Financial Data and Key Metrics Changes - The company reported a record second quarter with revenue of $1.1 billion, operating income of $159 million, adjusted EBITDA of $206 million, and adjusted EPS of $2.56, reflecting a 14% year-over-year growth in adjusted EPS [10][11] - Constant currency operating income growth year-over-year was 13%, indicating strong business performance despite macro uncertainties [9][11] - Consolidated operating margins expanded by more than 112 basis points compared to the prior year, with expectations for continued margin expansion in the second half of the year [11][12] Business Line Data and Key Metrics Changes - The Money Transfer segment led with constant currency operating income growth of 33%, driven by increased transaction volumes and higher principal amounts per transaction [10][15] - The EFT segment saw revenue growth of 6%, with operating income and adjusted EBITDA remaining in line with prior year results, attributed to tough comparisons from the previous year's strong performance [14] - Epay revenue grew by 5%, with operating income increasing by 17% and EBITDA by 15%, primarily due to growth in digital channel sales [14] Market Data and Key Metrics Changes - The company noted that the major currencies strengthened against the dollar, impacting reported results, but adjustments were made to normalize the impact of currency fluctuations [13] - Digital transactions in the Money Transfer segment grew by 29%, reflecting ongoing consumer demand for digital products [15][25] Company Strategy and Development Direction - The acquisition of CoreCard is a strategic move to expand into the digital payments processing space, targeting a total addressable market exceeding $10 billion with attractive operating margins [4][29] - The company aims to leverage its REN platform and the CoreCard acquisition to enhance its digital offerings and expand its addressable market [29][32] - The strategic focus includes targeting large addressable markets in global payments and foreign exchange, with a shift from legacy cash-based business lines to digital offerings [33][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a growth trajectory, reaffirming an earnings growth expectation of 12% to 16% for 2025 [16][54] - The company is optimistic about the impact of recent acquisitions and partnerships, which are expected to contribute to growth in future quarters [8][29] - Management acknowledged potential challenges from macroeconomic factors but emphasized the resilience and adaptability of the business model [11][25] Other Important Information - The company repurchased $247 million of its shares during the quarter, which had a marginal benefit on adjusted EPS due to the timing of the repurchases [11][12] - The Money Transfer segment's revenue is subject to a new 1% remittance tax, affecting only 27% of its revenue, which is expected to have a limited overall impact [24] Q&A Session Summary Question: Insights on CoreCard acquisition and potential revenue concentration risks - Management acknowledged the risk associated with the Apple partnership but expressed confidence in the ability to cross-sell CoreCard's platform to other banks and fintechs globally [56][57] Question: Growth deceleration in EFT segment - Management clarified that the deceleration was due to tough comparisons from the previous year's strong performance and expressed optimism for recovery in Q3 [60][62] Question: Revenue expectations from the new U.S. bank partnership - Management indicated that revenue from the partnership is already being realized and is expected to accelerate, with significant potential for cross-selling [67][68] Question: Unit economics and margins related to the U.S. deal - Management characterized the deal as high margin due to its software nature, emphasizing its importance as a reference customer for future sales [79][80] Question: Performance in Money Transfer segment for July - Management reported a significant uptick in transaction volumes in July compared to June, indicating strong growth across digital and retail channels [81][82] Question: Impact of FX fluctuations on Money Transfer margins - Management confirmed that FX fluctuations contributed positively to margins, supporting the 33% year-over-year growth in operating income [89][90]

KKR (KKR) Q2 2025 Earnings Call July 31, 2025 09:00 AM ET Company ParticipantsCraig Larson - Partner & Head - IRRobert Lewin - CFOScott Nuttall - Co-CEOCraig Siegenthaler - Managing DirectorAlex Blostein - Managing DirectorSteven Chubak - Managing DirectorBen Budish - DirectorMichael Cyprys - Managing DirectorBrian Bedell - DirectorBrian Mckenna - Director - Equity ResearchKyle Voigt - Managing DirectorConference Call ParticipantsGlenn Schorr - Senior MD & Senior Research AnalystJohn Barnidge - MD & Senior ...

