Automatic Data Processing (NasdaqGS:ADP) Q1 2026 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsMatt Keating - VP of Investor RelationsPeter Hadley - CFOMaria Black - President and CEOConference Call ParticipantsSamad Samana - Stock AnalystMark Marcon - Senior Research AnalystJared Levine - Stock AnalystZachary Gunn - Research AnalystTien-tsin Huang - Senior AnalystKathy Chan - Equity AnalystDaniel Jester - Stock AnalystDavid Paige - Equity AnalystKevin McVeigh - AnalystDan Dolev - Senior An ...

GE HealthCare Technologies (NasdaqGS:GEHC) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsVijay Kumar - Senior Managing Director, Equity ResearchJoanne Wuensch - Managing DirectorCarolynne Borders - Chief Investor Relations OfficerJay Saccaro - VP and CFOPeter Arduini - President and CEODavid Roman - Managing DirectorTravis Steed - Managing Director, Equity Research, Medical TechnologyAnthony Petrone - Managing Director Equity ResearchPatrick Wood - Managing DirectorConference Call P ...

Teradyne (NasdaqGS:TER) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsSanjay Mehta - CFOAmy McAndrews - Vice President of Corporate RelationsGreg Smith - CEOConference Call ParticipantsBrian Chin - AnalystNone - AnalystJim Schneider - AnalystShane Brett - AnalystCJ Muse - AnalystMehdi Hosseini - AnalystTimothy Arcuri - AnalystSamik Chatterjee - AnalystVedvati Shrotre - AnalystDavid Duley - AnalystOperatorLadies and gentlemen, good afternoon and welcome to the Teradyne third quarter ...

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 [21] - 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 [22] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024 [23] - Free cash flow improved by $5 million to -$87 million for the nine months ended September 30, 2025 [24] Business Line Data and Key Metrics Changes - Targeted print offerings increased by 2% as a percentage of total net sales, driven by growth in direct marketing, packaging, and in-store solutions [21] - Direct mail revenue increased by over 6%, packaging by over 9%, and in-store solutions by 11% year-to-date [38] Market Data and Key Metrics Changes - The company continues to monitor macroeconomic pressures such as inflation and high postage costs, which may impact clients' marketing plans [5][6] - The USPS announced no price increase for market-dominant mail in January, which is seen as favorable for marketers [7][39] Company Strategy and Development Direction - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus is on maximizing savings for clients while increasing marketing effectiveness through innovative solutions [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 [16][17] - The company anticipates a similar seasonal pattern for free cash flow and net debt, expecting significant positive cash flow in Q4 2025 [24][29] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases [26] - The adjusted EBITDA guidance for 2025 has been narrowed to between $190 million and $200 million [29] 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 [38] Question: Impact of USPS postponing price increase - Management indicated that the postponement is positive, but concerns remain about future postal rate increases [39][60] Question: Updated guidance ranges - Management discussed variability in direct mail and reaffirmed the midpoint of the sales outlook for Q4 [43][46] Question: In-Store Connect deployment updates - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback from recent industry events [49][50]

Quad/Graphics (NYSE:QUAD) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsKevin Steinke - Managing DirectorJoel Quadracci - Chairman, President, and CEOKatie Krebsbach - Senior Manager of Investor RelationsTony Staniak - CFOConference Call ParticipantsNone - Analyst 1Barton Crockett - Managing Director and Senior Research AnalystOperatorGood morning and welcome to Quad's third quarter 2025 conference call. During today's call, all participants will be in listen only mode. Should you n ...

