Urban Edge Properties (NYSE:UE) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsMark Langer - CFOJeff Mooallem - COOFloris van Dijkum - Managing DirectorJeff Olson - Chairman and CEOMichael Griffin - DirectorAreeba Ahmed - Investor Relations AssociateConference Call ParticipantsMichael Gorman - Managing Director and REIT AnalystPaulina Rojas - Senior Equity Research AnalystMichael Goldsmith - US REITs AnalystOperatorGreetings and welcome to the Urban Edge Properties third quarter 2025 ...

Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to $1.4 billion, with core sales growth of 5.1% driven by a 2.7% increase in volume and a 2.4% increase in price [16][17] - Adjusted EPS grew 11% year over year to $0.99, exceeding the high end of guidance by $0.04 [12][17] - Free cash flow generation was strong at $258 million, a 20% increase year over year [17][23] Business Line Data and Key Metrics Changes - Water Quality segment sales were $856 million, up 7% year over year, with core sales growth of 5.3% driven by strong demand for water analytics and treatment solutions [18][19] - PQI segment sales grew 6.9% year over year to $548 million, with core sales growth of 4.6% driven by pricing and volume increases [19][20] Market Data and Key Metrics Changes - North America, accounting for 50% of total business, saw core sales grow 6.9%, with high single-digit growth in PQI and mid-single-digit growth in Water Quality [12][16] - High growth markets experienced a core sales increase of 4.3%, with notable growth in the Middle East, Latin America, and India [15] Company Strategy and Development Direction - The company raised its full-year adjusted EPS guidance to a range of $3.82 to $3.85 per share, indicating confidence in ongoing growth [8][24] - The capital allocation strategy is focused on acquisitions, with a pipeline of opportunities in water quality and product quality innovation [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment, highlighting the importance of their technologies in supporting customer operations [6][28] - The company anticipates continued mid-single-digit core sales growth and double-digit adjusted EPS growth for the remainder of the year [27][28] Other Important Information - The company published its annual sustainability report, emphasizing its commitment to reducing carbon footprint and supporting environmental health [9] - Recurring revenue grew high single digits year over year, comprising 62% of total sales, indicating a strong and sticky business model [16][20] Q&A Session Summary Question: Clarification on tariffs and government shutdown impacts - Management indicated that pricing actions have effectively offset tariff impacts, and there has been no material impact from the government shutdown [34][36] Question: Comments on demand pace in China - Management noted that demand in China is performing as expected, with no significant changes in total sales [38] Question: Durability of strength in the water quality business - Management highlighted strong double-digit growth in data center-related sales, indicating a strategic priority in this area [44][45] Question: Insights on M&A opportunities - Management confirmed an active pipeline for M&A opportunities, emphasizing a disciplined approach to capital allocation [66] Question: Trends in water quality pricing - Management stated that pricing has been strategically executed, with expectations for continued price contributions in the future [63][111]

Financial Data and Key Metrics Changes - The company reported third quarter sales of $911 million, a 2.2% year-over-year increase, aligning with previous guidance of low single-digit growth [10] - Activewear sales increased by 5.4%, driven by favorable product mix and higher net prices [10] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point increase year-over-year [12] - Record adjusted diluted EPS of $1.00 was achieved, marking a 17.6% increase compared to the same period last year [5][14] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to shipment timing shifts and broader market weakness [11] - The Comfort Colors brand performed well, celebrating its 50th anniversary, and contributed to overall sales growth [7] - The company introduced new brands such as AllPro and Champion, which are expected to drive future growth [6][10] Market Data and Key Metrics Changes - International market sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness [11] - Sales to North American distributors remained solid, supported by sustained momentum from national account customers [10] Company Strategy and Development Direction - The company is focused on executing its Gildan Sustainable Growth (GSG) strategy, emphasizing operational agility and innovation [16] - Plans for the integration of the proposed acquisition of HanesBrands are underway, with expected run-rate synergies of at least $200 million [8] - The company aims to capitalize on its largest innovation pipeline in history, with more product launches planned for 2025 and 2026 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite a fluid macroeconomic environment [5][18] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [17] - Management noted that the market remains stable, with expectations for growth in the innerwear category in Q4 [23][45] Other Important Information - The company announced a private placement offering of $1.2 billion in senior unsecured notes to fund the proposed acquisition of HanesBrands [14] - Operating cash flow for the first nine months of 2025 was $270 million, with free cash flow guidance updated to approximately $400 million [15][17] Q&A Session Summary Question: Can you talk about the weakness in the Underwear business and market share? - Management noted that the innerwear business faced delays in floor sets by large retailers and inventory management issues due to tariffs [22] - They expect a return to growth in Q4, with a stable market outlook [23][24] Question: What is driving the change in free cash flow guidance? - The decrease in free cash flow guidance is attributed to transaction costs related to the HanesBrands acquisition and timing of working capital [28] Question: How is the fleece business trending? - The fleece business is performing well, with sales meeting expectations as the season progresses [37] Question: What is the competitive landscape like? - Management indicated that the competitive landscape remains stable, with no significant changes observed in recent quarters [97]

