Brinker International (NYSE:EAT) Q1 2026 Earnings Call October 29, 2025 10:00 AM ET Speaker1Good day and welcome to the Brinker International earnings call for Q1 financial year 2026. At this time, all participants have been placed on listen only mode. The floor will be open for questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Kim, the floor is yours.Speaker0Thank you, Paul, and good morning, ever ...

Financial Data and Key Metrics Changes - In Q3 2025, Ryerson reported net sales of $1.16 billion, a decrease of $7.8 million, or less than 1%, compared to the previous quarter [12] - Adjusted EBITDA excluding LIFO for Q3 was $40.3 million, down from $45 million in the prior quarter [13] - The company experienced a net loss of $14.8 million, or $0.46 per diluted share, compared to a net income of $1.9 million and diluted earnings per share of $0.06 in the prior quarter [12][13] - Gross margin contracted by 70 basis points to 17.2%, with gross margin excluding LIFO also contracting to 18.3% [12] Business Line Data and Key Metrics Changes - The company saw average selling prices increase by 2.6%, while tons shipped decreased by 3.2% due to rising prices [12] - The OEM book of business has seen activity below customer forecasts and historical mid-cycle trends, indicating a challenging environment [4] Market Data and Key Metrics Changes - The market backdrop remains difficult, characterized by falling industry shipments year over year and sequentially, with notable carbon steel margin compression [3] - Demand remains depressed, with customers quoting less and buying less throughout Q3 [4] Company Strategy and Development Direction - The company is focused on improving customer experience and optimizing its service center network to enhance performance [5] - Ryerson announced a merger agreement with Olympic Steel, which is expected to create a stronger financial profile and enhance market presence as the second largest metal service center in North America [18][29] - The merger is projected to yield $120 million in synergies phased in over two years, contributing to future margin enhancement [18][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing recessionary conditions in the industry and anticipates that demand challenges will persist at least through the end of the year [8] - The company expects Q4 volumes to soften by 5% to 7%, aligning with typical seasonality patterns [8] - Management remains optimistic about the potential for the OEM side of the commercial portfolio to eventually inflect positively [4] Other Important Information - The company ended Q3 with $500 million in total debt and $470 million in net debt, representing a decrease compared to the prior quarter [9] - The cash conversion cycle increased to 68 days from 66 days in the prior quarter [11] Q&A Session Summary Question: Expectations for cash generation in Q4 - Management expects a decent working capital release and cash flow from operations in Q4, typically seeing between $70 million and $80 million of working capital release [72][76] Question: Opportunities for market share growth post-merger - Management highlighted cross-selling and upselling opportunities as key to gaining market share, with Ryerson having about 40,000 active accounts and Olympic around 8,000 to 9,000 [80] Question: Plans for segment reporting post-merger - Management indicated that they will determine the best approach for segment reporting between signing and closing the merger [82] Question: Costs associated with achieving synergies - Management acknowledged that there will be costs to realize synergies, potentially up to $40 million, but emphasized that these synergies are based on current market conditions [93] Question: Incremental EBITDA margins with market improvement - Management suggested that with market tailwinds, EBITDA margins could improve to the 6% to 8% range, compared to the current pro forma margin of 6% [96]

Financial Data and Key Metrics Changes - Total revenue increased from $29.6 million in Q3 2024 to $31.1 million in Q3 2025, representing a 4.9% year-over-year growth [10] - Funds from operations (FFO) rose to $13.5 million in Q3 2025, a 5.7% increase compared to $12.8 million in Q3 2024 [13] - Adjusted funds from operations (AFFO) totaled $15.1 million in Q3 2025, a 3.1% increase year-over-year [13] - The AFFO dividend payout ratio remained strong at 85% [13] Business Line Data and Key Metrics Changes - Occupancy decreased from 90.7% to 90.1% during the quarter, but new leases signed in October are expected to increase leased occupancy by 50 to 100 basis points by year-end [5] - Weighted average lease term increased slightly from 6.6 to 6.7 years [6] - One inpatient rehabilitation facility was acquired for $26.5 million, with an anticipated annual return of approximately 9.4% [6] Market Data and Key Metrics Changes - The company is seeing attractive opportunities in the market with cap rates in the 9% to 10% range [17] - The geriatric behavioral hospital operator, a tenant in six properties, paid approximately $200,000 in rent during the quarter, down from approximately $800,000 previously [21] Company Strategy and Development Direction - The company is focused on capital recycling to fund acquisitions without increasing leverage [9][19] - The strategy includes being selective in acquisitions and focusing on high-quality assets with attractive returns [17][31] - The company plans to close on one property in Q4 2025, with additional properties closing throughout 2026 and 2027 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about leasing activity and expects a tailwind for growth in 2026 [28] - There is a cautious approach regarding the acquisition pipeline, with a focus on maintaining modest leverage levels [9][19] - Management is actively pursuing multiple plans to resolve issues with the behavioral health tenant and is motivated to increase rent [24] Other Important Information - The company declared a dividend of $0.4750 per common share for Q3 2025, marking a continuous increase since the IPO [9] - The company expects to close on the sale of an inpatient rehabilitation facility in Q4 with an expected gain of approximately $11.5 million [8] Q&A Session Summary Question: What is the status of the acquisition pipeline? - Management stated they are being highly selective and see attractive opportunities in the market, but are cautious about issuing shares at depressed levels [17] Question: What are the expectations for the behavioral health tenant's rent? - The tenant previously paid approximately $800,000 per quarter but only paid $200,000 in the current quarter [21] Question: When is the acquisition expected to close? - Management hopes to close by year-end but realistically expects it to occur in Q1 2026 [23] Question: What is the likelihood of recovering unpaid rents from the tenant? - Management does not put a high likelihood on recovering unpaid rents but is focused on getting paid more rent in the future [25] Question: How is the company identifying assets for disposal? - The company evaluates tenant concentration, weighted average lease term, and market conditions when identifying assets for disposal [31]

