior AssociateConference Call ParticipantsPaul Fremont - Managing Di ...

Mirion (NYSE:MIR) Q3 2025 Earnings Call October 29, 2025 11:00 AM ET Company ParticipantsThomas Logan - Founder, Chairman and CEOBrian Schopfer - EVP, CFO, and Medical Group PresidentYuan Zhi - Managing DirectorNone - Company RepresentativeThomas Cassino - Managing DirectorJoe Ritchie - Managing DirectorAndrew Kaplowitz - Managing DirectorEric Linn - Treasurer and Head of Investor RelationsConference Call ParticipantsRob Mason - VP and Senior Research AnalystNone - AnalystJeff Grampp - Managing Director and ...

Financial Data and Key Metrics Changes - The company reported net sales of $2 billion for the third quarter, a 15% increase from the prior year, primarily driven by growth in dispensing products and the Vayner acquisition [22] - Adjusted EBIT for the quarter was $221 million, an 8% year-over-year increase, attributed to strong growth in dispensing products and improved price costs in custom containers [23] - Adjusted EPS was $1.22, slightly above the prior year quarter, despite higher interest expenses and a higher tax rate [23] Business Line Data and Key Metrics Changes - The Dispensing and Specialty Closures segment saw a 23% increase in sales compared to the prior year, mainly due to the inclusion of Vayner sales and higher volumes of high-value dispensing products [24] - Metal containers sales increased by 13% year-over-year, driven by favorable price mix and a 4% increase in unit volumes, particularly in pet food markets [25] - Custom containers sales grew by 1% year-over-year, with volumes increasing by 4% when excluding lower margin business exited for cost reduction [26] Market Data and Key Metrics Changes - The North American consumer market has shown bifurcation, with high-end products performing well while lower-tier consumers are more selective due to inflation and muted wage growth [10][11] - The company expects a mid-single-digit percentage decline in volumes for dispensing and specialty closures and custom containers in the fourth quarter, while metal containers are expected to grow by a mid-single-digit percentage [27] Company Strategy and Development Direction - The company continues to focus on organic growth and high-value dispensing products, with expectations for mid-single-digit growth in the dispensing segment [14] - The long-term customer relationships and partnerships are emphasized as key differentiators, providing stability and growth opportunities [18] - The company is looking for acquisition opportunities to expand its Dispensing and Specialty Closures business, targeting similar growth profiles to past acquisitions [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment has been impacted by unique challenges, including customer bankruptcies and poor weather affecting sports drink volumes [32] - The company anticipates higher earnings and free cash flow in 2026, despite the current year's challenges [20] - Management remains confident in the ability to execute on plans and drive growth, despite some market unpredictability [20] Other Important Information - The company returned over $120 million to shareholders through dividends and share repurchases [6] - The integration of the Vayner acquisition has been successful, contributing to growth and additional contractual volume [7] Q&A Session Summary Question: What do you attribute the current volume decline to compared to previous cycles? - Management highlighted unique one-off instances affecting specific markets, contrasting the current situation with the broad destocking cycle experienced in 2023 [31] Question: Do you see the weakness in personal care and home care markets broadening to pet food? - Management expressed confidence in the pet food segment, expecting continued growth despite challenges in other areas [37] Question: Why did the Dispensing and Specialty Closures segment miss previous revenue growth expectations? - Management attributed the miss to late September changes in the personal care and home care market, which were not anticipated earlier [43] Question: What are the expectations for free cash flow despite a lower outlook for the fourth quarter? - Management indicated that proactive cost reductions and inventory management would help maintain free cash flow estimates [87] Question: How does the company plan to instill confidence in its strategy moving forward? - Management emphasized the importance of performance and accountability, focusing on delivering results in the fourth quarter and maintaining free cash flow [51]

