Financial Data and Key Metrics Changes - Fee related earnings increased by 16% to $676 million, while distributable earnings rose by 12% to $613 million [8][34] - Fee bearing capital reached $563 billion, marking a 10% year-over-year increase [8][34] - The company raised $22 billion in capital during the quarter and $97 billion over the past twelve months [8][34] Business Line Data and Key Metrics Changes - In renewable power and transition, $1.5 billion was raised, contributing to a total of over $15 billion for the world's largest energy transition strategy [37] - Infrastructure fundraising totaled $1.7 billion, with significant contributions from the Super Core infrastructure strategy [37] - Real estate strategies raised $1.8 billion, including $500 million for the fifth vintage of the flagship real estate strategy [38] Market Data and Key Metrics Changes - The company noted a robust recovery in the real estate market, with deployment in real estate up 2x and monetization activity up 4x compared to the previous year [72] - The demand for high-quality assets and businesses has significantly increased, evidenced by over $55 billion in announced asset sales generating $33 billion in equity proceeds [21][20] Company Strategy and Development Direction - The company is focused on long-term mission-critical investments in infrastructure, renewable power, and essential services, driven by themes of digitalization, decarbonization, and deglobalization [9][10] - The company is developing next-generation AI infrastructure globally, positioning itself as a partner of choice for large hyperscalers and governments [12][13] - The strategy includes expanding into the individual investor market, with a focus on private wealth and retirement channels [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting significant liquidity and a constructive backdrop for M&A activity [8][9] - The company anticipates continued strong fundraising and investment activity, with a robust pipeline of opportunities [32][34] - Management emphasized the importance of product quality and durability in capturing the growing individual investor market [52][69] Other Important Information - The company declared a quarterly dividend of 43.75 cents per share, payable to shareholders of record as of August 29 [43] - The company is prioritizing its inclusion in U.S. equity indices, having been added to the Russell 1000 Index [42] Q&A Session Summary Question: Fundraising environment and outlook - Management characterized the fundraising environment as incredibly robust, expecting this year to surpass last year's capital raised [46][48] Question: Access to the broader retirement market - Management highlighted the importance of product offerings and brand strength in capturing growth in the retirement market [51][53] Question: Insurance growth area and Just acquisition - The Just Group acquisition is expected to enhance the company's footprint in the UK retirement market, adding stable fee-bearing capital [56][57] Question: Real estate market outlook - Management noted a robust recovery in the real estate sector, with significant deployment and monetization activity [72][74] Question: Expense outlook and margin expansion - Management indicated that expense growth is expected to stabilize around 10%, with potential for FRE margin expansion in the future [78][80]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the second quarter reached $165 million, a 2% year-over-year increase [24] - Adjusted earnings per share also hit a record of $1.92, marking a 4% year-over-year increase [25] - Global rooms increased by 3% year-over-year, with total worldwide rooms growing by 2.1% [25][28] - Domestic RevPAR declined approximately 1.6% year-over-year, while overall RevPAR decreased by 2.9% [28] Business Line Data and Key Metrics Changes - Domestic extended stay room system size grew by 10% year-over-year, with a 7% increase in domestic openings [25] - The Comfort brand saw a 50% increase in global openings and a 23% year-over-year increase in domestic franchise agreements [26] - The upscale portfolio, including the Send Hotel Collection, reached over 65,000 rooms worldwide, with a 29% year-over-year increase in domestic franchise agreements awarded [27] Market Data and Key Metrics Changes - International business achieved a 10% growth in adjusted EBITDA, with a 5% expansion in the rooms portfolio year-over-year [5] - The EMEA region saw a 7% increase in room count, reaching over 63,000 rooms [9] - In Canada, the lodging market is projected to grow at an average annual rate of over 5% over the next five years, reaching over $50 billion in total revenues by 2030 [8] Company Strategy and Development Direction - The company is focusing on expanding its global footprint through acquisitions and partnerships, including the acquisition of the remaining 50% interest in Choice Hotels Canada [6][32] - The strategy includes transitioning to a fully direct franchising model in Canada, allowing for a broader product offering across 22 brands [7] - The company aims to enhance its portfolio by exiting underperforming hotels and focusing on more revenue-intensive segments [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing growth in international markets and the potential for increased market share [6] - The company anticipates continued growth in the extended stay