Financial Data and Key Metrics Changes - AbbVie reported adjusted earnings per share of $2.97, which is $0.11 above the guidance midpoint [6] - Total net revenues were $15.4 billion, exceeding expectations by over $400 million, reflecting a 6.5% operational growth [7][36] - The company raised its full-year revenue guidance to $60.5 billion, an increase of $800 million, and adjusted EPS guidance to between $11.88 and $12.08 [8][37] Business Line Data and Key Metrics Changes - Immunology revenues exceeded $7.6 billion, with SKYRIZI global sales at $4.4 billion, up 61.8% operationally [10][11] - RINVOQ global sales reached $2 billion, up 41.2% operationally, with strong uptake in IBD [12][13] - Neuroscience revenues were approximately $2.7 billion, up 24% operationally, driven by Vraylar and UBRELVY [20] - Oncology revenues were nearly $1.7 billion, with IMBRUVICA sales down 9.5% and VENCLEXTA sales up 8.3% [16][17] - Aesthetics revenues were nearly $1.3 billion, down 8% operationally, impacted by economic challenges [18] Market Data and Key Metrics Changes - SKYRIZI continues to capture robust market share in psoriatic disease, leading in the US across all lines of therapy [10][11] - HUMIRA global sales were over $1.1 billion, down 58.2% due to biosimilar competition [15] - The aesthetics market is performing below historical levels, with economic challenges affecting consumer sentiment [18][19] Company Strategy and Development Direction - AbbVie is focused on advancing its pipeline and strategic transactions to support long-term growth, with over 30 business development transactions executed since last year [9] - The company is enhancing its immunology pipeline with innovative therapies and technologies, including the acquisition of Capstan Therapeutics [26][27] - AbbVie aims to leverage its global aesthetics commercial footprint to sell obesity drugs in the future [72][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong outlook for 2025 and beyond, driven by the performance of SKYRIZI and RINVOQ [10][41] - The company is well-positioned to manage potential impacts from tariffs and is investing in US manufacturing capacity [56] - Management highlighted the importance of external innovation and strategic investments to drive growth in the next decade [66] Other Important Information - AbbVie announced impressive Phase III results for RINVOQ in alopecia areata, indicating significant commercial potential [24][97] - The company is actively working to stabilize and grow the dermal filler market amid economic challenges [99] Q&A Session Summary Question: Impact of Stellara biosimilar on SKYRIZI and RINVOQ - Management noted that while there may be some impact, the core momentum for SKYRIZI and RINVOQ is driven by outstanding data and breadth of indications [44][46] Question: Confidence in SKYRIZI and RINVOQ long-term guidance - Management indicated strong performance and momentum, with updates to long-term guidance expected at appropriate times [52][54] Question: Commercial opportunity for alopecia areata - Management highlighted that the new indications for RINVOQ could add approximately $2 billion to peak year sales, with significant potential for momentum [97] Question: Impact of GLP-1s on aesthetics - Management stated that the overall effect is net neutral, with some potential tailwinds for dermal fillers due to patient concerns about facial aesthetics [90]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q2 2025 were $1.48, up from $1.42 in Q2 2024, while year-to-date EPS was $2.53, compared to $2.37 in the same period of 2024 [5][11] - The company expects to achieve the top half of its initial EPS guidance range for 2025, now narrowed to $5.7 to $5.75 per share [6][17] - Total debt to capital ratio was 58%, within the target of less than 60% [18] Business Line Data and Key Metrics Changes - The company invested $1.3 billion in capital projects year-to-date, reflecting strong execution by teams [6][20] - Operating and maintenance costs increased by $0.17 per share, primarily due to employee-related expenses and technology costs [10][11] Market Data and Key Metrics Changes - Revenue increases were driven by authorized rate increases and organic customer growth, with a revenue increase of $0.50 per share year-over-year [9][11] - Weather had an unfavorable impact estimated at $0.06 per share due to wet conditions in 2025 [10] Company Strategy and Development Direction - The company aims for long-term earnings and dividend growth of 7% to 9%, supported by a capital growth plan focused on water and wastewater infrastructure [8][18] - The company is pursuing acquisitions to expand its customer base, with 87,000 customer connections under agreement totaling over $500 million [7][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving consistent