Financial Data and Key Metrics Changes - The company reported a 12% increase in total sales for the second quarter, driven primarily by growth in the Climate Solutions segment [19] - Adjusted earnings per share (EPS) was $1.06, reflecting a 9% increase compared to the prior year [20] - The gross margin declined by 290 basis points to 22.3%, primarily due to increased costs associated with the data center capacity expansion [19][22] Business Line Data and Key Metrics Changes - Climate Solutions segment revenue increased by 24%, with data center sales growing by 42% [14][24] - Performance Technologies segment revenue declined by 4%, but adjusted EBITDA improved by 3%, with adjusted EBITDA margins increasing by 90 basis points to 14.7% [10][18] - HVAC Technologies revenue increased by 25% due to acquisitions, offset by lower indoor air quality sales [14] Market Data and Key Metrics Changes - The company anticipates a significant increase in data center sales, projecting over 60% growth for the fiscal year [8][24] - The company is expanding its manufacturing capacity in the U.S., U.K., and India to meet growing demand in the APAC region [7][8] Company Strategy and Development Direction - The company is focused on expanding its U.S. manufacturing capacity for data center products and investing in its fastest-growing businesses [3] - The strategy includes integrating recent acquisitions to improve margins and capacity utilization while unlocking new commercial opportunities [3][4] - The company aims to evolve from a low-volume, high-mix manufacturing operation to a high-volume producer, particularly in the data center segment [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to meet targets and customer commitments despite current challenges, including workforce hiring and training [7][9] - The company expects a significant jump in revenue between Q3 and Q4, driven by new capacity coming online [7][21] - Management raised the revenue outlook for fiscal 2026, expecting total company sales to grow in the range of 15%-20% [10][24] Other Important Information - Free cash flow was negative $31 million in the second quarter, primarily due to higher inventory builds and capital expenditures [22] - The company plans to fully fund its U.S. pension plan prior to a planned annuitization in the third quarter [26] Q&A Session Summary Question: Can you parse out year-over-year margin contraction on the climate side of the business? - The margin contraction was primarily driven by data center expansion costs, accounting for about 225-250 basis points, with additional impacts from HVAC Technologies and heat pump settlements [31][32] Question: What gives confidence that margins should normalize going into Q4? - Confidence stems from learning and efficiency improvements from previous product launches, which will help improve margins as production ramps up [50][51] Question: How do you view the total addressable market in calendar 2027? - The company anticipates that reaching $2 billion in sales by fiscal 2028 could represent 15%-20% of the available HVAC market [60] Question: How is customer concentration evolving in the data center area? - The company is building strong relationships with hyperscalers and neo-cloud providers, which is expected to drive further demand [86] Question: What is the outlook for liquid cooling business? - The liquid cooling market is evolving, and the company sees potential for growth in this area, complementing existing air cooling solutions [95]

NiSource (NYSE:NI) Q3 2025 Earnings Call October 29, 2025 11:00 AM ET Company ParticipantsLloyd Yates - CEO and PresidentNick Amicucci - VP of Equity ResearchBill Appicelli - Executive DirectorDurgesh Chopra - VP of Investor RelationsEli Jossen - VP of Equity ResearchShar Pourreza - Managing DirectorShawn Anderson - EVP and CFOMichael Luhrs - EVP of Technology and Customer and Chief Commercial OfficerChristopher Jeffrey - Equity Research Senior AssociateConference Call ParticipantsPaul Fremont - Managing Di ...

