Leonardo DRS (NasdaqGS:DRS) Q3 2025 Earnings Call October 29, 2025 09:30 AM ET Company ParticipantsAustin Moeller - Director, Equity ResearchMichael Dippold - CFOStephen Vather - VP of Investor Relation and Corporate FinanceWilliam Lynn - Chairman and CEOAlexander Preston - Equity Research AssociateRobert Stallard - PartnerMichael Ciarmoli - Managing Director, Aerospace & Defense Equity ResearchJonathan Tanwanteng - Managing DirectorJohn Baylouny - Excutive VP and COOKristine Liwag - Executive Director and ...

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 ResearchJon Arfstrom - Managing Director and Associate Director of US 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 ResearchJared Shaw - Managing Dire ...

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]

Financial Data and Key Metrics Changes - The company reported adjusted operating margin of 10.2% on revenue of $2.7 billion for Q3 2025, leading to adjusted earnings per share (EPS) of $3.20, an increase of 9.2% year-over-year [6][14] - Consolidated sales decreased by $53 million, or 2%, compared to the same quarter last year, primarily due to lower sales volume in the Access segment [14] - Adjusted operating income was $274 million, down slightly from the prior year, reflecting lower volume [14] Business Line Data and Key Metrics Changes - The Access segment achieved adjusted operating income margins of 11% on sales of $1.1 billion, with sales down $254 million, or nearly 19% year-over-year, due to weaker market conditions in North America [15][16] - The Vocational segment saw strong sales growth, achieving an adjusted operating income margin of 15.6% on $968 million in sales, up $154 million, or nearly 19% from last year [16] - The Transport segment's sales increased by $48 million to $588 million, with delivery vehicle revenue growing by $114 million to $146 million, representing approximately one quarter of transport segment revenue [16][17] Market Data and Key Metrics Changes - The company noted that end market activity in the Access segment remains healthy, but customers are cautious with capital expenditures due to tariffs and the economic environment [7][9] - The vocational segment recorded strong orders of $1.1 billion, led by Pierce fire trucks and AeroTech products, indicating robust demand [11] Company Strategy and Development Direction - The company is focused on a local-for-local strategy in the Access equipment sector to manage tariff impacts and maintain competitiveness [48] - The long-term vision includes doubling adjusted EPS to a range of $18-$22 per share by 2028, with ongoing efforts to streamline production and improve efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic environment in 2025, including tariff impacts and sustained higher interest rates, but expressed confidence in managing these challenges while delivering solid results [20] - The updated full-year adjusted EPS guidance is now in the range of $10.50-$11.00, reflecting lower revenue expectations for the Access and Transport segments [19] Other Important Information - The company repurchased approximately 666,000 shares for $91 million during the quarter, bringing year-to-date repurchases to $159 million [15] - Free cash flow for the quarter was strong at $464 million, compared to $272 million in the same quarter last year [15] Q&A Session Summary Question: Access segment demand outlook for 2026 - Management indicated that while there is hesitancy in the near term, long-term demand drivers remain strong, with ongoing discussions with customers about 2026 expectations [27][30] Question: Impact of tariffs on costs - The estimated tariff impact for the year is $30 million-$40 million, with expectations for pricing adjustments in 2026 to mitigate these costs [33][34] Question: Competitive landscape in Access equipment - Management believes their local manufacturing strategy positions them well against competitors, particularly those outside the U.S., and they are focused on driving improvements for customers [48][49] Question: Warranty costs and their implications - Warranty costs in Q3 were attributed to one-time issues related to defense sector vehicles, and management does not expect this to be an ongoing issue [54][55] Question: NGDV production challenges - Management confirmed that while there are challenges in ramping up production, they are targeting full-rate production by the end of the year [73][76]

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 ...

Financial Data and Key Metrics Changes - The company reported a quarterly revenue growth of 18% year-over-year, totaling $960 million [20] - Adjusted EBITDA increased by 17% to $117 million, with a quarterly adjusted EBITDA margin of 12.2%, reflecting a slight margin contraction of 10 basis points from the prior year [21] - Net earnings for the third quarter were $72 million, with diluted EPS rising by 24% to $0.26 [22] - Free cash flow was $77 million for the quarter, significantly up from the prior year [22] Business Line Data and Key Metrics Changes - The Integrated Mission Systems (IMS) segment saw a revenue increase of 34%, driven by strong contributions from Counter-UAS and electric power and propulsion programs [21] - The Advanced Solutions and Capabilities (ASC) segment demonstrated a healthy growth of 9%, attributed to naval network computing, advanced infrared sensing, and tactical radar programs [21] Market Data and Key Metrics Changes - The company secured $1.3 billion in bookings during the quarter, resulting in a book-to-bill ratio of 1.4, with a year-to-date book-to-bill ratio of 1.2 [4] - The total backlog reached a record $8.9 billion, up 8% year-over-year, with funded backlog growing by 20% [4] Company Strategy and Development Direction - The company is focused on areas of customer priority, including Counter-UAS, shipbuilding throughput, missile production, and electronics modernization [8] - The company is actively working on strengthening its germanium supply chain through recycling initiatives and strategic agreements with partners [9] - The company is positioned to capture growth opportunities in electric power and propulsion technology for future platforms [19] Management's Comments on Operating Environment and Future Outlook - The management noted that the operating environment presents both opportunities and challenges, with continued growth in U.S. and allied defense investments [6] - The company remains optimistic about the future, expecting revenue growth of 10% to 11% for the full year [5] - Management expressed confidence in navigating the complexities of the dynamic market environment while maintaining investment for organic growth [5] Other Important Information - The company announced a leadership transition, with John Baylouny set to become the new CEO [11] - The company is maintaining a balanced capital allocation strategy, focusing on M&A opportunities while instituting a dividend and moderate buyback [156] Q&A Session Summary Question: How do we expect IRAD spending to trend? - Management expects internal research and development investment to remain around mid 3% of revenues to maintain growth [31][32] Question: Any updates on foreign military sales activity? - The company anticipates a ramp-up in foreign military sales opportunities, particularly in Counter-UAS and sensors [35] Question: Have germanium pricing and supply stabilized? - Management indicated progress in solidifying supply for 2026 and diversifying the supply base away from reliance on China [39] Question: What drove the increase in bookings this quarter? - The increase was primarily due to strong demand for Counter-UAS and short-range air defense programs, with a typical flow seen at the government fiscal year-end [52] Question: What is the outlook for the government shutdown's impact? - The impact is currently moderate, but prolonged shutdowns could lead to delays in awards and payments [54] Question: How does the company view the long-term growth prospects in propulsion and missile business? - The company sees significant long-term growth opportunities in propulsion systems for various ship classes and in the missile sector due to increasing demand for advanced sensors [102][106] Question: How does Sage Core fit into the U.S. Army's Next Generation C2 plans? - Sage Core is positioned as a critical component for enabling platforms to operate autonomously and make decisions at the edge of the battlefield [116]

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]