Financial Data and Key Metrics Changes - ILPT reported third-quarter normalized FFO of $17.4 million or $0.26 per share, representing a 26% increase sequentially and a 116% increase year-over-year [11] - Same property cash basis NOI increased by 3% compared to the same period last year, supported by strong renewal activity and rent growth [5] - Interest expense decreased by $4.4 million compared to the second quarter of 2025, totaling $63.5 million, due to a $1.16 billion fixed-rate debt refinancing completed in June [11] Business Line Data and Key Metrics Changes - The company completed 836,000 sq ft of leasing during the third quarter, with renewals accounting for 70% of the activity [7] - The weighted average rental rates for the new leases were 22% higher than prior rates for the same space [7] - The leasing pipeline now exceeds 8 million sq ft, with anticipated average roll-ups in rent of 20% on the mainland and 30% in Hawaii [10] Market Data and Key Metrics Changes - ILPT's consolidated occupancy rate was 94.1%, outperforming the U.S. industrial average by 150 basis points [7] - Over 76% of annualized revenues come from investment-grade rated tenants or secure Hawaii land leases [6] Company Strategy and Development Direction - The company is focused on addressing lease expirations in 2026 and 2027 while evaluating opportunities to improve its balance sheet and reduce leverage [7][10] - ILPT has identified three properties for sale totaling 867,000 sq ft, anticipating a combined sales price of approximately $55 million [8] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macroeconomic and tariff uncertainties, the industrial real estate sector remains resilient, driven by e-commerce growth and reshoring initiatives [4] - For the fourth quarter of 2025, normalized FFO is expected to be between $0.27-$0.29 per share, excluding incentive fees [14] Other Important Information - The company recognized a $6.1 million impairment charge on one of the properties held for sale [12] - ILPT ended the quarter with cash on hand of $83 million and restricted cash of $95 million, with a net debt-to-total assets ratio of 69.3% [12] Q&A Session Summary Question: Guidance on incentive fees - Management indicated that a full-year incentive fee of $6.3 million would be recorded, with less than $2 million expected in Q4 [16][18] Question: GAAP rent increase on mainland assets - Management explained that a specific deal with the United States Postal Service drove down the GAAP rent increase to 1.8% [23][24] Question: Disposition opportunities in 2026 - Management stated that they are constantly evaluating the portfolio and may sell more properties in 2026, particularly within the Mountain joint venture [27] Question: Update on leasing in Indianapolis - Management reported optimism with three proposals out in Indianapolis, expecting potential leasing in the first half of next year [30] Question: Leasing progress in Hawaii - Management mentioned ongoing diligence with a full-site user prospect in Hawaii, hopeful for a lease [34] Question: Overall leasing and renewal outlook for 2026 - Management confirmed good progress on 2026 and 2027 expirations, with many signed LOIs or active lease negotiations [35]

OneSpaWorld (NasdaqCM:OSW) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsLeonard Fluxman - CEO and Executive ChairmanSteve Wieczynski - Managing DirectorStephen Lazarus - President, COO and CFOAllison Malkin - PartnerSharon Zackfia - Partner and Head of Consumer Equity ResearchConference Call ParticipantsAssia Georgieva - AnalystGregory Miller - Stock AnalystDrew May - Research AnalystMax Rakhlenko - Equity Research AnalystOperatorGood day and welcome to the OneSpaWorld third quarte ...

