Financial Data and Key Metrics Changes - The IT services revenue for Q3 FY26 was $2.64 billion, reflecting a sequential growth of 1.4% in constant currency and 1.2% in reported currency [5][11] - Year-on-year revenue growth was flat at 0.2% in reported terms but declined by 1.2% in constant currency terms [11] - Operating margin improved to 17.6%, an increase of 40 basis points quarter-on-quarter and 10 basis points year-on-year [11][12] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, marking a 3.5% increase quarter-on-quarter and flat year-on-year [12] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 saw a decline of 0.8% sequentially and 5.2% year-on-year [12] - Europe experienced a sequential growth of 3.3% but a year-on-year decline of 4.6% [12] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [12][13] - The consumer sector grew 0.7% sequentially but declined 5.7% year-on-year [12] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe saw growth driven by a ramp-up of a previously announced mega deal [6][12] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI showing strong traction [7] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation, cost optimization, and vendor consolidation [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, anchored on industry platforms, delivery platforms, and an innovation network [7][8] - The acquisition of Harman DTS is expected to enhance engineering capabilities and accelerate AI-driven product innovation [10] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities due to AI's influence on business models and operations [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups [10][14] - Management expressed confidence in the deal pipeline, particularly in energy and manufacturing sectors, despite current macroeconomic uncertainties [20][23] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has a gross cash position of $6.5 billion, indicating strong liquidity [14] Q&A Session Summary Question: Concerns about revenue loss in energy manufacturing resources - Management acknowledged a $24 million revenue loss in the EMR vertical, attributing it to macroeconomic uncertainties and supply chain issues, but noted a strong deal pipeline [17][20] Question: Delays in ramp-ups impacting growth - Management indicated that some deals would take a few quarters to ramp up, with confidence in future growth as these deals convert [18][19] Question: Outlook for the consumer vertical - Management highlighted tariff impacts and a large SAP program on hold, but noted that some earlier wins are ramping up [28][29] Question: Impact of Harman DTS acquisition on growth - Management stated that the acquisition would enhance capabilities in tech and communications sectors, improving win rates [41][42] Question: Future of buybacks and excess cash - Management confirmed that buybacks remain an option for returning cash to shareholders, contingent on market conditions and statutory considerations [74][75]

Financial Data and Key Metrics Changes - IT services revenue for Q3 FY2026 was $2.64 billion, growing 1.4% sequentially in constant currency and 1.2% in reported currency [5][11] - Operating margin expanded to 17.6%, an increase of 0.4% quarter-on-quarter and 0.1% year-on-year [7][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% increase quarter-on-quarter and flat year-on-year [12][11] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [12] - Europe saw a sequential growth of 3.3% but a year-on-year decline of 4.6% [12] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [12][13] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe experienced growth due to a ramp-up of a previously announced mega deal [6][12] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI continuing to show strong traction [7][12] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation and cost optimization [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, with three strategic pillars: industry platforms, delivery platforms, and the Wipro Innovation Network [7][8] - The acquisition of Harman DTS is expected to enhance engineering capabilities and open new markets [10] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities due to AI's influence, with a focus on cost optimization and vendor consolidation [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups [10][14] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has a gross cash position of $6.5 billion, indicating strong liquidity [14] Q&A Session Summary Question: Concerns about revenue loss in Energy, Manufacturing, and Resources (EMR) vertical - Management acknowledged the impact of macroeconomic uncertainty and supply chain issues but noted a strong pipeline in the sector [20][23] Question: Delays in ramp-ups affecting growth - Management indicated that some deals will take time to ramp up, but they remain confident in future growth [19][18] Question: Outlook for consumer vertical - Management highlighted tariff impacts and a large SAP program on hold, but some earlier wins are ramping up [29][30] Question: Impact of Harman DTS acquisition on revenue - Management expects the acquisition to enhance capabilities, particularly in tech and communications sectors [42] Question: Future cash distribution strategies - Management confirmed that buyback remains an option, with discussions ongoing regarding the timing and conditions [74][75]

