Encompass Health (NYSE:EHC) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsAndrew Mok - DirectorDoug Coltharp - EVP and CFOJared Haase - Equity Research AssociateMark Miller - Chief Investor Relations OfficerMark Tarr - President and CEOPatrick Tuer - EVP and COOWhit Mayo - Senior Managing DirectorConference Call ParticipantsAnn Hynes - Senior Healthcare Services Equity Analyst and Managing DirectorBrian Tanquilut - Senior Analyst in Healthcare Services, and HCIT/Digital Health Equi ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 grew 4% year-over-year to $1.2 billion, with organic sales growth of approximately 1% and a 240 basis point benefit from foreign currency translation [7][8] - Adjusted gross margin reached 36%, a 320 basis point improvement year-over-year, marking the 12th consecutive quarter of margin expansion [8] - Adjusted EPS was $1.11, reflecting a 59% increase compared to the prior year [8] Business Line Data and Key Metrics Changes - Aftermarket sales increased 8% in Q4, while original equipment revenues declined by 2% due to customer delays and material receipt timing [7][8] - FPD segment saw bookings grow 8%, with aftermarket growth of 12%, and adjusted operating margin expanded to 21% [9] - FCD segment's adjusted gross margin improved by 220 basis points to 34%, with adjusted operating margin increasing to 19.7% [10] Market Data and Key Metrics Changes - The company reported $2.6 billion in bookings for 2025, representing a 9% year-over-year growth, with a book-to-bill ratio of 1.0 times [12] - The nuclear market contributed significantly, with $400 million in nuclear awards during the year [15] - General industries showed strong growth, particularly in North America and the Middle East, driven by sectors like mining and pharmaceuticals [19] Company Strategy and Development Direction - The company is focused on advancing its 3D Strategy to drive growth and enhance operational excellence through the Flowserve Business System [3][5] - Strategic acquisitions, including Trillium Valves, are aimed at strengthening the valve and actuation portfolio and expanding market reach in nuclear and traditional power sectors [18][21] - The company anticipates mid-single-digit bookings growth in 2026, supported by strong aftermarket performance and increasing activity in the nuclear sector [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive growth and margin expansion despite potential short-term revenue headwinds [39] - The outlook for 2026 includes total reported sales growth of 5%-7%, with organic sales growth of 1%-3% [24] - The company is optimistic about the long-term growth potential in the nuclear sector, projecting it to become a more integral part of the business [22][60] Other Important Information - The company returned $365 million to shareholders in 2025, including $255 million in share repurchases [11] - The balance sheet remains healthy with net leverage of one time, providing flexibility for capital allocation [11] - The company has a disciplined approach to capital allocation, focusing on growth-enhancing opportunities while maintaining an investment-grade rating [27] Q&A Session Summary Question: Organic revenue growth was light this quarter; can you provide context? - Management noted that approximately 50 basis points of revenue headwinds were due to delays in engineered projects, which are expected to resolve in the first half of 2026 [37][39] Question: What is the opportunity in Venezuela? - Management indicated that while Venezuela was previously a significant market, they are prepared to support operations if investment resumes, although it is not included in the 2026 numbers [41][42] Question: Confidence in mid-single-digit order progression? - Management expressed confidence in mid-single-digit growth, driven by strong aftermarket performance and positive trends in the power in-market [48][50] Question: What are the implications of a shift towards gas turbines instead of nuclear? - Management believes nuclear will progress and emphasized their readiness to support traditional power growth if necessary, while still capturing aftermarket opportunities [76] Question: Insights on MOGUS integration and bookings opportunities? - Management reported successful integration of MOGUS, with a healthy project funnel for 2026, indicating confidence in future growth [84][86]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Adjusted EBITDA attributable to Plains of $738 million and $2.833 billion for the full year, indicating a pivotal year despite market challenges [4][5] - The crude oil segment adjusted EBITDA was $611 million, which included contributions from the Cactus III acquisition, while the NGL segment reported adjusted EBITDA of $122 million [11][12] - The company expects adjusted EBITDA guidance for 2026 at $2.75 billion, with a midpoint for the oil segment EBITDA of $2.64 billion, reflecting a 13% year-over-year growth in the crude segment [7][8] Business Line Data and Key Metrics Changes - The crude oil segment is expected to drive significant growth, while the NGL segment is projected to contribute $100 million of EBITDA, assuming the divestiture closes as planned [8][12] - The company is focusing on streamlining operations and has targeted $100 million in annual savings through 2027, with approximately 50% expected to be realized in 2026 [5][6] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes projected to be about 6.6 million barrels at the end of the year [8] - The company anticipates growth to resume in 2027, driven by global energy demand growth and diminishing OPEC spare capacity [8] Company Strategy and Development Direction - The company is transitioning to a pure-play crude company, which is expected to streamline operations and enhance cash flow durability [4][5] - Key initiatives for 2026 include closing the NGL divestiture, integrating the Cactus III Pipeline, and improving cost structures [5][6] - The company remains committed to generating significant free cash flow, optimizing its asset base, and maintaining a flexible balance sheet [10][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced in 2025, including geopolitical unrest and OPEC actions, but emphasized a focus on operational efficiency and strategic transactions [4][16] - The outlook for 2026 is characterized as a year of execution and self-help, with confidence in the ability to grow beyond 2026 due to expected synergies and market improvements [16][61] Other Important Information - The company announced a 10% increase in quarterly distributions, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield based on recent equity prices [8][9] - The company is also focused on maintaining a distribution coverage ratio of 150%, which reflects improved visibility and aligns with peers [9][42] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed that they are on track to achieve $50 million in synergies from the Cactus III acquisition, with half already realized through G&A and OPEX reductions [21][22] Question: Cost Savings Initiatives - The company is rethinking its structure post-NGL sale, aiming for $100 million in cost savings by the end of 2027, with $50 million expected in 2026 [26][27] Question: Permian Basin Outlook - Management expressed cautious optimism regarding producer sentiment in the Permian Basin, noting that efficiencies are improving despite a flat production outlook for 2026 [31][33] Question: Capital Allocation Priorities - The company reiterated its focus on distribution growth and maintaining a conservative coverage ratio, with plans for opportunistic investments in bolt-ons and repurchases [36][42] Question: Long-Haul Permian Volume Guidance - Management explained that the guidance includes contributions from Cactus III and increased contracted capacity, with expectations for stable margins [66][68] Question: Impact of Geopolitical Developments - Management discussed the potential impacts of developments in Venezuela, noting that while immediate effects may create opportunities, substantial long-term changes would require significant investment [52][54]

