Teck Resources Limited (NYSE:TECK) Q4 2024 Earnings Conference Call February 20, 2025 11:00 AM ET Company Participants Emma Chapman – Vice President, Investor Relations Jonathan Price – Chief Executive Officer Crystal Prystai – Chief Financial Officer Conference Call Participants Orest Wowkodaw – Scotiabank Carlos De Alba – Morgan Stanley Liam Fitzpatrick – Deutsche Bank Craig Hutchison – TD Cowen Lawson Winder – Bank of America Securities Myles Allsop – UBS Bill Peterson – JPMorgan Operator Ladies and gent ...

Financial Data and Key Metrics Changes - For the full year, sales decreased by nearly $300 million, reflecting softness in key areas, particularly in EV and off-highway markets [7][21] - Adjusted EBITDA for the fourth quarter was $186 million, with a profit margin of 8%, representing a 170 basis point improvement year-over-year [22] - Full year adjusted EBITDA was $885 million, $40 million higher than the previous year, with a profit margin of 8.6%, a 60 basis point improvement [23] - Free cash flow improved from a slightly negative position in 2023 to $70 million in 2024, with expectations to triple in 2025 [10][34] Business Line Data and Key Metrics Changes - Organic sales were $135 million lower in Q4 due to lower OEM production of heavy vehicles, while adjusted EBITDA on organic sales was $33 million higher due to improved cost efficiencies [27] - The cost-saving program contributed $10 million to adjusted EBITDA in Q4, with similar contributions expected for the full year [28][30] - The company anticipates a decline in organic sales of approximately $285 million for 2025, driven by lower demand across all end markets [37] Market Data and Key Metrics Changes - The light vehicle market is expected to remain flat year-over-year, consistent with other suppliers' expectations [16] - Commercial vehicle markets are anticipated to stabilize towards the end of the year, with beneficial impacts expected from pre-buys associated with 2026 emissions legislation [17] - The backlog decreased to $650 million, down about $300 million from the previous year, primarily due to lower volumes on existing programs [19][20] Company Strategy and Development Direction - The company is focused on completing the off-highway divestiture, with expectations to announce a transaction in early Q2 [10][11] - A commitment to achieving adjusted EBITDA margins of 10% in 2025 and pushing towards double digits in 2026 is emphasized [14] - The company is taking a more measured approach to EV investments, reducing capital expenditure intensity moving forward [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market is showing some weakness, early signs indicate that conditions may be better than previously feared [18] - The company expects to see a recovery in the second half of the year, with improved demand as inventories normalize [42] - Management expressed confidence in the execution of the $300 million cost reduction program, which is expected to significantly enhance profitability [120] Other Important Information - The company is targeting a net leverage of around one times through the cycle, aiming for a conservative balance sheet [15] - The impact of foreign currency translation was noted as a headwind, with expectations of approximately $195 million in sales impact for 2025 [38] Q&A Session Summary Question: Update on off-highway divestiture timeline - Management confirmed a robust process with strong interest and expects to sign a transaction in early Q2 [46] Question: Clarification on 2025 guidance and backlog segmentation - The light vehicle outlook is based on specific programs rather than overall market trends, with the majority of backlog in light vehicle driveline parts [49][50] Question: Tax guidance and valuation allowances - Management explained that the volatility in EPS is due to changes in income mix and valuation allowances, with expectations for normalization post-divestiture [54][58] Question: Commercial vehicle market turnaround - Management indicated that improvements in the commercial vehicle sector are expected to begin in Q1, with significant cost savings anticipated [71] Question: Impact of tariffs on pricing strategy - The company intends to pass through any tariff impacts to customers and has formally notified them of this strategy [87][116] Question: Backlog composition and future activity - Management clarified that backlog calculations do not include additional vehicle volume on current programs, focusing instead on new variants [111]

