Financial Data and Key Metrics Changes - TPG reported GAAP net income attributable to TPG Inc. of $15 million and after-tax distributable earnings of $268 million, or $0.69 per share of Class A common stock, marking a 30% increase year-over-year [5][29] - The company declared a dividend of $0.59 per share of Class A common stock, to be paid on September 2, 2025 [5] - Total assets under management (AUM) reached $261 billion, up 14% year-over-year, driven by $36 billion of capital raised and $21 billion of value creation [27] Business Line Data and Key Metrics Changes - Fundraising grew nearly 80% year-over-year to $11.3 billion, with deployment increasing 36% to $10.4 billion and realizations growing more than 20% to $6.5 billion [7][22] - In private equity, TPG Growth six exceeded its $4 billion target, raising a total of $4.8 billion, a 35% increase over the previous fund [9] - In credit, TPG raised a record $5.4 billion across its strategies during the second quarter [11] Market Data and Key Metrics Changes - The company saw strong early support for its second GP Solutions Fund, which is expected to be significantly larger than its predecessor [10] - Insurance contributed nearly 30% of the credit capital raised in the second quarter, primarily through structured credit and credit solution strategies [13] - The company ended the quarter with record dry powder of $63 billion, representing 43% of fee-earning AUM [21] Company Strategy and Development Direction - TPG is focused on expanding its credit platform and enhancing its capital markets capabilities, which are expected to grow alongside the firm's overall transactional activity [77][78] - The company is actively evaluating broader strategic partnerships and inorganic opportunities within the insurance channel [14] - TPG aims to increase its presence in private wealth and insurance, with TPOP and TCAP providing a strong foundation for growth [24][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the private equity asset class as a return driver for institutional accounts, despite broader market challenges [45][61] - The company anticipates a breakout year in 2025 for credit fundraising, driven by strong demand and a robust pipeline [13][24] - Management expects to see a growing pipeline of attractive investment opportunities in real estate, particularly in high-quality assets [21] Other Important Information - TPG completed the acquisition of PepperTree, which is expected to enhance its digital infrastructure strategy [7] - The company has upsized its revolving credit facility from $1.2 billion to $1.75 billion to support growth initiatives [30] - TPG's private equity portfolio appreciated 2% in the quarter and 11% over the last twelve months, indicating strong performance across its investments [31] Q&A Session Summary Question: Insights on Private Equity Performance - Management noted that TPG's performance differs from broader market trends, with strong growth in commitments from existing LPs and new relationships being established globally [44][48] Question: Insurance Strategy and Balance Sheet Considerations - Management emphasized the importance of maintaining FRE centricity and being cautious about assuming liabilities in insurance transactions, focusing on partnerships to enhance distribution capabilities [52][54] Question: Fund Size Expectations and Management Fees - Management indicated that the first close of $9 billion is a strong start, with expectations for continued growth in fund sizes and management fees as new funds are activated [60][64] Question: Capital Markets Growth Potential - Management highlighted the ongoing build-out of capital markets capabilities, which are expected to grow in correlation with the firm's overall growth and transactional activity [76][79] Question: Retail Opportunity and TPOP Expansion - Management discussed plans to broaden distribution for TPOP and the development of new products in credit and real assets, with a focus on expanding into the RIA market [82][85]

Financial Data and Key Metrics Changes - For the first half of 2025, organic net sales rose by 3%, with net sales reported at $334 million for the second quarter, a slight decline from the same period in 2024 [5][21][22] - Gross margin expanded by 170 basis points to 66.2% for the first half and 150 basis points to 65% for the second quarter [22] - Operating income decreased by 9% to $59 million for the quarter, but increased by 1% to $134 million year-to-date [23][24] - Net income attributable to U.S.-based operations decreased by 26% to $18 million, largely due to lower sell-in [27] Business Line Data and Key Metrics Changes - European-based operations reported net sales growth of 7% in the second quarter and 6% on an organic basis for the first half [5][26] - U.S.