Ventas (NYSE:VTR) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsBJ Grant - SVP of Investor RelationsDebra A. Cafaro - Chairman and CEOFarrell Granath - Equity Research AssociateJ. Justin Hutchens - EVP of Senior Housing and Chief Investment OfficerJim Kammert - Managing DirectorJohn Kilichowski - Executive Director Equity ResearchJuan C. Sanabria - Managing DirectorJulien Blouin - VP of Real Estate Global Investment ResearchMichael Carroll - Managing DirectorNick Joseph - Global He ...

Financial Data and Key Metrics Changes - Assets under management (AUM) decreased to $159 billion from $169 billion due to net outflows and market performance [6][14] - Total sales were $5.3 billion, down from $6.3 billion in the previous quarter [6][15] - Net outflows totaled $8.1 billion, significantly higher than $3.9 billion in the prior quarter [7][16] - Earnings per share (EPS) adjusted was $6.50, a decline from $6.69 in the previous quarter [9][21] - Operating margin decreased to 32.4% from 33% in the prior quarter [9][20] Business Line Data and Key Metrics Changes - Equity net outflows were primarily driven by quality-oriented strategies, with institutional net outflows of $3 billion [7][16] - Fixed income net flows were modestly negative at $0.1 billion, but certain strategies saw positive flows [7] - ETFs generated $0.6 billion of positive net flows, continuing strong momentum [16] Market Data and Key Metrics Changes - The market environment favored momentum-driven stocks, leading to underperformance in quality-oriented equity strategies [3] - January sales showed improvement, reaching the highest level since June, indicating a potential shift in investor sentiment [8] Company Strategy and Development Direction - The company is focusing on broadening product offerings, including the introduction of new actively managed ETFs and expansion into private markets [4][5] - The acquisition of Keystone National Group aims to enhance private market offerings and provide differentiated strategies [12][13] - The company is also exploring opportunities for growth in non-U.S. markets and other distribution channels [29][50] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging environment for quality-oriented equity strategies but expressed confidence in their long-term performance [3][10] - There are encouraging signs of broadening investor sentiment, with hopes for a recovery in quality strategies [8][41] - The company remains committed to balancing capital priorities, including investments in the business and returning capital to shareholders [11][54] Other Important Information - The company repurchased approximately 60,000 shares for $10 million in the quarter, totaling $60 million for the year [11][22] - The effective tax rate was 25.3%, expected to decrease to 23%-24% with the addition of Keystone [21] Q&A Session Summary Question: Can you elaborate on the fee rate compression in the quarter? - The fee rate was impacted by discrete expenses, particularly on the ETF side, but remained relatively stable [25][26] Question: What are the future transaction opportunities for diversification? - The company is considering both private markets and growth equity strategies for future transactions [28][29] Question: What is the software exposure across AUM? - The company is generally underweight in technology, which has affected the performance of quality-oriented equities [38][39] Question: What drove the acceleration in negative flows quarter to quarter? - The underperformance of quality-oriented strategies and seasonal tax loss harvesting contributed to increased outflows [40][41] Question: Can you discuss the growth opportunities with the Keystone transaction? - There is significant potential to leverage Keystone's capabilities in wealth management and institutional channels [48][50] Question: How will capital deployment priorities shift with recent transactions? - The company will maintain a balanced approach to capital allocation, emphasizing repurchases and dividends while considering new investments [52][54]