Summary of Worthington Steel Investor Call on M&A Announcement Company and Industry - **Company**: Worthington Steel (NYSE: WS) - **Acquisition Target**: Klöckner, a company listed on the Frankfurt Stock Exchange Core Points and Arguments 1. **Strategic Acquisition**: Worthington Steel is acquiring Klöckner to strengthen its position in high-value metals processing, enhance shareholder value, and create new opportunities for employees [3][4] 2. **Market Position**: Post-acquisition, Worthington Steel expects to become the second largest service center in North America, expanding its geographic reach and product offerings [4][12] 3. **Synergies and Growth Initiatives**: The acquisition is anticipated to generate approximately $150 million in annual run-rate synergies by the end of 2028, with about 50% expected to be realized in the first year [15][17] 4. **Financial Structure**: The transaction is an all-cash acquisition valued at approximately $2.4 billion, with an expected EBITDA margin of 7% and combined sales of $9.5 billion [15][16] 5. **Cultural Alignment**: Both companies share a focus on safety, operational excellence, and innovation, which is expected to facilitate a smooth integration process [3][5] 6. **Diversification**: The acquisition will broaden Worthington's product portfolio to include aluminum, stainless steel, long products, and downstream fabrication, enhancing resilience against market cyclicality [10][12] 7. **Geographic Expansion**: Klöckner's operations will enhance Worthington's presence, particularly in the southern U.S., where demand is growing due to manufacturing activity and reshoring trends [9][12] 8. **Operational Efficiency**: The integration is expected to improve operational efficiency through procurement savings, logistics optimization, and reduced administrative costs [18][20] Additional Important Content 1. **Shareholder Support**: Klöckner's largest shareholder, Swactim, has agreed to tender their shares in support of the acquisition [8] 2. **Market Dynamics**: The acquisition is seen as timely due to favorable market conditions for consolidation in the steel industry [53] 3. **Long-term Goals**: Worthington aims to achieve over 10% group EBITDA margins, which the acquisition is expected to accelerate [45][46] 4. **Integration Management**: A dedicated integration management office will oversee the synergy capture process, ensuring accountability and clear goals [26][60] 5. **European Market Exposure**: Approximately 20% of the combined company's revenue is expected to come from Europe, with a focus on North America for synergy realization [30][39] This summary encapsulates the key points discussed during the investor call regarding Worthington Steel's acquisition of Klöckner, highlighting the strategic rationale, expected synergies, and operational benefits of the transaction.

Financial Data and Key Metrics Changes - The IT services revenue for Q3 FY26 grew 1.4% sequentially in constant currency terms, and 1.2% in reported currency terms [10] - Year-on-year revenue growth was 0.2% in reported terms, while it declined 1.2% in constant currency terms [10] - Operating margin for the quarter was 17.6%, an expansion of 40 basis points over the adjusted operating margin for Q2, and a 10 basis points improvement year-on-year [10][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% quarter-on-quarter increase and flat year-on-year [11] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [11] - Europe grew 3.3% sequentially but declined 4.6% year-on-year [11] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [11][12] - Health sector grew 4.2% sequentially and 1% year-on-year, while Consumer grew 0.7% sequentially but declined 5.7% year-on-year [11][12] - Communications grew 4.2% sequentially and 3.5% year-on-year, while EMR declined 4.9% sequentially and 5.8% year-on-year [12] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe saw growth driven by a ramp-up of a previously announced mega deal [5][6] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI showing strong traction [6] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation, cost optimization, and vendor consolidation [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, anchored on industry platforms, delivery platforms, and an innovation network [6][7] - The acquisition of Harman DTS is expected to enhance engineering capabilities and accelerate AI-driven product innovation [9] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities as AI influences their operations, with a clear shift towards AI-led transformation [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups in large deals [9][14] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has a gross cash position of $6.5 billion, with net other income growing 15% sequentially [14] Q&A Session Summary Question: Concerns about revenue loss in energy manufacturing resources and deal pipeline outlook - Management acknowledged the revenue loss in EMR and noted that the pipeline remains strong, with good momentum in energy sectors in both Americas and Europe [17][20] Question: Delays in ramp-ups impacting growth for next quarter - Management indicated that some deals will take time to ramp up, and while Q4 may not realize full impacts, they are confident in future growth [18][19] Question: Outlook for consumer vertical and tariff impacts - Management confirmed that tariff uncertainties have impacted the consumer sector, but some earlier wins are ramping up, which should support future growth [29][30] Question: Insights on tech and healthcare verticals - Management noted consistent performance in healthcare, driven by seasonal factors, and highlighted growth in tech due to the Harman acquisition [32][33] Question: Guidance on margins and potential buyback options - Management stated that while margins are expected to remain in the 17%-17.5% band, they will need to invest for growth, and buyback remains an option for returning cash to shareholders [48][51][75]

