Verizon (NYSE:VZ) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Speaker4Good morning and welcome to Verizon's third quarter 2025 earnings conference call. At this time, all participants have been placed in a listen only mode, and the call will be open for questions following the presentation. Today's conference is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the call over to Mr. Brady Connor, Senior Vice President, Investor Relations.Speaker6Than ...

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth reaching 7% compared to the first nine months of the previous year [3] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [3] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42 to $1.44 per share, reflecting a 6% growth over 2024 at the midpoint [6][14] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 square feet, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [7] - The overall same property lease rate is at 96.6%, a decline of 20 basis points from the previous quarter [8] - Shop occupancy rate remained flat at 92.5%, while the company continues to explore creating new shop space [9] Market Data and Key Metrics Changes - The Boston portfolio now includes seven properties valued at approximately $5,500 million, representing about 10% of the company's total value [5] - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [5] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million in high-quality shopping centers at an average 7% cap rate while disposing of approximately $500 million in non-core assets at a 5% cap rate [5] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [10] - The company aims to generate sustainable same property NOI growth of 3% or more [92] Management's Comments on Operating Environment and Future Outlook - Management expects shopping center fundamentals to remain strong, driven by favorable supply-demand dynamics and record low vacancy rates [6] - The company is optimistic about the leasing market, with national retailers in expansion mode and willing to pay necessary rents [11] - Management highlighted the importance of balancing the addition of restaurant spaces with grocery stores to avoid oversaturation [77] Other Important Information - The company secured a new $123.6 million four-year non-recourse mortgage at a fixed rate of 5.1% [12] - The liquidity position remains strong at over $900 million, including $145 million in cash [14] Q&A Session Summary Question: Can you provide a breakdown of one-time items recognized in 2025? - Management noted about $2 million in one-time collections related to old receivables and approximately $1.5 million from CAM recovery billings [29][30] Question: What is the opportunity set within Shoppers World? - Management expressed confidence in redeveloping the Kohl's parcel and exploring mixed-use opportunities [41][42] Question: How do you balance demand from restaurants and grocers? - Management indicated that both sectors are expanding, with no significant push-pull tension between them [77] Question: Is there a shift in demand in the D.C. metro area? - Management reported strong performance in D.C. centers, with continued demand for retail space [79] Question: What is the outlook for same property NOI growth? - Management aims for sustainable same property NOI growth of 3% or more, supported by the signed-not-open pipeline [92]

Financial Data and Key Metrics Changes - Fourth quarter sales reached $4.75 billion, growing 17% on a reported basis and 11% organically year over year [6] - Full year sales were a record $17.3 billion, growing 9% on a reported basis and 6% organically [8] - Adjusted earnings per share (EPS) for the fourth quarter was $2.44, increasing 25% versus the prior year [6] - Adjusted operating margins were 20%, increasing 130 basis points year over year [7] - Free cash flow for the fourth quarter was $1.2 billion, contributing to a total of over $3 billion for the full year [9] Business Line Data and Key Metrics Changes - In the industrial segment, reported growth was 24%, with organic growth at 18%, driven by demand for AI and energy infrastructure applications [8] - Transportation orders increased 9% year over year, with auto sales growing 2% organically in the fourth quarter [10][11] - Digital Data & Devices segment grew 80% year over year, reflecting strong demand from hyperscaler platforms [12][13] - Energy business sales grew 83%, with organic growth at 24% driven by investments in grid hardening and renewable applications [15] Market Data and Key Metrics Changes - Orders increased to $4.7 billion, a 22% year-over-year increase [6] - Organic order growth was seen across all regions, with notable increases in automotive and energy sectors [10] - The company expects global auto production to remain stable at 87 to 88 million units in fiscal 2026 [11] Company Strategy and Development Direction - The company aims to continue executing its long-term value creation model, with a focus on growth opportunities in AI and energy sectors [5][9] - A change in non-GAAP reporting will exclude amortization expense on intangible assets, starting