segment, which has shown resilience during uncertain economic times [11] - Despite macroeconomic challenges, management remains confident in the long-term outlook, driven by strategic investments and a focus on higher revenue-generating hotels [23][34] Other Important Information - The company achieved a record second quarter adjusted EBITDA despite a weaker RevPAR environment [24] - The effective royalty rate increased by eight basis points year-over-year, contributing to revenue growth [30] - The company returned $137 million to shareholders year-to-date, including $27 million in cash dividends and $110 million in share repurchases [32] Q&A Session Summary Question: How does the company decide on direct versus master franchise in different markets? - The decision is based on market fundamentals, including the ability of small business owners to aggregate capital and the regulatory environment [37][40] Question: What is the growth outlook for Canada? - The dynamics around development and hotel openings in Canada are similar to the U.S., with a healthy growth rate of 5% expected [44][46] Question: What is the long-term expectation for international EBITDA? - International EBITDA is currently about 6% of total EBITDA, with significant growth opportunities anticipated [50][53] Question: What current trends are impacting RevPAR expectations? - The company is experiencing softness in international inbound and government travel, affecting RevPAR guidance [60][61] Question: Are there any significant loans to be aware of? - The company clarified that loans made were not to competitive brands and are primarily for launching new brands [67][70] Question: What is the current status of the global net system rooms? - The guidance for global net system rooms is for 1% growth this year, with strategic terminations of underperforming properties factored in [73][75] Question: How is the company managing the balance between occupancy and rate? - The company is focused on maintaining occupancy share gains, which is crucial for future rate increases [84][86]

Financial Data and Key Metrics Changes - The company generated adjusted operating earnings per share of $2.46 in the second quarter, a 13% increase over the prior year [13] - Net income was impacted by investment losses and severance expenses, with $18 million incurred in severance expenses during the quarter [14] - The company added approximately $200 million of excess capital in the quarter, totaling approximately $400 million year to date [14][22] Business Line Data and Key Metrics Changes - Retirement segment generated $235 million of adjusted operating earnings in the quarter, representing a 1019% increase over the prior year [15][16] - Investment Management achieved adjusted operating earnings of $51 million for the quarter, a 2% increase year over year [18] - Employee Benefits reported adjusted operating earnings of $69 million in the quarter, up 15% over the prior year [20] Market Data and Key Metrics Changes - The company surpassed $1 trillion in total assets across retirement and investment management businesses, with nearly 10 million participant accounts in retirement [9] - Total defined contribution net inflows reached approximately $12 billion in the second quarter, bringing year-to-date net flows to over $40 billion [9][17] - Investment Management generated approximately $2 billion in net flows in the second quarter, contributing to nearly $10 billion year-to-date [10][19] Company Strategy and Development Direction - The company is focused on driving strong organic growth in retirement and investment management, successfully integrating OneAmerica, and improving margins in employee benefits [25] - A partnership with Blue Owl Capital aims to expand access to private market investments, enhancing retirement offerings [11][46] - The company plans to resume share repurchases targeting $200 million in the second half of the year [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities ahead, emphasizing a disciplined approach to margin improvement over growth [13][34] - The company is focused on executing near-term priorities while generating consistent strong free cash flows [24] - Management acknowledged uncertainties in the healthcare industry but remains committed to prudent actions regarding reserves and pricing [31][59] Other Important Information - The company has returned over $40 million of capital to shareholders via common stock dividends [22] - The integration of OneAmerica is on track, with a target of $75 million in operating earnings for the year [11] - The company is enhancing its lead management capabilities in employee benefits to strengthen its competitive position [12] Q&A Session Summary Question: Insights on Stop Loss business and future expectations - Management indicated that stop loss remains a high priority, with a focus on prudent actions across reserves, pricing, and risk selection [30] - The targeted loss ratio for the January 2024 cohort was reduced from 93% to 91% based on claims experience [30] Question: Capital return expectations and OneAmerica impact - Management confirmed plans for $200 million in share repurchases in the second half of the year, while addressing the capital needs related to OneAmerica [36] Question: Blue Owl partnership and its implications - The partnership is expected to expand access to private investments and enhance product offerings for retirement plan participants [46][47] Question: Medical stop loss and risk selection - Management acknowledged the uncertainty in the healthcare landscape but remains focused on disciplined pricing and risk selection [59][61] Question: Voluntary benefits business and premium decline - Management noted that while voluntary premiums are declining, the overall strategy is to bundle solutions to drive member engagement and retention [71][72]