EPS growth within the 7% to 9% range through 2029 and beyond [18] - The company noted strong customer usage and regulatory execution as key drivers of performance in 2025 [17][53] Other Important Information - The company has several active rate cases in progress across multiple jurisdictions, including West Virginia and California, seeking significant revenue increases [12][15] - A decoupling bill related to water utilities has passed out of the California Senate and is awaiting action in the Assembly [16][44] Q&A Session Summary Question: How is the company managing stakeholder relationships in Pennsylvania ahead of the next rate case? - Management has been actively engaging with stakeholders and providing excellent customer service to maintain positive relationships [25][26] Question: Is the company considering forward equity issuance for 2026 needs? - The company is evaluating all options but plans to issue equity in 2026 [27][28] Question: What is the earnings potential of the Nexus acquisition compared to municipal M&A? - The Nexus acquisition is seen as a strategic opportunity to expand the customer base in existing states, with no expected negative impact on profitability [31][32][35] Question: What is the landscape for fair market value deals in Pennsylvania? - The company anticipates more fair market value deals and is actively managing a pipeline of acquisitions [37][41] Question: Can you elaborate on the decoupling bill in California? - The bill aims to facilitate full decoupling for California water utilities, pending further legislative approval [43][46]

Brookfield Infrastructure Partners (BIP) Q2 2025 Earnings Call July 31, 2025 09:00 AM ET Company ParticipantsDavid Krant - CFO & Managing Partner - InfrastructureBrian Baker - Operating Partner - InfrastructureSam Pollock - CEOCherilyn Radbourne - MD - Equity ResearchDevin Dodge - Director - Equity ResearchDave Joynt - Managing Partner - InfrastructureMaurice Choy - Director - Canadian Energy InfrastructureFrederic Bastien - MD & Head of Industrial ResearchRobert Hope - MD - Equity ResearchConference Call P ...

Financial Performance - The company reported a 16% increase in net revenues and a 12% increase in adjusted net income year-over-year on a non-GAAP currency neutral basis [6][33] - Operating expenses rose by 14%, with operating income increasing by 17% [34] - Net income and EPS increased by 12% and 14% respectively, with EPS at $4.15, including a $0.09 contribution from share repurchases [34] Business Line Performance - Payment Network net revenue grew by 13%, driven by domestic and cross-border transaction growth [38] - Value-added services and solutions net revenue increased by 22%, with acquisitions contributing approximately 4 percentage points to this growth [38] - Worldwide gross dollar volume (GDV) increased by 9%, with U.S. GDV up by 6% and international GDV up by 10% [35] Market Performance - Cross-border volume increased by 15% globally, reflecting growth in both travel and non-travel related spending [36] - Card present transactions grew significantly, with contactless transactions now representing 75% of all in-person switch purchase transactions [37] - The company continues to expand acceptance in various markets, including launching tap-to-pay in the Shanghai Metro [13] Company Strategy and Industry Competition - The company is focused on diversifying its business model and enhancing partnerships with leading merchants and fintechs [8][10] - New programs are being launched in various markets, including partnerships with American Airlines and Walmart [9][10] - The company is leveraging its data and product capabilities to differentiate its offerings and capture adjacent revenue opportunities [27][29] Management Commentary on Operating Environment and Future Outlook - Management remains positive about growth outlook, citing healthy consumer spending supported by low unemployment and wage growth [7][45] - The company is tightening its full-year net revenue outlook to the high end of the previously shared range, expecting low teens growth on a currency neutral basis [47] - Ongoing geopolitical and economic uncertainties are acknowledged, but the company maintains a diversified business model to mitigate risks [46] Other Important Information - The company repurchased $2.3 billion worth of stock during the quarter, with an additional $1 billion planned [34] - The effective tax rate is expected to be in the 20% to 21% range for both Q3 and the full year [49] Q&A Session Summary Question: Impact of lapping portfolios on growth metrics - Management confirmed that the lapping impact from portfolios like Citizens and Wells Fargo has become more pronounced and will continue through Q3 and Q4 [55][56] Question: Differentiation in value-added services - The company