in fiscal 2026 [3][21] - The company is committed to returning capital to shareholders while also pursuing bolt-on acquisitions to support growth [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong momentum and operational resilience despite an uneven macro environment [5] - The outlook for the first quarter of fiscal 2026 includes expected sales of $4.5 billion, reflecting a 17% year-over-year increase [9] - Management noted that order levels support a positive outlook for double-digit growth in the first quarter [9] Other Important Information - The company will hold an Investor Day event on November 20, where further details on growth opportunities will be shared [4][22] - Adjusted effective tax rate for the first quarter of fiscal 2026 is expected to be approximately 22% [19] Q&A Session Summary Question: AI revenue growth and future expectations - The company generated over $900 million in AI sales in 2025, tripling revenue from the previous year, with expectations for continued growth in 2026 [26][27] Question: Capital expenditures for 2026 - Capital expenditures are expected to increase slightly, supporting AI and cloud programs, with a focus on maintaining a growth rate in line with historical averages [36] Question: Trends by end market and demand changes - The company noted stability in transportation orders and consistent growth in energy, with some challenges in North America [40][43] Question: Gross margin potential and accounting changes - The company is targeting continued margin expansion, with expectations for adjusted operating margins to remain strong [52][55] Question: Market share dynamics in AI - The company aims to compete effectively in a concentrated market, focusing on technology and customer collaboration to gain market share [93]

Financial Data and Key Metrics Changes - The third quarter revenue was $463 million, higher than the prior year quarter due to increased gold and copper prices and sales volumes [16] - Cash generated from operations before working capital adjustments was $296 million, or $0.37 per share, higher than the prior year period primarily due to higher revenues [16] - The company recorded net earnings of approximately $142 million, or $0.18 per share during the third quarter, primarily due to increased revenues [16][17] - The all-in sustaining costs reduced from the second quarter by $425 to $966 per ounce, with an average realized gold price of $3,458 per ounce, resulting in a margin of $2,492 per ounce [5][16] Business Line Data and Key Metrics Changes - New Afton produced approximately 115,200 ounces of gold and 12 million pounds of copper in the quarter, with B3 cave contributing approximately 4,300 tons per day [5][9] - Rainy River achieved record quarterly production of over 100,000 ounces of gold, a 63% increase over the second quarter, with all-in sustaining costs at $1,043 per ounce sold, a 39% decrease compared to the second quarter [4][12][13] Market Data and Key Metrics Changes - The average realized gold price was $3,458 per ounce, contributing to the overall revenue increase [5][16] - The company generated record quarterly free cash flow of $205 million, with Rainy River contributing $183 million in free cash flow [5][16] Company Strategy and Development Direction - The company aims to ramp up production at New Afton and Rainy River, with a focus on increasing underground development and production rates [6][14] - Exploration initiatives are being advanced, particularly at New Afton’s K Zone, with a budget increase to $22 million for approximately 63,000 meters of drilling [18][19] - The company is focused on maintaining a strong balance sheet while investing in exploration and organic opportunities, with plans for potential capital returns to shareholders [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued significant growth in gold and copper production over the next two years, projecting substantial free cash flow generation [22][24] - The company remains committed to health and safety, with a focus on reducing total reportable incident frequency rates [24] - Management highlighted the importance of local hiring and infrastructure improvements to enhance workforce retention [42] Other Important Information - The company repaid a total of $260 million in debt during the quarter, including $150 million drawn on the credit facility [6][17] - New Afton’s C Zone cave construction is approximately 79% complete, with plans to ramp up processing rates to 16,000 tons per day by early 2026 [6][12] Q&A Session Summary Question: Can you provide a breakout of tonnage from the C and B zones? - The B3 cave contributed 4,300 tons per day, with the C Zone contributing the remainder [26][27] Question: What are your plans for capital allocation with the free cash flow? - The company plans to maintain a strong balance sheet, invest in exploration, and evaluate capital returns to shareholders [30][31] Question: What is the current turnover rate and what are your targets for improvement? - The company is focusing on attracting local talent and improving infrastructure to retain workers, addressing the shortage of skilled miners in Ontario [42] Question: What should we expect for Rainy River's performance for the balance of the year? - The company expects continued positive performance in Rainy River, with no significant changes in trajectory [49] Question: How should we think about grades coming into 2026 at New Afton? - Grades at the start of a cave will be lower, but are expected to improve as the cave grows [56]