Financial Data and Key Metrics Changes - The company achieved all-time high EBITDA margins of 27% in electronic materials, reflecting improved cost structure and operational performance [5][6] - Sales increased by approximately 1% year-over-year, with adjusted earnings per share at $1.41, flat compared to the prior year and up 3% sequentially [5][13] - Adjusted EBITDA was $55.5 million, down 2% year-over-year, primarily due to lower volume from equipment downtime in Performance Materials [14] Business Line Data and Key Metrics Changes - **Performance Materials**: Value-added sales were $157.1 million, down 4% year-over-year due to equipment downtime, with adjusted EBITDA at $38 million, or 24.2% of value-added sales, down 18% compared to the prior year [12][14] - **Electronic Materials**: Value-added sales were $79.7 million, up 2% from the prior year and up 7% organically, with EBITDA margins reaching a record 27.1%, up 38% from the prior year [15][16] - **Precision Optics**: Value-added sales were $27.1 million, up 21% year-over-year, with adjusted EBITDA at $3.2 million, or 11.8% of value-added sales, marking a significant margin expansion [16][17] Market Data and Key Metrics Changes - The semiconductor market is recovering, with sales into high-performance memory applications increasing more than 30% year-to-date, excluding China [7] - Defense bookings increased by approximately 40% year-to-date, with the company working on about $150 million of RFQs [10][42] - The commercial space sector has seen sales increase fivefold in three years, driven by macro trends in AI and connectivity [10][11] Company Strategy and Development Direction - The company is focusing on high-growth markets such as semiconductor, defense, space, and energy, with a strong order book and improved operational performance expected to drive growth [6][11] - Strategic partnerships, such as with Kairos Power and Commonwealth Fusion Systems, are aimed at expanding the company's footprint in new energy applications [9][28] - The company aims to achieve midterm target margins of 23% and is actively addressing operational reliability issues in Performance Materials [6][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2025 positively, driven by strong order rates and operational improvements [11][18] - There is uncertainty regarding the impact of geopolitical tensions, particularly concerning the China market, which is down about 20% year-over-year [70][86] - The company anticipates continued growth in defense spending and energy markets, with a focus on maintaining strong relationships with customers [10][94] Other Important Information - The company ended the quarter with a net debt position of approximately $441 million and $214 million of available capacity on its credit facility [17] - A new $50 million stock repurchase program was authorized by the Board of Directors, although organic growth remains the top priority for capital allocation [17][60] Q&A Session Summary Question: Why did the company not narrow the full-year outlook range? - Management cited uncertainty around China and potential impacts from the government shutdown as reasons for maintaining the range [25] Question: What financial impact is expected from the new agreement with Commonwealth Fusion? - Initial shipments are expected to contribute a few million this year, with a more significant annualized run rate anticipated next year [26][28] Question: What is the nature of the equipment downtime in Performance Materials? - The downtime was primarily due to issues in the largest plant, but it has been resolved, and the company expects to catch up on sales in Q4 [35][36] Question: What are the expectations for 2026 growth? - Management expressed optimism about growth in key markets, despite challenges in the auto market and geopolitical pressures [40][42] Question: How is the company addressing operational reliability? - The company is focused on capital improvements and maintenance to minimize future disruptions in Performance Materials [38][39] Question: What is the expected impact of tariffs on financial results? - The China business is down about 20% year-over-year, with some impacts from tariffs on raw materials, but the focus remains on stabilizing the supply chain [69][70] Question: Will beryllium be stockpiled by the government? - Increased U.S. defense spending is expected to drive demand for beryllium, with active discussions ongoing to ensure supply [94][95]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was reported at $1.74, which is $0.04 above the forecast and $0.02 above market consensus [5][37] - The midpoint of the earnings guidance for the full year 2025 was raised by $0.03, now projected at $6.89 to $6.92 per share [5][39] - Occupancy in the same property pool increased by 20 basis points from the previous quarter, reaching 86.6% [21][37] Business Line Data and Key Metrics Changes - Over 1.5 million square feet of leasing was completed in Q3 2025, a 39% increase compared to Q3 2024 and 130% of the last five-year average for the same quarter [6][5] - Year-to-date leasing activity totaled 3.8 million square feet, which is 14% greater than the first three quarters of 2024 [6] - The total portfolio percentage leased for the quarter was 88.8%, a decline of 30 basis points, but an increase of 10 basis points from June 30 [22] Market Data and Key Metrics Changes - Office transaction volume in private markets reached $12.9 billion in Q3 2025, up 6% from Q2 2025 and 55% from Q3 2024 [8] - Direct vacancy for premier workplaces in key markets is 11.7%, which is 22% lower than the broader market [10] - The overall mark-to-market on leases signed in Q3 was up almost 7%, with notable increases in Boston and New York [24] Company Strategy and Development Direction - The company aims to sell 27 non-strategic assets for approximately $1.9 billion by the end of 2027, with 23 transactions either closed or underway totaling roughly $1.25 billion in estimated net proceeds [7][8] - Focus on increasing