highlighted its focus on cybersecurity and personalized engagement solutions as key differentiators in its value-added services [62][66] Question: Cross-border volume growth expectations - Management noted that cross-border volumes are well diversified and continue to grow, with travel volumes representing about 60% of total cross-border volumes [95] Question: Client incentives and rebates - Management indicated that rebates and incentives as a percentage of payment network assessments are expected to increase in Q3, driven by a competitive market [101] Question: Update on Recorded Future performance - Management expressed excitement about the integration of Recorded Future, emphasizing its potential in threat intelligence and cybersecurity solutions [84][87] Question: Market share in regions with strong local players - The company is focused on differentiating its product set and building partnerships in markets like Brazil to capture cash transition opportunities [114]

Financial Performance - The company reported second quarter sales of $3.1 billion, with earnings per share of $3.86 and a backlog of $56.9 billion [5][13] - Free cash flow was $730 million, with capital expenditures of $93 million [6][19] - Revenues increased by 3.5% year-over-year, driven by growth across all three divisions [13] Business Line Performance - Ingalls revenues were $724 million, up 1.7% year-over-year, primarily due to higher volume on the guided missile destroyer program [14] - Newport News revenues reached $1.6 billion, a 4.4% increase, driven by higher volumes on Columbia and Virginia class submarine programs [15] - Mission Technologies revenues were $791 million, up 3.4%, supported by a favorable resolution related to a C5ISR contract [15] Market Data - The company secured contract awards totaling $11.9 billion, including two Block V submarines and various shipbuilding investments [5][11] - The reconciliation bill and FY 2026 budget include significant support for shipbuilding programs, with $4.9 billion allocated for the shipbuilding industrial base [12] Company Strategy and Industry Competition - The company is focused on increasing throughput, achieving cost reductions, and capturing new contract awards [12][26] - A technology partnership with C3AI aims to leverage digital technologies and AI to enhance shipbuilding efficiency [8] Management Commentary on Operating Environment and Future Outlook - Management acknowledged challenges in transitioning from pre-COVID contracts to new contracts, with expectations for improved performance in the latter half of the year [9][10] - The company remains confident in achieving a 20% improvement in throughput, contingent on hiring experienced personnel and stabilizing the supply chain [32][36] Other Important Information - The company updated its 2025 free cash flow guidance to between $500 million and $600 million, reflecting improved cash tax expectations [22] - The company ended the quarter with a cash balance of $343 million and total liquidity of approximately $2 billion [20] Q&A Session Summary Question: How to reconcile the significant increase in shipbuilding throughput with the modest revenue guidance? - Management explained that the revenue forecast considers wage increases and material timing, and they remain confident in achieving their throughput targets [31][34] Question: Is the five-year cumulative free cash flow target back on the table? - Management clarified that they are focused on annual guidance and have not reinstated a five-year target at this time [41] Question: What is the expected impact of the changes in R&D tax code? - Management indicated that the changes provide a tailwind for cash flow, with an estimated increase of $150 million due to the new tax treatment [69] Question: What is the status of the unmanned undersea vehicle program? - Management noted that while the unmanned vehicle segment is currently small, they expect significant growth opportunities in the future [72] Question: How many employees were hired in the quarter? - Approximately 2,400 experienced employees were hired, with improvements in retention metrics observed [84]