Financial Data and Key Metrics Changes - M&T Bank reported record net income of $2.85 billion and record EPS of $17 for the full year 2025, with a top quartile return on tangible assets exceeding 1.4% [7] - The quarterly dividend was increased by 11%, and 9% of outstanding shares were repurchased, while tangible book value per share grew by 7% [7] - Non-accruals decreased by 26%, with the non-accrual percentage of total loans reaching 90 basis points, the lowest since 2007 [7] - The efficiency ratio improved from 56.9% to 56% [7] Business Line Data and Key Metrics Changes - Fee income grew by 13%, reaching a record of $2.7 billion, with the fee mix as a percentage of revenue increasing from 26% to over 28% [7] - Average loans and leases increased by $1.1 billion to $137.6 billion, with commercial loans rising by $0.5 billion to $62.2 billion [9][10] - Non-interest income was $696 million, down from $752 million in the linked quarter, with mortgage banking revenues increasing to $155 million [13] Market Data and Key Metrics Changes - Investment securities and cash held at the Fed totaled $53.7 billion, representing 25% of total assets [11] - Average total loans rose by $2.4 billion to $165.1 billion, with non-interest-bearing deposits increasing to $44.2 billion [12] Company Strategy and Development Direction - M&T Bank's strategy focuses on operational excellence and teaming for growth, aiming to create a unified enterprise approach to enhance customer experience [18][19] - The company is committed to deepening relationships and coordinated planning across business lines to unlock new opportunities [18] Management's Comments on Operating Environment and Future Outlook - The economic backdrop remains resilient, with concerns about potential slowdowns due to weakening labor markets [20] - For 2026, M&T expects taxable equivalent net interest income to be between $7.2 billion and $7.35 billion, with average loans projected at $140 billion to $142 billion [21][22] - The company anticipates continued growth in fee income and a focus on managing expenses while investing in enterprise initiatives [22] Other Important Information - M&T's CET1 ratio was estimated at 10.84%, reflecting a decline due to share repurchases and increased risk-weighted assets [17] - The company plans to operate with a CET1 ratio of 10.25% to 10.5% in 2026, maintaining flexibility for lending and capital returns [24] Q&A Session Summary Question: Capital ratios and Basel III Endgame proposal - Management indicated that they are open to adjusting the CET1 ratio if regulatory requirements change, with a current comfort level around 10.25% [30][31] Question: Loan growth expectations in commercial real estate - Management noted strong production levels in commercial real estate, with expectations for growth starting in the second quarter of 2026 [36] Question: Deposit environment and competitive landscape - Management emphasized the importance of growing customer deposits alongside loans, with a focus on net new checking accounts [47][48] Question: Fee and expense growth rates - Management projected a core growth rate of about 4% for fees, driven by various business lines, while expenses are expected to be managed closely [55] Question: Credit quality and charge-offs - Management reassured that the increase in 90-day past dues was due to administrative delays and not indicative of deteriorating credit quality [64]

