UMB Financial (NasdaqGS:UMBF) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Company ParticipantsBrian Foran - Managing DirectorJanet Lee - Director of US Mid-Cap Banks Equity ResearchChris McGratty - Managing DirectorMariner Kemper - Chairman and CEOBrendan Nosal - Director of Equity ResearchRam Shankar - CFOKay Gregory - Director of Investor RelationsTimur Braziler - Director of Mid-Cap Bank Equity ResearchJon Arfstrom - Managing Director and Associate Director of US ResearchJared Shaw - Managing Dire ...

Oshkosh (NYSE:OSK) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Company ParticipantsMatt Field - EVP and CFOJohn Pfeifer - President and CEODavid Raso - Senior Managing Director and PartnerJamie Cook - Managing DirectorTami Zakaria - Executive DirectorAngel Castillo - Executive Director and Head of US Machinery and Construction Equity ResearchPat Davidson - SVP Investor RelationsConference Call ParticipantsKyle Menges - VP and Equity Research AnalystNone - AnalystStephen Volkmann - Equity AnalystTim T ...

Financial Data and Key Metrics Changes - Loans held for investment increased by $83 million, or 0.6% linked quarter, and $448 million, or 3.4% year-over-year [5] - Deposit base grew by $550 million, or 3.4% linked quarter, with non-interest-bearing deposits increasing by 5.9% linked quarter [5] - Net income for the third quarter was $56.8 million, representing fully diluted EPS of $0.94, up 2.2% from the prior quarter and 11.9% from the prior year [5] - Return on average assets was 1.21% and return on average tangible equity was 12.84% [6] - Net interest income expanded by 2.4% to $165.2 million, with a net interest margin of 3.83%, an increase of two basis points from the prior quarter [6][7] - Non-interest income totaled $39.9 million, up 0.1% linked quarter and 6.3% year-over-year [7] - Non-interest expense increased by $5.8 million, or 4.7% linked quarter, including approximately $2.3 million in non-routine items [7] Business Line Data and Key Metrics Changes - The growth in loans was diversified, led by commercial and industrial loans, other loans and leases, municipal loans, and other real estate secured loans [5] - Salaries and employee benefits increased by $3.2 million linked quarter due to annual salary merit increases and the cost of additional customer relationship managers [8] Market Data and Key Metrics Changes - Credit quality remained solid with net charge-offs of $4.4 million, representing 13 basis points of average loans in the third quarter [8] - The allowance for credit losses represents 1.22% of loans held for investment [8] Company Strategy and Development Direction - The company is focused on organic growth initiatives and has added customer relationship managers in key markets [4] - The company plans to continue its disciplined approach to capital deployment, with a preference for organic loan growth and potential market expansion [11] - The company is optimistic about maintaining momentum in financial performance and is focused on key growth markets [11][30] Management's Comments on Operating Environment and Future Outlook - Management expects loans held for investment to increase mid-single digits for the full year 2025 and low single-digit growth in deposits [10] - The provision for credit losses is expected to trend lower compared to the full year 2024 [10] - Management is optimistic about maintaining net interest margin in the range of 3.80% to 3.83% [37][52] Other Important Information - The company repurchased $11 million of common stock during the quarter and has $63 million in repurchase authority for the remainder of the year [9] - The board declared a quarterly cash dividend of $0.24 per share, payable December 15 [9] Q&A Session Summary Question: Can you provide details on hiring and future plans? - The company hired approximately 29 new associates in the third quarter, with a focus on key markets like Houston and Atlanta [14] Question: Will there be an increase in expenses due to hiring? - The company expects a slight increase in expenses due to new hires, with about $400,000 attributed to the additional new hires in the third quarter [16] Question: What are the opportunities from recent M&A activity? - Management sees M&A activity as creating opportunities for hiring and customer acquisition, particularly in competitive markets [25] Question: Can you discuss trends in classified and criticized loans? - There was a decrease of about $49 million in criticized loans this quarter, indicating a positive trend [42] Question: What are the expectations for deposit costs and loan yields? - The company anticipates deposit costs to decrease as the Fed cuts rates, with a beta of about 40% expected [52] Question: How does the company plan to fund its balance sheet? - The company aims to maintain a loan-to-deposit ratio in the mid-80s and is confident in its ability to fund loan growth cost-effectively [66]

Oshkosh (NYSE:OSK) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Company ParticipantsMatt Field - EVP and CFOJohn Pfeifer - President and CEODavid Raso - Senior Managing Director and PartnerJamie Cook - Managing DirectorTami Zakaria - Executive DirectorAngel Castillo - Executive Director and Head of US Machinery and Construction Equity ResearchPat Davidson - SVP Investor RelationsConference Call ParticipantsKyle Menges - VP and Equity Research AnalystNone - AnalystStephen Volkmann - Equity AnalystTim T ...

