Baxter International Inc. (NYSE:BAX) Q4 2024 Earnings Conference Call February 20, 2025 8:30 AM ET Company Participants Clare Trachtman - SVP and Chief IRO Brent Shafer - Chairman, and Interim CEO Heather Knight - COO Joel Grade - EVP and CFO Conference Call Participants Robert Marcus - JPMorgan David Roman - Goldman Sachs Matt Miksic - Barclays Vijay Kumar - Evercore ISI Travis Steed - Bank of America Securities Lawrence Biegelsen - Wells Fargo Danielle Antalffy - UBS Operator Good morning, ladies and gent ...

Financial Data and Key Metrics Changes - The pro forma EBITDA for Q4 2024 was over $4.1 billion, a 9% increase quarter-on-quarter [22] - Iron ore production reached 328 million tons, the highest level since 2018, exceeding original guidance [12] - C1 cash costs for iron ore were $18.8 per ton in Q4, nearly 10% lower year-on-year and the lowest since Q1 2022 [24] - Recurring free cash flow generation was approximately $800 million in Q4, $300 million higher than in Q3 [28] - Expanded net debt remained stable at $16.5 billion, within the target range of $10 billion to $20 billion [31] Business Line Data and Key Metrics Changes - In iron ore, the company shifted its portfolio mix, reducing high silica material sales and increasing high-quality products from Carajás, resulting in higher margins [12] - Base metals saw the highest copper production since 2020, driven by Salobo, which produced roughly 200 kilotons of copper in 2024 [13] - Nickel costs are trending downward, supported by the ramp-up of the VBME project [15] Market Data and Key Metrics Changes - The company achieved higher realized iron ore premiums due to the strategic shift in product mix [22] - The all-in cost for copper was the lowest since Q4 2020, driven by higher byproduct revenues from Salobo [26] - The all-in cost for nickel was approximately $13,900 per metric ton, the lowest since Q1 2022 [26] Company Strategy and Development Direction - The company is focused on evolving its asset portfolio to meet client needs with a competitive cost profile, aiming for operational excellence [6] - A new Carajás initiative was announced to enhance exploration and development of critical minerals [18] - The company is committed to a disciplined capital allocation approach, balancing CapEx optimization and shareholder returns [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting significant progress in operational performance and cost management [7][101] - The company is focused on maximizing cash flows and maintaining flexibility in its inventory strategy [104] - Management believes the settlement related to the Mariana accident is the best path forward for all parties involved [63] Other Important Information - The Board approved $2 billion in dividends and interest on capital, resulting in an annualized yield of 10% [16] - A buyback program for up to 3% of outstanding shares was also approved [17] Q&A Session Summary Question: Inventory levels and sales mix strategy - Management acknowledged an increase in inventories due to a focus on high-quality products and flexibility in sales strategy [38][42] Question: Base Metals progress and cost expectations - Management reported significant progress in Base Metals, with a focus on reducing overhead and improving productivity [53][56] Question: Strategy regarding municipalities affected by the Mariana accident - Management emphasized the importance of the settlement agreement and its benefits for all parties involved [63] Question: Strategic review of Thompson and potential asset divestments - Management confirmed that Thompson is under review due to its lower returns compared to other opportunities [74] Question: Cash returns and buyback strategy - Management reiterated a balanced approach between dividends and buybacks, depending on cash flow generation [121] Question: Q1 volume trends and cost measures - Management indicated that Q1 performance is expected to be similar to last year, with ongoing cost optimization efforts [134][136]

