HEICO (NYSE:HEI) Q4 2025 Earnings Call December 19, 2025 09:00 AM ET Company ParticipantsGavin Parsons - Director of Aerospace and Defense Equity ResearchKen Herbert - Managing DirectorNoah Poponak - Managing Director of Aerospace and Defense Equity ResearchSheila Kahyaoglu - Managing DirectorCarlos Macau - EVP and CFOScott Mikus - DirectorEric Mendelson - President and Director of New York Stock ExchangeJonathan Siegmann - Managing DirectorVictor Mendelson - PresidentAlexandra Mandery - Equity Research Ass ...

Financial Performance Highlights - Achieved a record full year Adjusted Net Income of $3.1 billion[11], significantly outperforming initial guidance due to strong demand and effective cost management[1]. - Adjusted Earnings Per Share (Diluted) reached $2.25, exceeding the December guidance by approximately $0.55[13]. - Adjusted EBITDA for the full year reached $7.2 billion, surpassing the December guidance by approximately $600 million[13]. - Adjusted ROIC exceeded 13%, the highest in nearly 20 years[11]. - Reduced total debt by over $10 billion since early 2023[45]. Q4 2025 Performance - Q4 2025 Adjusted Net Income was $0.45 billion, nearly 2.5 times the levels of Q4 2024[12]. - Q4 2025 Adjusted EBITDA reached $1.48 billion, exceeding guidance of $1.34 billion[12]. - Net yields outperformed guidance by 110 basis points, reaching 5.4% compared to the guided 4.3%[12]. 2026 Outlook - The company projects Net Debt to Adjusted EBITDA ratio of under 3.0x for 2026, inclusive of over $0.8 billion of dividend payments[49]. - Expects Adjusted Net Income of approximately $3.45 billion and Adjusted Earnings Per Share (Diluted) of $2.48 for FY 2026[14]. - Anticipates Adjusted EBITDA of approximately $7.63 billion for FY 2026[14]. Strategic Initiatives - Reinstated dividend payments at an initial rate of $0.15 per share[1]. - Successfully completed a refinancing plan, refinancing $19 billion of debt in 2025[45]. - Simplified capital structure and optimized future debt maturities[46].

Financial Performance - Net revenues increased by 12.3% to $702.7 million in F26 Q1 compared to $625.6 million in F25 Q1[34, 35] - Gross margin increased by 40 bps to 12.7% in F26 Q1 from 12.3% in F25 Q1[34, 35] - Operating income increased to $13.8 million in F26 Q1, compared to an operating loss of $(0.9) million in F25 Q1[34, 35] - Adjusted diluted earnings per share increased to $0.38 in F26 Q1, compared to $(0.03) in F25 Q1[34, 35] Segment Results - Towable RV segment net revenues increased by 15.5% to $293.4 million in F26 Q1 compared to $254.0 million in F25 Q1[37, 38] - Motorhome RV segment net revenues increased by 13.5% to $308.5 million in F26 Q1 compared to $271.7 million in F25 Q1[44, 45] - Marine segment net revenues increased by 2.2% to $92.5 million in F26 Q1 compared to $90.5 million in F25 Q1[51, 52] Market Trends and Outlook - The company expects CY2025 wholesale RV shipments to be between 335,000 and 345,000 units[18] - The company expects CY2026 wholesale RV shipments to be between 315,000 and 345,000 units[18] - Barletta's market share in the U S aluminum pontoon segment reached 9.1% in F26, with an October monthly share of 12.8%[20] Fiscal 2026 Guidance - The company estimates net revenues between $2.8 billion and $3.0 billion for FY26, representing a potential 4% increase at the midpoint compared to $2.80 billion in FY25[65] - The company estimates adjusted earnings per share between $2.10 and $2.80 for FY26, representing a potential 47% increase at the midpoint compared to $1.67 in FY25[65]