SES AI (NYSE:SES) FY Conference Summary Company Overview - **Company**: SES AI - **Industry**: Battery Technology - **Focus**: Accelerating energy transition through AI, specializing in lithium metal battery chemistry and energy storage solutions Key Points Industry and Market Insights - The energy storage system (ESS) market is projected to be over **10 times** the size of the electric vehicle (EV) market [2][3] - The battery markets for ESS and drones are expected to experience significant growth [3] - The company is uniquely positioned due to over a decade of experience in battery technology and AI integration [2] Financial Performance - In the first three quarters of 2025, SES AI reported a revenue of **$16.4 million** and provided guidance of **$22.5 million** for the full year [3] - The company anticipates doubling its revenue in 2026 compared to 2025 [34] Product Development and Innovations - SES AI has developed a platform called **Molecular Universe**, which focuses on material discovery and battery health management [3][6] - The company has made **six breakthroughs** in battery materials, enhancing performance for various applications including EVs, drones, and consumer electronics [8][9] - The company has established three business units focusing on ESS, drones, and materials to drive revenue generation [6][12] Strategic Partnerships and Acquisitions - SES AI acquired **UZ**, a company with strong hardware capabilities, to enhance its ESS offerings [7][18] - The partnership with **HySun** aims to commercialize materials discovered through Molecular Universe [9][27] Market Opportunities - The company sees military drones and data centers as the most exciting market opportunities [13][14] - SES AI is focusing on **NDAA-compliant** cells, which are priced **2 to 3 times** higher than non-compliant cells [15][16] - The company is targeting about **100 key accounts** for NDAA-compliant cells, focusing on larger clients rather than numerous small accounts [16] Technology and Competitive Advantage - SES AI's **Molecular Universe** is the first AI for science platform that has made actual breakthroughs in material discovery, unlike other platforms that are still in development [9][11] - The company emphasizes the importance of having a combination of model, data, and domain expertise to succeed in the AI for science space [11] Future Outlook - SES AI aims to create a closed-loop system integrating hardware and software solutions for data centers and commercial applications [17][18] - The company plans to leverage its software for recurring revenue through updates and maintenance subscriptions [23] - SES AI is confident in its ability to achieve break-even cash flow within the next **one to two years** [34] Conclusion - The battery industry is undergoing a significant transition, with SES AI focusing on ESS, drones, and materials as key growth areas [34] - The integration of AI with battery technology presents a unique opportunity for SES AI to capitalize on emerging market trends and drive innovation in energy storage solutions [34]

M&T Bank (NYSE:MTB) Q4 2025 Earnings call January 16, 2026 08:00 AM ET Company ParticipantsChristopher McGratty - Managing Director and Head of U.S. Bank ResearchEbrahim Poonawala - Managing Director and Head of North American Banks ResearchRajiv Ranjan - Head of Investor RelationsDaryl Bible - VP, Senior Executive and CFOConference Call ParticipantsKen Usdin - Senior Research AnalystScott Siefers - Managing Director and Senior Equity Research AnalystErika Najarian - Managing Director and Senior Equity Rese ...