Summary of Veeco Instruments Inc. Special Meeting Company Overview - **Company**: Veeco Instruments Inc. (NasdaqGS:VECO) - **Meeting Date**: February 06, 2026 - **Purpose**: Special meeting of stockholders to discuss and vote on key proposals Key Proposals Discussed 1. **Merger Proposal** - Proposal for the adoption of the Agreement and Plan of Merger dated September 30, 2025, involving Veeco Instruments, Axcelis Technologies, Inc., and Victory Merger Sub, Inc. - The merger will result in Victory Merger Sub, Inc. merging with Veeco, with Veeco becoming a wholly owned subsidiary of Axcelis Technologies, Inc. - Approval requires a majority vote from the holders of the issued and outstanding shares of common stock entitled to vote at the meeting [6][7] 2. **Merger Compensation Proposal** - Non-binding advisory vote on the compensation for the company's named executive officers related to the merger transactions. - Requires a majority of the total votes cast at the meeting for approval [7] 3. **Adjournment Proposal** - Proposal to approve the adjournment of the meeting if necessary to solicit additional proxies or ensure timely provision of any amendments to the proxy statement. - Requires a majority of the total votes cast at the meeting for approval [8] Voting Process - Stockholders had the opportunity to vote virtually or in person. - Voting was conducted via proxy, written ballot, and electronic ballot. - Each share of common stock was entitled to one vote, with a total of 60,297,087 shares outstanding as of the record date [4][8] Meeting Outcomes - The merger proposal, merger compensation proposal, and adjournment proposal were all approved based on preliminary voting results. - Since the merger proposal was approved, the adjournment proposal was not acted upon [11] Additional Information - The results of the voting will be published in a current report on Form 8-K filed with the Securities and Exchange Commission [11] - The meeting concluded with thanks to the stockholders for their attendance and interest in Veeco Instruments, Inc. [11][12]

Cousins Properties (NYSE:CUZ) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsAnthony Paolone - Executive DirectorBrendan Lynch - DirectorColin Connolly - President and CEOGregg Adzema - EVP and CFOKennedy Hicks - EVP and Chief Investment OfficerPamela Roper - General CounselRichard Hickson - EVP of OperationsConference Call ParticipantsAndrew Berger - AnalystBlaine Heck - AnalystDylan Burzinski - Senior AnalystJohn Kim - AnalystNick Thillman - AnalystShashank Saravanan - AnalystUpal ...

Financial Data and Key Metrics Changes - 2025 Same Store NOI results matched initial guidance, but the path to those results was not straightforward [5] - Portfolio occupancy currently over 96%, with significant improvement expected in supply conditions [9] - The company purchased approximately $206 million of its stock during Q4 and a total of $300 million in 2025 [11] Business Line Data and Key Metrics Changes - Revenue results for Q4 reflect a physical occupancy of 96.4%, driven by solid demand and strong retention [16] - Blended rate growth of 0.5% in Q4 was driven by a strong renewal rate of 4.5%, offset by negative new lease rates in most markets except San Francisco [16] - Other income growth was slightly below expectations due to less income from bulk internet rollout and bad debt net improvement [16] Market Data and Key Metrics Changes - Strong rental growth was observed in coastal markets during the first half of 2025, followed by a deceleration in revenue momentum in the latter half, except for San Francisco and New York [6] - The D.C. market showed strength in the first half of 2025 but eroded later due to federal job cuts and uncertainty [24] - Atlanta is showing improved pricing power, while Denver is experiencing the worst performance among expansion markets [25] Company Strategy and Development Direction - The company remains committed to a diversified portfolio strategy, investing in all 12 markets through renovations, acquisitions, and development activities [10] - The focus is on selling properties with lower forward return profiles to buy back stock, improving the growth rate of the existing portfolio [11] - The company plans to start some development projects in 2026, having acquired land parcels at the end of Q4 2025 [88] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a broad range of possible outcomes for the U.S. economy, particularly regarding job growth [7] - The company expects a significant improvement in the supply picture in the second half of 2026, which could lead to accelerated revenue growth [9] - Management remains optimistic about the forward prospects of the business, citing a decline in competitive new supply in their markets [12] Other Important Information - The company returned over $1.3 billion to shareholders in 2025 through dividends and stock repurchases [12] - The anticipated Same Store expense growth for 2026 is between 3%-4%, with controllable expenses expected to remain stable [28] - The company ended 2025 with a net debt to normalized EBITDAre of 4.3x, reflecting a strong balance sheet [35] Q&A Session All Questions and Answers Question: Can you talk about the assets you're selling and the fund that repurchases? - The assets being sold are typically older, non-core properties with higher CapEx loads, which are expected to improve the growth rate of the existing portfolio [38] Question: Can you provide more color on your comment around the renewals at 4.5%? - The renewals are expected to land around 4.5%, with confidence in the stability of the portfolio despite economic conditions [45] Question: On the 2026 supply outlook, can you give us some background on how you come up with your competitive supply set? - The company uses both data from providers and a boots-on-the-ground approach to evaluate competitive supply, confirming a meaningful decline in 2026 [50] Question: Are you factoring in regulatory costs when assessing different markets? - Yes, the company factors in litigation costs and biases its portfolio allocation away from markets with excessive regulatory costs [54] Question: What is the expected cadence of Same Store revenue growth through the year? - The cadence is expected to be steady, with the second half being stronger due to reduced competitive supply [85]

