ATI (ATI) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Hello, and welcome, everyone, to the ATI Second Quarter twenty twenty five Results Conference Call. My name is Becky, and I'll be your operator today. I will now hand over to your host, David Weston, Vice President of Investor Relations to begin. Please go ahead.Speaker1Thank you. Good morning, and welcome to ATI's second quarter twenty twenty five earnings call. Today's discussion is being webcast online at atimaterials.com. Participating in ...

Financial Data and Key Metrics Changes - Alnylam reported total net product revenues of $672 million for Q2 2025, representing a 64% year-over-year growth [9][35] - The TTR franchise generated revenues of $544 million, reflecting a 77% increase year-over-year [7][35] - The company increased its total net product revenue guidance for 2025 from a range of $2.05 billion to $2.25 billion to a revised range of $2.65 billion to $2.8 billion, marking a $575 million or 27% increase at the midpoint [9][39] Business Line Data and Key Metrics Changes - The TTR franchise in the U.S. saw combined Q2 sales of ONPATTRO and Ambutra rise by 80% compared to Q1, driven primarily by the Ambutra launch [13][35] - The rare franchise, including GIVLAARI and OXLUMO, delivered $128 million in combined Q2 sales, up 24% year-over-year [12][35] - The U.S. TTR franchise grew 125% compared to 2024, primarily due to the ATTR Centimeters launch [14] Market Data and Key Metrics Changes - Approximately 1,400 cardiomyopathy patients were receiving Ambutra by the end of Q2, contributing an estimated $150 million in revenue [13][23] - International markets are expected to begin contributing to Ambutra sales in the second half of the year, with launches in Germany and Japan [8][26] - The U.S. TTR franchise achieved $383 million in Q2, representing an 80% quarter-over-quarter growth [15] Company Strategy and Development Direction - Alnylam is focusing on TTR leadership, growth through innovation, and strong financial performance as key strategic pillars [4][6] - The company aims to establish itself as a top-tier biotech firm by delivering sustainable innovation and value creation [5][10] - The launch of Ambutra is seen as a flagship commercial franchise with robust long-term growth potential [6][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong early launch performance of Ambutra and the potential for continued growth [9][39] - The company remains committed to advancing care through real-world evidence generation and the development of next-generation RNAi therapeutics [26][34] - Management highlighted the importance of disciplined execution and patient-centricity in driving long-term growth [27][39] Other Important Information - The FDA granted fast track designation to nucrisiran for ATTR Centimeters, which is expected to streamline the review process [9][31] - The gross margin on product sales was reported at 79%, down from 84% in the previous year, primarily due to increased royalties on Ambutra [37] Q&A Session Summary Question: Details on patient profiles for Ambutra - Management noted broad uptake across first-line patients and stabilizer progressors, with a healthy share of first-line patients emerging [45][46] Question: Thoughts on net price for Ambutra - The expectation is for a mid-single-digit reduction in net price for Ambutra in 2025 compared to 2024 [50][52] Question: Bolus effect in cardiomyopathy scripts - Management indicated solid commercial execution and emphasized that results are not just a flash in the pan, expecting continued sustainable growth [56][57] Question: Assumptions underpinning updated TTR franchise guidance - Management expects steady growth in both first-line and second-line patient flows, with a healthy trend in first-line use observed [65][70] Question: Criteria for stabilizer progressors - Clinical evidence suggests that one-third to half of patients on stabilizers progress, and physicians are using a variety of factors to determine eligibility for Ambutra [76][82] Question: Rate of new patient starts per quarter - Management is pleased with the initial uptake and expects both categories of patients to continue growing, though specific numbers will not be reported [91][94] Question: Payer requirements for Ambutra treatment - Broad coverage is reported across Medicare and commercial payers, with minimal step edits required for access [98][102]