Financial Data and Key Metrics Changes - The company reported Q2 2025 hotel EBITDA of $30.9 million and adjusted EBITDA of $28.5 million, with adjusted FFO of $0.36 per share [24] - The GOP margin for the quarter was 46.3%, up 30 basis points from Q2 2024, attributed to strong expense control and moderating inflationary pressures [24] - Leverage was reduced to 3.5 times net debt to EBITDA as of June 30, enhancing financial flexibility [25] Business Line Data and Key Metrics Changes - The core business segment, Business Traveler, showed healthy growth with the highest occupancies during the week, outperforming industry RevPAR growth for 14 consecutive quarters [9] - RevPAR growth at the four Silicon Valley hotels was up 3%, with hotel EBITDA increasing by 3% to nearly $5 million [17] - The six predominantly leisure hotels accounted for about 20% of EBITDA, with RevPAR surging 4% when excluding the Portsmouth Hilton Garden Inn under renovation [19] Market Data and Key Metrics Changes - Silicon Valley's recovery to pre-pandemic levels was noted, with occupancy reaching 80% across four hotels [9] - The Sunbelt markets performed well, particularly Charleston and Florida, which experienced RevPAR growth after previous declines [11] - The Austin market faced challenges with RevPAR down 6% year-to-date and 14% in the quarter due to convention center closures [11] Company Strategy and Development Direction - The company completed the sale of five hotels for proceeds of $83 million, using the funds for development, acquisitions, and share repurchases [5] - A $25 million share buyback plan was approved, with approximately 20,000 shares repurchased at a weighted average price of $7.2 [5] - The company plans to launch an upsized syndication of its credit facility and term loan to enhance financial conditions and lower borrowing costs [6] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future performance, citing strong GDP growth rates and significant investments in technology and AI as positive indicators [14][15] - The company anticipates continued demand growth in Silicon Valley, supported by tech company investments and expansion [10] - Despite challenges in certain markets, management believes the overall industry is poised for better performance in the coming years [13] Other Important Information - The company spent approximately $9 million on CapEx in the quarter, adding eight rooms to the existing portfolio [22][23] - The company highlighted the importance of monitoring productivity closely, especially in labor and benefits, which are the largest expenses [21] Q&A Session Summary Question: Regarding asset recycling and the two additional hotels for sale - Management confirmed that one hotel is an older lower RevPAR asset, while the other is an opportunistic transaction to minimize capital requirements [28][29] Question: Timeline for development in Portland and acquisition opportunities - The development in Portland is expected to have a construction timeline of around 21 to 24 months, with a potential start within the next six months [30] - Management noted ongoing discussions in the acquisition market, with a wide bid-ask scenario but confidence that the gap will lessen over time [31]

Financial Data and Key Metrics Changes - Consolidated average production for Q2 2025 reached 27,380 barrels of oil equivalent per day, with a year-to-date average of 28,223 barrels per day, reflecting a 6% decline compared to the previous quarter due to divestments and local blockades [6][10] - Adjusted EBITDA was $71.5 million with a 60% margin, driven by cost discipline and a $4.9 million gain from the commodity hedging program [9][10] - The company reported a net loss of $10.3 million for the quarter, but excluding a nonrecurring impairment charge, the net profit amounted to $20.7 million, significantly higher than previous quarters [12] Business Line Data and Key Metrics Changes - Janus 34 delivered 17,605 barrels of oil equivalent per day, exceeding expectations due to effective management and operational efficiencies [7] - Average well costs were reduced by more than 30%, and pad-to-pad mobilization time dropped from seven days to just eighteen hours [7][9] - CPO-five's performance remained stable despite some production impact from downtime, and the field is currently operating normally [8] Market Data and Key Metrics Changes - The company expects a full-year organic production range of 26,000 to 28,000 barrels of oil equivalent per day, excluding volumes from inorganic acquisitions [10] - Adjusted EBITDA for the full year is projected to be between $260 million and $290 million at Brent prices of $65 to $70 per barrel [11] Company Strategy and Development Direction - The company is focused on enhancing field productivity, stabilizing production, and improving returns over time, with a rigorous portfolio reassessment ongoing [5] - There is a commitment