Transaction Overview - Volaris and Viva shareholders will combine their holding companies into Volaris' holding company through a merger of equals[15] - Equity holders in Viva will receive newly issued shares of Volaris, and each side will own 50% of the combined holding company on a fully diluted basis[15] - The transaction is expected to close in 2026, subject to shareholders' vote and applicable regulatory approvals[15] Combined Company Strength - The combined company will have a broad network with 86 destinations, 324 routes, and 991 daily flights[20] - As of 3Q'25, Volaris had 225 routes (128 domestic and 97 international) and Viva had 184 routes (140 domestic and 44 international)[16] - As of 3Q'25, Volaris transported 306 million passengers (226 million domestic and 80 million international) and Viva transported 296 million passengers (263 million domestic and 33 million international)[16] - As of 3Q'25, Volaris' revenue was $2991 million and Viva's revenue was $2365 million[16] - As of 3Q'25, Volaris' EBITDAR was $990 million with a 33% margin, and Viva's EBITDAR was $873 million with a 37% margin[16] - As of 3Q'25, Volaris' net debt was $3071 million and Viva's net debt was $1883 million[16] Market Opportunity - There are 39 million Mexican-origin individuals living in the US[22] - There are 101 million national tourists in the Mexican leisure market in 2024[22] - Mexico received $41 billion in foreign direct investment in 2025[22] - Mexico had 120 million air passengers in 2024[22]

Financial Performance & Outlook - Lamb Weston's Q2 2026 net sales increased by 1% compared to Q2 2025, which includes a favorable foreign currency impact of $24 million[28, 30] - North America net sales were flat, with volume up by 8% but price/mix down by 8%[30, 31] - International net sales increased by 4%, but decreased by 1% on a constant currency basis, with volume up by 7% and price/mix down by 8%[31] - Adjusted EBITDA decreased by $9 million, while adjusted gross profit decreased by $16 million[32] - The company reaffirms its fiscal year 2026 outlook, projecting net sales between $635 billion and $655 billion, and adjusted EBITDA between $1 billion and $12 billion[47] Cash Flow & Capital Allocation - The company has approximately $83 million in cash and cash equivalents, and $135 billion available under its revolving credit facility[39] - Net cash provided by operating activities for the first half of fiscal year 2026 was approximately $530 million, with capital expenditures of $156 million[39] - Free cash flow was $375 million, and the company returned $92 million to shareholders through dividends ($52 million) and share repurchases ($40 million)[39] - The board authorized a 3% increase in the quarterly dividend[9, 46] Strategic Initiatives - The company is executing its "Focus to Win" strategy, which includes a cost savings program expected to yield $100 million in savings in fiscal year 2026 and $250 million by the end of fiscal year 2028[9, 19] - Lamb Weston is optimizing its global supply chain, including restarting curtailed production in North America to meet higher demand[9, 15]

HEICO (NYSE:HEI) Q4 2025 Earnings Call December 19, 2025 09:00 AM ET Speaker5Welcome to the HEICO Corporation Fourth Quarter 2025 Financial Results Call. My name is Samara, and I will be your operator for today's call. Certain statements in this conference call will constitute forward-looking statements, which are subject to risks, uncertainties, and contingencies. HEICO's actual results may differ materially from those expressed in or implied by those forward-looking statements. Factors that could cause su ...

Business Verticals & Strategic Initiatives - ProPhase Labs is pursuing near-term cash recovery of over $50 million from COVID-19 receivables through Crown Medical Collections [7, 11, 24, 26, 92] - BE-Smart, an esophageal cancer diagnostic test, targets a $7-14 billion market [8, 34] - Nebula Genomics possesses a 16-petabyte DNA dataset, equivalent to roughly 150 million ancestry SNP-based tests, spanning 130 countries [9, 62] - ProPhase Labs signed a Letter of Intent for a proposed reverse merger with Advanced Biological Laboratories S A (ABL), with ABL potentially becoming the majority owner (~76%) [20, 23] BE-Smart Esophageal Cancer Diagnostic - BE-Smart achieved greater than a 95% technical success rate in a key validation study evaluating its performance with esophageal brush cytology samples [44, 93] - The change in the annual incidence of Esophageal Adenocarcinoma (EAC) was 766 67% higher in 2017 compared to 1973 [32] Nebula Genomics - Nebula Genomics' DNA Complete offers Whole Genome Sequencing (WGS) analyzing virtually 100% of an individual's DNA [63] - DNA Expand expands raw DNA data more than 50 times to over 35 million genetic variants [73] Financial Restructuring - ProPhase Labs sold Pharmaloz Manufacturing for $23 6 million [18] - The company is saving over $6 million per year by shutting down the genomics laboratory [18]