Financial Data and Key Metrics Changes - The company reported revenue of $2.1 billion, which is in line with the previous year and up 6% sequentially from Q1 [15] - Adjusted EBITDA was $340 million, down 1% year over year [17] - Adjusted diluted EPS was $1.05, exceeding expectations, compared to $1.12 a year ago [19] - Net income was $106 million, equating to $0.89 of diluted earnings per share [19] - The net debt leverage ratio improved to 2.5 times trailing twelve months adjusted EBITDA from 2.7 times a year ago [20] Business Line Data and Key Metrics Changes - In the LTL segment, revenue declined 3% year over year, largely due to a reduction in fuel surcharge revenue [15] - Excluding fuel, LTL revenue was down 1% year over year but increased 6% sequentially [15] - Adjusted EBITDA for the LTL segment grew by 1% to $300 million, with a margin expansion of 90 basis points to 24.2% [18] - Total shipments per day in the LTL segment declined 5.1% compared to the prior year, but local channel shipments increased by high single digits [22] Market Data and Key Metrics Changes - The European Transportation segment reported a 4% year-over-year revenue increase and a 38% sequential increase in adjusted EBITDA [26] - The company experienced strength in the UK and Central Europe, with EBITDA growth in the low to mid single-digit range [44] Company Strategy and Development Direction - The company is focused on margin expansion and long-term value creation through strategic investments in technology and network efficiency [13] - The grocery consolidation service is identified as a new growth opportunity, estimated at a $1 billion market size, with expectations for significant margin contributions [33] - The company aims to improve its local channel share from 20% to 30%, which is expected to enhance yield and revenue per shipment [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining margin performance despite a soft freight environment, expecting a flat operating ratio in Q3 compared to Q2 [31] - The company anticipates continued yield growth and cost management effectiveness, even in a challenging macroeconomic backdrop [41] - Management highlighted the importance of AI initiatives in driving operational improvements and productivity gains [42] Other Important Information - The company generated $247 million in cash flow from operating activities and deployed $191 million in net CapEx during the quarter [19] - A share buyback program was initiated, with $10 million of common stock repurchased in Q2, with plans to scale up as free cash flow increases [20] Q&A Session Summary Question: Outlook for operating ratio in Q3 and grocery market opportunity - Management expects Q3 operating ratio to be flattish compared to Q2, driven by strong yield and effective cost management [31][32] - The grocery consolidation market is estimated at $1 billion, with the company underrepresented and expecting growth in this segment [33] Question: Strong results in Europe and future expectations - Management noted strong performance in Europe, with organic revenue growth for six consecutive quarters and expects to outperform seasonal trends in Q3 [44][45] Question: Revenue environment and tonnage dynamics - Management acknowledged a steep deceleration in June but noted a snapback in July, with expectations for tonnage declines to moderate in Q3 [90][91] Question: Incremental margins in an upcycle - Management expects comfortably over 40% incremental margins in the next upcycle, driven by yield initiatives and improved productivity [67][68] Question: Competitive dynamics and pricing environment - Management believes the separation of FedEx's freight business will enhance price discipline and margin expansion across the industry [75][76] Question: Pricing expectations for the second half - Management anticipates continued sequential improvement in yield and revenue per shipment in Q3 and Q4, supported by local channel growth [80][81]

Financial Data and Key Metrics Changes - For the three and six months ended June 30, 2025, total revenue was $70 million and $132.5 million, up 22% and 23% respectively from $57.2 million and $107.5 million in the same periods of 2024 [5][9] - Net product sales of Loop Kinus were $66.6 million and $126.5 million, up 21% and 22% respectively from $55 million and $103.1 million in the same periods of 2024 [5][9] - Cash flow generated from operations was $45.5 million for the six months ended June 30, 2025, compared to a negative $2.8 million in the same period of 2024 [5][9] - The company reported a net income of $21.5 million or $0.16 per share for the three months ended June 30, 2025, compared to a net income of $722,000 or $0.01 per share in the same period of 2024 [11][12] Business Line Data and Key Metrics Changes - The increase in total revenue and net product sales is primarily due to an increase in the number of Loop Kinus cartons sold to specialty pharmacies driven by further lupus nephritis market penetration [5][9] - Cost of revenue decreased to $7.1 million and $15.7 million for the three and six months ended June 30, 2025, compared to $8.9 million and $16.7 million in the same periods of 2024 [10] - Gross margin improved to 90.88% for the three and six months ended June 30, 2025, compared to 84.85% in the same periods of 2024 [11] Market Data and Key Metrics Changes - The company is seeing a strong uptick in the number of rheumatology prescribers, indicating a positive impact from updated guidelines [20] - The hospital business has been growing healthily since the publication of the guidelines, reflecting increased adoption in academic settings [21][22] Company Strategy and Development Direction - The company is increasing its full-year 2025 total revenue guidance from a range of $250 million to $260 million to a range of $260 million to $270 million [6] - The company plans to initiate further clinical studies for Aratinacept in at least two autoimmune diseases in the second half of the year [8] - The management emphasizes maintaining operational efficiency while advancing the clinical development of Aratinacept and Loop Kinus [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the Loop Kinus business and the potential of Aratinacept in treating various B cell-mediated diseases [16][17] - The company is optimistic about the future, with expectations of continued growth in the second half of the year despite historical summer slowdowns [28] Other Important Information - As of June 30, 2025, the company had cash, cash equivalents, restricted cash, and investments of $315.1 million [6][9] - The company repurchased $11.2 million of its common shares for $90.8 million during the six months ended June 30, 2025 [6][10] Q&A Session Summary Question: Potential for Aratinacept - Management sees potential in over 20 different B cell-mediated diseases for Aratinacept, but is not disclosing specific plans for competitive reasons [16][17] Question: Impact of Updated ACR Guidelines on Loop Kinus - Management noted a strong uptick in rheumatology prescribers and an increase in hospital business due to the updated guidelines [20][22] Question: Drivers of RAISE Guidance - Management indicated that the guidance range reflects historical trends and current business performance, with expectations of growth in the latter half of the year [28] Question: Development of AUR-200 - Management confirmed ongoing formulation work for AUR-200, aiming for a patient-friendly delivery method, potentially including an auto-injector [36] Question: R&D Spend and Cash Flow - Management did not provide specific guidance on future R&D expenses but emphasized the importance of maintaining operational efficiency and cash flow positivity [39][40] Question: Pediatric Exclusivity and Buyback Strategy - Management confirmed no changes to the exclusivity period and indicated that buyback strategies will depend on cash flow from operations and growth in the Loop Kinus business [51][56]