to responsibly increase investment and accelerate development in Colombia's oil and gas sector [5] - The company plans to divest its interest in the Perico and Espejo blocks in Ecuador to prioritize high-return assets [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged strong operational and financial results despite market volatility and lower Brent prices [6] - The CEO emphasized the importance of protecting the existing business while creating additional value and returning to a pathway of growth [17] - The company is actively assessing opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating partnerships [22][41] Other Important Information - The Board approved a dividend payment of $7.5 million for 2025, reflecting the company's performance during the period [12] - The company completed an open market repurchase of $54.5 million of its 2030 notes, enhancing long-term financial flexibility [10] Q&A Session Summary Question: Can you provide examples of areas for improvement in the company? - The CEO noted that the company is focused on protecting the existing business and creating additional value, with ongoing efforts to enhance operational efficiencies and address natural production declines [19] Question: What is the status of inorganic growth opportunities, particularly in Argentina? - The CEO confirmed that the company is actively looking at opportunities in Argentina, particularly in the Vaca Muerta region, and is open to both operating and non-operating roles [22][41] Question: How are you approaching reserves replacement and capital allocation? - The CEO highlighted a focus on both organic and inorganic efforts for reserves replacement, with an increased capital expenditure guidance reflecting good opportunities [28][29] Question: What are the company's cash allocation priorities moving forward? - The company aims to balance capital allocation between organic CapEx, M&A opportunities, and dividends, with a disciplined approach to managing cash [104]

Financial Data and Key Metrics Changes - Telesat reported consolidated revenues of CAD 106 million for Q2 2025, a decrease of CAD 46 million compared to 2024 [7] - Adjusted EBITDA for the quarter was CAD 59 million, down CAD 45 million year-over-year, with an adjusted EBITDA margin of 55% [8] - Net income for Q2 2025 was CAD 76 million, compared to CAD 129 million in the same period last year [10] - Cash from operations year-to-date was CAD 108 million, ending the quarter with CAD 547 million in cash [7][10] Business Line Data and Key Metrics Changes - The GEO segment experienced a significant revenue decline primarily due to a lower renewal rate with a North American direct-to-home customer [8] - The LEO segment is progressing well, with a committed backlog for Telesat Lightspeed exceeding CAD 1 billion, slightly up from the previous report [5][19] - Operating expenses decreased by CAD 6 million to CAD 51 million, attributed to higher capitalized engineering costs and lower consulting costs [8] Market Data and Key Metrics Changes - The company noted a gain on foreign exchange of CAD 115 million compared to a loss of CAD 34 million in 2024 [10] - Interest expense decreased by CAD 8 million during the second quarter compared to the same period in 2024, primarily due to debt repurchases [9] Company Strategy and Development Direction - Telesat is focused on refinancing restricted group debt due in December 2026 and is actively searching for a new CFO [6] - The company remains optimistic about the demand for Telesat Lightspeed, particularly in the aero and government sectors, and is working to convert a robust pipeline of opportunities into completed deals [5][29] - Telesat is committed to maintaining a strong position in the LEO market, emphasizing the importance of its capabilities in meeting government requirements and defense spending [31][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future performance of Telesat Lightspeed, highlighting strong interest from customers and a robust pipeline [5][29] - The company anticipates that the headwinds from the GEO segment will ease as contracts renew, particularly after the DISH renewal in Q4 2025 [28][62] - Management remains focused on executing the Lightspeed plan and believes it presents significant value creation opportunities [78] Other Important Information - Telesat reiterated its guidance for 2025, expecting full-year revenues between CAD 400 million and CAD 425 million [11][13] - The company has approximately CAD 550 million in cash and short-term investments, along with CAD 2.2 billion available under funding agreements with the governments of Canada and Quebec [13] Q&A Session Summary Question: Clarification on LEO backlog - Management explained that the LEO backlog reported in CAD was affected by currency fluctuations, with a slight increase in backlog due to a new contract [17][19] Question: Update on debt restructuring - Management indicated that they have not yet engaged with debt holders but expect to do so soon, with a possibility of concluding negotiations by the end of 2025 [22][24] Question: GEO business decline and future outlook - Management acknowledged that the decline in GEO revenue is primarily due to contract renewals and expects some headwinds to ease in the coming years [25][28] Question: Demand for Lightspeed - Management remains optimistic about demand for