Oshkosh (NYSE:OSK) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Speaker3Greetings and welcome to the Oshkosh Corporation Third Quarter 2025 Results Conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your hos ...

Leonardo DRS (NasdaqGS:DRS) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Speaker2Ladies and gentlemen, good day and welcome to the Leonardo DRS third quarter fiscal year 2025 earnings conference call. At this time, all participants are in the listen-only mode. Following the company's prepared remarks, there'll be an opportunity to ask questions and instructions will be given at that time. As a reminder, this event is being recorded. I would now like to turn the conference over to Steve Atter, Senior V ...

Financial Data and Key Metrics Changes - Reported net income available to common shareholders was $180.4 million, including $35.6 million of acquisition expenses, compared to $13.5 million in the second quarter. Excluding these expenses, net operating income was $206.5 million or $2.70 per share [4] - Net interest income totaled $475 million, an increase of $8 million or 1.7% from the second quarter, driven by organic growth in average loans and earning assets [4] - Fee income increased by 12.4% on a linked quarter basis, excluding market valuation changes on equity positions [4] Business Line Data and Key Metrics Changes - Investment banking saw nearly a 14% increase in activity from the second quarter, driven by agency and mortgage-backed trading [4] - Quarterly loan production surpassed $2 billion for the first time, with strong organic growth momentum [5] - CNI (Commercial and Industrial) loans were the strongest contributor, with more than 14% annualized growth over the second quarter average balances [5] Market Data and Key Metrics Changes - Loan growth outpaced peer banks, with UMB reporting an 8% annualized increase in average loan balances compared to the 5.5% median increase reported by peers [6] - Total nonperforming loans were $132 million or 35 basis points of loans, with a slight increase attributed to two legacy HTLF loans [9] Company Strategy and Development Direction - The company successfully completed the full systems and brand conversion of Heartland Financial USA, Inc., which is expected to enhance growth opportunities [3] - UMB aims to augment loan growth with acquired deposits through M&A, focusing on high-quality partnerships to support its growth strategy [67][68] - The company is optimistic about the integration of Heartland's lenders, enhancing customer focus and operational efficiency [53][60] Management's Comments on Operating Environment and Future Outlook - Management expects charge-off levels to remain near or below historical averages for the remainder of the year, despite a slight increase in nonperforming loans [9] - The company anticipates continued strong loan activity and pipeline in both legacy and HTLF markets, with a strong pipeline looking ahead into the fourth quarter [6] - Management expressed confidence in the economic outlook, noting that borrowers are performing well [40] Other Important Information - The Board of Directors declared a quarterly dividend of $0.43 per share, representing a 7.5% increase from the prior quarter [10] - The effective tax rate for the third quarter was 20.4%, with expectations for the full year to be between 19% and 22% [17] Q&A Session Summary Question: Can you dissect the production trends and their sustainability? - Management noted that loan growth is driven by local penetration and the capacity of the officer corps, with early signs of success from the Heartland acquisition [21][22] Question: Any updates on credit quality? - Management expressed satisfaction with credit quality, stating that reserves have been established for identified loans, and they expect charge-offs to align with previous guidance [25][32] Question: What is the outlook for expenses in Q1 2026? - Management indicated that cost savings from the Heartland acquisition are expected to materialize by the end of Q1 2026, with some inflationary pressures anticipated [46][50] Question: How is the integration of Heartland's lenders progressing? - Management highlighted that the integration has been smooth, with enhanced support and quicker turnaround times for clients [53][60] Question: What opportunities exist for new loan production across Heartland's regions? - Management identified significant opportunities in various markets, particularly California and Wisconsin, emphasizing low penetration rates [64][66] Question: How does the company view M&A opportunities? - Management reiterated that while they do not need to pursue M&A, they are open to strategic acquisitions that can enhance their deposit base [67][68] Question: What is the outlook for the trust and securities processing division? - Management noted strong growth driven by asset servicing and corporate trust, with expectations for continued momentum [88][91]