Summary of Union Pacific and Norfolk Southern Merger Conference Call Industry and Companies Involved - **Industry**: Rail Transportation - **Companies**: Union Pacific and Norfolk Southern Core Points and Arguments 1. **Merger Application Submission**: Union Pacific and Norfolk Southern submitted a comprehensive application to the Surface Transportation Board (STB) for merger approval, consisting of nearly 7,000 pages, highlighting the merger's potential benefits for stakeholders [3][4][5] 2. **Safety and Operational Excellence**: Both companies aim to lead the industry in safety, with Union Pacific expecting to end the year as the safest railroad and Norfolk Southern as the industry leader in mainline and community safety [4][6] 3. **Economic Impact**: The merger is positioned as a pivotal opportunity to enhance America's competitiveness, improve freight movement, and strengthen the U.S. supply chain by removing over 2 million truckloads from highways, thereby reducing emissions and road congestion [5][6] 4. **Customer Benefits**: The merger will provide customers with faster, more reliable single-line service, transforming 10,000 existing lanes from interline to single-line service, which will reduce delays and improve asset utilization [12][13] 5. **Job Creation**: The merger is expected to create approximately 900 new net union jobs by the end of the third year, with an annual pay and benefit package of $160,000, which is about 40% above the national industrial average [6][7] 6. **Market Share Dynamics**: The merger aims to reverse the decline in rail market share, which has decreased by nearly 10 points from 2014 to 2023, by converting approximately 75% of freight to rail from highways [9][10] 7. **Intermodal Growth**: The combined intermodal business is projected to grow by over 1.4 million annual loads, with new routes that significantly reduce transit times [15][16] 8. **Environmental Benefits**: The merger is expected to remove 2.7 million metric tons of carbon dioxide emissions annually, reinforcing rail as a more sustainable transportation option compared to trucks [38][39] 9. **Financial Projections**: The merger is projected to generate up to $2 billion in net revenue EBITDA synergies by the end of year three, with nearly $1 billion in cost-saving opportunities across various categories [41][42] 10. **Commitment to Competition**: The merger is designed to enhance competition, with commitments to preserve open gateways and provide competitive rates through committed gateway pricing [21][22] Other Important but Overlooked Content 1. **Operational Changes**: The merger will allow for significant operational changes, including rerouting traffic to reduce congestion, particularly in key areas like Chicago, which has historically been a bottleneck [72][74] 2. **Technology Integration**: Union Pacific plans to leverage its advanced technology systems to ensure seamless integration post-merger, maintaining service stability during the transition [31][32] 3. **Stakeholder Support**: The merger has garnered support from over 2,000 parties, including more than 500 shippers and 800 public officials, indicating broad industry backing [45][46] 4. **Phased Integration Approach**: The integration of the two companies will be executed in phases to minimize disruption and ensure reliability [30][32] 5. **Expert Analysis**: The merger's benefits have been validated by leading economists and rail experts, who have provided insights into the competitive and economic impacts of the transaction [36][37] This summary encapsulates the key points discussed during the conference call regarding the merger between Union Pacific and Norfolk Southern, emphasizing the anticipated benefits, operational changes, and the broader implications for the rail industry and the U.S. economy.