Lightspeed, particularly in the aero and government sectors, and noted a robust pipeline of opportunities [29][31] Question: Operating expenses for Lightspeed - Management indicated that operating expenses for Lightspeed are expected to ramp up as headcount increases, particularly in technical and commercial teams [34][36] Question: User terminals availability - Management confirmed that user terminals, including flat panel antennas, will be available before Lightspeed enters commercial service [40][41] Question: Competitive landscape with Kuiper - Management acknowledged the competitive landscape with Kuiper and emphasized Telesat's differentiated capabilities in the market [68][72] Question: Interest in additional spectrum - Management stated that Telesat is focused on its core mission and does not plan to pursue direct-to-device capabilities, despite observing competitors' actions [78][80]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $147.3 million, within the guidance range of $138 million to $148 million, despite significant rig declines [6] - Adjusted EBITDA for the quarter was $14.1 million, reflecting the impact of declining oil prices and increased costs due to tariffs [6][18] - Cash and cash equivalents as of June 30, 2025, were $14.2 million, with total liquidity of $65.5 million [11] Business Line Data and Key Metrics Changes - Completion tool revenue grew by approximately 9%, driven by increased sales in the Northeast and Haynesville, as well as international tool sales [9] - Wireline revenue increased by approximately 11%, benefiting from strong market share in the Northeast [10] - Cementing revenue decreased by approximately 9%, with a 15% decline in completed jobs [12] - Coiled tubing revenue decreased by approximately 16%, with a 23% decline in days worked [13] Market Data and Key Metrics Changes - U.S. rig count declined by almost 10% from March 28 to July 3, with significant declines in oil-levered basins like the Permian [7] - Natural gas prices declined from an average of approximately $4.14 in Q1 to approximately $3.19 in Q2, but remained supportive for operations in the Northeast [8] Company Strategy and Development Direction - The company is focused on increasing market share with current and potential customers, R&D, and technological advances across service lines [16] - There is a strategic emphasis on growing the international tools business, with a 20% revenue increase in the first half of 2025 compared to 2024 [17] - The company plans to construct a new completion tool facility to enhance testing capabilities and support international customers [35] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued pricing pressure and activity declines in the Permian, impacting all service lines [16] - The outlook for Q3 projects revenue between $135 million and $145 million, with expectations of lower revenue and adjusted EBITDA compared to Q2 [18] - Management remains optimistic about the medium and long-term outlook for natural gas, particularly in the Northeast and Haynesville [8][42] Other Important Information - The company has taken significant sustainable costs out of the business over the last twelve months, including improvements in fleet management and reductions in corporate and field employees [17] - CapEx spend during Q2 was $6.1 million, with a full-year CapEx budget unchanged at $15 million to $25 million [15] Q&A Session Summary Question: Expectations on private operators reducing work - Management indicated that private operators typically react more quickly to commodity price changes than public operators, leading to potential reductions in activity [21] Question: Visibility into Q4 activity - Management stated there is no visibility into Q4 changes, but some customers indicated increased activity in Q1 [22][24] Question: International sales performance - Management reported a 20% increase in international sales in the first half of 2025 compared to the same period in 2024, with traction in Argentina and the Middle East [26][27] Question: Completion tools facility details - The new facility will be over 30,000 square feet, located next to the assembly and manufacturing site in Jacksboro, and is expected to open next year [35][38] Question: Procurement dynamics with private operators - Smaller private operators tend to be more operationally driven and decisive, which can be beneficial for the company [40][42] Question: Incremental market share in remedial wireline business - The company has focused on diversifying its top line from pump down work, leading to increased market share in the remedial wireline business [43]