-based operations saw a reported second quarter net sales decline of 20%, with organic sales down 14% [6][27] - SG&A expenses as a percentage of net sales increased to 48.5% for the second quarter compared to 45.6% in 2024 [22] Market Data and Key Metrics Changes - North America sales rose by 7%, while Western Europe sales increased by 3% [7] - Sales in Eastern Europe were up 14%, but Asia Pacific fragrances declined by 12% [8] - The Middle East and Africa region declined by 19%, reflecting the exit of the Dunhill license [8] Company Strategy and Development Direction - The company is focusing on product innovation, effective advertising, and promotional programs to maintain demand for fragrance products [4] - Plans to launch new fragrances and expand e-commerce presence, including flagship boutiques in Paris and an e-commerce platform [10][12] - The company is transitioning to third-party logistics to enhance operational efficiency [14] Management's Comments on Operating Environment and Future Outlook - Management noted that momentum eased in the second quarter, with challenges expected to continue into the second half of the year [4] - The company remains confident in achieving its full-year objectives, supported by a resilient fragrance category and tariff-driven pricing actions [28][29] - Management highlighted the importance of being agile to respond to potential surges in orders during the holiday season [39] Other Important Information - The company has been selected as the exclusive fragrance licensee for Laurentian, with plans to launch a women's fragrance in 2027 [11] - E-commerce channels are experiencing strong momentum, particularly on platforms like Amazon and TikTok [12][13] Q&A Session Summary Question: Can you discuss promotional levels and destocking trends? - Management indicated that destocking is difficult to assess but noted a slowdown in the market, with retailers being more prudent [34][35] - End demand was reported as good, with the market up 5% in the second quarter [36] Question: Are tariffs impacting retailer purchasing? - Management clarified that retailers are not subject to tariffs, but distributors are, leading to a more cautious purchasing approach [46] Question: Will the company continue to add new brands? - Management expressed a commitment to diversifying the portfolio and indicated capacity to take on more brands in the future [50] Question: What risks does retailer caution impose? - Management acknowledged the risk of revenue being pushed into Q4 due to uncertainty in purchasing [55] Question: Will smaller packaging be considered for TikTok? - Management confirmed that smaller packaging will be developed for certain brands on TikTok to meet price point demands [58] Question: What caused the increase in debt from Q1 to Q2? - Management explained that the increase was due to a loan taken out for asset purchases and additional office space [61]

Financial Data and Key Metrics Changes - Net income for the second quarter was $32 million or $0.53 per diluted share, compared to $27.2 million or $0.48 in the same period last year, reflecting a year-over-year increase [4][8] - The company raised its full-year 2025 financial guidance, now expecting net income between $261 million and $267 million and earnings per diluted share between $4.32 and $4.42, both 2.5% above the respective midpoints of the initial guidance ranges [5][7] - Operating and maintenance expenses increased by 7.5% year over year in the second quarter, primarily due to higher labor-related expenses [8] Business Line Data and Key Metrics Changes - Revenues for the second quarter increased by approximately $21.1 million from new rates and $1.5 million from continued customer growth [8] - The company installed nearly 11,400 new meters through the first half of the year, sustaining a momentum of over 9% year-over-year increase in new customer additions [16] Market Data and Key Metrics Changes - The Oklahoma Corporation Commission approved a $41.1 million revenue increase effective in June, and Texas Gas Service filed a rate case requesting a $41.1 million increase [11][12] - The Kansas Corporation Commission approved a $7.2 million increase under the gas system reliability surcharge statute, with new rates taking effect this month [13] Company Strategy and Development Direction - The company is focused on disciplined execution and long-term growth, with a commitment to system integrity and responding to community needs [18][39] - The Austin system reinforcement project is highlighted as a significant capital investment aimed at expanding system capacity to support growing demand [14][40] - The company is pursuing opportunities in data centers, advanced manufacturing, and utility-scale generation, aiming to enhance system resiliency and align with customer needs [17][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong operational and financial results for the first half of the year and the positive impact of Texas House Bill 4,384 on financials [4][5] - The company remains optimistic about growth opportunities in Texas and other jurisdictions, driven by positive migration trends and job creation [39][40] Other Important Information - The company declared a dividend of $0.67 per share, unchanged from the previous quarter [10] - The company completed $190 million in capital projects during the second quarter, in line with the same period last year [14] Q&A Session Summary Question: Impact of House Bill 4,384 on financials - Management explained that the bill extends deferrals and accruals to all capital expenditures in Texas, potentially adding $4 million to $5 million of annual pretax earnings [24][28] Question: Long-term growth rate considerations - Management confirmed that the updated midpoint of guidance for 2025 will be used as the base for the new five-year range [34] Question: Texas capital plans and growth - Management stated that there will be no significant changes to the capital plans due to the bill, but growth in Texas jurisdictions is expected to continue [38] Question: Texas rate case and consolidation benefits - Management highlighted that consolidation will lead to efficiency, reducing administrative costs and benefiting customers [47] Question: Opportunities in power load growth and data centers - Management indicated that there are significant inbound inquiries for data center opportunities, and they are pursuing projects that enhance system resiliency [50]