Financial Data and Key Metrics Changes - Integer reported fourth quarter sales of $449 million, reflecting an 11% year-over-year growth on both an organic and reported basis [38] - For the full year 2024, sales reached $1.717 billion, representing a 10% increase year-over-year [41] - Adjusted operating income for 2024 was $285 million, up 20% compared to the prior year, which is two times the sales growth rate [41][61] - Adjusted net income for Q4 2024 was $51 million, a 6% increase year-over-year, resulting in adjusted diluted earnings per share of $1.43 [40] Business Line Data and Key Metrics Changes - Cardio and vascular product line sales increased by 14% year-over-year, driven by new product ramps in electrophysiology and structural heart [43] - Cardiac Rhythm Management and Neuromodulation sales increased by 8% year-over-year, with double-digit growth in neuromodulation [44] - The divestiture of the Portable Medical product line is expected to be completed by Q4 2025, which is part of the strategy to focus on higher growth markets [15] Market Data and Key Metrics Changes - Integer expects organic sales growth to continue above market rates at 6% to 8% for 2025, which is 200 basis points above the underlying market growth rate of 4% to 6% [52] - The company anticipates reported sales growth in Q1 2025 to approximate the full-year growth rate of 8% to 10% [57] Company Strategy and Development Direction - Integer's strategy focuses on sustaining above-market growth with expanding margins, targeting at least 200 basis points above market growth [14][61] - The company aims to optimize its portfolio and product line strategies to shift towards higher growth markets [12][25] - Recent acquisitions, including Precision Coatings and VSI Parylene, are intended to enhance vertical integration and proprietary capabilities [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continuing strong performance into 2025, with an outlook of 8% to 10% sales growth and 11% to 16% increase in adjusted operating income [61] - The operational environment has stabilized, allowing the company to focus on manufacturing excellence initiatives to expand margins [16] - Management highlighted the importance of a robust product development pipeline, with a 270% increase in product development sales since 2017 [28][34] Other Important Information - Integer ended 2024 with a strong sales backlog of $728 million, significantly above pre-pandemic levels [56] - The company expects to generate free cash flow between $110 million and $130 million in 2025, reflecting continued investment in capabilities and capacity [59] Q&A Session Summary Question: Guidance on cardiovascular segment growth - Management expects cardiovascular sales to grow in the low double-digit range for 2025, driven by success in targeted high-growth markets [68] Question: Background on Precision Coating acquisition - The acquisition was part of a long-term strategy to enhance capabilities in high-growth markets, with coatings identified as a key area for development [72][76] Question: Exposure to tariffs, particularly in Mexico - Management is preparing for potential tariffs and implementing operational changes to mitigate impacts, but specifics remain uncertain [81][100] Question: Contribution from high-growth markets in CMV - Management confirmed that underlying markets like electrophysiology and structural heart are expected to contribute significantly to growth, with guidance for cardiovascular sales to remain strong [90][92] Question: Gross margin performance in Q4 - Management noted that new product ramps and associated inefficiencies impacted gross margins, but they expect improvements as operations stabilize [122][128]

Shake Shack Inc. (NYSE:SHAK) Q4 2024 Earnings Conference Call February 20, 2025 8:00 AM ET Company Participants Michael Oriolo - Vice President, FP&A & IR Rob Lynch - CEO Katie Fogertey - CFO Conference Call Participants Michael Tamas - Oppenheimer & Company Christine Cho - Goldman Sachs Brian Vaccaro - Raymond James Jeffrey Bernstein - Barclays Sharon Zackfia - William Blair Brian Mullan - Piper Sandler Andrew Charles - TD Cowen Peter Saleh - BTIG Brian Harbour - Morgan Stanley Jake Bartlett - Truist Secur ...