Financial Data and Key Metrics Changes - Canopy Growth ended Q3 with CAD 371 million in cash and cash equivalents, and a net cash position of CAD 146 million, marking a strong financial foundation [4][10] - The company achieved its slimmest Adjusted EBITDA loss to date of CAD 3 million, reflecting improved cost discipline and execution [14] - Q3 cannabis net revenue was CAD 52 million, up 4% year-over-year, with Canadian medical cannabis revenue increasing 15% to CAD 23 million [11][12] Business Line Data and Key Metrics Changes - Canadian medical cannabis net revenue grew 15% year-over-year, marking the sixth consecutive quarter of growth, driven by high-quality patient experiences and engagement [6] - Canadian adult use cannabis revenue increased 8% year-over-year to CAD 23 million, supported by growth in pre-rolls and vapes [12] - Storz & Bickel net revenue grew 45% sequentially to CAD 23 million, driven by strong seasonal sales and the introduction of new products [13] Market Data and Key Metrics Changes - International cannabis sales increased 22% quarter-over-quarter, indicating stabilization and return to growth [12] - The company is focusing on improving execution and laying groundwork for growth in international markets, particularly in Europe [8] Company Strategy and Development Direction - Canopy Growth is focused on elevating the quality of its brands, strengthening product innovation, and improving cultivation efficiency [7][19] - The proposed acquisition of MTL Cannabis is expected to enhance the company's leadership in Canadian medical cannabis and provide high-quality flower supply [5][6] - The company aims to achieve positive Adjusted EBITDA during fiscal 2027, supported by cost-saving initiatives and growth in Canadian cannabis sales [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's progress, highlighting a stronger balance sheet and growing Canadian cannabis sales [9] - The focus is on unlocking additional value through elevated cultivation, innovative brands, and disciplined execution [9][19] - Management is actively addressing potential impacts from proposed changes to the Veterans Reimbursement Program while maintaining service quality [6][32] Other Important Information - The company completed a CAD 150 million recapitalization to improve liquidity and extend debt maturities to 2031, providing more flexibility for future financing [5][11] - The integration of MTL Cannabis is expected to contribute positively to net revenue, gross margin, and Adjusted EBITDA [16] Q&A Session Summary Question: Expectations for international business growth over the next 12-18 months - Management indicated that they are confident in improving international supply chain capabilities and expanding flower offerings in Europe [21][22] Question: Trends in gross margin expectations for cannabis - Management expects a blended gross margin in the mid- to high 30s, with the MTL acquisition anticipated to be accretive to gross margin [25][26] Question: Clarification on positive Adjusted EBITDA expectations - Management aims for positive Adjusted EBITDA during fiscal 2027, with efforts to achieve this as soon as possible [29] Question: Impact of debt maturities and equity issuance - Management expects reduced utilization of the ATM in the coming quarters due to improved balance sheet position [30] Question: Domestic medical business and veterans reimbursement proposal - Management is actively working to mitigate the impact of proposed reimbursement changes on veterans while maintaining service quality [32][34]

GrafTech International (NYSE:EAF) Q4 2025 Earnings call February 06, 2026 10:00 AM ET Company ParticipantsKirk Ludtke - Managing DirectorMichael Dillon - VP of Investor RelationsRory O'Donnell - CFOTimothy Flanagan - CEOConference Call ParticipantsAbraham Landa - Senior Research AnalystArun Viswanathan - AnalystBennett Moore - AnalystOperatorMy name is Carly, and I will be your conference operator today. At this time, I would like to welcome everyone to GrafTech International's fourth quarter 2025 earnings ...