Financial Data and Key Metrics Changes - Loans held for investment increased by $83 million, or 0.6% linked quarter, and $448 million, or 3.4% year-over-year [4] - Deposit base grew by $550 million, or 3.4% linked quarter, with non-interest-bearing deposits increasing by 5.9% linked quarter [4] - Net income for the third quarter was $56.8 million, representing fully diluted EPS of $0.94, up 2.2% from the prior quarter and 11.9% from the prior year [4][5] - Return on average assets was 1.21% and return on average tangible equity was 12.84% [5] - Net interest income expanded by 2.4% to $165.2 million, with a net interest margin of 3.83%, an increase of two basis points from the prior quarter [5] Business Line Data and Key Metrics Changes - Credit quality remained solid with net charge-offs of $4.4 million, representing 13 basis points of average loans [6] - Non-interest income totaled $39.9 million, up 0.1% linked quarter and 6.3% year-over-year [5] - Non-interest expense increased by $5.8 million, or 4.7% linked quarter, including approximately $2.3 million in non-routine items [5] Market Data and Key Metrics Changes - The company reported a solid trend in criticized loans, with a decrease of about $49 million in the quarter, totaling a decline of $123 million for the first three quarters of the year [34] Company Strategy and Development Direction - The company is focused on organic growth initiatives and has added customer relationship managers in key markets [3][4] - The guidance for loans held for investment is expected to increase in mid-single digits for the full year 2025, with low single-digit growth in deposits [8] - The company plans to maintain a disciplined approach to capital deployment, focusing on organic loan growth and potential market expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining net interest margin in the range of 3.80% to 3.83% despite potential short-term headwinds [31][44] - The company anticipates a proactive approach to share repurchase as capital levels continue to build [17][60] - Management highlighted the competitive landscape in the market, noting that M&A activity presents opportunities for growth [21][26] Other Important Information - The company repurchased $11 million of common stock during the quarter, with a total of $37 million repurchased in the first nine months of the year [6][7] - A quarterly cash dividend of $0.24 per share was declared, payable on December 15 [7] Q&A Session Summary Question: Can you provide details on hiring and future plans? - The company hired approximately 29 new associates in Q3, with a focus on key markets like Houston and Atlanta [12] Question: Will there be an increase in expenses due to hiring? - Yes, the company expects a slight increase in expenses related to new hires, with additional non-routine costs factored in [14][15] Question: How does the company view M&A opportunities? - Management sees M&A as a potential opportunity but emphasizes a focus on organic growth strategies [21][26] Question: What are the trends in classified and criticized loans? - There has been a positive trend with a decrease in criticized loans, contributing to lower provisioning [34] Question: How does the company plan to manage deposit costs? - The company aims to maintain deposit costs while managing competitive pressures and anticipates a drop in deposit costs following Fed rate cuts [43][44]

Financial Data and Key Metrics Changes - ProPetro generated total revenue of $294 million, a decrease of 10% compared to the prior quarter [19] - Net loss totaled $2 million or $0.02 loss per diluted share, an improvement from a net loss of $7 million or $0.07 loss per diluted share in the previous quarter [19] - Adjusted EBITDA was $35 million, representing 12% of revenue, and decreased by 29% compared to the prior quarter [19] - Free cash flow for the completions business was $25 million [19] Business Line Data and Key Metrics Changes - The completions business continues to generate sustainable free cash flow despite a decline in activity and related revenue [20] - Capital expenditures incurred were $98 million, with approximately $79 million supporting ProPWR orders [21] - The company anticipates full-year 2025 capital expenditures to be between $270 million and $290 million, down from previous guidance [22] Market Data and Key Metrics Changes - Approximately 70 full-time frac fleets are currently operating in the Permian, down from 90 to 100 fleets at the beginning of the year, indicating a slowdown in the completions market [4] - Pricing discipline has softened at the lower end of the market, particularly among subscale frac providers [7] Company Strategy and Development Direction - ProPetro is focusing on capital light investments and the ProPWR segment as key growth engines [6][10] - The company secured a long-term contract for 60 megawatts to support a hyperscale data center, marking its entry into the data center power market [11] - ProPetro plans to expand its capacity to 750 megawatts by the end of 2028, with a focus on both oilfield power projects and data center applications [12][15] Management's Comments on Operating Environment and Future Outlook - The management expects the challenging operating environment to persist into at least the first half of next year due to tariffs and OPEC production increases [5] - Despite current market challenges, ProPetro is well-positioned with a strong balance sheet and a focus on operational excellence [17] - The company anticipates maintaining 10 to 11 active fleets in the fourth quarter, with expectations for sequential improvement in the ProPWR segment [16] Other Important Information - ProPetro has executed a letter of intent for a $350 million leasing facility to support its ProPWR growth [13][25] - The company is committed to a disciplined approach to capital deployment, ensuring flexibility to pivot between key priorities [24] Q&A Session Summary Question: Details on the 60 megawatt data center contract - The contract involves reciprocating engines and battery energy storage systems, with potential for future capacity expansion [30][33] Question: Future funding structures and liquidity runway - The company prioritizes organic free cash flow for funding, with additional options available for future capital needs [35][38] Question: Contract duration preferences in the current environment - The company evaluates each deal on a case-by-case basis, balancing long-term contracts with potential for higher margins in shorter terms [44][46] Question: Equipment cost differentials between data centers and oilfield microgrids - There is no significant cost differential; the average cost of equipment is around $1.1 million per megawatt [47][48] Question: Deployment of megawatts across different markets - The company anticipates a balanced distribution between oilfield contracts and data center contracts, with potential shifts based on market opportunities [53][56] Question: Concerns about power being bid away from frac business - The company feels confident about its current positioning and the differentiation in equipment used for different applications [61][62] Question: Differentiation between frac and power generation services - Both service lines focus on customer needs, with a strong emphasis on operational excellence and flexibility [66][68]

