Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [8] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, with the legacy business achieving a margin of 32% [19][24] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [21][24] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [8][14] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with operating EBITDA growing more than 7% [14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5% as integration efforts progressed [20] Market Data and Key Metrics Changes - The company experienced strong organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [15] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [16] - Recycling segment's operating EBITDA grew by 18% despite a nearly 35% decline in recycled commodity prices [10] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and leveraging technology to optimize costs [9] - Strategic investments in technology and automation are expected to yield benefits in 2026, with free cash flow projected to approach $3.8 billion [11][12] - The company remains disciplined in capital allocation, expecting to translate performance into returns for shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [22][23] - The company anticipates achieving operating EBITDA and free cash flow guidance for the remainder of the year, with margin expectations raised to between 29.6% and 30.2% [24] - Management highlighted the importance of operational efficiency and customer relationships in driving future growth [18] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions through the first three quarters of 2025 [22] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [25] Q&A Session Summary Question: How much has the company benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [30] Question: What were the charges this quarter related to the plastics film plant and landfill closure? - The plastics film plant was idled due to market conditions, while the landfill impairment was related to a long-term pursuit of expansion that was deemed no longer viable [32] Question: What factors will contribute to the expected free cash flow improvement in 2026? - The expected improvement will come from the wind-down of sustainability investments, strong performance from the legacy business, and contributions from healthcare solutions [33][35] Question: How is the healthcare solutions business performing regarding pricing increases? - The company is deferring price increases to ensure customer satisfaction and stabilize revenue, with confidence in achieving mid-single-digit revenue growth in the long term [58][65] Question: What is the outlook for yield and pricing in 2026? - The company is optimistic about maintaining a good spread between core price and operating expenses, with strong performance expected in the collection and disposal business [70][72]

Financial Data and Key Metrics Changes - NBT Bancorp reported net income of $54.5 million, or $1.03 per diluted common share, with operating earnings per share at $1.05, an increase of $0.17 compared to the prior quarter [10] - Operating return on assets was 1.37%, return on equity was 12.1%, and ROTCE was 17.6%, showing continued improvement [3] - Tangible book value per share increased by 7% year-over-year to $25.51 [4] Business Line Data and Key Metrics Changes - Total loans increased by $1.6 billion year-over-year, with a diversified portfolio comprising 56% commercial and 44% consumer loans [11] - Total deposits rose to $13.7 billion, up $2.1 billion from December 2024, with growth in checking and money market accounts [12] - Non-interest income represented 28% of total revenues, with fee income increasing by 9.8% compared to the previous quarter [14][13] Market Data and Key Metrics Changes - The Western region of New York saw solid growth in deposits post-Evans Bancorp merger, with plans for new branches in Rochester and other areas [6][8] - The company is exploring new locations in the Finger Lakes and plans to break ground on a new branch near the Micron chip fabrication site in Clay, New York [8] Company Strategy and Development Direction - The company aims to support organic growth and maintain a strong capital position, with a renewed share repurchase authorization of 2 million shares through the end of 2027 [5] - NBT Bancorp is focused on filling in its franchise through opportunistic M&A and branch expansion, particularly in underrepresented markets [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a strong capital position and identified growth opportunities across all markets [16] - Future margin improvements may be challenged due to expected changes in Fed funds rates, but there is optimism for potential margin recovery in 2026 [31][58] Other Important Information - The company announced an 8.8% dividend increase, marking the 13th consecutive year of increases [5] - Total operating expenses for the quarter were $110 million, reflecting a 4.4% increase from the prior quarter [15] Q&A Session Summary Question: What are the expectations for cost savings and total expenses moving forward? - Management indicated that cost savings from the Evans integration are largely achieved, with a run rate of $110 million expected going forward, alongside typical expense increases of 3.5% to 4.5% [18][19] Question: What is the outlook for loan growth in the coming quarters? - Management anticipates low to mid-single-digit growth rates for loans, with a strong pipeline and good activity levels in the markets [20][21] Question: Are there plans for additional M&A deals? - The company is open to opportunistic M&A to fill in its franchise and is in discussions with like-minded community banks [29] Question: What is the current status of solar loans and auto loan delinquencies? - Management noted no significant pressure on auto loan delinquencies and indicated that solar loans are performing as expected, despite market volatility [35][36] Question: What is the outlook for fee income and insurance growth? - The insurance business is expected to grow at a rate of high mid-single digits, with seasonally strong performance in the third quarter [48][49] Question: What are the expectations for margin pressure and potential improvements? - Management expects some initial pressure on margins but sees potential for improvement in 2026 if the yield curve steepens [57][58]

Financial Data and Key Metrics Changes - The company generated a record $4.8 billion in revenue for Q3 2025, with a gross profit of $803 million and a gross profit margin of 16.7% [7] - Adjusted earnings per share (EPS) was $7.17, with adjusted EBITDA at $261 million [7][15] - Adjusted net income for the quarter was $140 million, excluding various non-cash impacts [15] - Same-store SG&A as a percentage of gross profit was 64.2%, indicating a focus on cost management [16] Business Line Data and Key Metrics Changes - Same-store revenue for new vehicles increased by 8% year over year, with unit sales up by 7% [9] - Used vehicle unit volume decreased by 4% year over year, but used retail gross profit per unit increased to $1,551 [10] - Parts and service gross profit rose by 7% year over year, with a gross profit margin of 58.8% [12] Market Data and Key Metrics Changes - The company experienced elevated consumer demand for electric vehicles (EVs), with new EV unit sales doubling compared to Q2 [9][23] - Same-store new day supply was 58 days at the end of September, indicating inventory management aligned with consumer demand [10] Company Strategy and Development Direction - The company is focused on deleveraging the balance sheet and optimizing its portfolio while being opportunistic with share repurchases [5][19] - The acquisition of the Herb Chambers Group is expected to enhance operating metrics and contribute positively to gross profits [4][24] - The company aims to continue integrating Techyon to improve operational efficiency and customer experience [4][53] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are macroeconomic challenges, they remain optimistic about maintaining margins and performance in the luxury vehicle segment [23][46] - The company anticipates a recovery in the used vehicle market starting in 2026, with expectations for improved inventory levels [11][61] Other Important Information - The company divested four stores in July, generating annualized revenue of $300 million, as part of its disciplined portfolio management strategy [6] - The rollout of Techyon is ongoing, with expectations for efficiency gains and cost savings once fully implemented [54][56] Q&A Session Summary Question: Impact of Chambers acquisition on new GPUs - Management confirmed that the Chambers acquisition will have a positive effect on new gross profits per vehicle [24] Question: Changes in TCA outlook and EPS impact - Management explained that the revised TCA outlook is primarily due to changes in the SAR assumption and the timing of rollouts [28][30] Question: Capital allocation priorities - Management indicated a focus on share repurchases and debt reduction, with M&A remaining a consideration depending on market conditions [40] Question: Trends in luxury vehicle sales - Management noted that luxury vehicle sales remain strong, with no significant changes in consumer demand observed [46] Question: Marketing strategies for used vehicles - Management highlighted the use of digital platforms and service drives to acquire more used vehicles, while balancing volume and profitability [60][61]

Financial Performance - The company reported third-quarter sales of $943 million, a year-over-year increase of 4%, and EPS of $0.94, a 15% increase over 2024 [4][10] - North America sales grew 6%, primarily due to pricing actions and strong commercial water heater and boiler volumes [4][10] - Operating cash flow grew 21% to $434 million, and free cash flow grew 35% to $381 million during the first nine months of 2025 compared to the same period last year [11] Business Line Performance - North America water heater sales increased by 6%, driven by pricing actions and higher commercial water heater volumes [5][10] - North America boiler sales increased by 10% compared to the third quarter of 2024, led by pricing actions and higher volumes of high-efficiency boilers [6][10] - North America water treatment sales decreased by 5% in the third quarter, as growth in priority channels was offset by a decrease in the retail channel [6][10] Market Performance - Local currency sales in China decreased by 12% due to economic challenges and reduced government subsidy programs [5][10] - The legacy India business continued strong growth, delivering 13% growth in local currency [5][10] - The company expects a decline of approximately 10% in local currency sales in China for 2025 [17][19] Company Strategy and Industry Competition - The company is committed to sustainability and plans to publish a sustainability progress report [8][9] - The company is actively assessing strategic opportunities and has sufficient resources for acquisitions that