Financial Data and Key Metrics Changes - Otis reported net sales of $3.7 billion for Q3 2025, with organic sales up 2%, driven by a 6% increase in service and a 14% increase in modernization sales [7][14] - Adjusted operating profit margin expanded by 20 basis points to 17.1%, with adjusted earnings per share increasing by approximately 9% [7][14] - Adjusted free cash flow increased to $337 million in the quarter, with a year-to-date total of $766 million [14][25] Business Line Data and Key Metrics Changes - Service organic sales grew 6%, with maintenance and repair organic sales up 4% and repair business accelerating to 7% growth [16][18] - Modernization sales saw significant acceleration with organic sales growth of 14%, supported by a strong backlog [18] - New equipment orders grew 4%, with a notable decline in China impacting overall performance [8][19] Market Data and Key Metrics Changes - New equipment orders in the Americas grew mid-single digits, while EMEA saw high teens growth driven by Southern Europe and the Middle East [10][22] - In Asia, new equipment orders declined, particularly in China, which is expected to see a mid-single digit decline for the second half of the year [10][22] - The total backlog, including maintenance and repair, remains near historically high levels, supporting future growth [10][11] Company Strategy and Development Direction - Otis is focused on a service-driven business model, with a commitment to customer-centric innovation through products like Otis Arise MOD packages [8][9] - The company anticipates being in the early stages of a multi-year growth cycle in modernization, driven by an aging installed base [11][32] - Otis aims to maintain a strong service portfolio, with expectations for continued growth in maintenance and repair [28][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improving trends in the Americas, particularly in infrastructure and residential sectors [22][39] - The outlook for EMEA remains stable, while Asia, particularly China, is expected to face challenges [22][28] - The company expects adjusted operating profit to grow, driven by service segment strength, despite ongoing challenges in new equipment sales [24][31] Other Important Information - Otis completed approximately $250 million in share repurchases during Q3, bringing the year-to-date total to approximately $800 million [8][25] - The company was recognized by TIME magazine as one of the World's Best Companies for 2025 and by Forbes as one of the World's Best Employers [9] Q&A Session Summary Question: Can you talk about maintenance efforts regarding retention and recapture? - Management acknowledged the need to improve customer retention and recapture rates, indicating a long journey ahead but positive trends in customer satisfaction and portfolio growth [36][38] Question: What factors contributed to the improved outlook for the Americas? - Management highlighted strong demand in residential and infrastructure sectors, along with improved execution at job sites, leading to a positive outlook for revenue growth in the Americas [39][40] Question: Can you discuss the visibility on repair activity growth? - Management noted a sequential improvement in repair activity, with expectations for growth to reach 10% in Q4, driven by an aging installed base and improved backlog conversion [43][45] Question: What is the outlook for service margins beyond Q4? - Management expressed confidence in maintaining service margin expansion, driven by volume growth and productivity, despite potential headwinds from modernization mix [63][66] Question: How is pricing evolving in different regions? - Management reported that service pricing increased across various regions, with China showing stabilization in pricing trends [53][70]

Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to $1.4 billion, with core sales increasing by 5.1% driven by both volume and price increases [13][14] - Adjusted EPS grew 11% year over year to $0.99, exceeding the high end of guidance by $0.04 [15][24] - Free cash flow generation was strong, with $258 million generated in the third quarter, a 20% increase year over year [15][20] Business Line Data and Key Metrics Changes - Water Quality segment sales were $856 million, up 7% year over year, with core sales growing 5.3% [16][17] - PQI segment sales grew 6.9% year over year to $548 million, with core sales increasing by 4.6% [17][18] - Recurring revenue grew high single digits year over year, comprising 62% of total sales [14][15] Market Data and Key Metrics Changes - In North America, which accounts for 50% of total business, core sales grew 6.9%, led by high