portfolio concentration of premier workplace assets in core gateway markets, with a strategy to reallocate capital to high-quality developments [10][11] - Plans to grow FFO through new development, particularly in multifamily projects, while being selective in office developments due to market conditions [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are growing and utilizing their spaces more intensively, leading to positive leasing market conditions [16] - The company expects to achieve a 200 basis point increase in occupancy by the end of 2026, supported by a strong leasing pipeline [51][68] - The overall economic environment is improving, with debt and equity investors becoming more constructive on the office sector [16] Other Important Information - The company recorded $212 million in impairments related to assets part of the strategic sales program [38] - The debt markets have improved, allowing the company to successfully access both secured and unsecured markets, including a $1 billion issuance of exchangeable notes [34][36] Q&A Session Summary Question: Thoughts on reallocating capital into premier locations and smaller markets like Seattle and LA - Management acknowledged that LA and Seattle are smaller markets with weaker leasing conditions and currently do not see development opportunities in those areas [46] Question: Confidence level regarding occupancy increases in 2026 - Management expressed confidence in achieving a 200 basis point increase in occupancy by the end of 2026, supported by ongoing leasing activity [51] Question: Recovery in San Francisco and Salesforce's investment impact - Management noted that AI demand is focused on low-rise buildings rather than high-rise, and Salesforce's commitment is seen as positive for job growth and office demand [54][58] Question: Percentage of pre-pandemic leases still to be addressed - Management indicated that a significant portion of the portfolio consists of long-term leases, and most growth is coming from existing clients expanding their space [63][65] Question: Addressing vacancy and occupancy build - Management stated that projections are based on annual expectations, with confidence in achieving occupancy increases driven by current leasing activity [68]

Financial Data and Key Metrics Changes - Funds from operations (FFO) per share for Q3 2025 was $1.74, which is $0.04 above the forecast and $0.02 above market consensus [5][38] - The midpoint of the earnings guidance for the full year 2025 was raised by $0.03, now projected at $6.89-$6.92 per share [5][40] - Occupancy in the same property pool increased by 20 basis points from the previous quarter, reaching 86.6% [21][38] Business Line Data and Key Metrics Changes - Over 1.5 million sq ft of leasing was completed in Q3 2025, a 39% increase compared to Q3 2024 and 130% of the last five-year average for the same quarter [6][5] - Year-to-date leasing activity reached 3.8 million sq ft, which is 14% greater than the first three quarters of 2024 [6] - The total portfolio percentage leased for the quarter was 88.8%, a decline of 30 basis points, but an increase of 10 basis points from June 30 [22] Market Data and Key Metrics Changes - S&P 500 earnings have been growing for nine consecutive quarters, with a projected growth of around 11%-12% for 2025 [6] - Office transaction volume in private markets improved, with significant office sales reaching $12.9 billion in Q3 2025, up 6% from Q2 and 55% from Q3 2024 [8] - Direct vacancy for premier workplaces in key markets is 11.7%, which is 22% lower than the broader market [10] Company Strategy and Development Direction - The company aims to lease space and grow occupancy, with a focus on premier workplace assets in core gateway markets [5][10] - A strategic goal includes selling 27 non-strategic assets for approximately $1.9 billion by the end of 2027, with $1.25 billion in transactions already closed or underway [7][8] - The company is reallocating capital to premier workplace assets and has launched new developments in New York and Washington, DC [12][14] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are growing and utilizing their space more intensively, leading to positive leasing market conditions [16] - The company expects to see a 200 basis point increase in occupancy by the end of 2026, driven by active leasing and market conditions [52][70] - The overall market for office space is improving, with more availability of capital at better pricing [16][37] Other Important Information - The company recorded $212 million in impairments related to assets part of its strategic sales program [39] - The debt markets have improved, allowing the company to access financing at favorable terms, including a $1 billion unsecured exchangeable notes offering [35][37] Q&A Session Summary Question: How is the company approaching smaller markets like Seattle and LA? - Management indicated that there are no current development opportunities in LA or Seattle due to weaker leasing conditions, but they would consider acquisition opportunities if they arise [46][47] Question: What is the confidence level regarding occupancy increases in 2026? - Management expressed confidence in achieving a 200+ basis point increase in occupancy by the end of 2026, supported by ongoing leasing activity [51][52] Question: How is the company addressing the recovery in San Francisco? - Management noted that AI demand is primarily in low-rise buildings south of Mission Street, and they are seeing growth in leasing activity from technology companies [54][56]

Cementos Pacasmayo (NYSE:CPAC) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsClaudia Bustamante - Investor Relations Managing DirectorEly Hayashi - CFOMarcelo Sa - Partner and Head of UtilitiesHumberto Nadal - CEOOperatorGood day, ladies and gentlemen. Welcome to Pacasmayo third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode, and please note that this call is being recorded. At the conclusion of our prepared remarks, we'll conduct a q ...

