Financial Data and Key Metrics Changes - The company achieved net sales of $222.3 million, an increase of 10.6% compared to fiscal 2024, driven by growth in every sales channel and category [22] - Gross margins increased by 60 basis points to 44.6%, primarily due to higher sales volumes, partially offset by increased tariff and freight costs [26] - Adjusted EBITDA for fiscal 2025 was $17.7 million, up 80.8% from fiscal 2024 [29] - GAAP EPS for fiscal 2025 was a loss of $0.01 compared to a loss of $0.94 in the prior year, while non-GAAP EPS was $0.76 compared to $0.32 in fiscal 2024 [28] Business Line Data and Key Metrics Changes - Outdoor lifestyle category net sales grew by 16.2%, driven mainly by sales in Bubba, Meet Your Maker, and BOG brands [24] - Shooting sports category net sales grew by 3.8%, primarily driven by sales in the Caldwell brand [24] - Direct-to-consumer net sales increased to $29.6 million from $29.1 million last year, representing a significant growth in DTC sales from roughly 3% to over 13% of total net sales [16][23] Market Data and Key Metrics Changes - Domestic net sales increased by almost 10%, while international net sales grew by 20% compared to fiscal 2024 [23] - E-commerce sales grew from 32% in fiscal 2020 to 38% in fiscal 2025, indicating a shift towards online sales channels [15] Company Strategy and Development Direction - The company aims to expand its reach into new categories, customers, and geographies, focusing on innovation and sustainable growth [6][7] - The strategic shift from a concentration in shooting sports to a broader outdoor lifestyle focus has seen outdoor lifestyle sales grow from 46% of net sales in FY 2020 to 57% today [15] - The company has secured 170 new patents, growing its patent portfolio by over 65%, indicating a strong commitment to innovation [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macro environment and evolving tariff policies, which may impact consumer behavior [33] - Despite the challenges, management expressed confidence in the underlying demand for their products and the strength of their innovation pipeline [60] - The company is proactively mitigating potential risks through a disciplined, multi-pronged approach to manage the evolving tariff landscape [18][39] Other Important Information - The company is set to join the Russell 3000 Index and the small-cap Russell 2000 Index, enhancing visibility within the investment community [41] - The company ended the year with cash of $23.4 million and no debt, maintaining a strong balance sheet [29][31] Q&A Session Summary Question: Can you provide more color on the $8 million to $10 million of fiscal 2026 demand that was pulled into Q4? - Management indicated that retailers accelerated orders due to anticipated price increases from suppliers, benefiting the company [45] Question: What are the early Q1 trends for consumer discretionary spending? - Management noted strong point-of-sale trends, indicating healthy consumer demand despite some surface-level bumps related to inventory management [48][49] Question: What drove the strength in the traditional sales channel? - The strength was attributed to a combination of load-in related factors and the traditional channel's effectiveness in launching new products [50][51] Question: What is the current M&A environment and appetite for acquisitions? - Management expressed a clean balance sheet and readiness to pursue acquisitions, particularly in the outdoor lifestyle segment, with ongoing conversations for potential deals [53][54] Question: Can you clarify the reason for the withdrawn guidance? - Management explained that the acceleration of orders led to a slower start in Q1, creating uncertainty in order flow and prompting the decision to suspend guidance [59][60] Question: How much exposure does the company have to China in terms of cost of goods? - Management indicated that while there is exposure, they have built up inventory and are prepared to shift production to mitigate tariff impacts [70][72]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [17] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a favorable mix of services and margin profiles [7] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily for AI initiatives [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement as investments made begin to pay off [12][23] - The company anticipates a steady acceleration in growth rates and is committed to driving strong year-on-year free cash flow growth [23] - Management noted that clients are centralizing spend with partners that have scale, breadth, and expertise to deliver real-world solutions [12] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [18] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [18] Q&A Session Summary Question: What is the