Summary of Union Pacific and Norfolk Southern Merger Conference Call Industry and Companies Involved - **Industry**: Rail Transportation - **Companies**: Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) Core Points and Arguments 1. **Merger Application Submission**: Union Pacific and Norfolk Southern submitted a comprehensive merger application to the Surface Transportation Board (STB) consisting of approximately 7,000 pages, highlighting the merger's potential benefits and compliance with STB requirements [3][4][5] 2. **Safety and Operational Excellence**: Both companies aim to lead the industry in safety, with Union Pacific expecting to end the year as the safest railroad and Norfolk Southern as the industry leader in mainline and community safety [4][6] 3. **Economic Impact**: The merger is positioned as a pivotal opportunity to enhance America's competitiveness, improve freight service, and create jobs, with the potential to remove over 2 million truckloads from highways, thereby reducing emissions and road congestion [5][6] 4. **Customer Benefits**: The merger will provide customers with faster, more reliable single-line service, reducing delays caused by handoffs and improving asset utilization. It is expected to transform 10,000 existing lanes from interline to single-line service [12][13][14] 5. **Volume Growth**: The combined network is projected to add approximately 900 new net union jobs and generate significant volume growth, with estimates of 1.4 million annual intermodal loads and 425,000 carloads of merchandise, bulk, and automotive products [6][16][18] 6. **Competitive Landscape**: The merger is expected to enhance competition within the rail industry and against trucking, with 75% of the freight converted to the combined railroad anticipated to come from highways [9][20] 7. **Environmental Benefits**: The merger is projected to significantly reduce carbon emissions, with the potential to eliminate 2.7 million metric tons of CO2 annually, reinforcing rail as a more sustainable transportation option compared to trucking [40][41] 8. **Financial Projections**: The merger is expected to yield up to $2 billion in net revenue EBITDA synergies by the end of year three, with nearly $1 billion in cost-saving opportunities across various categories [42][43] Other Important but Potentially Overlooked Content 1. **Commitment to Jobs**: Every employee with a union job at the time of the merger will retain their position, with a commitment to add new jobs that offer an annual pay and benefit package of $160,000, which is approximately 40% above the national industrial average [6][7] 2. **Operational Changes**: The merger will streamline operations by reducing the number of handlings and improving routing efficiency, which is expected to result in nearly 900,000 fewer handlings and a reduction of approximately 22,000 car miles annually [27][31] 3. **Technology Integration**: Both companies have modernized their operating systems, which will facilitate a seamless integration post-merger, ensuring service stability and continuity for customers [32][33] 4. **Stakeholder Support**: The merger has garnered support from over 2,000 parties, including more than 500 shippers and 800 public officials, indicating a broad consensus on the merger's potential benefits [46][47] 5. **Phased Integration Plan**: The integration of the two companies will be executed in phases to ensure reliability and effectiveness, with a focus on maintaining a resource buffer to manage challenges [31][48] This summary encapsulates the key points discussed during the conference call regarding the merger between Union Pacific and Norfolk Southern, emphasizing the anticipated benefits, competitive dynamics, and operational strategies.

Financial Performance - Q2 FY26 - Conagra's Q2 FY26 organic net sales decreased by 30% compared to the previous year, totaling $2975 million[51, 52, 53] - Adjusted EPS for Q2 FY26 was $045, a decrease of 357% year-over-year[51] - Adjusted operating margin for Q2 FY26 was 113%, a decrease of 406 bps compared to the previous year[51, 54, 55, 57] - For H1 FY26, organic net sales decreased by 19% to $5586 million[51, 76] - Adjusted EPS for H1 FY26 was $085, a decrease of 309% year-over-year[51] Segment Performance - Q2 FY26 - Grocery & Snacks net sales were $1209 million, with a 15% organic net sales decrease[53] - Refrigerated & Frozen net sales were $1251 million, with a 51% organic net sales decrease[53] - International net sales were $230 million, with a 29% organic net sales decrease[53] - Foodservice net sales were $288 million, with a 02% organic net sales increase[53] Key Business Trends - Frozen retail volume sales showed a return to growth on a two-year basis, with a +08% change in Q2 FY26[14, 15] - 90% of frozen products held or gained volume share vs 2 years ago[15] - Conagra's frozen single-serve meals volume share of category was 529% in Q2 FY26, a +05 percentage point change vs 2 years ago[18, 19, 20, 21] - Conagra's frozen vegetables volume % change was +91% vs 2 years ago[22, 23] - Conagra's frozen vegetables volume share of category was 191% in Q2 FY26, a +13 percentage point change vs 2 years ago[24, 25]