Financial Data and Key Metrics Changes - The company reported FFO of $0.86 per share, with a net income of $12.9 million or $0.12 per share for the quarter [23][24] - The midpoint of the FFO outlook for 2025 was raised by $0.08, marking the third consecutive quarter of increases [10][26] - The debt to EBITDA ratio was 6.4x at quarter end, with expectations for improvement as signed leases convert to occupancy [24][25] Business Line Data and Key Metrics Changes - The company signed over 1 million sq ft of second-generation leasing volume, including 326,000 sq ft of new leases, marking strong leasing activity for eight consecutive quarters [5][10] - The lease percentage for the development pipeline increased to 72%, up from 64% in the previous quarter [7][15] - Net effective rents reached a new high, 18% above the 2019 average, indicating strong pricing power [7][14] Market Data and Key Metrics Changes - Dallas, Nashville, Charlotte, and Tampa were highlighted as standout markets, with Dallas experiencing significant in-migration and corporate expansions [16][18][20] - Nashville's unemployment rate was reported at 2.9%, the lowest among the company's markets, with asking rates up more than 11% year-over-year [18][19] - Charlotte saw a 77% year-over-year increase in leasing activity, with a strong demand for Class A space [20] Company Strategy and Development Direction - The company is focused on securing embedded NOI growth by leasing key vacancies and recycling non-core assets into higher quality properties [4][11] - The strategy includes maintaining a strong balance sheet while pursuing acquisitions and dispositions to enhance portfolio quality [10][11] - The company plans to provide its 2026 outlook in February, indicating a forward-looking approach to growth [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing pipeline and the potential for significant NOI growth from signed leases [12][24] - The company anticipates elevated capital expenditures due to leasing activity but expects cash flow levels to improve as occupancy builds [41][43] - Management noted that the capital markets environment is improving, which could facilitate future acquisitions and dispositions [66] Other Important Information - The company has $625 million of available liquidity and extended the maturity on its $200 million variable rate term loan to 2031 [25] - The acquisition of the Legacy Union Parking Garage for $111.5 million was funded on a leverage-neutral basis, demonstrating the company's financial strategy [9][26] Q&A Session Summary Question: Outlook on potential acquisitions or dispositions - Management indicated that acquisition opportunities are focused on existing markets, with ongoing portfolio rotation to trim non-core assets [31][32] Question: Financing for potential acquisitions - The plan is to primarily use disposition proceeds for funding acquisitions, with ATM issuance as a secondary option [33] Question: Market migration trends - Dallas is currently leading in tenant migration, with Charlotte and Nashville also experiencing significant activity [36][38] Question: Impact of elevated capital expenditures on cash flow - Elevated CapEx is expected to continue through 2026, but strong NOI growth is anticipated to improve cash flow levels [41][43] Question: Pricing expectations for sold assets - Pricing for dispositions is generally meeting or exceeding initial expectations, with more institutional capital entering the market [66]

Financial Data and Key Metrics Changes - The company reported FFO of $0.86 per share, with the midpoint of the FFO outlook raised by $0.08 compared to the initial outlook provided in February [10][25] - Net income for the quarter was $12.9 million or $0.12 per share, with net effective rents reaching a historical high [22][23] - The debt to EBITDA ratio was 6.4 times at quarter end, with expectations for improvement as signed leases convert into occupancy [23][24] Business Line Data and Key Metrics Changes - The company signed over 1 million square feet of second-generation leasing volume, including 326,000 square feet of new leases, marking strong leasing activity for eight consecutive quarters [5][14] - The lease percentage for the development pipeline increased to 72%, up from 64% in the previous quarter, with 122,000 square feet of leases signed [7][15] - The company acquired the Legacy Union parking garage for $111.5 million and sold a non-core property for $16 million, demonstrating active investment activity [8][9] Market Data and Key Metrics Changes - Dallas, Nashville, Charlotte, and Tampa were highlighted as standout markets, with Dallas experiencing significant in-migration and corporate expansions [16][18] - In Nashville, asking rates increased by more than 11% year over year, reflecting strong demand and limited supply [18] - Charlotte's leasing activity was up 77% year over year, with a portfolio occupancy of 96% [19][20] Company Strategy and Development Direction - The company is focused on securing embedded NOI growth by leasing up key vacancies and recycling non-core assets into higher quality properties [4][11] - The strategy includes maintaining a strong balance sheet while pursuing acquisitions and dispositions to enhance portfolio quality [10][11] - The company plans to provide its 2026 outlook in February, indicating a forward-looking approach to growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing pipeline and the potential for significant NOI growth from signed leases that have not yet commenced [12][23] - The company anticipates a clear pathway to higher earnings and cash flow as occupancy increases [12][23] - Management noted that the capital markets are improving, which could facilitate future acquisitions and dispositions [64] Other Important Information - The company has $625 million of available liquidity and only $96 million left to complete its development pipeline [24] - The acquisition of the Legacy Union parking garage is expected to provide excellent risk-adjusted returns due to limited CapEx associated with garage ownership [9] Q&A Session Summary Question: Potential for increased acquisitions or dispositions - Management indicated that acquisition opportunities are focused on existing markets and enhancing current holdings, with several assets already in the market for disposition [30][31] Question: Financing assets for potential acquisitions - The plan is to primarily use disposition proceeds for funding acquisitions, with ATM equity issuances as a secondary option [32] Question: Market migration trends - Dallas is currently leading in tenant migration, followed by Charlotte and Nashville, with strong demand across the portfolio [36][37] Question: Impact of elevated capital expenditures on cash flow - Elevated CapEx is expected to continue through next year, but significant NOI growth is anticipated to improve cash flow levels [40][41] Question: Pricing expectations for sold assets - Pricing for dispositions is generally meeting or exceeding initial expectations, with more institutional capital entering the market [64][65] Question: Update on non-core assets - The company continuously evaluates its portfolio, with some previously core assets now considered non-core due to changing growth trends [66] Question: Update on Ovation project - The company has control over the entire site and plans to begin vertical construction in 2027, with a focus on mixed-use development [73][74]