Financial Data and Key Metrics Changes - In Q2 2025, Roblox reported revenue of $1,100,000,000, representing a 21% increase year on year [7] - Q2 bookings reached $1,400,000,000, up 51% year on year [7] - Daily Active Users (DAUs) were 111,800,000, an increase of 41% year on year [8] - Monthly unique payers in Q2 were 23,400,000, up 42%, setting a new all-time record [10] - Developer Exchange (DevEx) was $316,400,000, up 52% year on year, also a new all-time record [10] Business Line Data and Key Metrics Changes - Bookings growth was strong across all regions, with the U.S. and Canada seeing a 43% increase, while APAC grew by 75% [8] - Notable year-on-year Q2 bookings growth included Japan over 50%, India over 90%, and Indonesia over 150% [8] Market Data and Key Metrics Changes - In Q2, the U.S. and Canada DAUs grew by 21%, while APAC DAUs increased by 76% [9] - Engagement hours reached 27,400,000,000, up 58% year on year, with significant growth in APAC at 95% [9] Company Strategy and Development Direction - Roblox aims to capture 10% of the global gaming content market, with a focus on performance, quality, and discovery [6][11] - The company is investing in global infrastructure, personalization, and discovery to enhance user experience and creator success [12][13] - Innovations in safety and privacy tools were introduced, including trusted connections and age estimation [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on multiple tailwinds, including the UGC creator economy and advancements in AI [24] - The full-year 2025 revenue guidance was raised to a growth of 22% to 25% year on year, with bookings growth expected at 34% to 37% [27][29] Other Important Information - The company highlighted the success of new viral hits, with five experiences exceeding 10,000,000 DAUs [11] - A new creator rewards program was introduced to better align incentives with long-term platform health [82] Q&A Session Summary Question: How much capacity does the system have to absorb the surge in demand? - The company is pushing numbers above 30,000,000 concurrent players and has optimized its infrastructure to handle this load without excessive CapEx [33][34] Question: How do you see the ecosystem implications of recent changes? - The company believes that the growth of non-top 10 experiences is significant, with more than half of the growth in experience spend coming from these titles [26] Question: What is the impact of Grow a Garden on new customer acquisition? - Grow a Garden has attracted new users, particularly older demographics, and is expected to help drive engagement across the platform [91][92] Question: Can you discuss the Google partnership on the advertising side? - The company is seeing strong interest in rewarded video ads and has onboarded nearly 100 publishers, with plans to expand this monetization avenue [70][71]

