Donnelley Financial Solutions, Inc. (NYSE:DFIN) Q4 2024 Earnings Conference Call February 18, 2025 9:00 AM ET Company Participants Mike Zhao - Head-IR Dan Leib - CEO Dave Gardella - CFO Craig Clay - President-Global Capital Markets Eric Johnson - President of Global Investment Companies Conference Call Participants Charles Strauzer - CJS Securities Kyle Peterson - Needham Audra Good morning. My name is Audra, and I will be your conference operator today. At this time, I would like to welcome everyone to the ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported contract drilling services revenue of $882 million and adjusted EBITDA of $319 million, with an adjusted EBITDA margin of 34% [35] - For the full year 2024, total revenue was $3.1 billion and adjusted EBITDA was $1.1 billion [36] - The company generated $136 million in cash flow from operations in Q4, with net capital expenditures of $134 million and free cash flow of $2 million [36] - The total backlog as of February 17, 2025, stands at $5.8 billion, with approximately $2.4 billion scheduled for revenue conversion during the remainder of 2025 [37] Business Line Data and Key Metrics Changes - The fourth quarter was the first full quarter with Diamond Offshore, contributing to solid results [11] - The company has secured over $500 million in firm commitments for 2025 and 2026, with recent day rate fixtures for tier-1 drillships holding firm in the mid-to-high $400s per day [11][12] Market Data and Key Metrics Changes - Contracted deepwater demand has decreased from about 105 rigs and 94% marketed utilization to 100 rigs and 89% marketed utilization [13] - Current demand in West Africa is 13 UDW rigs, down from 17 to 20 in 2023, while South America has seen an increase in demand to 42 rigs, a current cycle high [20][22] - The U.S. Gulf remains stable with 23 contracted UDW rigs, while the Mediterranean and Black Sea have nine units contracted [23][24] Company Strategy and Development Direction - The company completed the acquisition of Diamond Offshore, aiming for $100 million in synergies, with over half already realized [10][38] - The strategy includes permanently retiring cold-stacked drillships to reduce annualized stacking costs by upwards of $20 million [15][16] - The focus is on operating a high-spec and highly utilized fleet to deliver value for customers and shareholders [16] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term demand for deepwater services despite a mid-cycle lull expected to carry into 2025 [13][46] - The company anticipates a rebound in demand starting in late 2026 or 2027, with a potential net demand improvement of up to 10 or more units by that time [27][46] - Management acknowledges the current softness in the market but believes it is transitory and that the fundamental drivers for the business are durable [45][46] Other Important Information - The company declared a $0.50 dividend for Q1 2025, continuing its return of capital program, which totaled over $575 million for 2024 [11] - The company expects cash taxes to be approximately 12% of adjusted EBITDA and anticipates capital expenditures between $375 million and $425 million for 2025 [41][43] Q&A Session Summary Question: On the tier-1 drillship market - Management indicated good prospects for contracting tier-1 drillships, with more opportunities starting in 2026 than in 2025 [51][53] Question: Decision to retire the Meltem drillship - Management explained that the decision was based on a diminished call for stacked capacity and the rig's lack of operational history [60][64] Question: 2025 guidance and fleet optimization - Management confirmed that approximately 90% of the EBITDA midpoint is secured by current contracts, with ongoing efforts to optimize the fleet [73][76] Question: Demand for jackup assets in Norway - Management expressed optimism about potential demand for jackup assets in Norway, indicating stability in utilization rates [91][93] Question: SG&A expenses in Q4 - Management stated that the low SG&A figure in Q4 is a reasonable estimate for future periods, with ongoing realization of synergies from the Diamond acquisition [125][126]