Financial Data and Key Metrics Changes - The company reported operating income of $734 million for Q3 2025, with an operating return on average common equity of 28% [5] - Year-to-date operating income reached almost $1.3 billion, delivering about a 17% operating return on average common equity [5] - Tangible book value per share plus change in accumulated dividends grew by 10% in the quarter and nearly 22% year-to-date [5][6] - Annualized return on equity was 35% for the quarter, with operating return on equity at 28% [14] Business Line Data and Key Metrics Changes - Underwriting income increased to $770 million, nearly double from Q3 2024, with retained net investment income rising to $305 million, up 4% [15] - Fee income reached $102 million, up 24% [15] - The adjusted combined ratio for underwriting was 67%, reflecting disciplined underwriting and low catastrophe losses [19] - Gross premiums written were $2.3 billion, with net premiums written at $2 billion, slightly down from the comparable quarter [20] Market Data and Key Metrics Changes - The property catastrophe portfolio grew from $2 billion in gross written premium in 2022 to around $3.3 billion in 2025 [7] - The company expects property catastrophe rates to decline by about 10% in 2026, although some accounts may see stable or increased rates due to specific conditions [31][32] - The casualty and specialty segment maintained a combined ratio in the high 90s, with a focus on managing exposure to U.S. general liability [36] Company Strategy and Development Direction - The company aims to prioritize margin over growth, focusing on strong underwriting practices to maintain profitability [9] - It plans to continue growing tangible book value per share at an attractive pace, leveraging its strong underwriting and investment capabilities [6][39] - The company is committed to returning capital to shareholders, having returned over $1 billion so far in 2025 through share repurchases [8][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as decreasing property catastrophe rates and falling short-term interest rates but expressed confidence in overcoming these through disciplined execution [8][39] - The company anticipates continued demand growth in property catastrophe, although at a slower rate than in previous years [9][31] - Management emphasized the importance of maintaining strong customer relationships to capitalize on future growth opportunities [10][36] Other Important Information - The company has returned over $1 billion in capital to shareholders in 2025, reflecting its strong capital position and belief in the value of its shares [8][18] - Retained net investment income is expected to persist and potentially grow as the asset base increases [25] Q&A Session Summary Question: What is the normal expectation for fee income and net investment income contributions to return in 2026? - Management expects around 11-12% from investment income and about 3% from fees as a starting point for 2026 [41] Question: What is the expected ROE on cat business written in 2026? - Management indicated that while rates may decline, the business remains profitable with strong rate adequacy, suggesting continued positive outlook [45][46] Question: How is third-party capital influencing pricing in 2026? - Management noted that third-party capital is not the primary driver of pricing; traditional reinsurers' comfort with return levels is more influential [54][56] Question: Can you provide insights on the casualty and specialty segment's pricing? - Management observed that pricing increases have primarily occurred at the insurer level, benefiting the reinsurance side, and emphasized ongoing optimization of their portfolio [78][80]