Financial Data and Key Metrics Changes - Sabre Corporation achieved a 53% year-on-year increase in adjusted EBITDA, totaling $517 million for the year, exceeding initial guidance of greater than $500 million [10][38] - Total revenue for 2024 was $3.03 billion, reflecting a 4% increase compared to the previous year [38] - Adjusted EBITDA margin improved from 14% in Q4 2023 to 16% in Q4 2024 [37] Business Line Data and Key Metrics Changes - Travel Solutions reported a 5% increase in distribution revenue to $500 million in Q4 2024, with total distribution bookings rising 4% to 81 million [36] - Hospitality Solutions revenue increased 8% to $81 million in Q4 2024, driven by an 8% rise in CRS transactions [36][12] - Adjusted EBITDA for Hospitality Solutions reached $9 million in Q4 2024, an improvement of $4 million year-on-year [37] Market Data and Key Metrics Changes - The global travel industry has undergone significant changes, with Sabre focusing on generating free cash flow and deleveraging its balance sheet as top financial priorities [15] - The company expects double-digit growth in air distribution bookings, hotel distribution bookings, and hospitality solutions CRS transactions in 2025 [28][32] Company Strategy and Development Direction - Sabre is prioritizing investments in a modern technology stack, an open marketplace, and intelligent retailing solutions to drive sustainable growth [16] - The company has successfully migrated over 99% of its compute capacity to the cloud, achieving over $150 million in cost benefits [14] - The strategic focus remains on generating free cash flow and deleveraging the balance sheet through sustainable growth and innovation [56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant volume and revenue growth in 2025, driven by signed commercial wins and ongoing growth initiatives [33][41] - The outlook for corporate and international travel remains positive, with expectations for increases in business travel spend [80] Other Important Information - Free cash flow for 2024 was negative $14 million, but excluding debt modification costs, the company generated positive free cash flow [39] - Sabre's cash balance at the end of the year was $746 million, positioning the company well for upcoming debt maturities [40][55] Q&A Session Summary Question: Implementation process for new agency wins - Management highlighted their extensive experience in implementing new business, emphasizing that timelines depend on customer actions [60][62] Question: Incremental $100 million in cost efficiencies - The $100 million in cost efficiencies is attributed to the completion of the technology transformation initiative, with $150 million already realized in 2024 [66] Question: Revenue expectations for passenger boarded evolution - Management does not manage revenue per passenger boarded but expects airline IT revenue to be down slightly in the first half of the year, resuming growth in the second half [70][72] Question: Impact of new travel agents leaning into NDC - Management believes their multisource content platform provides the best connectivity for both traditional and new entrants in the travel sector [78] Question: Air bookings growth ramp-up throughout the year - Significant ramp-up in air bookings growth is expected throughout the year, with strong momentum anticipated into Q4 and 2026 [88] Question: Margin profile for Hyatt transactions - Management did not disclose specific margin profiles for individual customers but indicated that overall EBITDA margin expansion is expected [117]

Financial Data and Key Metrics Changes - Net sales decreased by 8% to $3.8 billion, driven by lower core organic sales and commodity deflation, partially offset by growth from acquisitions [31] - Gross profit was $1.2 billion, a decrease of approximately 16% compared to the prior year, with gross margins at 32.3%, down 300 basis points [34] - Adjusted EBITDA was approximately $494 million, down 28%, with an adjusted EBITDA margin of 12.9%, down 360 basis points from the prior year [36] Business Line Data and Key Metrics Changes - Install sales increased by 8% year-over-year, with the company emphasizing its value-added solutions [11] - Valuated products represented 50% of net sales during Q4, balanced between manufactured products and window doors [32] - Multifamily sales declined by 29%, while single-family sales decreased by 7% amid lower value [31] Market Data and Key Metrics Changes - Single-family starts pulled back as builders managed the pace of building due to affordability challenges [15] - Multifamily remains a headwind, representing about 9% to 10% of net sales, with expectations of continued challenges in 2025 [16] - The company noted that builders are employing strategies to address affordability challenges, including smaller homes and interest rate buy-downs [16] Company Strategy and Development Direction - The company focuses on investing in value-added products and services, leveraging technology to address customer challenges [8] - A disciplined capital allocation strategy aims to maximize shareholder returns through organic growth, acquisitions, and share repurchases [22] - The company completed