meet its strategic and financial criteria [12][19] - The company is focusing on operational excellence and innovation to drive future growth [64] Management Commentary on Operating Environment and Future Outlook - Management noted ongoing economic challenges in China and a cautious outlook for the U.S. residential water heater market due to lower new home construction completions [16][34] - The company is encouraged by resilient demand in the commercial water heater market and has increased its projection for commercial water heater industry volumes [16][19] - Management expressed confidence in navigating the tariff and competitive landscape in core water heater and boiler businesses [24] Other Important Information - The board approved a 6% increase in the quarterly dividend to $0.36 per share, marking the 32nd consecutive year of dividend increases [12] - The company repurchased approximately 5 million shares of common stock for a total of $335 million in the first nine months of 2025 [12] Q&A Session Summary Question: Could you talk about your performance versus the overall market in China? - Management indicated that the market continues to face challenges, with increased competitive intensity and promotional activities due to the discontinuation of government subsidies [26] Question: What is driving the strength in North America commercial water heater sales? - Management attributed the strength to a strong market backdrop and competitive product offerings, including the launch of the Flex commercial water heater [27][29] Question: Can you provide an update on the China strategic review? - Management stated that it is still early in the process and no outcomes have been narrowed down yet [31] Question: How do you see the U.S. residential water heater market playing out? - Management noted a slight decrease in expectations due to pressures from new home construction completions [34] Question: What are the expectations for the fourth quarter in China? - Management expects an uptick in volume compared to the third quarter, but overall outlook remains cautious due to the discontinuation of the subsidy program [58]

Financial Data and Key Metrics Changes - Net income for the first nine months of 2025 was $27.1 million, a 4.9% increase year to date [4] - Return on assets (ROA) was 1.60%, reflecting a 1.9% increase [4] - Return on equity (ROE) was 15.5%, showing a slight decrease of 8.5% compared to 2024 [4] - Revenue reached $66.9 million, a 1.9% increase [4] - Expenses decreased to $31.9 million, an eight basis points reduction [4] - Earnings per share (EPS) was $2.22, a 6.2% increase [4] - Tangible book value per share was $19.05, a 14.5% increase [4] - Efficiency ratio remained strong at 47.6% [4] Business Line Data and Key Metrics Changes - Loan portfolio activity remained robust, with expectations for strong loan closing volume in Q4 2025 to offset payoffs [5] - Loan delinquencies were at historical goals of 0.5% [5] - Total debt ratio stood at 2.19% [5] Market Data and Key Metrics Changes - The company experienced moderate loan growth year over year, impacted by large payoffs from long-term borrowers [4][5] - The company anticipates a positive loan growth by year-end despite not meeting budget expectations [12] Company Strategy and Development Direction - The company is focused on navigating the public bank space to grow its franchise and provide long-term value to shareholders [5] - There is a positive outlook on M&A opportunities, with the company positioned as a potential buyer for banks in the $500 million to $750 million range [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and direction as it transitions into the public market [5] - The management highlighted the flexibility of the balance sheet to adapt to changing interest rates, maintaining a strong net interest margin [13][15] - The management noted a positive buzz in the M&A environment, with ongoing discussions and opportunities being explored [16] Other Important Information - The company successfully completed its IPO on September 30, 2025, marking its transition to a public company [3] Q&A Session Summary Question: Loan pipeline and growth expectations for Q4 - Management indicated a strong loan pipeline for Q4 and expected positive loan growth by year-end, despite not meeting budget [11][12] Question: Margin outlook and loan/deposit pricing - Management stated that the net interest margin was holding strong at $4.05 and expressed flexibility in managing the balance sheet to maintain earnings [13][15] Question: M&A climate and opportunities - Management conveyed a positive outlook on the M&A environment, indicating ongoing interest in potential acquisitions and strong relationships with other banks [16]