Financial Data and Key Metrics Changes - The company reported sales of $6.7 billion and EBITDA of $682.3 million for the full year 2024, with an EBITDA margin of 10.3% [10][71] - In Q4, sales declined by 4% to $1.46 billion, driven by a 4% reduction in selling prices while unit sales remained flat [39][101] - Adjusted EBITDA for Q4 fell by 28% to $133 million, with an adjusted EBITDA margin of 9.1% [40][102] - The return on invested capital was 18.3%, nearly double the weighted average cost of capital [41][102] Business Line Data and Key Metrics Changes - Retail segment sales were flat at $525 million, with a 1% decline due to product transfers to packaging, but unit sales increased by 1% [42][104] - Packaging segment sales dropped 9% to $375 million, with an 8% decline in selling prices and a 2% decrease in units [44][106] - Construction segment sales decreased 5% to $487 million, with a 7% decline in selling prices partially offset by a 2% increase in units [46][108] Market Data and Key Metrics Changes - Fourth quarter unit sales were relatively unchanged, with 2% growth in construction and 1% growth in international operations, while retail sales remained flat [16][78] - The company expects existing home sales to remain depressed and housing affordability to be a challenge, impacting overall market conditions [95][96] - Industry forecasts for housing starts in 2025 are mixed, with estimates ranging from slightly down to slightly up [95][96] Company Strategy and Development Direction - The company aims to drive profitable growth and has identified runways across each business unit that meet high return thresholds [19][80] - The acquisition of C&L Wood Products was announced, which will operate under the UFP Packaging's PalletOne business unit [21][82] - A $1 billion multiyear capital plan is in place, focusing on automation, technology, and capacity expansion [23][84] Management's Comments on Operating Environment and Future Outlook - Management noted that the continued weak demand has decreased operating efficiency and increased competitive pressure, compressing operating profits [9][70] - The outlook for the first half of 2025 anticipates slightly down demand across segments, with competitive pricing expected to persist [60][61] - Despite uncertainties, the company is confident in its ability to navigate potential pricing impacts from tariffs and maintain market share [97][99] Other Important Information - The company has identified $60 million in structural cost savings from ongoing cost and capacity reductions [29][90] - Operating cash flow for the year totaled $643 million, with a strong balance sheet showing nearly $1.2 billion in surplus cash [52][118] - A quarterly dividend of $0.35 per share was approved, representing a 6% increase from the previous year [57][120] Q&A Session Summary Question: What are the expectations for unit sales in 2025? - Management expects modest unit declines across each business unit in the aggregate through the first half of the year [98][60] Question: How is the company addressing competitive pricing pressures? - The company is focused on reducing costs, eliminating excess capacity, and divesting underperforming assets while positioning for future market demand improvements [62][61]

Transocean Ltd. (NYSE:RIG) Q4 2024 Earnings Conference Call February 18, 2025 9:00 AM ET Company Participants Alison Johnson - Director of Investor Relations Jeremy Thigpen - Chief Executive Officer Keelan Adamson - President and Chief Operating Officer Thaddeus Vayda - Executive Vice President and Chief Financial Officer Roddie Mackenzie - Executive Vice President and Chief Commercial Officer Conference Call Participants Eddie Kim - Barclays Kurt Hallead - Benchmark Fredrik Stene - Clarksons Securities Aru ...

Huntsman Corporation (NYSE:HUN) Q4 2024 Earnings Conference Call February 18, 2025 10:00 AM ET Company Participants Ivan Marcuse - VP, IR & Corporate Development Peter Huntsman - Chairman, CEO & President Phil Lister - EVP & CFO Conference Call Participants Patrick Cunningham - Citibank David Begleiter - Deutsche Bank Frank Mitsch - Fermium Research Jeff Zekauskas - J.P. Morgan Vincent Andrews - Morgan Stanley John Roberts - Mizuho Securities Salvator Tiano - Bank of America Kevin McCarthy - Vertical Resear ...