Financial Data and Key Metrics Changes - Same property NOI for the quarter was $44.3 million, representing a 6.4% increase year-over-year, driven by embedded rent escalations, occupancy gains, and positive rent spreads [10] - NAREIT FFO was $38.4 million, or $0.49 per diluted share, reflecting an 8.9% increase compared to the same quarter last year [10] - Year-to-date NAREIT FFO totaled $111.1 million, or $1.42 per diluted share, a 6% year-over-year increase [11] - The company raised its full-year same property NOI growth guidance to a range of 4.75%-5.25% [14] Business Line Data and Key Metrics Changes - The company reported a blended leasing spread of 11.5% for new leases and renewals, with new leases achieving a 25.6% spread and renewals averaging 10.4% [17] - Retention rate year-to-date was 82%, with a higher rate of 89% when excluding a single anchor space undergoing redevelopment [18] Market Data and Key Metrics Changes - The Sun Belt markets continue to show strong consumer fundamentals, with retail sales up year-over-year and foot traffic above national averages [6] - Hiring momentum in major Sun Belt MSAs remains healthy, with nine of the top 10 U.S. retail metros located in the Sun Belt [6] Company Strategy and Development Direction - The company focuses on maintaining high occupancy, embedding contractual rent escalators, and pursuing selective acquisitions to enhance portfolio quality [4] - The capital allocation strategy remains disciplined, targeting opportunities that align with strict return thresholds [8] - The company aims to continue scaling efficiently while maintaining hands-on oversight through its hub-and-spoke operating model [5] Management's Comments on Operating Environment and Future Outlook - Management noted that while household debt levels are rising and consumer confidence has weakened, day-to-day consumer behavior remains resilient [7] - The company expects some deceleration in the fourth quarter due to backloaded property operating expenses and remaining bad debt reserves [14] - Management remains optimistic about the leasing pipeline and expects to finish the year strong, with a positive outlook for 2026 [82] Other Important Information - The company completed four acquisitions totaling $250 million during the quarter, funded primarily with cash on hand [13] - Total liquidity stood at $571 million, including $71 million in cash and a $500 million revolving credit facility [12] Q&A Session Summary Question: Insights on tenants in discretionary categories, including restaurants - Management sees strong demand from quick service and casual dining tenants, with more restaurants performing well than struggling [22][23] Question: Acquisition pipeline composition and pricing - The acquisition pipeline remains robust, with over $1 billion in assets being considered, primarily grocery-anchored [25][26] Question: Future occupancy trajectory - Management expects a slight decline in small shop occupancy but anticipates a reacceleration in 2026 [32][33] Question: CapEx expectations for leasing and TIs in 2026 - CapEx burden is expected to decrease as occupancy stabilizes, leading to greater free cash flow [34] Question: Context on back-end loaded expenses in Q4 - Higher property operating expenses are typical in the fourth quarter, along with increased corporate expenses [35] Question: Confidence in growing creatively from acquisitions - Management is focused on responsible growth and is looking for opportunities that align with their strategy [41][42] Question: Remaining budgeted bad debt expense for the year - The forecast for bad debt expense is between 55 basis points and 75 basis points, with visibility into the lower end of the range [46] Question: Lease-to-economic occupancy spread - The spread is influenced by timing, with expectations of a normal run rate between 150 basis points and 200 basis points [54] Question: Balance between grocery and dining sectors - Both sectors have been complementary within the portfolio, with strong performance observed in both areas [56][57] Question: Comfort with increasing share of tertiary markets - The company is open to expanding in secondary and tertiary markets, provided the quality of assets remains high [63][66]

Financial Data and Key Metrics Changes - Old Dominion Freight Line's revenue for Q3 2025 was $1.41 billion, reflecting a 4.3% decrease compared to Q3 2024, primarily due to a 9% decrease in less-than-truckload (LTL) tons per day, partially offset by a 4.7% increase in LTL revenue per hundredweight [6][12] - The operating ratio increased by 160 basis points to 74.3% for Q3 2025, driven by the deleveraging effect from decreased revenue [12][14] - Cash flow from operations totaled $437.5 million for Q3 and $1.1 billion for the first nine months of 2025 [15] Business Line Data and Key Metrics Changes - LTL tons per day decreased by 9.0%, while LTL revenue per hundredweight increased by 4.7% [12] - Sequentially, revenue per day decreased by 0.1% compared to Q2 