Financial Data and Key Metrics Changes - M&T Bank achieved record net income of $2.85 billion and record EPS of $17, with a top quartile return on tangible assets exceeding 1.4% [6][24] - The quarterly dividend was increased by 11%, and 9% of outstanding shares were repurchased, while tangible book value per share grew by 7% [6][24] - Non-accruals decreased by 26%, with the non-accrual percentage of total loans reaching 90 basis points, the lowest since 2007 [6][24] - The efficiency ratio improved from 56.9% to 56% [6][24] Business Line Data and Key Metrics Changes - Fee income grew by 13%, reaching a record of $2.7 billion, with the fee mix as a percentage of revenue increasing from 26% to over 28% [6][24] - Average loans and leases increased by $1.1 billion to $137.6 billion, with commercial loans rising by $0.5 billion to $62.2 billion [9][10] - Non-interest income for the quarter was $696 million, down from $752 million in the linked quarter, with mortgage banking revenues increasing to $155 million [12][13] Market Data and Key Metrics Changes - Investment securities and cash held at the Fed totaled $53.7 billion, representing 25% of total assets [11] - Average total loans rose by $2.4 billion to $165.1 billion, with non-interest-bearing deposits increasing to $44.2 billion [12] Company Strategy and Development Direction - The company is focused on operational excellence and teaming for growth, aiming to create a unified approach to growth across markets and business lines [17][18] - M&T Bank plans to continue investing in enterprise initiatives while managing non-investment spending [21][22] - The outlook for net interest income is projected to be between $7.2 billion and $7.35 billion, with a focus on growing relationship customers [19][20] Management's Comments on Operating Environment and Future Outlook - The economy is showing resilience despite concerns about tariffs and policies, with decent spending growth reported during the holiday season [18] - The company remains cautious about potential economic slowdowns due to weakening labor markets [18] - Management expects full-year average loans to be between $140 billion and $142 billion, with growth anticipated across all main loan portfolios [19][20] Other Important Information - The CET1 ratio was estimated at 10.84%, reflecting a decline due to share repurchases and increased risk-weighted assets [16] - The company is committed to returning excess capital to shareholders while supporting lending and pursuing growth opportunities [23][24] Q&A Session Summary Question: Capital ratios and Basel III Endgame proposal - Management is open to adjusting the CET1 ratio based on regulatory changes and market conditions, indicating potential for a lower ratio if required [25][26] Question: Loan growth expectations in commercial real estate - Management anticipates growth in commercial real estate starting in the second quarter of 2026, with strong performance across various sectors [27][28] Question: Deposit environment and competitive landscape - The company is focused on growing customer deposits while managing competitive pressures, with a strategy to grow operating accounts [32][33] Question: Fee income and expense growth rates - Management expects fee income growth to be around 4%, driven by various business lines, while expenses are projected to be managed closely [36][37] Question: Consumer deposit growth and market density - The company is actively working to grow consumer deposits, particularly in markets like New England and Long Island, with expectations for sustainable growth [59]

Financial Performance - Full Year 2025 - Net income reached $7.0 billion, resulting in diluted earnings per share of $16.59[7] - Total revenue increased by 7% year-over-year, driven by record net interest income (NII) and noninterest income[8] - Pretax, pre-provision earnings (PPNR) increased by 15% year-over-year (non-GAAP)[8] - The company achieved 5% positive operating leverage due to well-controlled expenses[8] Balance Sheet and Credit Quality - Total loans averaged $327.9 billion, a 3% increase year-over-year[9] - Total deposits averaged $439.5 billion, a 3% increase year-over-year[9] - The net loan charge-off ratio was 0.20%[8] FirstBank Acquisition - The acquisition of FirstBank closed on January 5, 2026, with a total consideration of $4.2 billion[8, 27] - FirstBank brings $16 billion in total loans and $23 billion in total deposits[28] Outlook for 2026 - Average loans are expected to increase by approximately 8%[31] - Net interest income is projected to increase by around 14%[31] - Total revenue is forecasted to increase by about 11%[31]

Acquisition Overview - Worthington Steel will acquire Kloeckner & Co for €11 per share in cash[11, 40, 57] - The implied enterprise value of the acquisition is $2.4 billion[40] - Approximately 42% of Kloeckner shares are already committed to accepting the offer[16, 39, 51] Strategic Rationale - The acquisition is expected to deliver $150 million in annual run-rate synergies by the end of FY 2028[13, 39, 47, 51, 59] - The combined company's sales are projected to be $9.5 billion, with an EBITDA margin of 70% including run-rate synergies[39, 43] - The acquisition creates the second-largest service center in North America[13, 34, 59] Financial Impact - The transaction is expected to be substantially accretive to Worthington Steel's EPS within the first full year of operation[14, 39, 44] - The expected pro forma net leverage at closing is approximately 40x[39, 51, 53, 56] - The target net leverage is approximately 25x within 24 months[13, 39, 53, 56, 59] Kloeckner's Business - Kloeckner has TTM sales of $63 billion and TTM shipments of 42 million tons[16] - Kloeckner's net debt was $12 billion as of September 30, 2025[16] - Distribution share in sales mix reduced from approximately 37% in 2021 to approximately 13% in 2025[22]