Financial Data and Key Metrics Changes - Second quarter revenue reached a record of $135.1 million, representing a 6.5% year-over-year increase in constant currencies and a 7% sequential increase [21] - Non-GAAP earnings per share (EPS) were $0.41, exceeding guidance and up $0.08 sequentially, with a year-over-year increase of $0.03 [25] - Non-GAAP gross margin was flat sequentially at 44.8%, but down 90 basis points year-over-year due to higher growth in network revenue and lower US network margin from changing tariffs [24] Business Line Data and Key Metrics Changes - CNC machining revenue grew 20% year-over-year, with a 30% increase in the US, driven by strong demand from aerospace and defense customers [22] - Injection molding revenue declined 4% year-over-year, impacted by weaker demand in the medical sector [22] - 3D printing revenue decreased by 1% year-over-year, reflecting ongoing weakness in prototyping [22] - Sheet metal revenue grew by 9%, supported by improved offerings and marketing efforts [22] Market Data and Key Metrics Changes - Revenue in the US grew 12% year-over-year, while European revenue declined by 15% in constant currencies, indicating a contraction in manufacturing activity in Europe [23] - Customers utilizing the combined offer grew by 44% over the trailing twelve months, and revenue per customer increased by 11% year-over-year [12] Company Strategy and Development Direction - The company aims to sharpen execution in customer and employee experience to unlock long-term growth [8] - There will be no radical shifts in strategy in the near term, with a focus on listening and engaging with teams and customers to identify high-impact opportunities [9] - The company continues to invest in marketing and sales enablement tools to enhance customer engagement and streamline operations [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing trade policies and tariffs, viewing them as a long-term tailwind for American manufacturing innovation [16] - The company is focused on generating healthy cash flows to invest in growth and innovation while maintaining resilience amid market uncertainties [18] - Management anticipates continued strength in CNC machining and overall business performance into the third quarter [34] Other Important Information - The company received a 2025 Future of Manufacturing Project Award, validating its progress as a technology-focused manufacturer [10] - The metal 3D printing service in Raleigh, North Carolina, received ISO 13485 certification, enhancing its capabilities in medical device manufacturing [11] Q&A Session Summary Question: Strength in CNC and its impact on growth - Management noted similar growth in both factory and network segments, with a significant contribution from larger accounts [31][32] Question: Insights on injection molding performance - The injection molding business faced headwinds from last year's larger orders and current weakness in the medical sector, but innovation efforts are ongoing [35][36] Question: Impact of tariffs on gross margins - Tariffs on aluminum and steel impacted margins, but adjustments in pricing restored network margins to normal levels by June [46][49] Question: Production initiatives and their success - The company reported an 11% increase in revenue per customer contact and a 44% year-over-year growth in customers utilizing combined offers, indicating successful production initiatives [60]

Myers Industries (MYE) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning. Thank you for joining today's Myers twenty twenty five Second Quarter Earnings Results Call. My name is Makayah, and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for your questions and answers at the end. At this time, I'd like to pass the call over to our host, Megan Beringer.Megan, you may begin today's call.Speaker1Thank you. Good ...

KBR (KBR) Q2 2025 Earnings Call July 31, 2025 08:30 AM ET Speaker0Good morning. Thank you for attending today's KBR's Second Quarter twenty twenty five Earnings Conference Call. Name is Megan, and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the call over to Jamie Dubre, VP of IR with KBR.Please go ahead.Speaker1Thank you. Good morning, and welcome to KBR's second quart ...

Financial Data and Key Metrics Changes - Second quarter sales from continuing operations grew 4% on a reported basis and 1% on an operational basis, with adjusted earnings per share from continuing operations at $0.59, increasing 28% over the prior year [5][10][24] - Adjusted gross margins from continuing operations were 14.7%, a decrease of 170 basis points compared to the prior year [19] - Adjusted operating margin was 15.1%, improving 180 basis points compared to the prior year [21] Business Segment Data and Key Metrics Changes - Medical Products and Therapies (MPT) segment sales were $1.3 billion, increasing 1% in the quarter, with ITT division sales declining 1% to $1 billion [10][11] - Advanced Surgery sales totaled $296 million, growing 5% globally [14] - Healthcare Systems and Technologies (HST) sales were $767 million, increasing 2%, with Care and Connectivity Solutions (CCS) division sales rising 4% to $474 million [15] - Pharmaceutical segment sales totaled $612 million, increasing 1%, with injectables and anesthesia sales declining 4% [16][17] Market Data and Key Metrics Changes - U.S. patient admissions were slightly lower than anticipated, impacting demand for certain products [11] - International sales in CCS increased 7%, while frontline care sales declined 1% compared to the prior year [15][16] Company Strategy and Development Direction - The company aims to enhance operational effectiveness and improve performance, focusing on innovation and growth opportunities [6][30] - A strategic partnership with Visient was announced to ensure reliable access to IV fluids during supply disruptions [12] - The company is committed to maintaining a comprehensive IV Solutions portfolio and is optimistic about the recovery of hospital practices over time [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softness in demand for certain products and the impact of fluid conservation efforts on sales [5][11] - The company expects total sales growth of 6% to 7% on a reported basis for 2025, with operational sales growth revised to 3% to 4% [26][34] - Management remains confident in the fundamentals of the business and anticipates a return to normal practices in the healthcare sector [30][66] Other Important Information - The company has incurred negative free cash flows of $144 million year-to-date but generated $77 million of positive free cash flows in the second quarter [25] - The anticipated impact from tariffs is estimated at approximately $40 million in 2025, a reduction from previous estimates [32] Q&A Session Summary Question: Impact of NOVUM on sales and operating margin - Management confirmed no impact from NOVUM in the second quarter and expressed confidence in the platform despite a voluntary pause in shipments [42][44] Question: Guidance implications if NOVUM issues persist - The low end of guidance assumes no further shipments of NOVUM for the rest of the year, capturing potential downside risks [48][52] Question: Evolution of business trends throughout the quarter - Management noted that business trends worsened, particularly in U.S. injectables, and emphasized a more reserved approach for the second half of the year [62][66] Question: TSA income and stranded costs management - Management is on track to mitigate stranded costs and ensure that TSA roll-off does not outpace stranded cost reductions [71][73] Question: Revenue guide reduction specifics - Management did not provide specific numbers but indicated that the low end of guidance assumes no improvement in fluid conservation [78] Question: Long-term growth model and new CEO's impact - Management highlighted ongoing innovation and new product launches as key to returning to 4% to 5% revenue growth, with optimism for 2026 [83][88]