The Timken Company (NYSE:TKR) Q3 2025 Earnings Call October 29, 2025 11:00 AM ET Company ParticipantsMike Discenza - CFONeil Frohnapple - VP of Investor RelationsDavid Raso - Senior Managing Director and PartnerStephen Volkmann - Managing DirectorBrian Blair - Managing Director and Equity ResearchLucian Boldea - President and CEOAngel Castillo - Executive Director and Head of U.S. Machinery and Construction Equity ResearchConference Call ParticipantsTim Thein - Senior Industrial Machinery AnalystKyle Menges ...

Financial Data and Key Metrics Changes - Third quarter revenue totaled $223 million, an increase of nearly 8% from the previous year, with organic revenue growth of 4.7% [6][19] - Adjusted EBITDA for the quarter was $52.4 million, up 14.7% year-over-year, with margin expansion contributing to the increase [7][20] - Adjusted free cash flow for the third quarter was $18 million, contributing to a year-to-date total of $53 million, leading to an increase in adjusted free cash flow guidance for 2025 to between $100 million and $115 million [7][24] - Adjusted EPS was $0.12 per share, a 50% increase compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Nuclear and safety segment revenue grew 9% to $144.6 million, with organic growth of 4.4% [22] - Medical segment revenue totaled $78.5 million, up 5.9%, with organic revenue growth of 5.2% [23] - Adjusted orders in the nuclear power end market grew 21%, reflecting strong demand across new builds, SMRs, and the installed base [9][15] Market Data and Key Metrics Changes - Year-to-date orders in the U.S. nuclear power end market increased by 44%, primarily driven by SMR activity [15] - The global nuclear fleet's average capacity factor reached 83% in 2024, indicating a positive trend for nuclear power utilization [10] - The IAEA has increased its nuclear capacity forecast, expecting nearly a terawatt of nuclear capacity by 2050 [10] Company Strategy and Development Direction - The company is focused on expanding its nuclear power portfolio through acquisitions, including the recent Paragon Energy Solutions deal [5][12] - The strategy includes enhancing software solutions for regulatory compliance and broadening product offerings in the nuclear power sector [12][13] - The company remains optimistic about the nuclear renaissance and its positioning to benefit from it [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the nuclear power market's growth, citing strong order flow and government support for new projects [31][32] - The medical segment is expected to normalize despite current pressures, with continued demand for cancer care solutions [36][71] - Management anticipates a rebound in the RTQA business as funding dynamics stabilize [36] Other Important Information - The company expects to close the Paragon acquisition by year-end, which will enhance its U.S. presence and product offerings [5][12] - The company is actively managing supply chain risks and has developed strategies to mitigate exposure to critical commodities [65][66] Q&A Session Summary Question: Regarding the commercial nuclear backlog and project activity - Management indicated that the installed base and new utility scale builds are key drivers for future backlog growth, with government support expected to streamline project timelines [30][31] Question: Insights on the medical business amidst current pressures - Management remains optimistic about the medical segment, citing strong demand drivers and expecting normalization in the RTQA business [34][36] Question: Confidence in the $175 million pipeline and potential awards - Management expressed confidence in the pipeline, noting that timing for large opportunities can be unpredictable but remains optimistic about winning a significant portion [41] Question: Clarification on SMR opportunities and project details - Management highlighted the expanding SMR project pipeline and the importance of government support in accelerating market growth [44][61] Question: Pricing power trends in nuclear safety versus medical - Management noted positive pricing dynamics in the nuclear segment, while being more cautious in the medical segment due to current market conditions [68] Question: Impact of U.S. healthcare environment on business - Management discussed the effects of Medicaid cuts and overall market noise on capital expenditures, but remains confident in the underlying demand for their solutions [71]