Financial Data and Key Metrics Changes - In Q3 2025, Ternium reported an increase in EBITDA driven by a decreasing cost per tonne, with cash generation exceeding half a billion dollars during the quarter [5][13] - The net result for Q3 2025 was a loss of $270 million, primarily due to a $405 million non-cash loss related to the write-down of deferred tax assets at Usiminas [13][14] - Adjusted EBITDA is expected to decline slightly in Q4 2025 due to seasonal slowdowns, but adjusted EBITDA margin should remain consistent with the previous quarter [13][40] Business Line Data and Key Metrics Changes - Steel segment shipments increased, particularly in Mexico and Brazil, although lower volumes were noted in other markets [16][17] - The mining segment experienced a decline in net sales due to lower iron ore shipments and increased costs per tonne in one of the Mexican operations [18] Market Data and Key Metrics Changes - In Mexico, steel demand has been impacted by uncertainty from U.S. trade policies, with a projected 10% decrease in apparent consumption for 2025 [8][48] - Brazil's steel environment remains healthy with an expected 5% growth in apparent steel demand in 2025, despite facing challenges from unfairly traded imports [9][10] - Argentina's steel activity leveled off due to pre-election uncertainty, but there is optimism for growth following the elections [10][11] Company Strategy and Development Direction - Ternium is focused on strengthening its market position through ongoing optimization and cost reductions, particularly in response to trade volatility and competition from Asian countries [11][12] - The company supports policies aimed at increasing local value addition and reducing reliance on imports, particularly in Mexico [9][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the USMCA framework and ongoing trade negotiations to ensure fair competition and long-term growth in the region [6][7] - The Mexican government is prioritizing efforts to fortify local value chains and promote self-sufficiency against external pressures [8][9] - Management expressed optimism about potential structural reforms in Argentina that could enhance competitiveness in the steel industry [10][11] Other Important Information - Ternium received the Steel Award for Excellence in Sustainability for its renewable energy initiative in Argentina, which significantly reduces its environmental footprint [11] - The board declared an interim dividend of $0.90 per ADS, maintaining the same level as the previous year [5][20] Q&A Session Summary Question: Strategic opportunities post-Argentina elections - Management indicated that the elections would not change existing projects and expressed optimism for structural reforms that could enhance competitiveness in Argentina [22][23] Question: Conditions for restructuring ownership - Management noted that restructuring depends on external factors, particularly the share held by ANSES, and emphasized the need for government reforms before considering such initiatives [24][25] Question: Plans if U.S. maintains melt and pour conditions - Management confirmed that they would continue with existing investment plans, anticipating increased production capacity in response to market conditions [27][29] Question: Cash cost outlook for Q4 - Management expects ongoing efficiencies to improve cash costs across operations in Mexico, Argentina, and Usiminas, despite slight price decreases [37][41] Question: Demand outlook for Mexico in 2026 - Management projected a recovery in demand for 2026, driven by infrastructure growth and stabilization in U.S.-Mexico trade relations [48][50] Question: Update on Compactos project - Management stated that decisions regarding the Compactos project would be made in mid-2026, with ongoing analysis of various alternatives [78][80] Question: Expectations for EBITDA per ton in 2026 - Management indicated that while they aim for an EBITDA margin of around 10% entering 2026, achieving this will depend on various market conditions and trade negotiations [76][82]

TE Connectivity (NYSE:TEL) Q4 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsAmit Daryanani - Senior Managing DirectorSujal Shah - VP of Investor RelationsTerrence Curtin - CEOScott Davis - Chairman and CEOHeath Mitts - CFOShreyas Patil - VP Equity ResearchConference Call ParticipantsMichael Elias - Senior Equity Research AnalystGunars Vinkels - Equity Research AnalystSamik Chatterjee - Senior Equity Research AnalystJoe Stadwiecz - Executive Director and Equity Research AnalystAsiya Mer ...