Financial Data and Key Metrics Changes - The company reported a 13% year-over-year growth in adjusted earnings per share and a 14% increase year-to-date, exceeding target ranges [3][4] - Return on equity expanded significantly and is now at the high end of the target range [3] - Year-to-date free capital flow conversion ratio exceeded 90%, tracking above target [4] - The company returned $400 million to shareholders in the quarter, including $225 million in share repurchases [4][11] Business Line Data and Key Metrics Changes - Workplace Savings and Retirement Solutions (WSRS) transfer deposits grew 13% year-over-year, with total Retirement Investment Solutions (RIS) sales of $7 billion, an 8% increase [5][6] - Small and mid-sized business segment saw WSRS SMB recurring deposits grow 8% and transfer deposits increase 27% [7] - Global asset management gross sales reached $32 billion, up 19% year-over-year, with private markets generating net inflows of $1.7 billion [8][9] Market Data and Key Metrics Changes - Total company managed assets under management (AUM) increased to $784 billion, a 4% sequential increase [13] - International pension reported record AUM of $151 billion, a 9% year-over-year increase [15] Company Strategy and Development Direction - The company is focused on three significant profit pools: the retirement ecosystem, small and mid-sized businesses, and global asset management [4][9] - Continued investment in modernizing recordkeeping capabilities and enhancing retirement solutions [22][23] - The company aims to capitalize on opportunities in financial inclusion and fintech solutions [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering full-year enterprise financial targets based on strong performance and business momentum [4][17] - The economic environment has created challenges, but there are significant opportunities for growth in financial inclusion and retirement solutions [9][10] Other Important Information - The company raised its common stock dividend for the ninth consecutive quarter, reflecting confidence in continued growth [4][11] - The recent release of the Fourth Annual Global Financial Inclusion Index highlights the importance of digital solutions in advancing financial security [9] Q&A Session Summary Question: Expectations for margin expansion - Management expects margins to continue expanding due to strong underwriting results and disciplined expense management [18][20] Question: Areas of investment in growth initiatives - Investments are being made in modernizing recordkeeping capabilities and enhancing customer service for retirement plans [22][23] Question: Free capital flow conversion trends - The company maintains a strong capital position with a capital-efficient mix of business, allowing for organic growth and capital returns [26][27] Question: Changes in investment management flows and investor sentiment - Positive net cash flow of $800 million was reported, with growth across multiple channels, indicating strong investor sentiment [30][31] Question: Impact of performance fees - Performance fees are expected to remain modest, but there has been an uptick in transaction and borrower fee activity [34][35] Question: Update on the Bering Strategic Partnership - The partnership aims to enhance private market expertise and improve fee rates through collaboration [36][39] Question: Outlook on 401(k) business and industry consolidation - The company anticipates benefiting from industry consolidation and is focused on driving organic growth [41][44] Question: Update on private credit market performance - The company maintains a strong credit quality in its portfolio, with low credit losses reported [79][80] Question: Wealth management opportunity metrics - The company has seen a 90% plan sponsor adoption rate for advisory services, with a notable increase in roll-in transfers [87][88]

Financial Data and Key Metrics Changes - Adjusted net income increased 48% year over year to $45.2 million or $0.52 per share [5] - Organic deposits grew $212 million or 7% annualized, including $80 million in non-interest-bearing deposits [5][16] - Net interest income was $133.5 million, a 5% increase from the prior quarter, and net interest margin expanded 3 basis points to 3.32% [5][8] - Tangible book value per share increased 9% year over year to $17.61 [6][16] - Tier-one capital ratio is 14.5%, and tangible common equity to tangible assets ratio is 9.8% [6][16] Business Line Data and Key Metrics Changes - Wealth management achieved a record-breaking quarter with $258 million in new assets under management (AUM) [9] - Non-interest income, excluding securities activity, was $24.7 million, a 5% increase from the prior year quarter [9] - Non-interest expense increased to $102 million, including $10.8 million in merger-related expenses [10] Market Data and Key Metrics Changes - Loan outstandings, excluding the impact of the Heartland acquisition, increased at an annualized 8% [11] - The pipeline increased 30% to $1.2 billion, indicating strong demand across markets [11] - Customer transaction accounts represent 48% of total deposits, highlighting a relationship-focused approach [14] Company Strategy and Development Direction - The company is focused on organic growth and profitability goals while integrating recent acquisitions [17] - The Villages acquisition is expected to enhance liquidity and provide significant growth opportunities [3][17] - The company aims to maintain a disciplined credit culture while expanding its loan portfolio [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth outlook and ability to deliver improvements and returns into 2026 [4][17] - The company anticipates continued high single-digit organic loan growth in the coming quarters [11] - Management noted that credit spreads are tight, but they are navigating the competitive landscape carefully [77] Other Important Information - The technology conversion for the Heartland acquisition was completed in Q3, and the Villages conversion is planned for early Q3 2026 [7][38] - The company has limited exposure to shared national credits or non-depository financial institutions [15] Q&A Session Summary Question: Growth outlook and pipeline momentum - Management highlighted impressive growth despite recent acquisitions and expressed confidence in maintaining high single-digit growth moving forward [22][24] Question: The Villages acquisition update - Management reported a smooth integration process and strong reception in the Villages market, with plans for extensive customer engagement [37][40] Question: Loan pricing and spreads - Management noted that credit spreads are tight and competitive, but they are being cautious in their approach [75][77] Question: Future investments and technology - Management confirmed ongoing investments in technology and infrastructure to support growth and enhance customer offerings [45][46]