2025, with LTL tons per day down 2.9% and LTL shipments per day down 1.6% [12] Market Data and Key Metrics Changes - The current month-to-date revenue per day for October is down approximately 6.5% to 7% compared to October 2024, with a decrease of 11.6% in LTL tons per day [12][20] - The average change in operating ratio from Q3 to Q4 is expected to be a sequential increase of 250 to 350 basis points, depending on revenue recovery [19][20] Company Strategy and Development Direction - The company remains focused on delivering superior service at a fair price, investing in service centers, equipment, technologies, and workforce [7][10] - Old Dominion aims to maintain its market share and improve profitability when the market conditions become favorable again [10][37] Management's Comments on Operating Environment and Future Outlook - Management noted continued softness in the domestic economy and emphasized the importance of controlling costs and maintaining service quality [6][36] - The company is prepared for future growth opportunities and believes it is well-positioned to respond to market changes when they occur [36][62] Other Important Information - Old Dominion was named the number one national LTL provider for the 16th consecutive year, finishing first in 23 of 28 service and value-related attributes evaluated [9][10] - The effective tax rate for Q3 2025 was 24.8%, with expectations to remain the same for Q4 2025 [15][16] Q&A Session Summary Question: What is the outlook for demand in October? - Management indicated that tonnage is underperforming seasonality, with expectations of a sequential increase in operating ratio due to revenue trends [19][20] Question: How are salaries and wages impacting operating ratio? - Salaries, wages, and benefits decreased as a percentage of revenue, partly due to a 6% reduction in headcount compared to the previous year [24][25] Question: What is the current capacity position? - The company is operating with over 30% excess capacity and plans to reduce capital expenditures for real estate next year [31][32] Question: What are the dynamics of market share and pricing? - Old Dominion has maintained a consistent revenue market share of approximately 11.8% and continues to manage pricing discipline despite a weak macro environment [41][56] Question: How is the company responding to competitive pressures? - The company remains focused on service quality and has not seen significant changes in the competitive landscape despite investments from peers [78][80]

Financial Data and Key Metrics Changes - Shipments increased by 6% to 373,000 tonnes compared to Q3 2024, driven by higher shipments across all operating segments [7] - Revenue rose by 20% to $2.2 billion compared to Q3 2024, attributed to higher shipments and increased revenue per tonne, including higher metal prices [7] - Net income for the quarter was $88 million, a significant increase from $8 million in Q3 2024, primarily due to higher gross profit [8] - Adjusted EBITDA increased by 85% to $235 million, with a record adjusted EBITDA of $196 million when excluding the impact of metal price lag [8][9] - Free cash flow was strong at $30 million for the quarter [8] Business Line Data and Key Metrics Changes - **A&T Segment**: Adjusted EBITDA of $90 million, up 67% year-over-year, with TID shipments up 16% but aerospace shipments down 9% [13][14] - **Packaging Segment**: Adjusted EBITDA of $82 million, a 14% increase year-over-year, with packaging shipments up 11% [15] - **AS&I Segment**: Adjusted EBITDA of $33 million, a 371% increase year-over-year, with shipments up 40% [16] Market Data and Key Metrics Changes - Aerospace market backlogs are at record levels, with major OEMs increasing build rates for aircraft [24] - Demand in the packaging market remains healthy in North America and Europe, with long-term growth expected [25] - Automotive production in Europe remains below pre-COVID levels, with demand weak particularly in luxury and electric vehicle segments [27] Company Strategy and Development Direction - The company is focused on high value-added products, enhancing customer connectivity, and optimizing margins [23] - The leadership transition is aimed at continuing the strong foundation and strategic direction established [5][6] - The company is committed to maintaining a right-sized cost structure and executing its Vision 25 cost improvement program [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals driving aerospace demand, despite current supply chain challenges [24] - The company anticipates a modest benefit from recent aluminum supply chain interruptions in automotive, with expectations for improvement in 2026 [28] - Management raised guidance for 2025, targeting adjusted EBITDA of $670 million to $690 million and free cash flow in excess of $120 million [31] Other Important Information - The company completed a divestment of its Nanjing Automotive Structures plant during the quarter [9] - The current tariff environment is