Financial Data and Key Metrics Changes - Organic sales grew by 5%, and adjusted EBITDA reached a record $147 million, exceeding initial guidance of $140 million to $145 million [12][19] - Adjusted EBITDA growth would have been 10% when excluding the graphics business divestiture [12][19] - Adjusted EBITDA margin improved by approximately 20 basis points year over year in constant currency terms, with a margin of 28% when excluding the impact of pass-through metal sales [15][19] Business Line Data and Key Metrics Changes - The electronics segment achieved a 7% organic growth driven by strong performance in semi and assembly, with circuitry solutions sales growing 13% [12][16] - The industrial segment saw flat organic net sales year over year, but underlying chemistry volumes were up mid-single digits, particularly in Asia [17][19] - Adjusted EBITDA growth in the industrial segment would have been nearly 30% when excluding the graphics divestiture [8][19] Market Data and Key Metrics Changes - The electronics business was projected to exceed $2 billion in revenue following the acquisition of Micromax, which was previously just over $1 billion [9][19] - The offshore business is expected to sustain growth into 2026, driven by stable energy prices and ongoing drilling activity [63][19] Company Strategy and Development Direction - The acquisition of Micromax is seen as a strategic move to enhance the electronics portfolio and is expected to be more than 5% accretive to adjusted EPS [10][19] - The company aims to continue disciplined investment in markets it understands, focusing on high-value inorganic opportunities to accelerate per share earnings growth [22][19] - Future growth levers include new product introductions in high-value categories and substantial remaining balance sheet capacity for further investments [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting full-year 2025 adjusted EBITDA to be between $545 million and $550 million, indicating strong growth potential [21][19] - Despite challenges in end markets, the company is confident in its ability to generate organic growth and capitalize on investment opportunities [11][19] Other Important Information - The company generated $84 million of adjusted free cash flow in Q3, with a net leverage ratio of 1.9 times at the end of the quarter [18][19] - The Micromax transaction is expected to close in the first quarter of 2026, with funding coming from cash on hand and modest incremental debt [10][19] Q&A Session Summary Question: Thoughts on Micromax's performance under Element Solutions - Management is excited about Micromax's integration, expecting it to outperform market growth due to enhanced connectivity in the supply chain [26][27] Question: Update on Kouprion commercialization activities - The mid-scale site for Kouprion is on track to be operational by year-end, with meaningful sales and profits expected next year [29][19] Question: Growth and stability of Micromax's business - Micromax's revenue has been stable, and its specialized products are expected to enhance overall stability and growth for Element Solutions [31][34] Question: Margins in the industrial solutions business - There is potential for further margin expansion in the industrial business as volume growth recovers and productivity initiatives take effect [59][61] Question: Sustainability of offshore business strength - The offshore business is expected to sustain growth, although it may not continue at the current rate into 2026 [63][19] Question: Future of semiconductor growth - The semiconductor business is expected to grow above market levels, with strong demand in wafer-level packaging and power electronics [44][19]