Financial Data and Key Metrics Changes - Adjusted operating earnings for the second quarter were $350 million, supported by strong performance from spread products and higher yields in the bond portfolio [17][19] - Total adjusted capital exceeded $5.3 billion, reflecting a 5% increase since year-end 2024 [12][34] - Adjusted operating earnings per share was $4.87, with an adjusted figure of $5.12, up 5% from the prior year's second quarter [19][20] Business Line Data and Key Metrics Changes - Retail annuity sales reached $4.4 billion, a 9% increase over the first quarter and a 4% increase year-over-year [7][10] - RILA account balances increased by nearly 80% from the second quarter last year, with sales approaching $1.4 billion, up 16% from the previous quarter [6][7] - Variable annuity net outflows improved for the second consecutive quarter, totaling $2.2 billion, down 27% from a year ago [10][22] Market Data and Key Metrics Changes - Average retail annuity AUM increased to $249 billion, up from year-end 2024 [24] - The company experienced a 9.4% return on separate account assets, contributing approximately $19 billion to AUM [45] Company Strategy and Development Direction - The company remains committed to a balanced capital management strategy, focusing on disciplined investments, maintaining a strong balance sheet, and consistent capital return to shareholders [15][14] - Jackson is exploring opportunities for strategic partnerships and risk transfer transactions to enhance shareholder value [50][53] - The company aims to leverage Brook Re for potential M&A opportunities, enhancing capital generation and free cash flow [72][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong and sustainable capital generation supporting future growth initiatives and ongoing capital return to shareholders [12][13] - The need for financial security in retirement is increasingly recognized, positioning annuities as essential tools for clients [15][16] Other Important Information - The company returned $216 million to common shareholders in the quarter, a 60% increase from the previous year [32] - A cash dividend of $0.80 per common share was approved for the third quarter [14] Q&A Session Summary Question: Excess capital position and potential uses - Management reiterated the philosophy of generating excess capital, paying it as free cash flow, and returning capital to shareholders [40][42] Question: AUM levels and equity market impact - Strong equity market performance contributed to AUM growth, with solid margins expected despite some variable expense offsets [44][46] Question: Strategic considerations for business remixing - Management is open to strategic partnerships and risk transfer opportunities that enhance shareholder value [50][53] Question: RILA product features and competition - RILA sales increased 16% sequentially, with a competitive product offering that includes income options [60] Question: Risk management of RILA and legacy VA - The company manages RILA and legacy VA products separately, leveraging natural offsets in equity risk [70] Question: Potential for inorganic growth using Brook Re - Management confirmed that Brook Re could be leveraged for M&A opportunities, particularly in acquiring complementary blocks of business [72][80]

Financial Data and Key Metrics Changes - The company reported siding revenue growth of 11% year-over-year, resulting in $755 million in sales and $142 million in EBITDA for the quarter [7][19] - Adjusted earnings per share for the quarter were $0.99, reflecting strong operational efficiency [7][19] - Operating cash flow was $162 million, supported by seasonal reductions in working capital [18] Business Line Data and Key Metrics Changes - The Siding segment achieved record volume, revenue, and EBITDA despite a challenging market, with a 2% price increase and an 8% volume increase contributing to revenue growth [13][19] - The OSB segment faced significant challenges due to falling commodity prices, resulting in an EBITDA of $19 million, which was better than expected due to cost control measures [16][20] Market Data and Key Metrics Changes - Housing starts remain below long-term average demand levels, contributing to a cautious sentiment among contractors [6] - Current OSB prices are at multiyear lows, with adjusted prices being the lowest in at least twenty years when accounting for inflation [19][20] Company Strategy and Development Direction - The company is focused on maintaining growth in the Siding segment through product innovation and market share gains, particularly with the SmartSide product line [9][19] - The company plans to invest in new siding press capacity and increased prefinishing capabilities to support growth [18] - Cost control measures are being emphasized in the OSB segment to navigate the current market challenges [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the Siding segment, despite current market challenges [9][19] - The outlook for the OSB segment remains cautious, with expectations of negative EBITDA in the upcoming quarters if current pricing trends continue [20] Other Important Information - The company was recognized for its safety culture, being named the safest company in 2024 by APA for the third consecutive year [10] - The company has $1.1 billion in liquidity, including $333 million in cash, positioning it