thirteen acquisitions in 2024, with aggregate prior year sales of approximately $420 million, reinforcing its commitment to value-added business [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate complex market conditions and emphasized the importance of maintaining a strong balance sheet [8][30] - The outlook for 2025 includes expectations of flat single-family market conditions and continued weakness in multifamily, guiding net sales between $16.5 billion and $17.5 billion [42] - Management highlighted the impact of extreme weather and California wildfires on Q1 sales, estimating a loss of approximately $80 million [47] Other Important Information - The company achieved $134 million in incremental digital sales in 2024, with expectations of an additional $200 million in 2025 [25] - Capital expenditures were $96 million in Q4 and $367 million for the year, with share repurchases totaling approximately $1.5 billion [40] - The company has approximately $500 million remaining on its $1 billion share repurchase authorization [41] Q&A Session Summary Question: Outlook on organic revenues and market stabilization - Management indicated that the market is stable but below desired levels, with builders modulating their build pace to maintain reasonable inventories [58][60] Question: Gross margin expectations and competitive dynamics - Management expects gross margins to remain in the range of 30% to 32%, with a focus on maintaining a healthy margin profile while being competitive [66][68] Question: Impact of severe weather on Q1 performance - Management acknowledged that severe weather has impacted Q1 sales, but they expect to recover lost sales over time [91][92] Question: Multifamily business outlook - Management noted that the multifamily segment is expected to face headwinds primarily in the first half of the year due to tough comparisons [140] Question: Digital sales growth and adoption strategy - Management expressed confidence in the digital strategy but acknowledged a slower-than-expected adoption pace, with a focus on a more targeted approach moving forward [132][135]

Financial Data and Key Metrics Changes - Insmed reported global net revenue for 2024 of $363.7 million, reflecting a 19% year-over-year growth, exceeding the top end of guidance for the year [32] - The underlying cash burn in Q4 2024 was approximately $191 million, higher than recent quarters, influenced by NDA filing fees and increased headcount [31] - The company ended the year with over $1.4 billion in cash, cash equivalents, and marketable securities, relatively unchanged since Q3 [31] Business Line Data and Key Metrics Changes - ARIKAYCE achieved record-setting revenues in 2024, with U.S. net revenue of $254.8 million, up 14% compared to 2023, driven by new patient starts [33] - In Japan, ARIKAYCE net revenue was $87.7 million, up 33% year-over-year, attributed to increased sales reps and higher patient starts [34] - In Europe and Rest of World, net revenue was $21.2 million, up 39% compared to 2023, driven by strong performance in Germany and the U.K. [35] Market Data and Key Metrics Changes - The U.S. market for bronchiectasis patients is estimated at 500,000, with about 50% having had two or more exacerbations in the past year [74] - The company anticipates a peak revenue number for brensocatib in CRS without nasal polyps potentially exceeding $5 billion [46] Company Strategy and Development Direction - Insmed is focused on launching brensocatib in bronchiectasis in Q3 2025, with several clinical and commercial catalysts expected in 2025 and beyond [11][12] - The company aims to ensure a frictionless market access strategy for brensocatib, emphasizing the importance of pricing and access dynamics [62][63] - Insmed is investing in its early and mid to late-stage pipelines, with a strong emphasis on commercial readiness for brensocatib [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming launch of brensocatib, highlighting strong physician interest and patient engagement [17][18] - The company is optimistic about the potential for brensocatib to address significant unmet medical needs in various indications, including bronchiectasis and CRS without nasal polyps [21][46] - Management noted that the FDA's priority review of brensocatib is encouraging, with a PDUFA date set for August 12, 2025 [13] Other Important Information - The company expects ARIKAYCE revenue guidance for 2025 to be between $405 million and $425 million, indicating continued strong growth [27] - Insmed's gross to net for ARIKAYCE in 2024 was 17%, with expectations for high-teens to low 20s in 2025 due to price adjustments under the Inflation Reduction Act [36][37] Q&A Session Summary Question: What are the expectations for the Phase 2 data for brensocatib in CRS without nasal polyps? - Management highlighted the potential of