Financial Data and Key Metrics Changes - The company reported $550 million of adjusted EBITDA in Q4 2024, a 16% improvement over the prior year [9][42] - Adjusted EBITDA margin improved for the eighth consecutive quarter [9][42] - Cash gross profit per ton in the Aggregated segment expanded 16% to $11.50 [10][43] - Full-year adjusted EBITDA for 2024 was $2.1 billion, with a margin expansion of 190 basis points [24][56] - The net debt to adjusted EBITDA leverage at year-end was 2.3 times [54] Business Line Data and Key Metrics Changes - In the Aggregated segment, cash gross profit per ton grew by 12% to $10.61, demonstrating the durable compounding nature of the aggregates business [25][57] - The asphalt segment is expected to contribute approximately two-thirds of the $360 million cash gross profit from downstream businesses in 2025 [29][61] Market Data and Key Metrics Changes - Aggregate freight-adjusted price improved 11% in Q4, consistent with full-year results [10][43] - Aggregate shipments are expected to increase between 3% and 5% in 2025, driven by recent acquisitions and stable demand for legacy business [14][47] - Highway starts increased by $7 billion to $122 billion over the last year, supporting ongoing growth in highway shipments [15][48] Company Strategy and Development Direction - The company is focused on a two-pronged growth strategy of enhancing core operations and expanding reach through acquisitions [7][40] - The company plans to capitalize on solid momentum and deliver attractive earnings growth again in 2025 [8][41] - The company anticipates another year of attractive margin expansion and earnings growth, with disciplined capital allocation [28][60] Management's Comments on Operating Environment and Future Outlook - Management expects continued growth in public construction activity to offset modest contraction in private activity [16][50] - Inflationary cost pressures are moderating, and the company is making progress in operating process intelligence adoption [14][46] - The company expects to deliver between $2.35 billion and $2.55 billion of adjusted EBITDA in 2025 [20][52] Other Important Information - The company deployed approximately $2.3 billion towards strategic acquisitions in 2024 [21][53] - The company plans to reinvest between $750 million and $800 million in operating and maintenance capital expenditures in 2025 [30][62] Q&A Session All Questions and Answers Question: Can you talk about aggregates pricing and the timing of increases? - Management indicated that Q4 pricing was up 11%, allowing for good momentum into the new year, with guidance of 5% to 7% for 2025, negatively impacted by acquisitions [70][71] Question: What is the expectation for organic volumes in 2025? - Management confirmed that public construction growth is expected to offset challenges in private construction, with a slow start in January and February due to weather [81][82] Question: Can you elaborate on the record gross margins in Q4? - Management attributed the record margins to improved efficiencies, better weather, and less negative volume impacts compared to previous quarters [88][90] Question: Have you seen any pressure from policy decisions on project starts? - Management stated that there is no significant impact from policy on public demand, and they expect continued support for infrastructure spending [96][97] Question: What is the outlook for private non-residential construction? - Management expects non-residential construction shipments to be down in 2025 but anticipates gradual improvement as the year progresses [112][114] Question: How do you view the impact of tariffs on your business? - Management indicated that tariffs have a negligible impact on their operations and they are confident in navigating any challenges [98][159] Question: What is the company's approach to recent acquisitions? - Management stated that they will evaluate acquisitions based on performance and returns, retaining those that fit their strategy [130][131] Question: What is the expected contribution from downstream businesses in 2025? - Management expects approximately $360 million in cash gross profit from downstream businesses, with a significant portion coming from recent acquisitions [29][61]

Financial Data and Key Metrics Changes - For the three months ended December 31, 2024, GreenPower generated revenue of $7.2 million, a 35% increase over the previous quarter [24] - The cost of sales for the quarter was $6.2 million, resulting in a gross profit of approximately $1.05 million or 14.6% of revenues [24] - Sales, general and administrative expenses declined by $443,000 or 7.8% compared to the same quarter last year [27] Business Line Data and Key Metrics Changes - Revenue was generated from the sale of 13 BEAST Type D all-electric school buses, one Nano BEAST Type A school bus, and 14 EV Star model vehicles, along with revenue from leases and parts sales [25] - Gross profit improved due to contributions from BEAST and Nano BEAST sales in California and Oregon, partially offset by lower margins from the truck body division and new manufacturing operations in West Virginia [25] Market Data and Key Metrics Changes - Demand for all-electric school buses is at an all-time high, with a survey indicating that 65% of parents prefer electric school buses over diesel [10] - The school bus driver shortage is driving demand for electric school buses, as they are seen as a solution to attract and retain drivers [11] Company Strategy and Development Direction - GreenPower is focusing on B2G (business-to-government) vehicle-to-grid options, positioning electric school buses as a means to enhance grid stability [12] - The company is consolidating its California operations into a single facility to improve efficiency and reduce costs [20][26] - GreenPower aims to increase production output at its West Virginia facility, with plans to deliver one BEAST per week and ramping up to two units per week by April [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving gross profits as production ramps up at the West Virginia facility [8] - The company is closely monitoring federal funding opportunities, with some dealers successfully accessing funds from the Clean School Bus Program [36] - There is strong support for electric school buses in California and New York, with significant funding available for adoption [38] Other Important Information - GreenPower completed an underwritten offering of 3 million common shares, raising gross proceeds of $3 million for production and development [29] - The company continues to utilize EDC revolving credit facilities to fund production, with approximately $1.2 million in available liquidity at quarter-end [28] Q&A Session Summary Question: Can you comment on the opportunities for fiscal support for your customers? - Management noted that federal funding is fluid, but some dealers have successfully drawn down funds from the Clean School Bus Program. State-level funding in California and New York remains strong [36][38] Question: Can you explain the increase in general and administrative expenses? - The increase was primarily due to headcount, but management anticipates reductions in salary expenses over time due to consolidation efforts [42] Question: How many electric school buses are currently in operation? - GreenPower has delivered about 10 out of 100 vehicles from West Virginia, with plans to ramp up deliveries. Customer feedback has been positive [63][64] Question: What drives throughput in the truck body division? - The truck body division is primarily focused on third-party vehicles, and the consolidation of operations is expected to improve efficiencies and throughput [70][72]