Financial Data and Key Metrics Changes - Otis reported net sales of $3.7 billion with organic sales up 2%, driven by a 6% increase in service and a 14% growth in modernization organic sales [4][12] - Adjusted operating profit margin expanded by 20 basis points to 17.1%, with adjusted EPS growing approximately 9% to $0.09 in the quarter [13][21] - Adjusted free cash flow increased to $337 million in the quarter, with a year-to-date total of $766 million [13][21] Business Line Data and Key Metrics Changes - Service organic sales grew 6%, with maintenance and repair organic sales increasing by 4% and repair business accelerating to 7% growth year over year [14][15] - Modernization sales saw significant acceleration with organic sales growth of 14%, supported by a robust backlog [15][24] - New equipment organic sales declined 5%, with EMEA sales growing 3% and Americas declining 7% [16][17] Market Data and Key Metrics Changes - New equipment orders grew 4%, with notable strength in the Americas and EMEA, while Asia experienced a low single-digit decline [5][8] - The total backlog, including maintenance and repair, increased by 22%, indicating strong future growth potential [8][9] - In China, new equipment orders are expected to decline mid single digits for the second half of the year at constant currency [8][19] Company Strategy and Development Direction - Otis is focused on customer-centric innovation, launching the Otis Arise MOD packages to capture long-term modernization demand [6][7] - The company is in the early stages of a multi-year growth cycle in modernization, driven by the aging installed base of 22 million units [9][29] - Otis aims to improve customer retention and satisfaction through investments in service excellence and operational execution [32][82] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Americas market, upgrading the outlook to low single-digit growth due to strong demand in infrastructure and residential sectors [19][20] - The outlook for EMEA remains unchanged, with expected low single-digit growth, while Asia is anticipated to decline high single digits [20][24] - The company expects total net sales for the year to be between $14.5 billion and $14.6 billion, with organic sales growth of approximately 1% [21][24] Other Important Information - Otis completed approximately $250 million in share repurchases during the third quarter, bringing the year-to-date total to approximately $800 million [6][21] - 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 [7] Q&A Session Summary Question: Can you talk about efforts on the maintenance side regarding retention and recapture? - Management acknowledged the need for improvement in customer retention and emphasized ongoing investments in service excellence to rebuild trust and achieve a 94% retention rate [32] Question: What is the outlook for new equipment in the Americas? - Management noted improved demand in residential and infrastructure sectors, leading to a positive outlook for new equipment sales in the Americas [36] Question: Can you discuss the visibility on repair activity growth? - Management indicated a strong upward trend in repair activity, expecting growth to reach 10% in the fourth quarter, driven by improved backlog conversion [41] Question: What are the expectations for service margins moving forward? - Management expressed confidence in maintaining service margin expansion, with a target of around 25% for the full year, driven by volume growth and pricing strategies [72] Question: How is the company addressing the decline in new equipment sales? - Management highlighted ongoing cost management and productivity improvements as key strategies to mitigate the impact of declining new equipment sales [27][56]

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 [5][20] - The quarterly dividend per share was up 20% year-over-year, with a robust dividend coverage of 3.7x [6][23] - Net income for Q3 2025 was reported at $71 million, with adjusted net income at $73 million, equating to $0.42 per share [20] Business Segment Data and Key Metrics Changes - Contract operations revenue reached $326 million in Q3 2025, up 2% sequentially, driven by growth in horsepower and pricing [21] - Aftermarket services segment revenue was $56 million, down from $65 million in Q2 2025 but up 20% from $47 million in the same period last year [22] - Adjusted gross margin percentage for contract operations was 70.4%, slightly up from the previous quarter, while the overall adjusted gross margin percentage was reported at 73% [15][20] Market Data and Key Metrics Changes - The U.S. natural gas infrastructure buildout continues to support robust performance, with expectations for continued growth into 2026 and beyond [5] - Natural gas production growth in the U.S. is expected to be in the low single digits, with significant demand pressures anticipated from LNG exports and AI-driven power generation [9][10] Company Strategy and Development Direction - The company aims to leverage its strong operational execution and customer service to drive growth, focusing on innovative technology and returns-based capital allocation [7] - A growth CapEx of not less than $250 million is expected for 2026, consistent with annual investment levels since 2023, to support infrastructure buildout [16][25] - The company plans to maintain a target leverage ratio of between 3x-3.5x while continuing to return capital to shareholders through dividends and share repurchases [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural growth in natural gas production and compression, highlighting a strong outlook for earnings and free cash flow generation [18] - The current environment is characterized by commodity price volatility, but natural gas production is expected to outpace oil production, supporting long-term growth [8][9] - Management noted that the compression industry is entering a durable upturn driven by natural gas demand growth and capital discipline across the energy sector [8] Other Important Information - The company repurchased approximately 1.1 million shares for about $25 million in Q3 2025, with an additional $100 million authorized for share repurchases [23][24] - The company reported a $9.9 million cash tax credit that contributed to the increase in gross margin [15][20] Q&A Session Summary Question: Thoughts on capital allocation given strong free cash flow - Management emphasized that the best use of capital remains investing in business growth, with plans to continue growing dividends and share repurchases while also considering M&A opportunities [29][30] Question: Insights on margin sustainability and drivers - Management highlighted that margins are driven by pricing prerogatives and excellent cost management, with technology investments improving operational efficiency [32][34] Question: Demand trends and customer discussions - Management noted robust demand for LNG and data centers, with increased discussions with customers translating into a positive multi-year growth outlook [38][40] Question: Lead times and customer behavior in a lower crude environment - Lead times for engines are currently at 60 weeks, with no major shifts in customer behavior observed, maintaining high levels of utilization across the industry [50][52] Question: Recontracting discussions and pricing mechanisms - Management indicated that a significant portion of contracts includes pricing mechanisms for repricing, allowing for continued pricing power in a high-utilization environment [56][57] Question: Update on new venture investments and market acceptance - Management provided updates on the Mach 4 natural gas liquid recovery project, noting successful pilot results and strong customer enthusiasm for the product [81][84]