brensocatib in CRS without nasal polyps, with expectations for significant impact and a peak revenue number potentially exceeding $5 billion [46] Question: What factors are being leveraged for a strong launch of brensocatib? - The focus is on market access strategy, ensuring a frictionless launch, and augmenting the sales force to support the launch [62][65] Question: How many U.S. bronchiectasis patients have had two or more exacerbations? - Approximately 50% of the 500,000 diagnosed bronchiectasis patients in the U.S. have had two or more exacerbations in the past year [74] Question: What is the trajectory for SG&A and R&D expenses this year? - Management indicated that while early investments are being made, they do not expect a decrease in operating expenses in the near term [77] Question: How will the company accommodate the new Medicare discount program? - Management clarified that ARIKAYCE benefits from a phased-in coverage under the IRA, while brensocatib will face immediate impacts from the program [84][85]

Financial Data and Key Metrics Changes - The company reported non-GAAP EPS of $0.40 for Q4 2024 and $1.62 for the full year, representing an 8% growth over 2023 results [10][11][48] - The non-GAAP EPS for the fourth quarter increased from $0.32 in Q4 2023, indicating strong financial performance [48] - The company reaffirmed its 2025 non-GAAP EPS guidance range of $1.74 to $1.76, equating to an 8% growth at the midpoint from 2024 [12][55] Business Line Data and Key Metrics Changes - Rate recovery contributed $0.05 to EPS compared to the same quarter last year, driven by ongoing recovery from interim mechanisms [49] - O&M expenses contributed an additional $0.05 favorability, primarily due to work pulled forward in Q4 of the previous year [49] - The company plans to transition to a more aggressive vegetation management cycle, which may reset O&M levels in the near term but aims for continued reductions [52][110] Market Data and Key Metrics Changes - The company experienced significant electric demand growth in Texas, particularly in the Greater Houston area, with a forecasted peak demand increase of nearly 50% by 2031 [35][38] - Approximately 40 gigawatts in load interconnection requests were received, indicating strong interest in connecting to the grid [37] - The company anticipates that the growth in the Houston area will drive substantial capital investment opportunities [45] Company Strategy and Development Direction - The company is focused on improving system resiliency with a proposed $5.75 billion investment plan from 2026 to 2028 [13][14] - The company aims to become the most resilient coastal grid in the U.S. through significant investments in infrastructure [17] - The company is actively pursuing regulatory settlements that balance customer needs with investor returns, as seen in recent rate case outcomes [18][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet or exceed financial guidance for the fourth consecutive year, positioning it in the top decile of its peer group [75] - The company highlighted the importance of regulatory progress and constructive relationships with stakeholders in achieving favorable outcomes [90][92] - Management noted that the ongoing growth in the Houston area provides a unique long-term growth opportunity for the company [45][76] Other Important Information - The company is in the process of finalizing a temporary generation transaction to support reliability needs in the San Antonio area [31][66] - The company expects to recover 98% of costs related to storm recovery, showcasing a constructive regulatory environment [59] - The company plans to file for securitization of storm costs related to Hurricane Beryl, with proceeds anticipated by the end of the year [73] Q&A Session Summary Question: Can you compare the growth forecast to what ERCOT might have used last year? - Management indicated that last year's ERCOT submission was focused on West Texas, and this year reflects a significant increase in demand from the Houston area, adding about 10 gigawatts to the previous projections [84][86] Question: Any update on rating agency views? - Management noted that rating agencies are focused on the constructive Texas regulatory environment, the Houston Electric rate case, and the securitization of prior storm costs [90][92] Question: Have you committed to an Analyst Day? - Management confirmed a commitment to update the market with a new 10-year capital investment plan, likely following the Texas voltage standard decision expected in May [96][97] Question: Can you elaborate on financing needs? - Management stated that equity needs for 2025 are covered, and they will continue to utilize various financing options, including the ATM for modest equity needs [101][102] Question: Can you discuss the cost control program? - Management highlighted ongoing efforts to reduce O&M costs through automation and standardization, aiming for a 1% to 2% annual reduction [108][112] Question: Can you expand on the mobile generation discussions with regulators? - Management emphasized ongoing dialogue with stakeholders and the recognition of the value of the temporary generation units to support ERCOT's needs [117][118] Question: Any proposals from the Texas legislature on your radar? - Management indicated they are monitoring legislative developments, particularly regarding cost allocation for large loads, and are working constructively with stakeholders [122][123]