Financial Performance - VSE achieved record revenue of $272 million in Q2 2025, a 41% increase year-over-year, driven by strong performance in aviation distribution and MRO businesses [16][18] - Adjusted EBITDA increased by 52% to $43 million, with an adjusted EBITDA margin of 16%, reflecting a 110 basis point improvement from the prior year [16][18] - Adjusted net income reached $20 million, with adjusted net income per diluted share of $0.97, marking increases of 149% and 106% respectively [16][19] Business Segment Performance - Aviation segment revenue also increased by 41% to $272 million, with distribution revenue up 50% and MRO revenue up 27% [20] - Organic revenue growth in the aviation segment was approximately 13% when excluding recent acquisitions [20] - The company is focusing on higher margin product lines, leading to a reduction in less profitable used serviceable material (USM) revenue by about 20% on a run rate basis [11][20] Market Environment - The aviation aftermarket showed resilience, with a rebound in activity in May and June after initial softness due to tariff uncertainties [15] - Engine-related MRO and distribution revenue now represents over 50% of total aviation revenue, indicating strong demand in this segment [15] Company Strategy and Development Direction - VSE completed the sale of its fleet segment, transitioning to a pure play aviation aftermarket company, and is now focused on higher growth and higher margin opportunities [6][25] - The company is prioritizing integration of recent acquisitions, including Turbine Weld and Kaelstrom, to unlock efficiencies and enhance customer value [26] - VSE is also capturing cost synergies from acquisitions, with $4 million in identified cost savings already being realized [12][26] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in continued strength in the aviation aftermarket, particularly in the engine segment, and anticipates revenue growth of 35% to 40% for the full year 2025 [22][15] - The company is raising its full-year adjusted EBITDA margin guidance to 16.5% to 17%, reflecting a higher margin product mix [22] Other Important Information - VSE secured a new $700 million credit facility, providing financial flexibility to support growth initiatives [7] - The company generated approximately $6 million in free cash flow during the quarter, an improvement of about $28 million compared to the previous year [24] Q&A Session Summary Question: Can you discuss organic growth expectations for the second half of the year? - Management indicated that organic growth is expected to be in the low to mid-teens, with engine markets outperforming component markets [32][34] Question: What are the synergies from recent acquisitions? - Management noted that synergies from Kaelstrom are being realized ahead of schedule, contributing to strong margins [36][62] Question: How sustainable is the free cash flow generation? - Management expects strong improvement in free cash flow in the second half of the year, driven by better working capital management [42] Question: What is the strategy for the USM business? - The company is shifting the USM business to focus on higher margin product lines and integrating it with repair capabilities [45][84] Question: What are the opportunities in the hydraulics market? - Management sees potential in the hydraulics market, emphasizing faster turnaround times and quality in supporting OEM authorized work [73] Question: What is the outlook for engine aftermarket demand? - Management believes that engine aftermarket demand will continue to outpace component demand in the near to mid-term due to supply chain constraints [77]