Financial Data and Key Metrics Changes - Organic sales grew by 5% in Q3, with adjusted EBITDA reaching a record $147 million, exceeding initial guidance of $140 million to $145 million [12][21] - Adjusted EBITDA growth would have been 10% when excluding the graphics business divestiture [12][21] - Adjusted EBITDA margin improved by approximately 20 basis points year over year in constant currency terms, with a margin of 28% when excluding pass-through metal sales [15][19] Business Line Data and Key Metrics Changes - The electronics segment achieved 7% organic growth, driven by strong performance in semi and assembly, and exceptional volume growth in circuitry solutions [12][14] - Circuitry solutions sales grew 13% organically, supported by demand for data center applications and a seasonal ramp in mobile phone activity [16] - The industrial segment saw flat organic net sales year over year, but underlying chemistry volumes improved due to strong growth in Asia and new business wins in the Americas [17] Market Data and Key Metrics Changes - The electronics business was valued at over $1 billion in 2019 and is expected to exceed $2 billion with the acquisition of Micromax [9] - The semiconductor solutions organic net sales grew by 5%, with continued double-digit growth in wafer-level plating offset by lower power electronics sales [16] - The offshore business continues to grow, driven by stable energy prices and drilling activity, although a slowdown is expected into 2026 [62] Company Strategy and Development Direction - The acquisition of Micromax is seen as a strategic move to enhance the electronics portfolio and is expected to be more than 5% accretive to adjusted EPS [10][19] - The company aims to capitalize on high-value categories and has substantial remaining balance sheet capacity for future investments [11][19] - The focus remains on disciplined investment in markets the company understands, with a commitment to maintaining high-quality acquisitions [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, expecting full-year 2025 adjusted EBITDA to be between $545 million and $550 million [21] - The outlook for leading-edge electronics driven by high-performance computing and data centers remains robust, with stable industrial demand anticipated [21] - Management acknowledged real end market volatility but emphasized strong execution and record results [20][21] Other Important Information - The company generated $84 million of adjusted free cash flow in Q3, with a net leverage ratio of 1.9 times at the end of the quarter [18][19] - The Micromax transaction is expected to close in the first quarter of 2026, with funding from cash on hand and modest incremental debt [19] Q&A Session Summary Question: Thoughts on Micromax's performance under Element Solutions - Management is excited about Micromax's integration, expecting it to outperform the market due to enhanced connectivity in the supply chain and modest cost synergies [26][27] Question: Update on Kouprion commercialization activities - The mid-scale site for Kouprion is on track to be operational by year-end, with meaningful sales and profits expected next year [29] Question: Growth of Micromax and its stability - Micromax's revenue has been stable, with a focus on specialized applications in aerospace and defense, which should enhance overall stability for Element Solutions [31][34] Question: Margins in the industrial solutions business - There is potential for further margin expansion in the industrial business as volume growth recovers and productivity initiatives take effect [60] Question: Sustainability of offshore business strength - The offshore business is expected to sustain growth, although it may not continue at the current rate into 2026 [62] Question: Future of semiconductor growth - The semiconductor business is expected to grow above market levels, with strong performance in wafer-level packaging and power electronics [44]

Financial Data and Key Metrics Changes - Revenue for the second quarter was $6.8 billion, representing a 4% year-over-year growth [5][12] - Operating margin was 6%, maintaining this level for four consecutive quarters, with adjusted EPS of $0.79, up 23% year-over-year [6][12] - Gross profit totaled $632 million, with a gross margin improvement to 9.3%, up 80 basis points [12] Business Line Data and Key Metrics Changes - In the Reliability Solutions segment, revenue was $3 billion, up 3% year-over-year, driven by strong growth in power and moderate growth in health solutions [12] - Agility Solutions revenue totaled $3.8 billion, an increase of 4% year-over-year, primarily due to robust cloud demand [12][13] - Operating income for Reliability Solutions improved to $197 million, with a segment margin expansion to 6.5% [13] Market Data and Key Metrics Changes - The data center business is expected to grow at least 35% this year, reflecting strong demand in cloud and power sectors [7][8] - Medical device demand is steady, with anticipated improvements in medical equipment later this year [10] - The automotive market is stabilizing compared to prior quarters, with new compute deals validating investments in software-defined vehicles [10] Company Strategy and Development Direction - The company is strategically shifting its portfolio towards higher-margin, technology-driven businesses, particularly in AI and data center infrastructure [8][9] - Flex unveiled a new AI infrastructure platform aimed at enhancing data center deployment efficiency [9] - The company is committed to rebuilding operations in Ukraine following facility damage, emphasizing resilience and support for employees [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate a dynamic tariff landscape and raised full-year revenue guidance to between $26.7 billion and $27.3 billion [15][16] - The company anticipates strong cash generation and maintains an 80%+ free cash flow conversion target for FY2026 [16] - Management highlighted the importance of partnerships with leading technology companies to support growth in the data center space [46] Other Important Information - Free cash flow for the quarter increased to $305 million, with net CapEx totaling $148 million [13][14] - The company repurchased $297 million of stock, approximately 5.6 million shares [14] Q&A Session Summary Question: Why was there no upside to data center revenues despite strong performance? - Management clarified that data center growth is not updated quarterly, but they expect at least 35% growth for the year, which is strong compared to industry standards [20][22] Question: How does the mix of custom silicon versus merchant silicon impact the cloud business? - Management indicated that they benefit significantly from hyperscale growth and will provide updated guidance in May regarding the mix of custom versus merchant silicon [25][27] Question: What is driving margin improvements in the second half? - Management noted that growth in higher-margin businesses, particularly products and services, is expected to drive margin improvements [33][34] Question: How does the company view the automotive market's growth potential? - Management stated that they are cautiously optimistic about stabilizing growth in the automotive sector, with opportunities across various platforms [55][56] Question: What is the outlook for data center capacity and potential supply constraints? - Management expressed confidence in capacity and capability across regions, with plans for significant CapEx investments to support growth [70][71] Question: How is AI and automation being utilized in operations? - Management highlighted ongoing efforts to deploy AI and robotics to enhance productivity and efficiency in manufacturing and logistics [72][76]