Financial Data and Key Metrics Changes - Same store revenues increased by 1% year-over-year, with same store NOI growing by 2% in the quarter [5][10] - Core FFO per share was $0.28, up from $0.27 in Q1 2025 [10] - Same store operating expenses decreased by 60 basis points compared to the prior year quarter [7][10] Business Line Data and Key Metrics Changes - The company completed 454 value-add renovations in the quarter, achieving a weighted average return on investment of 16.2% [8] - Renewal rental increases were approximately 3.9%, contributing to 70 basis points of blended rent growth [11] Market Data and Key Metrics Changes - Deliveries in the company's markets are tapering off, with supply growth expected to be less than 2% in 2026, a 43% reduction from 2024 [9] - The company noted that supply pressures in markets like Atlanta, Dallas, and Denver have negatively impacted new lease trade-outs [11][12] Company Strategy and Development Direction - The company is focusing on capital recycling by trading out older assets with higher future CapEx needs for newer communities with lower CapEx profiles [8][12] - The acquisition pipeline remains strong, with an updated guidance implying an additional $315 million in acquisitions before year-end [9][14] Management's Comments on Operating Environment and Future Outlook - Management believes they are at the beginning of a multi-year period of improving fundamentals in the multifamily sector, with stable renewals and strong demand expected to continue [20] - The company adjusted its full-year 2025 guidance to reflect lower revenue growth expectations, offset by lower expense growth [15][16] Other Important Information - The company has identified three assets for sale and expects to sell them in the fourth quarter [8][12] - The balance sheet remains flexible with strong liquidity, with only 16% of total debt maturing before the end of 2027 [15] Q&A Session Summary Question: Can you share how you approached your revised outlook versus historical seasonality? - Management explained that the new lease trajectory was based on comparing expiring rents with current estimates and expectations for month-to-month changes [25] Question: Why is there not a significant pickup in new lease growth despite high retention and occupancy? - Management attributed the lack of new lease growth to ongoing supply pressures and macroeconomic uncertainties affecting market rates [31][32] Question: What gives you confidence in predicting higher occupancy in the back half of the year? - Management noted that occupancy has been increasing in July and they expect to maintain this trend [34] Question: Can you provide insights on the current transaction environment and bid-ask spreads? - Management indicated that the bid-ask spread has narrowed as sellers have become more realistic about property values [70] Question: How is the company addressing competition from Class A properties offering aggressive concessions? - Management acknowledged that aggressive concessions from Class A properties require more effort to maintain occupancy and manage rents in the Class B portfolio [82]

Financial Data and Key Metrics Changes - Second quarter sales increased by 1% year-over-year, driven by a volume growth of 6% [10] - Adjusted EBITDA for the second quarter was $207 million, a 2% increase compared to the previous year [11] - Adjusted earnings per share (EPS) rose to $0.69, up $0.10 from the prior year, primarily due to EBITDA growth and lower interest expenses [12] Business Line Data and Key Metrics Changes - The growth portfolio experienced a high single-digit increase, while the core portfolio remained essentially flat [11] - The strongest growth came from the EMEA region, attributed to higher volumes of herbicides and branded sales [12] - North America sales declined by 5% due to expected destocking in Canada, although there was solid volume growth in the U.S. [13] Market Data and Key Metrics Changes - Latin America revenues increased slightly as the region concluded the 2024-2025 growing season [12] - Asia faced declines due to lower pricing and volumes, particularly from ongoing destocking in India [13] Company Strategy and Development Direction - The company aims to implement a growth strategy following the normalization of product levels in distribution channels [6] - A new direct sales route in Brazil targeting large corn and soybean growers has been established, with initial customer engagements already underway [7] - The company plans to divest its commercial business in India to regain commercial momentum through a business-to-business model [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching 2025 targets and maintaining the 2027 outlook, with expectations for strong performance driven by the growth portfolio [32] - The company anticipates challenges in India due to intense generic competition and a complex regulatory environment, leading to the decision to change operational strategies [14][15] - Management expects to see early results from new product launches and commercial activities in Brazil starting in the third quarter [7][10] Other Important Information - The company has excluded India from revenue guidance due to uncertainties surrounding the divestment process, although reported revenue will still include India until the sale is completed [18][25] - Full-year 2025 guidance remains unchanged across all metrics, with revenue excluding India expected to decline by 2% [19] Q&A