well for future investments [18] Q&A Session Summary Question: Insights on Siding margin decrement in Q3 - Management acknowledged that Q3 might not reach the peak of Q2, but combined revenue growth for Q2 and Q3 is expected to be healthy at about 7% year-over-year [26] Question: Early trends in Q3 and CapEx implications - Management noted a slight weakening in the Q3 order file but maintained guidance for the quarter, with most CapEx reductions occurring in the OSB segment [30][29] Question: Cost control measures in OSB - Management highlighted outstanding operational efficiency and aggressive cost containment as key drivers for better-than-expected EBITDA in the OSB segment [38] Question: Impact of shrinking home sizes on siding - Management believes that despite shrinking home sizes, the low penetration rate of wood strand-based siding and potential for a residing cycle will offset any negative impacts [40] Question: Siding guidance for the back half of the year - Management indicated a seasonal pattern with expectations for healthy volume growth in Q4, despite a flat outlook for Q3 [44] Question: Operating rates in Q2 - Operating rates were in the mid-eighty percent range for OSB and slightly lower for Siding as new capacity ramps up [46] Question: Sell-through and channel inventories for Siding - Management reported good sell-through in Q2, with channel inventories positioned as expected, supporting confidence in growth for Q4 [52] Question: Mix impact on pricing - Management clarified that the pricing dynamics are more influenced by product mix rather than headwinds, with panels being lower-priced but high-margin products [70] Question: New residential market opportunities - Management sees opportunities for growth in the new residential market, particularly in converting from vinyl to engineered wood siding [85] Question: Manufactured housing and shed demand - Management noted that shed demand has returned to normal levels post-COVID, while manufactured housing presents a significant growth opportunity due to affordability challenges [94]

Financial Data and Key Metrics Changes - The company reported total revenue of $286 million, slightly down from $288 million in the same period last year, with net income increasing to $48 million or $3.96 per diluted share, a 4% increase year-over-year [17][23] - Gross profit increased by $6 million to $88 million, with a gross margin of 30.7%, which is 230 basis points higher than the prior year [20][6] - The book-to-bill ratio was 1.3 times, with a backlog growth of 7% to a total of $1.4 billion, reflecting strong order activity [8][18] Business Line Data and Key Metrics Changes - Revenue from the electric utility market increased by 31%, while revenues from the commercial and other industrial market and the traction market saw increases of 1861% and a notable traction order, respectively [19] - Domestic revenues decreased by 8% to $225 million, while international revenues increased by 30% to $62 million, driven by project volume growth in Canada and the Middle East [19] Market Data and Key Metrics Changes - The oil and gas and petrochemical markets saw revenue declines of 368% and 368%, respectively, due to challenging comparisons with prior year mega projects [20] - The fundamentals for the U.S. natural gas market remain strong, supporting expectations for continued order strength, particularly in LNG projects [14] Company Strategy and Development Direction - The company announced an agreement to acquire REMSAK Limited, enhancing its electrical automation platform and allowing for a 100% Powell-built solution for the utility market [11][12] - The company is focused on diversifying its product portfolio and advancing its product-centric strategy to improve the mix of product versus project-based revenues [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across all markets and the ability to deliver value for customers and stakeholders [16] - The outlook for the electric utility market remains strong, with expectations for continued growth driven by electrification trends [28] Other Important Information - Selling, general, and administrative expenses increased by $3 million to $25 million, attributed to higher compensation and acquisition-related expenses [21][22] - The company does not hold any debt, with cash and short-term investments totaling $433 million [23] Q&A Session Summary Question: What does the opportunity pipeline look like now? - Management highlighted a strong utility market and ongoing activity in oil and gas, with significant opportunities tracked across various sectors [26][27] Question: How far does the revenue visibility extend? - The backlog is transparent, with bookings extending into late fiscal 2027, providing good visibility for revenue conversion [29][30] Question: How much did project closeouts contribute to gross margin improvement? - Approximately 115-120 basis points of the year-to-date margin improvement is attributed to project closeouts [31][32] Question: Was there anything unusual regarding the increase in SG&A expenses? - The increase was due to higher variable compensation and acquisition-related expenses, with no unusual items noted [33] Question: What is driving the momentum in the electric utility market? - The momentum is attributed to a combination of being a trusted partner and the demand driven by electrification and data centers [36][38] Question: Can you elaborate on the REMSAK acquisition? - The acquisition is expected to enhance the company's capabilities in electrical automation and provide significant growth potential in the North American market [39][40] Question: What is the outlook for pricing in the current market? - Pricing is stable but not improving significantly, with management closely monitoring market dynamics [58][60] Question: Was the $60 million electric utility award a combined cycle generating facility? - The project is a significant power generation facility, exceeding a gigawatt output, supporting commercial markets [61]