Financial Data and Key Metrics Changes - The company reported strong fourth quarter and annual results for 2024, with net earnings and adjusted net earnings reflecting a return to Tier-1 production levels, higher sales volumes, and improved average realized prices [10][29]. - The adjusted EBITDA from Westinghouse was noted as a better reflection of its strong underlying performance despite a full year net loss from Westinghouse due to purchase accounting [29]. Business Line Data and Key Metrics Changes - In the Uranium segment, the company delivered just under 34 million pounds of uranium in 2024, with production slightly exceeding expectations at approximately 23.4 million pounds, driven by strong performance from the McArthur River/Key Lake operation [30][32]. - The production at the McArthur River/Key Lake operation set a new annual production record, while production from Inkai was impacted by supply chain issues, resulting in a total of 7.8 million pounds, about 600,000 pounds lower than in 2023 [30][32]. Market Data and Key Metrics Changes - The long-term contracting volumes in 2024 remained below 120 million pounds, indicating a decline from previous years, but the company successfully negotiated off-market contracts, adding to its long-term portfolio [20][22]. - The company has commitments to deliver an average of about 28 million pounds of uranium over the next five years, with a total long-term book of business in the uranium segment now totaling approximately 220 million pounds [20][21]. Company Strategy and Development Direction - The company continues to focus on aligning production with its contract portfolio and market opportunities, emphasizing responsible supply management and operational efficiency [27][34]. - The strategic positioning in the nuclear sector is aimed at benefiting from expected growth while remaining protected against potential market fluctuations [26][27]. Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the nuclear power outlook, citing supportive market conditions and geopolitical factors that enhance energy security and clean energy needs [12][13]. - The company anticipates strong cash flow generation in 2025, supported by a disciplined strategy and a strong balance sheet [35][36]. Other Important Information - The company is monitoring potential U.S. tariffs on Canadian energy products and has taken proactive steps to mitigate any potential impacts [38][39]. - Recent developments include the resolution of a technology and export dispute involving Westinghouse, which is expected to enhance future cooperation and opportunities [37]. Q&A Session Summary Question: Update on contracting activity and market conditions - Management noted that while term volumes were down year-over-year, term prices increased significantly, indicating a shift towards recognizing the need for future supply [45][46]. Question: Impact of production suspension at Inkai - Management confirmed a strong long-term relationship with Kazatomprom and indicated that discussions are ongoing to assess the impact of recent production suspensions [56][57]. Question: Update on AP1000 builds and Westinghouse cooperation - Management expressed excitement about the Westinghouse deal and the potential for future cooperation, particularly in the context of new builds in various countries [62][64]. Question: Potential impact of lifting sanctions on Russia - Management emphasized that the growth plan does not depend on sanctions and that the supply-demand fundamentals remain strong regardless of geopolitical changes [78][80]. Question: Clarification on tariff responsibilities in contracts - Management explained that new contracts include clauses that place tariff responsibilities on customers, mitigating potential financial impacts [93][110].

Financial Data and Key Metrics Changes - For Q4 2025, Walmart reported a sales growth of 5.2% and an adjusted operating income increase of 9.4% in constant currency [9][26] - Consolidated revenue for the full year grew 5.6% in constant currency, adding approximately $36 billion compared to the previous year [29] - Adjusted EPS increased by 13%, reflecting strong underlying business performance [29][55] Business Line Data and Key Metrics Changes - Walmart U.S. comp sales increased by 4.6%, with e-commerce sales growth of 20% [38] - Sam's Club U.S. comp sales excluding fuel increased by 6.8%, with strong growth in transaction and unit volumes [45] - Global membership income grew by 21% to approximately $3.8 billion, with significant contributions from Sam's Club [32][50] Market Data and Key Metrics Changes - International business delivered sales growth of 5.7% in constant currency, driven by strength in China, Walmex, and Canada [43] - E-commerce sales grew more than 20% across all international markets, with significant improvements in delivery speed [44] - U.S. customers showed resilience, with upper-income households accounting for the majority of share gains [42] Company Strategy and Development Direction - Walmart is focusing on expanding its higher-margin businesses such as membership, marketplace, and advertising [11][32] - The company is investing in supply chain automation and productivity to lower costs and enhance its everyday low price (EDLP) commitment [34][36] - Walmart is leveraging technology and AI to improve operational efficiency and customer experience [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the macroeconomic environment, emphasizing the importance of value and convenience for customers [71][76] - The outlook for fiscal year 2026 includes consolidated net sales growth of approximately 3% to 4%, with operating income projected to grow faster than sales [58][60] - Management acknowledged uncertainties related to consumer behavior and global economic conditions but remains optimistic about the company's positioning [57][110] Other Important Information - Walmart's investments in technology and supply chain automation are expected to yield long-term benefits, with a focus on enhancing e-commerce profitability [99][112] - The company announced a 13% increase in dividends, the largest in over a decade, reinforcing its commitment to returning cash to shareholders [34] Q&A Session Summary Question: Economic sensitivity and sales guidance for 2026 - Management believes Walmart remains insulated from economic sensitivity, with strong customer demand for value and convenience [71][76] Question: Impact of gross margin mix and alternative revenue businesses - Management indicated that general merchandise mix impacts gross margin but remains optimistic about growth in alternative revenue streams [81][92] Question: Reinvesting and growing the business faster - Management is balancing investment and margin expansion, focusing on long-term growth while maintaining profitability [98][100] Question: Walmart Plus membership growth and inflation assumptions - Walmart Plus membership continues to grow, with significant increases in same-day delivery and pharmacy delivery programs [121][125] Question: Consumer environment and markdowns - Management noted a consistent consumer environment and lower markdowns, attributing this to effective inventory management [131][139]