manageable, with indirect positive impacts from tariffs expected to continue [10][11] - The company has no bond maturities until 2028, with strong liquidity of $831 million as of the end of Q3 [22] Q&A Session Summary Question: Impact of scrap spread on future quarters - Management indicated that scrap spreads have tightened in 2024 and are expected to widen in 2025, with a potential impact of $15 to $20 million per quarter [35][41] Question: Aerospace margin outlook - Management noted that the aerospace segment has maintained strong margins due to a wide product portfolio and R&D capabilities, with expectations for continued improvement [47][56] Question: European market recovery indicators - Management highlighted mixed signals in the European market, with some sectors stabilizing while others remain weak, particularly in automotive [80][85] Question: Benefits from rising aluminum prices - Management clarified that rising aluminum prices primarily impact cash flow due to increased inventory costs, while scrap spreads are expected to provide some benefits [86][87]

Financial Data and Key Metrics Changes - The company reported revenue of $530 million for Q3 2025, representing a 12% year-over-year increase and an adjusted EPS of $0.48, up 11% year-over-year [4][21] - Adjusted EPS for the quarter was $0.48, reflecting a 10.8% year-over-year increase [24] - Revenue for the first nine months of 2025 was $1.55 billion, up 14% year-over-year on a constant currency basis [25] Business Line Data and Key Metrics Changes - Data and AI-led revenue grew 18% year-over-year, accounting for 56% of total revenue [4][6] - Digital operations revenue increased by 6% year-over-year, with some revenue shifting to the data and AI-led category [6] - The insurance segment grew 9% year-over-year, contributing a third of total revenue [6] - Healthcare and life sciences segment grew 22% year-over-year, driven by demand for data and AI solutions [6][22] - Banking, capital markets, and diversified industries grew 12% year-over-year, representing nearly a quarter of total revenue [7][22] Market Data and Key Metrics Changes - International growth markets segment generated revenue of $92.8 million, up 8.4% year-over-year [23] - The company noted a positive demand environment and an expanding sales pipeline for data and AI-led opportunities [8][9] Company Strategy and Development Direction - The company is focused on embedding AI into client workflows and has launched EXLdata.ai to help clients make their data AI-ready [12][13] - The strategy includes expanding capabilities in data and AI, with a strong emphasis on client engagement and innovation [11][56] - The company aims to maintain double-digit growth momentum into 2026, supported by a healthy new business pipeline [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained double-digit growth due to the increasing demand for AI-driven solutions [36][40] - The company is raising its revenue and EPS guidance for the full year based on strong performance and visibility [27][28] - Management highlighted the importance of transforming client business models and expanding total addressable markets through AI adoption [9][36] Other Important Information - More than 75% of the company's revenue is recurring or annuity, providing stability and predictability [11] - The company has received several industry recognitions for its AI services and solutions leadership [17][18] Q&A Session Summary Question: Change in overall demand environment - Management characterized the overall demand as very strong, with an expanding total addressable market for services and solutions [30][32] Question: Expectations for digital operations growth - Management indicated that digital operations growth is impacted by revenue shifting to data and AI-led categories, with a current growth rate of 6% [46][47] Question: Client relationship management changes - The company is enhancing client engagement by training teams to discuss complex technologies and expanding conversations to include higher-level executives [52][54] Question: Outlook for healthcare segment growth - Management believes the healthcare business has significant growth potential due to the data-rich and fragmented nature of the market [62][64] Question: Margin expectations for next year - Management expects more stable margin growth in 2026, with an adjusted margin improvement of 10 to 20 basis points per year [67][68] Question: Landscape for EXLdata.ai product - Management noted that while other companies are developing similar solutions, EXLdata.ai differentiates itself by using AI to prepare data for AI readiness [71][72] Question: International segment growth acceleration - The company is investing in marketing and talent to accelerate growth in international markets [75] Question: Requirements for deploying enterprise AI - Management discussed two engagement motions: standalone capabilities for data readiness and integrated solutions for embedding AI into workflows [78][80]