Financial Data and Key Metrics Changes - The company reported net income attributable to GEO of approximately $29 million or $0.21 per diluted share on quarterly revenue of approximately $636 million for Q2 2025, compared to a net loss of approximately $32.5 million or $0.25 per diluted share in Q2 2024 [26] - Adjusted net income for Q2 2025 was approximately $31 million or $0.22 per diluted share, compared to approximately $30 million or $0.23 per diluted share for the prior year [26] - Adjusted EBITDA for Q2 2025 was approximately $119 million, consistent with the prior year [26] Business Line Data and Key Metrics Changes - Revenues in owned and leased secure facilities increased by approximately 12% year over year, driven by new ICE contracts and census growth [27] - Revenues for non-residential contracts increased by approximately 10% from the prior year [27] - There was a 7% reduction in electronic monitoring and supervision services, a 2% reduction in reentry centers, and a 3% reduction in managed-only contracts [28] Market Data and Key Metrics Changes - Utilization across current ICE contracts increased from approximately 15,000 beds to 20,000 beds, representing the highest level of ICE utilization in the company's history [11] - The company has approximately 5,900 idle beds at six facilities, which could generate up to approximately $310 million in annualized revenues if fully utilized [12] Company Strategy and Development Direction - The company is focused on activating remaining idle facilities and exploring additional contract opportunities with ICE and the U.S. Marshals Service [13][15] - A $300 million stock buyback program has been authorized, expected to be executed at a rate of approximately $100 million per year [24][35] - The company aims to enhance shareholder value through disciplined capital allocation and debt reduction, targeting approximately $100 million in debt reduction per year [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the potential for additional contract awards and the overall growth opportunities in the ICE sector [16][48] - The company anticipates that the funding from the budget reconciliation bill will be available in mid to late August, which could support the expansion of detention capacity [14] - Management expects growth in the ICEP contract to materialize late this year or early next year, coinciding with the maximization of ICE detention capacity [19][47] Other Important Information - The company completed the sale of its Lawton facility for $312 million, which is seen as a transformative event [22][23] - The company has increased its budget for physical plant and technology improvements to approximately $100 million to better respond to ICE's expanding needs [29] Q&A Session Summary Question: Can you clarify the potential revenue from the additional beds? - Management indicated that approximately $250 million could be generated from an additional 5,000 beds, as these would be incremental beds where overhead is already paid [53] Question: What is the status of the ISAP contract and the potential shift to ankle monitors? - Management has stocked up on ankle monitors and noted that additional funding may be required for the ISAP contract if there is a shift to more expensive monitoring devices [56] Question: Will there be additional debt reduction in the second half of the year? - Management expects to generate excess cash in the second half of the year, enabling continued debt reduction while also looking at share repurchases [58][59] Question: How is the company positioned for state-level opportunities? - Management confirmed that the focus on state clients has increased, with ongoing competitive bidding for facilities in Florida and improved funding streams in Georgia [61] Question: What is the outlook for contracting additional facilities with the Marshals Service? - Management is cautiously optimistic about opportunities with the Marshals Service, noting that discussions are underway and funding is a key consideration [80]

Financial Data and Key Metrics Changes - The company reported a record-setting quarter for revenues and average revenue per horsepower, with average revenue reaching $21.31 per horsepower, a 1% increase sequentially and a 5% increase year-over-year [14][6] - Net income for the second quarter was $28.6 million, operating income was $76.6 million, and net cash provided by operating activities was $124.2 million [14][15] - Adjusted gross margins for the second quarter were 65.4%, with average utilization at 94.4%, consistent with the prior quarter [14][15] Business Line Data and Key Metrics Changes - The total fleet horsepower at the end of the quarter was approximately 3.9 million horsepower, unchanged from the previous quarter [15] - Average active horsepower remained flat at 3.55 million, with a slight decrease in total active horsepower sequentially [11][15] - The company acquired approximately 48,000 new horsepower in 2025, with 10,000 expected to be online by January 2026 [10] Market Data and Key Metrics