Cushman & Wakefield plc (NYSE:CWK) Q4 2024 Earnings Conference Call February 20, 2025 9:00 AM ET Company Participants Megan McGrath - Head of Investor Relations Michelle MacKay - Chief Executive Officer Neil Johnston - Chief Financial Officer Conference Call Participants Stephen Sheldon - William Blair Anthony Paolone - JPMorgan Julien Blouin - GS Michael Griffin - Citi Operator Good day, and welcome to Cushman & Wakefield's Fourth Quarter 2024 Earnings Conference Call. All participants will be in listen-on ...

Financial Data and Key Metrics Changes - CF Industries reported adjusted EBITDA of $562 million for Q4 2024 and $2.3 billion for the full year, with net earnings attributable to common stockholders of approximately $328 million, or $1.89 per diluted share for Q4, and $1.2 billion, or $6.74 per diluted share for the full year [7][20][21]. - The company generated net cash from operations of $2.3 billion and free cash flow of approximately $1.45 billion for the year, with a cash flow to adjusted EBITDA conversion rate of 63% [21][22]. Business Line Data and Key Metrics Changes - The production network achieved over 2.6 million tons of gross ammonia in Q4 2024, reflecting a 100% utilization rate, finishing the year with 9.8 million tons of gross ammonia production [10][11]. - The company expects to produce approximately 10 million tons of gross ammonia in 2025 [11]. Market Data and Key Metrics Changes - The global nitrogen market is experiencing a tightening supply-demand balance, particularly highlighted by India's struggles to secure targeted volumes for urea tenders [18]. - World corn stocks and the corn stocks-to-use ratio, excluding China, are at 13- and 30-year lows, indicating strong nitrogen demand in the U.S. for 2025 [18]. Company Strategy and Development Direction - CF Industries is advancing strategic initiatives, including the completion of a carbon capture and sequestration project at the Donaldsonville complex and evaluating a greenfield low-carbon ammonia plant at the Blue Point complex [12][13]. - The company aims to finalize investment decisions for the Blue Point project in Q1 2025, with ownership potentially ranging from 40% to 75% depending on equity partners [14][15]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position due to strong nitrogen industry fundamentals and the ability to generate superior free cash flow [8][28]. - The outlook for 2025 is positive, with expectations of robust demand for nitrogen products driven by low corn stocks and favorable agricultural conditions [18][95]. Other Important Information - CF Industries returned $1.9 billion to shareholders in 2024, the highest level in over a decade, including $364 million in dividends and over $1.5 billion in share repurchases [8][22]. - The company completed a FEED study for a 1.4 million metric tons per year ATR ammonia plant, with an estimated project cost of approximately $4 billion [24]. Q&A Session Summary Question: Discussion on hedging strategy and gas prices - Management indicated a more opportunistic approach to hedging in 2024, focusing on cash market strategies and front-month hedging [35][36]. Question: Sensitivity table for EBITDA based on gas and urea prices - The sensitivity table reflects last year's actual product price differentials, indicating potential EBITDA could be lower due to changes in market conditions [39][42]. Question: Capital allocation for 2025 and potential long-term offtakes - The company plans to allocate over $500 million for capital expenditures and expects to complete share repurchases by the end of the year [50][51]. Question: Demand outlook for the Blue Point project - Management expressed confidence in demand for the Blue Point project, with ongoing discussions with potential partners and a strong market interest [56][60]. Question: Risks impacting supply-demand and prices - Management acknowledged potential risks from geopolitical issues and economic factors but remains optimistic about the nitrogen market's fundamentals [138][139]. Question: Clarification on carbon sequestration plans - Management clarified that the carbon sequestration project is on track, with expectations to begin operations in the second half of 2025 [115][116].