Financial Data and Key Metrics Changes - The company achieved all-time high EBITDA margins of 27% in electronic materials, reflecting improved cost structure and operational performance [4] - Sales increased approximately 1% year-over-year, with adjusted earnings per share at $1.41, flat compared to the prior year and up 3% sequentially [12][18] - Adjusted EBITDA was $55.5 million, down 2% year-over-year, primarily due to lower volume from equipment downtime in Performance Materials [12][13] Business Line Data and Key Metrics Changes - Performance Materials saw value-added sales of $157.1 million, down 4% year-over-year, impacted by equipment downtime [12][14] - Electronic materials reported value-added sales of $79.7 million, up 2% from the prior year and up 7% organically, with EBITDA margins reaching a record 27.1% [15][16] - Precision Optics experienced value-added sales of $27.1 million, up 21% year-over-year, returning to double-digit EBITDA margins [16][17] Market Data and Key Metrics Changes - Semiconductor sales, excluding China, increased 7% year-to-date, with high-performance memory applications up over 30% [6] - The defense market saw record bookings up approximately 40% year-to-date, with $150 million in requests for quotes (RFQs) [10][43] - The space market has grown fivefold in three years, with significant opportunities expected to continue [11] Company Strategy and Development Direction - The company is focusing on high-growth markets such as semiconductor, defense, space, and energy, with order rates up more than 10% sequentially [5][11] - Strategic partnerships, such as with Commonwealth Fusion Systems and Kairos Power, are aimed at expanding into new energy solutions [9][25] - The company aims to achieve midterm target margins of 23% and is committed to improving operational reliability and cost structure [13][57] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about a strong Q4, driven by defense orders and improving operational performance [24] - There is uncertainty regarding the China market, which has seen a 20% year-over-year decline, impacting overall sales [74][92] - The company anticipates continued growth in high-demand sectors despite challenges in the automotive market [60][62] Other Important Information - The company ended the quarter with a net debt position of approximately $441 million and $214 million of available capacity on its credit facility [17] - A new $50 million stock repurchase program was authorized, although organic growth remains the top priority for capital allocation [17][65] Q&A Session Summary Question: Why was the full year outlook range not narrowed? - Management cited uncertainty around China and potential impacts from the government shutdown as reasons for maintaining the range [24] Question: What financial impact is expected from the new agreement with Commonwealth Fusion Systems? - Initial shipments are expected to contribute a few million this year, with a more significant annualized run rate anticipated next year [25][27] Question: What is the nature of the equipment downtime in Performance Materials? - The downtime was primarily due to issues in the largest plant, but operations have resumed, and sales are expected to catch up in Q4 [36][37] Question: What are the expectations for 2026 growth? - Management is optimistic about growth in key markets, with a focus on offsetting challenges in China with high-growth opportunities [42][45] Question: How is the company addressing operational reliability? - The company is focused on capital improvements and maintenance to minimize equipment downtime in the future [40][41] Question: What is the expected impact of tariffs on financial results? - The China business is down about 20% year-over-year, with some tariff impacts being manageable through pricing strategies [74][75] Question: Will beryllium be stockpiled due to increased defense spending? - Management indicated that increased U.S. defense spending could lead to higher demand for beryllium-based applications [102][103]

Chemed (NYSE:CHE) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Speaker3Good morning.Speaker1Good morning. Thank you for standing by. Welcome to the Chemed Corporation Third Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during your session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised ...

Constellium (NYSE:CSTM) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Speaker3Good day and thank you for standing by. Welcome to the Constellium third quarter 2025 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star one and one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw ...

Financial Data and Key Metrics Changes - Watsco Inc. reported a total sales decline of 4% and a 3% decline in the U.S. for the third quarter [3][4] - Gross margins improved by 130 basis points to 27.5% [3][4] - Operating expenses increased by 5%, attributed to inefficiencies related to product transition and new locations [4] - Record cash flow of $355 million was generated in the third quarter [4] Business Line Data and Key Metrics Changes - Unit volumes remained subdued, but there were double-digit pricing gains on new products [3] - Sales growth was noted in non-equipment and commercial refrigeration products [3] - Non-equipment sales, which include parts and supplies, accounted for over 20% of Watsco's revenues, with parts alone making up 8% [12] Market Data and Key Metrics Changes - E-commerce penetration grew to 34% of total sales, reaching up to 60% to 70% in certain U.S. markets [5] - The number of contractors using the mobile app increased by 18%, totaling 72,000 users [5] - The annual run rate of sales through the OnCall Air digital platform increased by 19%, reaching $1.7 billion over the last 12 months [5] Company Strategy and Development Direction - The company is focused on transitioning to next-generation equipment with A2L refrigerants, which is expected to simplify operations by 2026 [2][3] - Watsco is investing in innovation and technology to enhance competitive positioning, including the use of AI and pricing optimization tools [6][7] - The company aims to exceed 30% gross margins in the long term and is actively working on initiatives to improve operational efficiency [4][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term fundamentals of the industry despite current volatility [3] - The transition to new refrigerants is seen as a temporary challenge, with expectations for improved performance as it concludes [3] - Management acknowledged the impact of macroeconomic factors on consumer spending and housing activity, which are affecting demand [25][111] Other Important Information - The company has a strong balance sheet with no debt and a healthy cash position, allowing for potential investments in growth opportunities [4][26] - Management is open to increasing acquisition activity in light of industry softness [48] Q&A Session Summary Question: What is the dynamic between repair and replace in the current market? - Management indicated that both repair and replace are occurring, with geographic differences influencing consumer behavior [11][12] Question: How does Watsco view the recent distributor movement reported by Carrier? - Management acknowledged the reported declines but noted that their own demand is not as severe, indicating a mid-single-digit decline in revenue [14][30] Question: What are the expectations for inventory levels by year-end? - Management aims to improve inventory turns and expects to end the year with inventories near historical levels [54][56] Question: How is the company managing pricing in the current environment? - Management stated that they are in a strong position to negotiate with OEMs and are focused on maintaining margins despite potential price increases [69][71] Question: What trends are being observed in contractor sales and inventory? - Management noted variability among contractors, with some performing well while others are struggling, reflecting a diverse market landscape [93][94] Question: How does the company view the impact of A2L refrigerants on consumer behavior? - Management believes that while A2L products are more expensive, broader macroeconomic factors are more influential on consumer spending [111]