Changes - The company anticipates a 5% increase in contracted horsepower in the Northeast by Q4 compared to current levels [6] - The July EIA short-term energy outlook projected a 6% annualized gas growth in the Permian, with natural gas production expected to grow in the Northeast and Haynesville [9] Company Strategy and Development Direction - The company is optimistic about future growth due to a significant number of RFQs in the pipeline, with top customers expected to increase production [7] - The shared services model with Energy Transfer is expected to yield benefits, including licensing savings and enhanced IT functionality [10] - The company continues to focus on cost management, particularly in parts, labor, and lube oil, with expectations of reduced costs through internal hiring and new vendor agreements [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged bearish macroeconomic factors but expressed confidence in the company's execution and demand for natural gas driven by AI and cloud services [6][8] - The company sees a shift from a supply-based to a demand-based natural gas market, indicating a positive long-term outlook for natural gas [64] Other Important Information - The company maintained its 2025 guidance for adjusted EBITDA in the range of $590 million to $610 million and distributable cash flow between $350 million and $370 million [16] - The leverage ratio is currently at 4.08 times, with expectations of a marginal increase later in the year as new growth projects are funded [16][17] Q&A Session Summary Question: Gross margin trends and new horsepower - Management indicated that gross margins have fluctuated between 65% to 67% over the past four years and expect them to align with historical averages as staffing improves [22][23] Question: Contracted horsepower in the Northeast - Approximately 25% to 30% of business in the Northeast is on month-to-month contracts, with expectations for better dollar per horsepower revenue in the coming months [25][26] Question: Sold or retired equipment - There were no material sales of equipment during the quarter, and utilization was flat, with expectations for increased active horsepower in Q4 [32][33] Question: G&A costs and shared services - G&A costs were lower due to shared services, but management cautioned against over-optimism regarding future savings as the integration process continues [34][36] Question: Demand for compression services - Demand is increasing across oil and gas producing basins, particularly in dry gas basins, with expectations for more contracting in the coming months [40] Question: Electric motor drive market - There has been a shift back to natural gas engine-driven compressors, with electric drive opportunities subsiding [42] Question: Capital allocation and distribution - The company aims to maintain distribution while reducing leverage, with plans to refinance existing notes to improve cash flow [44][46] Question: CapEx and equipment costs - The cost to acquire new horsepower has increased over the past two years, but the company is still able to achieve necessary margins [49][50] Question: Buying contract opportunities - There are opportunities for buying contracts, but the volume is flat compared to last year, with a focus on advantageous deals [57][58] Question: CapEx outlook and timing - The CapEx outlook spilling into 2026 is driven by delivery timing of ordered units rather than customer production schedules [59]

Financial Data and Key Metrics Changes - The company generated net income of $411 million and adjusted EBITDA of $566 million in Q2 2025, compared to a net loss of $162 million and adjusted EBITDA of $584 million in the same quarter of 2024 [7][25][26] - The dollar lost value against most currencies, contributing positively to net income by $220 million [26] - The company expects EBITDA from the Mosaic Fertilizantes segment to increase due to strong demand and limited supply [12][33] Business Line Data and Key Metrics Changes - Phosphate production guidance for the third quarter is set at 1.8 million to 2 million tons, with annual guidance now at 6.9 million to 7.2 million tons [11][36] - Potash production guidance has been increased to 9.3 million to 9.5 million tons due to strong global demand [12][36] - The Biosciences segment's revenues more than doubled in the first half compared to the previous year, with expectations to contribute positively to adjusted EBITDA starting in Q4 [13][14] Market Data and Key Metrics Changes - The global phosphate market remains tight, with strong demand and limited supply expected to continue into 2026 [9][21] - In North America, import supply of phosphate is down around 20% year-over-year due to tariffs, which is expected to keep domestic demand strong [20][71] - Brazilian demand for fertilizers is resilient despite higher prices, with expectations for record shipments this year [21][24] Company Strategy and Development Direction - The company is focusing on improving operating performance and enhancing reliability in its phosphate production business [5][6] - The new Pomeranci facility adds 1 million tons of distribution capacity, reinforcing the company's market presence in Brazil [13] - The company aims to achieve $250 million in cost reductions by 2026 through various operational efficiencies [35][89] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong second half of 2025, driven by improved production volumes and favorable market conditions [6][36] - The company does not anticipate a price reset in the