Nutrien Ltd. (NYSE:NTR) Q4 2024 Earnings Conference Call February 20, 2025 10:00 AM ET Company Participants Jeff Holzman - VP, Investor Relations Ken Seitz - President, CEO & Director Mark Thompson - EVP, Chief Commercial Officer & CFO Trevor Williams - EVP & President, Nitrogen & Phosphate Jeff Tarsi - SVP, Retail North America Jason Newton - Head Economist Conference Call Participants Ben Isaacson - Scotiabank Steve Hansen - Raymond James Andrew Wong - RBC Capital Markets Joel Jackson - BMO Vincent Andrew ...

Financial Data and Key Metrics Changes - Statutory profit after tax for 2024 was £4.5 billion, or £5 billion excluding the Q4 motor provision, equating to a return on tangible equity of 12.3%, or 14% ex-motor [19] - Net income for the full year was £17.1 billion, with a net interest margin of 2.95% and 9% growth in other operating income [20] - Operating costs for the year were £9.4 billion, up 3% year-on-year, with an impairment charge of £433 million, resulting in an asset quality ratio of 10 basis points [21][47] Business Line Data and Key Metrics Changes - Group lending balances increased to £459 billion, up £9 billion or 2% in the year, with strong mortgage growth of £6.1 billion [23][33] - Other asset books showed solid performance, with combined balances for cards, unsecured loans, and motor up £2.8 billion, or 8% [35] - Total deposits increased by over £11 billion, or 2%, to £483 billion, with retail balances up £11 billion [37] Market Data and Key Metrics Changes - The UK housing market showed signs of recovery, with the mortgage book growing by £6.1 billion in 2024 [33] - The macroeconomic outlook remains stable, with GDP growth forecasted at 1% for 2025 and modest house price growth of around 2% [60] Company Strategy and Development Direction - The company is in the first phase of a five-year strategic transformation, focusing on growth, efficiency, and digital leadership [2][76] - Strategic priorities include enhancing customer propositions, driving revenue growth, and maintaining cost efficiency, with a target of a cost-to-income ratio below 50% by 2026 [95] - The company aims to leverage technology and data to improve customer engagement and drive business outcomes [98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering higher, sustainable returns, with expectations for net interest income to grow to around £13.5 billion in 2025 [30][74] - The company anticipates further robust lending and deposit growth, despite some pressures from deposit churn and mortgage refinancing [31][74] - The management highlighted a supportive economic backdrop for growth, with a focus on high-value areas such as housing and infrastructure [108] Other Important Information - The company announced a final ordinary dividend of 2.11p per share, totaling 3.17p, which is a 15% increase from the prior year [70] - A share buyback of £1.7 billion was also announced, contributing to a total distribution of up to £3.6 billion for 2024 [71] Q&A Session Summary Question: What are the expectations for net interest income in 2025? - The company expects net interest income to grow to around £13.5 billion, up about £700 million from last year, supported by robust lending and deposit growth [30] Question: How is the company addressing the motor finance provision? - An additional £700 million provision was taken for potential remediation costs related to motor commission arrangements, following a recent court judgment [52] Question: What is the outlook for asset quality? - Asset quality remains strong, with an expected asset quality ratio of circa 25 basis points for 2025 based on stated economic assumptions [56]