Financial Data and Key Metrics Changes - The company raised its full-year AFFO guidance, expecting mid-5% year-over-year growth, which is among the highest in the net lease sector [4] - AFFO per share for Q3 was $1.25, a 5.9% increase compared to the same quarter last year [13] - The company expects full-year AFFO to total between $4.93 and $4.99 per share, implying 5.5% year-over-year growth at the midpoint [14] Business Line Data and Key Metrics Changes - Year-to-date investment volume reached $1.65 billion with a weighted average initial cap rate of 7.6% [8] - Same-store rent growth for the quarter was 2.4% year-over-year, with expectations for full-year growth around 2.5% [16] - The company completed sales of 37 operating self-storage properties and one student housing property this year [18] Market Data and Key Metrics Changes - The company noted a significant number of opportunities in the U.S. market, while also increasing investment volume in Europe [9] - The investment split between North America and Europe was closer to 50/50 in Q3, indicating increased activity in Europe [45] - The company expects to maintain attractive spreads between investments and dispositions, estimating overall spreads of approximately 150 basis points for the year [15] Company Strategy and Development Direction - The company plans to allocate more capital to capital projects, which historically averaged around 10%-15% of annual investment volume [11] - The company aims to continue generating double-digit total shareholder returns in 2026 through a combination of AFFO growth and dividend yield [24] - The company is focused on maintaining a strong pipeline of transactions, with several hundred million dollars currently in process [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum into 2026, citing a strong transaction environment and lower interest rate volatility [7] - The company has visibility into total rent loss of about $7 million for the year, which is lower than previous estimates [18] - Management noted that the broader credit quality has improved, allowing for strong earnings growth despite ongoing caution [40] Other Important Information - The company ended Q3 with liquidity totaling about $2.1 billion, providing flexibility for future investments [21] - The company increased its quarterly dividend by 4% year-over-year to $0.91 per share, supported by earnings growth [21] Q&A Session Summary Question: Update on operating self-storage asset sales and non-core capital sources for next year - Management indicated that equity will play a larger role in funding next year, with dispositions reverting to a more typical run rate [28][29] Question: Competition from private net lease platforms - Management acknowledged increased competition, particularly from private equity players, but noted that their experience and track record provide a competitive advantage [31][32] Question: Status of Hellweg leases and planned store takebacks - Management reported progress in reducing exposure to Hellweg, with several leases signed and sales expected to close soon [36][37] Question: Insights on the investment pipeline and geographic split - Management highlighted a strong near-term pipeline with a mix of U.S. and European investments, noting increased activity in Europe [45][46] Question: Sustainability of same-store rent growth amid inflation changes - Management expects contractual same-store growth to remain strong, supported by higher fixed increases on new investments [53] Question: Cap rate expectations and differences between U.S. and Europe - Management noted that cap rates have remained stable, with slight tightening expected in Europe due to earlier rate stabilization [80] Question: Visibility on 2026 and 2027 lease expirations - Management confirmed that virtually all expiring ABR for 2026 and 2027 is actively being worked on, with manageable levels of expirations [109]