second half of the year, which has occurred in previous years [8] - Management highlighted the importance of market access as a competitive advantage, especially in the context of tight supply and strong demand [6][13] Other Important Information - The company is making progress on capital allocation, expecting stronger free cash flow in the second half of the year to pay down debt and return capital to shareholders [15] - The company has achieved significant cost reductions in its operations, with plans to extend these efforts further [35] Q&A Session All Questions and Answers Question: Can you parse out the noise from what has actually changed from your Investor Day for better or worse? - Management acknowledged the market's negative reaction and clarified that while there were extraordinary expenses, the underlying performance remains strong [40][41] Question: What was your run rate roughly in July and how are we trending in August and September? - Management indicated that July's run rate was not as expected due to delays but expressed optimism for August and September based on encouraging numbers [48][53] Question: How do the $50 million idle and turnaround one-off costs in Q2 ramp down? - Management provided a general annualized cost range for phosphates but noted the variability in turnaround costs [56][60] Question: What has Mosaic done to harden the assets against potential weather disruptions? - The company has implemented various measures to prepare for hurricane season, including hardening assets and ensuring compliance with regulatory requirements [64][66] Question: Can you talk about how tariffs have raised the costs of imports of phosphates into the United States? - Management explained that imports of phosphate face a 10% tariff, impacting the market dynamics and supporting domestic prices [70][71] Question: Can you elaborate on the government's reduction in support for farmer financing of input costs? - Management noted that while the first half of the market was strong, the summer season for soybeans is slower, which may impact demand [93][98]

Financial Data and Key Metrics Changes - The company reported second quarter adjusted EPS of $0.22, bringing the year-to-date total to $1.19, which is an increase of $0.13 from the same period last year [8][24]. - The 2025 adjusted EPS guidance has been narrowed to the upper half of the previously stated range of $1.85 to $1.89 [9][25]. - The company is reaffirming long-term financial commitments, targeting 6% to 8% annual adjusted EPS growth and 8% to 10% rate base growth through 2029 [25][29]. Business Line Data and Key Metrics Changes - Strong performance was noted in both the NIPSCO and Columbia segments, which continue to outperform expectations [24]. - The operational excellence initiatives, including Project Apollo and WAM, have enabled consistent and high-quality results across the business [24]. Market Data and Key Metrics Changes - Customer growth in the electric business was nearly 1% and 0.6% in the gas business, both surpassing forecasts [26]. - The metro growth in Columbus, Ohio was reported to be 38% higher than the national average last year, indicating strong economic tailwinds [26]. Company Strategy and Development Direction - The company focuses on disciplined capital deployment, operational excellence, and constructive regulatory relationships to drive value [6][7]. - The regulatory agenda has seen progress with approved rate cases in Virginia and Indiana, supporting significant revenue increases and investments [12][13]. - The company is advancing initiatives to support broader economic development, including revitalizing infrastructure to attract new industrial customers [14][15]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for data centers in Northern Indiana and emphasized a disciplined approach to executing opportunities [32][33]. - The company remains focused on maximizing opportunities for stakeholders while ensuring financial integrity [32][33]. - The outlook for 2025 is positive, with expectations to deliver strong financial results and continued growth [28][29]. Other Important Information - The company has successfully issued $1.65 billion of senior notes to meet 2025 funding needs while maintaining a strong credit profile [27]. - The company is exploring AI capabilities to enhance operational efficiency and improve service delivery [9][10]. Q&A Session Summary Question: How is the company thinking about the data center opportunity, especially in the NISCO territory? - Management highlighted a strong demand for data centers in Northern Indiana and emphasized a disciplined approach to executing this opportunity while protecting existing customers [32][33]. Question: Can you provide an update on the Genco operating model and its timeline? - Management confirmed that the Genco declination process is moving forward, with an order expected by the third quarter of this year [36][64]. Question: How does the company plan to finance the Genco structure? - Management indicated that flexibility in financing will be retained, evaluating options once customer contracts are in place [57][58]. Question: What is the status of the coal plant retirements? - The company plans to retire the Schaeffer plant by the end of the year but will work closely with state officials to align with any new directives [54]. Question: Can you clarify the timeline for converting the Genco opportunity into reality? - Management reiterated that they are on track to execute the Genco opportunity in 2025 [76].