Session Summary Question: What should be expected in terms of volume and pricing growth entering 2026? - Management confirmed that 2026 and 2027 targets remain unchanged, with expectations for strong growth driven by the growth portfolio and new active ingredients [36][37] Question: Can you break down the cost savings for Q2? - Cost savings were primarily driven by lower raw material costs, improved fixed cost absorption, and restructuring actions [41][42] Question: What are the sales and EBITDA parameters for the India business in 2024? - The India business is forecasted to generate $70 million in sales for H2 2025, with a need for overall growth of 9% to meet targets [50][51] Question: How is the order book shaping up in Brazil? - Current orders for the second half in Brazil are about 35% to 40% of what is needed, indicating a positive outlook [58] Question: What is the expected impact of the new direct sales program in Brazil? - The impact of the new sales organization is expected to be visible in Q3, with growth anticipated year after year [62] Question: How is the pricing for Rynaxapyr and other products performing? - Rynaxapyr pricing remains relatively flat, with significant pricing headwinds primarily from partner contracts [86] Question: What is the outlook for the pheromones offering? - The full-scale commercial pilot for pheromones is expected to provide insights into performance, with results anticipated by the end of the year [90]

Financial Data and Key Metrics Changes - EBITDA increased by 6.5% with continued margin expansion [6][10] - Revenue per hectoliter growth accelerated by 4.9% [6] - Underlying EPS grew by 8.7% in U.S. Dollar terms and 17.4% in constant currency [10][25] - Free cash flow increased by $5 billion compared to last year [26] Business Line Data and Key Metrics Changes - Non-alcohol beer portfolio revenues increased by 33% [8] - In the U.S., volumes grew by low teens in spirits-based drinks, led by Cutwater and Neutrol [12] - In Brazil, revenue declined by 1.9% due to volume performance, while EBITDA increased by 5.3% [13] - In Europe, volumes were flat, but revenue and EBITDA grew by mid-single digits [14] Market Data and Key Metrics Changes - In China, revenue declined by 6.2% with underperformance in volumes [16] - In Mexico, volumes grew by low single digits, outperforming the industry [12] - Revenue increased in 70% of markets, with top and bottom line growth across four of five operating regions [11] Company Strategy and Development Direction - The company continues to invest in mega brands and platforms, with $3.6 billion spent on sales and marketing in the first half of the year [18] - Focus on premiumization and innovation to drive growth in the beer category [20] - The company aims to optimize its business through disciplined revenue management and operational efficiency [25] Management's Comments on Operating Environment and Future Outlook - Management remains confident in the long-term growth of the industry despite short-term volume challenges [37][90] - The company is focused on improving execution in China and leveraging opportunities in the off-premise channel [66] - Management anticipates a recovery in consumer confidence and purchasing power, which could positively impact volumes [56] Other Important Information - The company has a diversified geographic footprint, which has proven to be a strength in delivering consistent results [11] - The net debt to EBITDA ratio improved to 3.27 times, reflecting progress in deleveraging [27] Q&A Session Summary Question: Concerns about volume growth in fiscal 2025 - Management acknowledged the volume decline but emphasized confidence in long-term growth potential and the ability to navigate challenges [35][37] Question: Margin improvement sustainability - Management indicated that margin improvements are expected to be sustainable, driven by disciplined revenue management and operational efficiencies [39][40] Question: Key learnings from U.S. market performance - Management highlighted the importance of consistent long-term planning and investment in brands that align with consumer trends [46][48] Question: Consumer slowdown in Mexico and Brazil's volume decline - Management noted that while Mexico outperformed the industry, consumer confidence is lower than historical levels, impacting overall performance [55][56][68] Question: On-premise channel progress in China - Management reported that the on-premise channel remains weak, but there is growth in the off-premise channel, presenting opportunities for improvement [64][66] Question: Plans for category activation around FIFA 2026 - Management sees significant opportunities for category activation during major events like FIFA 2026 and the Winter Olympics, leveraging past experiences for better ROI [91][93]