Financial Data and Key Metrics Changes - Fourth quarter net sales reached $1.0 billion, an increase of 2.1% year-over-year, while operating income rose nearly 20% to $120 million, resulting in an operating margin of 11.6% [35][36] - Full year net sales decreased 2.4% to $4.1 billion, but operating income increased 10.9% to $525 million, with operating margins improving by 160 basis points to 12.9% [42][54] - Earnings per share for the full year reached a record $17.19, improving nearly 15% due to enhanced operating income and a reduction in share count from repurchases [42][54] Business Line Data and Key Metrics Changes - Infrastructure segment sales increased 2.1% in Q4, with operating income growing 24% to $122 million, driven by utility and telecom growth, although lighting and transportation sales declined by 2.5% [36][38] - Agriculture segment sales increased 2.3% in Q4, with North American irrigation equipment volumes slightly lower, while international sales rose nearly 10% [39][40] - Coatings sales increased by 3.4%, with telecommunications business seeing strong growth of nearly 31% as carriers returned to normalized spending [38][39] Market Data and Key Metrics Changes - Utility markets remain strong, driven by increased CapEx spending due to energy demand, with Valmont positioned to capitalize on these trends [19][25] - North American lighting business is recovering, while telecommunications spending has returned to normalized levels, supporting growth [22][25] - In agriculture, market conditions in North America are stable, but cash receipts for key crops are projected to decline, impacting capital investment decisions [27][30] Company Strategy and Development Direction - The company aims to optimize capacity to meet growing demand, particularly in the utility market, with significant investments in new capabilities and capacity [11][12] - Focus on profitable growth and improved cost structure has led to margin expansion, with a commitment to employee safety and talent development [16][17] - Capital allocation strategy includes 50% of operating cash flows directed towards growth investments and 50% towards shareholder returns, with a new $700 million buyback authorization [50][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to seize opportunities and create long-term sustainable value despite market uncertainties in 2025 [18][54] - The company anticipates net sales for 2025 to be between $4.0 billion and $4.2 billion, with diluted earnings per share projected to grow by 5% at the midpoint [44][45] - Management highlighted the importance of addressing tariffs and their impact on pricing strategies, with a focus on maintaining strong customer relationships [75][82] Other Important Information - The company has a strong backlog entering 2025, with a focus on infrastructure megatrends driving sustained demand [25][54] - Recent project wins, such as a $45 million project in the Middle East, demonstrate the company's commitment to building sustainable food systems [30][136] Q&A Session Summary Question: Insights on Agriculture Market Dynamics - Management noted that both North America and Brazil face pressure from corn and soybean prices, impacting profitability, but expressed optimism about project activity in the EMEA region [59][60] Question: Operating Margin Expectations - Management indicated that there are opportunities for margin improvement through operational efficiencies and cost management, with a goal of achieving mid-teens margins in the long term [63][64] Question: Tariff Impact on Guidance - Management confirmed that the guidance accounts for the impact of tariffs and rising steel prices, emphasizing a proactive approach to pricing strategies [73][82] Question: Capital Allocation and M&A Strategy - Management clarified that the focus for M&A will be on businesses that align with core operations and provide meaningful growth opportunities, rather than transformational acquisitions [119][120] Question: Substation Demand and Margins - Management highlighted strong demand for substations, particularly related to data center expansions, and noted that this segment has strong margins due to its complexity [131][134]

Fluor Corporation (NYSE:FLR) Q4 2024 Earnings Conference Call February 18, 2025 8:30 AM ET Company Participants Jason Landkamer - VP, IR David Constable - Chairman & CEO James Breuer - COO Joseph Brennan - CFO John Regan - Chief Accounting Officer Conference Call Participants Michael Dudas - Vertical Research Sangita Jain - KeyBanc Capital Markets Jamie Cook - Truist Securities Andrew Wittmann - Robert W. Baird Steven Fisher - UBS Brent Thielman - D.A. Davidson Operator Good morning, and welcome to Fluor's ...

NeoGenomics, Inc (NASDAQ:NEO) Q4 2024 Earnings Conference Call February 18, 2025 8:30 AM ET Company Participants Kendra Sweeney - Vice President, Investor Relations and ESG Chris Smith - Chief Executive Officer Warren Stone - Chief Commercial Officer Andrew Lukowiak - Chief Innovation Officer Jeffrey Sherman - Chief Financial Officer Kareem Saad - Head, Strategy and Transformation Nate Montgomery - Vice President, Medical Services Conference Call Participants Andrew Brackman - William Blair Puneet Souda - S ...