Financial Data and Key Metrics Changes - In Q4 2024, Piedmont Lithium shipped approximately 55,700 dry metric tons, a quarterly record, and recognized $45.6 million in revenue compared to $27.7 million in the previous quarter, driven by increased volume [18][20] - The realized price per metric ton was $818 for the quarter, equating to $909 on an SC6 equivalent basis, indicating strong price realizations despite market conditions [19][30] - The company ended the year with $87.8 million in cash, up from $64.4 million at the end of September 2024 [20] Business Line Data and Key Metrics Changes - North American Lithium (NAL) produced nearly 51,000 tons in Q4 2024 and over 190,000 tons for the full year, with cash operating costs at NAL reaching a new low of $709 per ton in Q4 2024 [9][11] - The company successfully reduced corporate expenses as part of its 2024 cost savings plan, achieving a $14 million reduction in annual run rate spending [22][25] Market Data and Key Metrics Changes - The lithium market saw a record year for EV sales in 2024, with approximately 17 million EVs sold globally, particularly driven by growth in the Chinese market [32] - Demand for lithium is expected to grow significantly, with energy storage systems projected to represent 34% of total lithium demand by 2030 [33] Company Strategy and Development Direction - The company is focused on advancing its projects, particularly in North Carolina and Ghana, while maintaining a measured pace due to current market conditions [15][17] - The planned merger with Sayona Mining aims to create the largest lithium producer in North America, enhancing operational efficiency and growth potential [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed a medium- to long-term bullish outlook for the lithium industry, despite short-term uncertainties and volatility [48][52] - The company is preparing for a challenging 2025, focusing on cost containment and cash management [22][26] Other Important Information - The company received its state mining permit in 2024, and a petition to challenge that permit was voluntarily withdrawn [15] - The merger with Sayona is expected to close around mid-2025, pending SEC review and shareholder votes [55][59] Q&A Session Summary Question: Impact of tariffs on shipments - Management noted that a potential 10% tariff on critical minerals would be paid by American customers, which may not significantly impact their decision-making [42][44] Question: Supply-demand expectations - Management indicated uncertainty in the near term but remains medium- to long-term bullish, citing potential demand growth from energy storage [48][52] Question: Merger completion timing - The merger is expected to close around mid-2025, with SEC review being the primary hurdle [55][59] Question: Update on Ghana project - Management expressed optimism about the new leadership in Ghana being more favorable towards critical minerals development [62] Question: Industry projects in Quebec - Management highlighted the importance of local processing capacity and potential partnerships to improve margins and reduce transportation costs [70][76] Question: Ewoyaa project development timeline - Management indicated that project advancement would depend on market conditions, with a preference to wait for stronger spodumene prices before proceeding [84]