Financial Data and Key Metrics Changes - The company reported a record second quarter with adjusted EBITDA of $464 million, excluding approximately $10 million of one-time transaction-related expenses, and distributable cash flows as adjusted of $300 million [3] - The distribution declared for the second quarter was $90.88 per common unit, representing an increase of 1.25% compared to the previous quarter, resulting in a trailing twelve-month coverage ratio of 1.9 times [4] - Leverage at the end of the quarter was just under 4.2 times [4] Business Line Data and Key Metrics Changes - In the Fuel Distribution segment, adjusted EBITDA was $214 million, with volumes at 2.2 billion gallons, up 5% from the previous quarter but flat compared to the same quarter last year [5][6] - The Pipeline Systems segment reported adjusted EBITDA of $177 million, with throughput at 1.2 million barrels per day, down from 1.3 million barrels per day in the first quarter [8] - The Terminals segment delivered adjusted EBITDA of $73 million, with throughput at 692,000 barrels per day, up from 620,000 barrels per day in the first quarter [9] Market Data and Key Metrics Changes - The company noted solid demand across its system despite macro volatility, with some minor impacts from planned turnaround activity on its crude system [8] - The overall market for fuel distribution remains flat, but the company has consistently grown its volume and fuel profit dollars over the last twelve to eighteen months [6][7] Company Strategy and Development Direction - The company expects to continue generating increasing distributable cash flow per unit, positioning itself for ongoing distribution increases and additional growth [5] - The acquisition of Parkland is expected to enhance the scale and efficiency of the company's pipeline and terminal segments, with anticipated double-digit accretion [13][14] - The company is focused on strong operational execution, expense discipline, and profit optimization while continuing to grow its asset base [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year EBITDA guidance and expects the second half of the year to outperform the first half [12] - The company believes that refined product demand will remain robust for decades, supported by recent macro developments [16] - Management is optimistic about the integration of Parkland and the expected synergies, estimating $250 million in synergies by year three [22] Other Important Information - The company plans to close the acquisition of Tainquid terminal assets in Germany and Poland in early Q4 [14] - The regulatory process for the Parkland acquisition is proceeding as expected, with a close date estimated for Q4 [47] Q&A Session Summary Question: Update on Parkland acquisition synergies and tax implications - Management feels confident about achieving $250 million in synergies by year three and maintaining a strong balance sheet [22] - Tax planning indicates that Suncorp dividends will remain at parity with Sunoco LP distributions well past the two-year period [24] Question: Expectations for fuel margins in the second half of the year - The company anticipates a strong second half driven by organic investments and roll-up acquisitions, despite the absence of higher-margin businesses in reported numbers [30][51] Question: Capital allocation post-Parkland and Tanguid - The top priorities post-acquisition are integrating the acquired assets and returning the balance sheet to the target leverage ratio [43] - The company will assess market opportunities for future growth after achieving these priorities [44]

Financial Data and Key Metrics Changes - Bristow reported revenues of $25.9 million higher in Q2 2025, with nearly half driven by the Offshore Energy Services (OES) segment [5] - Adjusted EBITDA for the quarter was $60.7 million, reflecting a $3 million increase compared to the previous quarter [5] - The company raised its 2025 adjusted EBITDA guidance to a range of $240 million to $260 million and for 2026 to $300 million to $335 million [9] Business Line Data and Key Metrics Changes - Revenues from the OES segment increased by $13 million, primarily due to higher revenues in Europe ($6.4 million), The Americas ($3.7 million), and Africa ($3 million) [6] - Government Services revenues were $6.6 million higher, mainly due to the transition of the Irish Coast Guard search and rescue contract [7] - Other services revenues increased by $6.3 million, attributed to seasonally higher utilization in Australia [8] Market Data and Key Metrics Changes - The company expects market conditions in the OES segment to remain constructive in 2025, projecting adjusted operating income of approximately $200 million to $205 million on revenues of $980 million to $1 billion [9] - In the Government Services segment, adjusted operating income is expected to be approximately $40 million to $50 million on revenues of $360 million to $400 million [9] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and executing its capital allocation strategy, which includes accelerated debt paydown and opportunistic share repurchases [11][12] - Bristow is optimistic about the offshore energy services business, anticipating continued investment in long-cycle deepwater projects despite macroeconomic uncertainties [15] - The company is also exploring advanced mobility opportunities, with a project in Norway scheduled for its first flight [31][32] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic risks are elevated, the outlook for Bristow's business remains positive, supported by the stability of its Government Services and offshore energy services [16] - The company highlighted that 2025 is a transition year for its Government Services business, with full earning potential expected to materialize in 2026 and beyond [14] Other Important Information - Operating cash flows were nearly $100 million higher than the preceding quarter, with available liquidity at approximately $317 million as of June 30 [10][11] - The company has funded 92% of the capital investments needed for its new government services contract [11] Q&A Session Summary Question: What gives you greater confidence in the outlook to raise guidance? - Management cited better visibility into overall costs and customer activity as the primary drivers for raising guidance [19] Question: Are you seeing any changes in behavior among production-oriented customers? - Management indicated that they are currently managing supply chain challenges to meet customer demand, with no significant changes in customer behavior [20] Question: How much of the expected increase in exploration and development drilling activity is factored into the 2026 guidance? - Management confirmed that they are including expectations of increased activity in late 2026 into their guidance range [22] Question: Are the increased subcontractor costs related to ongoing contractor transitions? - Management explained that elevated subcontractor costs are primarily due to the transition of government services contracts, with some costs expected to persist [27] Question: What are you seeing regarding supply chain dynamics and availability of spares? - Management noted improvements in supply chain dynamics, with some OEMs making strides in delivery times [28] Question: Any updates on the advanced mobility market and sandbox projects? - Management confirmed the first flight for the Norway Tessarina project is scheduled for August 8, showcasing real-world applications of new technology [31] Question: How does the contracting model insulate the company from activity drops? - Management highlighted that a significant portion of revenues comes from stable government contracts and production support, reducing exposure to short-cycle drilling [44] Question: What growth opportunities are expected in the energy business? - Management identified Brazil, the U.S. Gulf, and Africa as key markets for growth, with a focus on meeting increasing demand [56]

Financial Data and Key Metrics Changes - The company reported an 11% revenue growth to a record $219 million, including a $2 million benefit from foreign currency fluctuations, with a 10% growth excluding FX [21][22] - Diluted earnings per share increased by 11% to $1.91, or $2 per share excluding notable items, representing a 16% increase [21] - Commission revenue increased by 12% to a record $192 million, driven by strong market volumes and increased volatility [22][25] Business Line Data and Key Metrics Changes - Block trading in the client-initiated channel saw a 38% growth in average daily volume (ADV) across U.S. Credit, emerging markets, and Eurobonds [6][12] - Portfolio trading channel generated a 69% increase in total portfolio trading ADV [7] - Dealer-initiated channel experienced a 40% increase in dealer-initiated ADV [7] Market Data and Key Metrics Changes - U.S. High grade market share dropped to 10% in July from 12% in June, attributed to large trades moving to phone and chat [9] - The share of lock trades equal to or larger than $5 million increased to 47% in July, up from 42% in June [9] - U.S. High grade portfolio trading market share was over 19%, up 370 basis points year-over-year [14] Company Strategy and Development Direction - The company is focusing on becoming more protocol agnostic and expanding its addressable market through multiple trading protocols and automation tools [4] - A high-touch strategy was launched in U.S. Credit to target the phone and chat market, which has seen significant block trading activity [10] - The company is preparing to launch a new Midex solution in September for U.S. Credit, aimed at enhancing dealer-to-dealer trading [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the supportive market backdrop and strong growth across new initiatives, despite disappointing U.S. High grade share numbers in July [19][20] - The company anticipates continued growth in U.S. Credit through progress in client-initiated, portfolio trading, and dealer-initiated channels [30][31] - Management highlighted the importance of strategic hires in driving future growth and enhancing product offerings [33][79] Other Important Information - The company generated $360 million in free cash flow over the trailing twelve months, with $145 million remaining on the share repurchase authorization as of July 31, 2025 [28] - Operating expenses increased by 6% year-over-year, driven by higher employee compensation and technology costs [26] Q&A Session Summary Question: Progress on new initiatives and July volumes - Management reported significant growth in key areas, with investment grade portfolio trading up 47% year-to-date and block activity up over 20% [37][39] - July market dynamics favored large portfolio trades, impacting market share [42][44] Question: Drivers of fee per million decline - The decline was attributed to new protocols and increased portfolio trading volumes, though July saw a slight recovery due to high-grade duration changes [49][50] Question: Update on block trading initiatives - Block trading volume in Eurobonds was up 54% in July, with expectations for continued growth as dealer content increases [56][62] Question: Performance in the muni business - The muni market saw a 23% increase in overall volume, with tax-exempt business growing by 34% [85][88] Question: Capital return priorities and M&A - The company remains focused on organic growth opportunities while being opportunistic with share repurchases and considering bolt-on acquisitions [92][95]