Gildan Activewear (NYSE:GIL) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsChuck Ward - EVP and COOJessy Hayem - SVP and Head of Investor Relations and Global CommunicationsPaul Lejuez - Managing DirectorGlenn Chamandy - President and CEOJay Sole - Managing DirectorPaul Kearney - VP of Equity ResearchStephen MacLeod - Managing DirectorLuca Barile - EVP and CFOMartin Landry - Managing DirectorChris Li - Managing Director and Equity ResearchConference Call ParticipantsLuke Hannan - Eq ...

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth and a 7% adjusted EPS growth for the first quarter of fiscal 2026 [5][16] - Employer Services segment revenue increased by 7% on a reported basis and 5% on an organic constant currency basis [16] - Client funds interest revenue increased more than anticipated, leading to an increase in the full-year forecast by $10 million to a range of $1.30 to $1.32 billion [17][19] Business Line Data and Key Metrics Changes - Employer Services new business bookings showed solid growth, resulting in record sales volume for a first quarter [5] - PEO revenue growth of 7% exceeded expectations, driven by growth in zero margin pass-throughs and higher wages [7][18] - Employer Services pays per control growth rounded down to 0% for the first quarter, reflecting client caution around adding headcount [6][16] Market Data and Key Metrics Changes - Overall client satisfaction score reached a new all-time high for a first quarter, indicating improvements across business units [6] - The company experienced specific strength in ADP® Lyric HCM, with new business bookings exceeding expectations [9][10] Company Strategy and Development Direction - The company is focused on leading with best-in-class HCM technology, including scaling embedded payroll solutions for small businesses [7][8] - The acquisition of Pequity aims to enhance capabilities in compensation management, supporting complex planning needs for clients [11][62] - The company continues to advance AI initiatives to improve operational efficiency and client engagement [12][13] Management's Comments on Operating Environment and Future Outlook - Management described the HCM demand backdrop as relatively stable, with no significant changes observed in deal cycles [24][25] - The company maintains its full-year growth guidance for Employer Services at 4% to 7% and PEO revenue growth at 5% to 7% [16][18] - Management expressed confidence in achieving strategic goals and delivering strong financial results despite slight declines in retention rates [15][19] Other Important Information - The company announced the acquisition of Pequity, which is expected to enhance its compensation management offerings [11][62] - The company was recognized as a leader in multi-country payroll solutions by industry analysts [15] Q&A Session Summary Question: Update on deal cycles and time to close - Management indicated that the HCM demand backdrop remains stable, with no meaningful changes in deal cycles observed in Q1 [24][25] Question: Confidence in Employer Services guidance amid slight downticks - Management expressed confidence in the guidance, noting that movements are relatively small and offsetting each other [26][28] Question: Surprising areas of new bookings growth - Management highlighted growth in small business services, particularly in retirement services and HR outsourcing [32] Question: Performance of PEO during enrollment period - Management reported the highest participation rates in four years, indicating strong demand for health benefits among targeted industries [57][58] Question: Insights on international market performance - Management described the international market as "lumpy," with solid execution expected to drive growth in the future [68] Question: Impact of processing days on revenue growth - Management noted a modest impact of around $10 million due to one less processing day compared to the previous year [85][89]