Financial Data and Key Metrics Changes - Consolidated reported earnings were $5.39 per share in 2024, an increase of $0.49 per share compared to 2023, reflecting an 8% EPS growth [25][26][19] - Earnings in 2024 benefited from $0.12 per share due to favorable weather and $0.09 per share from incremental interest income [16][25] - Operating costs increased by $0.22 per share, primarily due to employee-related costs and other growth-related expenses [26] Business Line Data and Key Metrics Changes - The company invested over $3 billion in 2024 to support infrastructure investments and customer service [17][18] - Nearly 70,000 customer connections were added through acquisitions, meeting the 2% compounded annual growth target [18][51] Market Data and Key Metrics Changes - The company operates across 14 states, benefiting from regulatory diversity and a low-risk business model [20][38] - The average residential water bill is expected to remain at or below 1% of median household income throughout the ten-year plan [50] Company Strategy and Development Direction - The company is focused on a capital investment program aimed at infrastructure renewal, with a long-term rate base growth target of 8% to 9% [20][49] - The company plans to achieve consistent EPS growth within the 7% to 9% range through 2029 and beyond [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing plans for 2025 and beyond, emphasizing the importance of addressing aging infrastructure and water quality challenges [22][22] - The company remains committed to providing safe, clean, and reliable services while maintaining affordability for customers [55][50] Other Important Information - Susan Hardwick announced her retirement effective May 14, 2025, with John Griffith set to succeed her as CEO [7][8] - The company has a strong balance sheet with a total debt to capital ratio of 57%, well within the target of less than 60% [38] Q&A Session Summary Question: Changes in strategy regarding PFAS investments - Management confirmed no changes to capital plans related to PFAS, emphasizing the need to meet regulatory requirements [63] Question: Should the $0.10 from loan remarketing be included in EPS growth models? - Management advised to exclude the $0.10 from the base EPS growth calculations [65] Question: Details on acquisition capabilities and growth - Management highlighted the addition of staffing in business development to enhance growth across multiple states [72][74] Question: Disruptions in procurement for capital projects - Management reported no disruptions in procurement, maintaining a robust supply chain for capital investments [84] Question: Update on the Missouri rate case - Management expressed optimism about reaching a settlement prior to the start of hearings in Missouri [94] Question: Impact of economic development on customer growth - Management noted that while there are opportunities for growth, water demand remains stable with excess capacity in the industry [98] Question: Consideration of hybrid financing options - Management indicated that hybrids are not seen as cost-effective compared to traditional equity financing [105] Question: Update on Missouri legislative efforts - Management is actively working to improve the regulatory environment in Missouri, focusing on future test year legislation [128]

Manulife Financial Corporation (NYSE:MFC) Q4 2024 Earnings Conference Call February 20, 2025 8:00 AM ET Company Participants Hung Ko - Vice President of Investor Relations Roy Gori - President & Chief Executive Officer Philip Witherington - President & Chief Executive Officer, Manulife Asia Colin Simpson - Chief Financial Officer Trevor Kreel - Chief Investment Officer Paul Lorentz - President & CEO, Global Wealth and Asset Management Marc Costantini - Global Head of Inforce Management Steve Finch - Chief A ...

ONE Gas, Inc. (NYSE:OGS) Q4 2024 Earnings Conference Call February 20, 2025 11:00 AM ET Company Participants Erin Dailey - Director-Investor Relations Sid McAnnally - President & Chief Executive Officer Chris Sighinolfi - Senior Vice President & Chief Financial Officer Curtis Dinan - Senior Vice President & Chief Operating Officer Conference Call Participants James Ward - Jefferies Christopher Jeffrey - Mizuho Paul Fremont - Ladenburg Operator Good day, and welcome to the ONE Gas Fourth Quarter and Year End ...