single-digit growth in PQI and mid-single-digit growth in Water Quality [9][10] - Core sales in high growth markets increased by 4.3%, with notable growth in the Middle East, Latin America, and India [12] - Core sales into China grew low single digits in both segments, performing as expected [34] Company Strategy and Development Direction - The company raised its full year adjusted EPS guidance to a range of $3.82 to $3.85 per share, indicating confidence in continued growth [5][24] - The capital allocation strategy is focused on acquisitions, with a pipeline of opportunities in both water quality and product quality innovation [5][22] - The company emphasizes sustainability, having published its annual sustainability report and achieved significant milestones in environmental contributions [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment, highlighting the essential need for technology solutions in clean water and safe food [25] - The company expects continued mid-single-digit core sales growth for the full year, with favorable currency rates contributing positively [22][23] - Management noted that the pricing strategy has effectively offset tariff impacts, and they remain vigilant in monitoring the operating environment [31][32] Other Important Information - The company achieved over 100% free cash flow conversion, reflecting strong operational execution [5][15] - The water quality segment saw strong demand for water analytics and treatment solutions, particularly in industrial markets [11][17] Q&A Session Summary Question: Clarification on tariffs and government shutdown impacts - Management indicated that pricing actions have effectively offset tariff impacts, and there has been no material impact from the government shutdown [30][32] Question: Comments on demand pace in China - Management noted that demand in China is performing as expected, with no significant changes in total sales [34] Question: Durability of strength in water quality business - Management highlighted strong double-digit growth in data center-related sales, indicating a strategic priority for the company [41][42] Question: Expectations for PQI margins and pricing - Management acknowledged that while tariffs have impacted margins, they expect to see improvements as they lap the tariff effects in 2026 [45][46] Question: Growth in high-growth markets - Management reported strong growth in high-growth markets, particularly in Latin America and India, driven by infrastructure development [89][90] Question: Recurring revenue growth drivers - Management stated that both equipment and consumables are growing strongly, with software-based businesses also contributing to recurring revenue [91][92]

The Chefs' Warehouse (NasdaqGS:CHEF) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Speaker4Greetings and welcome to The Chefs' Warehouse third quarter 2025 earnings conference call. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Alex Aldous, General Counsel, Corporate Secretary, and Chief Government Relations Officer. Please go ahead, sir.Speaker5Thank you, Operator. Good morning, everyone. With me on today's call are Chris Pappas, Founder, ...

Financial Data and Key Metrics Changes - In Q3 2025, adjusted EPS increased by 50% and adjusted EBITDA rose by more than 46% compared to Q3 2024 [4][18] - Net income for Q3 2025 was $71 million, with adjusted net income at $73 million or $0.42 per share [18] - Adjusted gross margin percentage reached 73%, benefiting from a $9.9 million cash tax credit [13][14] Business Segment Data and Key Metrics Changes - Contract operations revenue was $326 million in Q3 2025, up 2% from Q2 2025, driven by growth in horsepower and pricing [19] - Aftermarket services segment reported revenue of $56 million in Q3 2025, down from $65 million in Q2 2025 but up 20% from $47 million in Q3 2024 [20] - Adjusted gross margin for aftermarket services remained at 23%, consistent with previous guidance [20] Market Data and Key Metrics Changes - The U.S. natural gas infrastructure buildout continues to support robust performance, with expectations for growth in natural gas production in the low single digits [4][7] - Significant growth in U.S. LNG exports is anticipated, with demand expected to increase by more than 17 BCF/day by 2030 [8] - The compression industry is entering a durable upturn driven by natural gas demand growth and capital discipline across the energy sector [7][8] Company Strategy and Development Direction - The company aims to drive growth through customer experience, innovative technology, and returns-based capital allocation [6] - A growth CapEx of at least $250 million is expected for 2026 to support infrastructure buildout in response to growing natural gas demand [15][24] - The company plans to maintain a target leverage ratio of between 3 to 3.5 times while continuing to return capital to shareholders through dividends and share repurchases [16][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to generate free cash flow and return capital to shareholders, highlighting a strong operational and financial execution [5][17] - The