Financial Data and Key Metrics Changes - The company reported record-setting third quarter net sales and earnings results, achieving a year-over-year top-line growth of 10% [4][5] - Consolidated adjusted EBITDA increased by 6%, while adjusted net earnings per share rose by 13% [5][20] - Adjusted free cash flow grew by 22% year-to-date, driven by higher cash earnings and lower income tax payments [23] Business Line Data and Key Metrics Changes - In the Mineral Fiber segment, net sales increased by 6%, primarily due to strong average unit value (AUV) growth and positive sales volume contributions [8][17] - The Architectural Specialties segment saw a net sales increase of 18%, driven by acquisitions and solid organic growth [12][19] Market Data and Key Metrics Changes - The company expects full-year Mineral Fiber volume to be flat to down 1%, an improvement from previous expectations [26] - The Architectural Specialties segment is projected to grow approximately 29% for the full year, supported by robust contributions from recent acquisitions [26] Company Strategy and Development Direction - The company remains focused on operational efficiency, commercial execution, and growth initiatives to navigate a dynamic macroeconomic environment [6][29] - Investments in digital growth initiatives like ProjectWorks and Canopy are expected to drive volume and contribute to margin expansion [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions have stabilized, with no anticipated softening in discretionary renovation activity [29][77] - The office market is showing signs of recovery, with declining vacancy rates and increased demand for renovations [32][68] Other Important Information - The company announced a 10% increase in its quarterly dividend, marking the seventh consecutive annual increase since the inception of its dividend program [25] - The acquisition of Geometric, a Canadian wood ceiling manufacturer, is expected to enhance the company's product offerings and geographic diversification [13][87] Q&A Session Summary Question: Benefits from new products and their impact on AUV - Management highlighted strong performance in high-end product segments, confirming that innovation is driving growth in both Mineral Fiber and Architectural Specialties [38][39] Question: Outlook for Architectural Specialties margins - Management expects to maintain organic margins around 20% while continuing to focus on growth opportunities [41] Question: Explanation of EBITDA margin pressure - Management discussed timing-related cost headwinds, including higher incentive compensation and medical costs, and indicated these are not expected to persist [45][46] Question: Outlook for education, healthcare, and data centers - Management noted stable activity levels in education and healthcare, with robust opportunities in data centers [48] Question: Expectations for manufacturing costs and inflation - Management acknowledged inflationary pressures but emphasized ongoing productivity improvements to mitigate these costs [55] Question: Insights on the office market recovery - Management indicated early signs of recovery in the office market, with positive activity across multiple regions [68]

Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $5.75 for Q3 2025, an 11% increase year over year [10][25] - Net yields grew by 2.4% year over year, driven by strong demand across all key itineraries [10][23] - Full year adjusted earnings per share is now expected to be in the range of $15.58 to $15.63, reflecting a 32% year over year growth [12][29] Business Line Data and Key Metrics Changes - Capacity increased by 3% in Q3 2025, with nearly 2,500,000 vacations delivered, marking a 7% increase year over year [10][24] - The Caribbean represents 57% of the company's deployment for the year, with a 6% increase in capacity [26] - The company anticipates a 10% capacity growth in Q4 2025, driven by new ships and additional APCDs [11][26] Market Data and Key Metrics Changes - Book load factors for 2026 remain well within historical ranges at record rates, with booked APD growth at the high end of historical ranges [16][32] - The company expects Caribbean yields in Q4 to be up 37% compared to 2019 [26] - Europe is expected to account for 15% of capacity for the year, with strong booking positions as the European season wraps up [27] Company Strategy and Development Direction - The company is focused on building a vacation platform that leads the leisure market through innovative ships and exclusive destinations [6][7] - Plans to expand the exclusive land-based destination portfolio from two to eight by 2028 [7] - The company aims to capture a greater share of the $2 trillion global vacation market by enhancing customer experiences and loyalty [18][19] Management's Comments on Operating Environment and Future Outlook - Management noted strong consumer sentiment towards travel