Etsy (NasdaqGS:ETSY) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsLanny Baker - CFOYgal Arounian - Director of Internet Equity ResearchEric Sheridan - Partner and Managing DirectorRobert Coolbrith - VP of Internet Equity ResearchBryan Smilek - Equity Research AssociateDeb Wasser - VP of Investor RelationsKruti Patel Goyal - President and Chief Growth OfficerYoussef Squali - Managing Director and Head of Internet and Digital Media Research GroupSteve Forbes - Senior Managing Directo ...

Luxfer Holdings (NYSE:LXFR) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsSteve Webster - CFOKevin Grant - VP of Investor Relations and Business DevelopmentAndy Butcher - CEOConference Call ParticipantsSteve Ferazani - Equity AnalystOperatorGood morning. My name is Angela, and I will be your conference operator today. Welcome to Luxfer's third quarter 2025 earnings conference call. All lines have been placed on mute. After the speakers prepare remarks, we will hold a question and an ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $75 million, representing an 8% year-over-year growth [4][13] - Non-GAAP earnings per share increased by 22% year-over-year to $0.28 [4][21] - Gross margin remained strong at 82.2%, consistent with Q3 2024 [17] - Operating income grew 34% year-over-year to $9.6 million [18] - Net income rose 24% year-over-year to $12.6 million [21] - Cash flow from operations was negative $4.2 million, a decline from positive $14.7 million in the same quarter last year [21] Business Line Data and Key Metrics Changes - Cloud Security ARR climbed to $89 million, up from $72 million in Q3 last year, with a growth rate of 24% year-over-year [4][14] - Subscription revenue grew 21%, accounting for 52% of total revenue compared to 47% in the same period last year [6] - DefensePro X refresh cycle grew approximately 40% year-over-year [10] Market Data and Key Metrics Changes - Revenue in the Americas rose 28% year-over-year to $35.4 million, representing 47% of total revenue [17] - EMEA revenue decreased by 10% year-over-year to $22.8 million, accounting for 30% of total revenue [17] - APAC revenue increased by 3% year-over-year to $17.1 million, contributing 23% of total revenue [17] Company Strategy and Development Direction - The company is focused on expanding its business in cloud security, driving innovation through AI and automation, and strengthening global go-to-market capabilities [4][11] - The transition to a recurring cloud-first business model is seen as a cornerstone for long-term growth [14] - The company plans to open three additional cloud security centers in Q4 2025, bringing the total to eight for the year [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, indicating strong visibility for Q4 2025 [30][31] - The company expects total revenue for Q4 2025 to be in the range of $78 million to $79 million [22] - Management highlighted the importance of ARR as a guiding indicator for future revenue growth [30] Other Important Information - The company was recognized as a leader in the 2025 SPARK Matrix for Web Application Firewall and Bot Management [8] - The effective tax rate for the quarter was 15.5%, expected to remain stable in the coming quarter [21] Q&A Session Summary Question: How are operations going now, and are there plans for reorganization? - Management indicated satisfaction with current operations in North America but plans to ramp investments further due to growth potential [26] Question: How would you describe your competitive position in the market? - The company emphasized its algorithmic-based security capabilities and fully managed service as key competitive advantages [27] Question: Can you discuss the demand environment in the quarter? - Management noted that demand remained stable compared to previous quarters, with strong visibility for Q4 [30][31] Question: Will billings follow the same trajectory as RPO? - Management expects billing and cash collection to be stronger in Q4, anticipating a return to positive cash flow from operations [33] Question: How does the competitive landscape present opportunities? - The company sees opportunities as larger competitors broaden their offerings, allowing it to focus on application and API security [36] Question: What is the status of AI capabilities in the company's offerings? - AI is currently being used to enhance security capabilities, with ongoing developments in SOC X to improve customer security [39]