Financial Data and Key Metrics Changes - Net sales increased by 7% to $244 million, driven by a 5% increase in net price and a 2% increase in volume [4][7][15] - Adjusted EBITDA increased by 16% to $59 million, with adjusted EBITDA margin expanding by 170 basis points to 24.2% [4][7][15] - Gross profit margin increased by 150 basis points to 51.2% [4][7][15] - Net leverage reduced to 1.8x, the lowest level in nearly four years [5][19] Business Line Data and Key Metrics Changes - North American net sales increased by 7% to $208 million, with net price realization increasing by 7% and stable volume [16][17] - European and rest of the world net sales increased by 11% to $36 million, with an 8% increase in volume offsetting a 1% reduction in net price realization [17][18] Market Data and Key Metrics Changes - Strong demand trends were reported, particularly in North America and Canada, with Canada seeing over 20% growth [8][27] - The aftermarket model remains resilient, with approximately 85% of sales aligned with serving the aftermarket needs of the existing installed base [8][9] Company Strategy and Development Direction - The company is focused on expanding customer relationships, developing innovative products, and leveraging operational excellence capabilities [5][6] - Investments are being made in advanced engineering and product development, particularly with the introduction of the OmniX automation platform [11][12][34] - The company is also pursuing additional acquisition opportunities in residential and commercial pool sectors [21][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic environment and raised full-year guidance for net sales and adjusted EBITDA [6][22][23] - The company anticipates solid cash flow generation and a conversion of greater than 100% of net income [23] - Management noted that the macroeconomic and tariff environment continues to evolve, but they remain positive about the long-term growth outlook for the pool industry [24][23] Other Important Information - The company is implementing AI tools to enhance customer service, with new AI agents resolving approximately 80% of inbound calls without human intervention [14][13] - The company has authorized a share repurchase program of up to $450 million over three years [21][22] Q&A Session Summary Question: Demand trends since July and upside in Q3 - Management noted strong sales out demand, particularly in September, and highlighted improved performance in Canada and Europe [26][27][28] Question: Early buy program and price increase reception - The early buy program is tracking well, with discounts offered to mitigate price increases due to inflation and tariffs [29][30] Question: Investments in new products and their impact on sales - The company is making targeted investments in new product development, particularly in technology and innovation, which is expected to drive future sales [33][34] Question: Impact of private label competition - Management believes that their loyal dealer base will continue to appreciate the value proposition of Hayward products despite competition from lower-priced alternatives [40][41] Question: Increase in cash flow guidance - The increase in cash flow guidance is attributed to improved EBITDA, project timing, and working capital management [43][44] Question: International market margin improvements - European margins improved due to stabilization of production capabilities and a cumulative tariff refund [74][75] Question: Tariff refunds and supply chain realignment - The company is actively pursuing tariff refunds and has made significant progress in reducing exposure to China [82][84]