Financial Data and Key Metrics Changes - Old Dominion Freight Line's revenue for Q3 2025 was $1.41 billion, reflecting a 4.3% decrease compared to Q3 2024, primarily due to a 9% decrease in less-than-truckload (LTL) tons per day, partially offset by a 4.7% increase in LTL revenue per hundredweight [11][4] - The operating ratio increased by 160 basis points to 74.3% for Q3 2025, driven by the deleveraging effect from decreased revenue [12][14] - Cash flow from operations totaled $437.5 million for Q3 2025, with capital expenditures of $94 million for the same period [14][15] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 9% year-over-year, while LTL revenue per hundredweight increased by 4.7% [11][12] - Sequentially, revenue per day decreased by 0.1% compared to Q2 2025, with LTL tons per day down 2.9% and LTL shipments per day down 1.6% [11][12] Market Data and Key Metrics Changes - The current month-to-date revenue per day for October 2025 is down approximately 6.5% to 7% compared to October 2024, with a decrease of 11.6% in LTL tons per day [11][12] - The company reported a consistent service level with 99% on-time service and a cargo claims ratio of 0.1% during Q3 2025 [6][7] Company Strategy and Development Direction - The company remains focused on delivering superior service at a fair price, investing in new service centers, equipment, technologies, and workforce [5][9] - Old Dominion aims to maintain its market share and improve profitability through disciplined yield management and operational efficiency [9][50] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy and expressed confidence in the company's ability to respond to future growth opportunities when the market improves [4][31] - The company anticipates a sequential increase in operating ratio of 250 to 350 basis points for Q4 2025, depending on revenue recovery [19][23] Other Important Information - Old Dominion was recognized as the number one national LTL provider for the 16th consecutive year, outperforming competitors in 23 out of 28 service categories [8][9] - The effective tax rate for Q3 2025 was 24.8%, with expectations to remain the same for Q4 2025 [15][16] Q&A Session Summary Question: What is the outlook for demand in October? - Management indicated that tonnage is down 11.6% in October, reflecting a consistent underperformance compared to historical trends, with expectations of continued softness in demand [17][19] Question: How are salaries and wages impacting operating ratio? - Salaries, wages, and benefits decreased as a percentage of revenue due to a 6% reduction in headcount, despite an annual wage increase implemented in September [21][22] Question: What is the current capacity position? - The company is operating with over 30% excess capacity, which is above the target of 20-25%, and plans to reduce capital expenditures for real estate next year [25][26] Question: What are the dynamics of market share and pricing? - Old Dominion has maintained a consistent revenue market share of approximately 11.8% over the past three years, with disciplined pricing strategies despite a competitive environment [33][34] Question: How is the company managing costs in a lower revenue environment? - The company is focused on managing costs tightly while maintaining service quality, with expectations of lower overhead costs in Q4 2025 [23][51] Question: What is the impact of the changing length of haul? - The length of haul is decreasing, reflecting a shift towards regionalism and e-commerce trends, which may continue to impact operational dynamics [54][57] Question: How is the company approaching dynamic pricing? - Old Dominion does not subscribe to dynamic pricing, preferring consistent pricing based on cost-plus strategies to support investments in service and technology [55][56]

The Bank of N.T. Butterfield & Son (NYSE:NTB) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Speaker4Good morning, my name is Debbie and I will be your conference operator today. At this time I would like to welcome everyone to the third quarter 2025 earnings call for Bank of N.T. Butterfield & Son Limited. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an ...