and leisure, with three-quarters of consumers intending to spend the same or more on vacations over the next twelve months [14] - The company is optimistic about the demand environment, with strong bookings and a powerful pipeline of strategic initiatives [13][15] - Despite some adverse weather impacts, the company expects total revenue to increase by approximately 13% year over year in Q4 [11][29] Other Important Information - The company ended the quarter with $6.8 billion in liquidity and adjusted leverage below 3x [35][36] - A 30% increase in the quarterly dividend to $1 per common share was authorized by the Board of Directors [37] - The company repurchased approximately 1.3 million shares during the quarter, with $345 million still available under the current authorization [37] Q&A Session Summary Question: Thoughts on 2026 guidance and yield growth - Management indicated that 2026 earnings are expected to have a $17 handle, with moderate yield growth anticipated [40][76] Question: Clarification on cost growth expectations - Management described cost growth as "anemic," including structural costs and new destination impacts [47][52] Question: Insights on global demand progression - Management noted strong demand across all markets, with a normalization in Canada and robust bookings from Europe [58][59] Question: Concerns about oversupply in the Caribbean - Management acknowledged increased supply but emphasized that it is manageable and that their differentiated assets help maintain demand [64] Question: Yield performance in 2025 - Management explained that yield deceleration in the second half of 2025 is influenced by tougher comparisons and fewer new hardware tailwinds [98]

Financial Data and Key Metrics Changes - The company reported a third-quarter operating EBITDA growth of over 15% and free cash flow growth of nearly 33% [6][10] - Total company operating EBITDA margin reached 30.6%, the best quarterly result in history, while the legacy business achieved a margin of 32% [18][19] - Free cash flow for the first nine months of 2025 grew 13.5% to $2.11 billion, with operating EBITDA to free cash flow conversion approaching 42% [20][21] Business Line Data and Key Metrics Changes - The collection and disposal business contributed more than half of the year-over-year increase in operating EBITDA, with MSW and special waste volumes growing by 5% and 5.5% respectively [6][12] - Operating EBITDA margins in the collection and disposal business expanded by 100 basis points to a record 38.4%, with every line of business contributing to growth [12][14] - The healthcare solutions segment's operating EBITDA margin improved to 17.5%, reflecting successful integration efforts [19][23] Market Data and Key Metrics Changes - The company experienced solid organic revenue growth driven by disciplined pricing and improving volume trends, with core price at 6% [13][14] - Landfill volumes rose by 5.2%, with broad strength across MSW, special waste, and construction and demolition [14][48] - Despite a nearly 35% decline in recycled commodity prices, the recycling segment's operating EBITDA grew by 18% [9][20] Company Strategy and Development Direction - The company is focused on maximizing customer lifetime value through pricing strategies and technology optimization [6][7] - Investments in technology and automation, as well as in new recycling and renewable natural gas facilities, are expected to yield benefits in 2026 [10][11] - The company remains disciplined in capital allocation, expecting to return significant value to shareholders through dividends and potential share repurchases [21][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the healthcare solutions acquisition, despite a more measured revenue growth pace than initially projected [21][23] - The company anticipates a strong fourth quarter, driven by improved execution and a robust post-collection network [50][51] - Management highlighted the importance of customer-centric strategies and operational efficiencies in driving future growth [62][64] Other Important Information - The company has returned $1 billion to shareholders in dividends and allocated over $400 million to solid waste acquisitions [21] - The CFO announced retirement plans, expressing confidence in the incoming CFO and the company's future [24][25] Q&A Session Summary Question: How much have you benefited from one-time cleanup work at the landfill? - The company indicated that total revenues from wildfire volumes were around $115 million for the year, with a significant EBITDA growth in solid waste results without meaningful impacts from wildfires [29][30] Question: Can you clarify the charges this quarter? - The landfill impairment was due to a long-term pursuit of expansion that was deemed no longer viable, leading to recorded impairments [31][32] Question: What are the expectations for 2026 free cash flow? - The company expects free cash flow to approach $3.8 billion, driven by a wind-down of sustainability investments and strong performance from the legacy business [10][33] Question: How is the healthcare solutions business performing? - The healthcare solutions business is experiencing some churn but has renewed nearly $200 million worth of business, indicating strong customer retention and growth potential [81] Question: What is the outlook for M&A activity? - The company anticipates a normal M&A pipeline of $100 million to $200 million for 2026, with ongoing integration of the healthcare solutions business [77][79]