current environment is characterized by commodity price volatility, but natural gas production growth is expected to continue [6][7] - Management noted that the compression market is experiencing strong demand due to underinvestment in infrastructure [39] Other Important Information - The company repurchased approximately 1.1 million shares for about $25 million in Q3 2025, with a total of $159 million returned to shareholders through dividends and share repurchases in the first three quarters of 2025 [22][16] - The company has a total debt of $2.6 billion and available liquidity of $728 million [21] Q&A Session Summary Question: Thoughts on deploying free cash flow and capital allocation - Management emphasized that the best use of capital remains investing in business growth, with plans to continue growing dividends and share repurchases [27][30] Question: Insights on margins and sustainability - Management highlighted that gross margins were driven by pricing and excellent cost management, with technology investments improving operational efficiency [31][33] Question: Demand side and customer discussions - Management noted robust demand for LNG and data centers, leading to increased discussions with customers and confidence in multi-year growth [36][39] Question: Lead times and customer behavior - Lead times for Caterpillar engines are currently at 60 weeks, with no major shifts in customer behavior observed despite lower crude prices [46][48] Question: Extended time on location and recontracting - Management indicated that units are staying on location longer, which is expected to lead to longer contract terms and opportunities for repricing [51][53] Question: Capital expenditures and market conditions - Management stated that a $250 million growth CapEx for 2026 is consistent with prior years and reflects confidence in the market [65][66]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [20] - Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with an adjusted EBITDA margin improving from 8.7% to 8.9% year-to-date [21] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024, and year-to-date adjusted diluted earnings per share rose by 33% to $0.65 in 2025 from $0.49 in 2024 [22] Business Line Data and Key Metrics Changes - Revenue mix as a percentage of total net sales increased by 2% in targeted print offerings, driven by growth in direct marketing, packaging, and in-store solutions [20] - Direct mail revenue increased by over 6% year-to-date, packaging grew by over 9%, and in-store solutions rose by 11% year-to-date [36] Market Data and Key Metrics Changes - The USPS announced it would not issue a January price increase for market-dominant mail, which is expected to positively impact marketers as they finalize their 2026 media plans [6][39] - High postage rates continue to significantly impact the industry, but the lack of a January increase is seen as favorable for clients [39] Company Strategy and Development Direction - The company is making targeted investments in AI-powered tools, data intelligence services, and retail media networks to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus includes maximizing savings for clients while increasing marketing effectiveness through innovative solutions like co-mailing and audience intelligence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong sales lift results from campaigns with major clients [16] - The company is closely monitoring macroeconomic pressures, including inflation and tariffs, which could affect client marketing spend [31] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases, with a 50% increase in the quarterly dividend [25] - The company expects free cash flow in Q4 2025 to be between $137 million and $147 million, following a seasonal pattern of negative cash flow in the first nine months of the year [23] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [36][37] Question: Impact of USPS postponing price increase - Management indicated that the postponement is favorable and could positively influence client spending for 2026 [39][40] Question: Updated guidance for net sales - Management discussed variability in direct mail as a transactional area that could impact sales outlook for Q4 [42][44] Question: Adjusted EBITDA and CapEx guidance - The midpoint for adjusted EBITDA was slightly decreased, while capital expenditures are expected to shift towards technology and automation [46][48] Question: Updates on In-Store Connect deployment - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback on new digital signage solutions [49][50]

Zurn Elkay Water Solutions (NYSE:ZWS) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Speaker1Good morning and welcome to the Zurn Elkay Water Solutions Corporation Third Quarter 2025 Earnings Results Conference call with Todd Adams, Chairman and Chief Executive Officer, David Polley, Chief Financial Officer, and Bryan Wendlandt, Director of FP&A for Zurn Elkay Water Solutions. A replay of the conference call will be available as a webcast on the company's investor relations website. At this time, for op ...