outlook for revenue acceleration in the second half? - Management indicated that momentum is broad-based across verticals and geographies, with positive trends in banking, tech, and media [28] Question: How is AI impacting the company's market position? - The company has seen strong adoption of its AI solutions, with clients increasingly interested in practical applications rather than hype [10][36] Question: What caused the margin decline in Q2? - The margin decline was primarily due to clients pausing projects in response to tariffs, but management expects margins to improve in Q3 [16][44] Question: What is the expected revenue contribution from IX Hello and IX Hero? - Management expects these AI offerings to be accretive by the end of Q4 and sees potential for revenue growth without increasing spending [54] Question: How is the company addressing pricing dynamics? - There is growing interest in outcomes-based pricing, but the company still primarily operates on a transactional basis [87]

Financial Data and Key Metrics Changes - For Q4, revenues decreased by 12% on a reported basis and 11% on a currency-neutral basis [30] - Nike Direct revenues fell by 14%, with Nike Digital declining by 26% and Nike Stores increasing by 2% [30] - Gross margins declined by 440 basis points to 40.3% due to higher wholesale discounts and supply chain cost deleverage [30] - Earnings per share was $0.14, with full-year revenue down 10% on a reported basis [31] Business Line Data and Key Metrics Changes - In running, overall growth was high single digits, driven by the Bovero 18, which became a $100 million franchise [21] - Women's basketball business expanded over 50% this fiscal year, highlighted by the successful launch of Asia Wilson's signature collection [22] - Sportswear saw continued strength through products like P6000 and Vomero 5, while classic footwear franchises experienced significant declines [22][49] Market Data and Key Metrics Changes - North America Q4 revenue declined by 11%, with Nike Direct down 14% and wholesale down 8% [33] - EMEA Q4 revenue declined by 10%, with Nike Direct down 19% and wholesale down 4% [35] - Greater China Q4 revenue declined by 20%, with significant challenges in traffic and inventory management [38] Company Strategy and Development Direction - The company is focusing on a "sport offense" strategy, organizing teams by sport to drive innovation and consumer engagement [13][64] - Plans to clean up the marketplace and reposition Nike Digital as a full-price model are underway, with expectations for a healthier inventory by the end of H1 FY26 [45][50] - A new partnership with Amazon aims to expand distribution and enhance brand presence in the digital marketplace [19][96] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were not up to Nike's standards but expressed optimism about the impact of the WinNow actions [8][28] - The company expects headwinds to revenue and gross margin to moderate moving forward, with a clear path to recovery anticipated [29][47] - Management emphasized the importance of inspiring and innovating for consumers, aiming for sustainable growth [26][51] Other Important Information - The company is facing new tariffs that are expected to increase costs by approximately $1 billion, with plans to mitigate this impact over time [46] - Inventory remains elevated but is being managed down, with a focus on exiting H1 FY26 in a healthy position [32][50] Q&A Session Summary Question: Can you elaborate on the accelerated actions under your sport offense realignment? - The company is organizing into sport-obsessed teams to drive innovative product flow across all brands, focusing on performance and sportswear [64][65] Question: What is the expected cadence of revenues this year? - Revenue is expected to be down mid-single digits in Q1, reflecting ongoing challenges with classic footwear franchises and inventory liquidation [72][73] Question: How is the cleanup of the marketplace progressing? - The company remains on track for a healthy marketplace by the end of H1 FY26, with significant progress in managing classic footwear franchises [78] Question: What is the impact of tariffs on Q1? - The first quarter will see a larger impact from tariffs, but the company is confident in its ability to mitigate these costs over time [80] Question: Can you discuss the competitive environment in China? - The company is working to refresh the monobrand marketplace in China, which will take time due to unique market characteristics [40][104]

Financial Data and Key Metrics Changes - The company achieved net sales of $222.3 million, an increase of 10.6% compared to fiscal 2024, driven by growth in every sales channel and category [22] - Gross margins increased by 60 basis points to 44.6%, primarily due to higher sales volumes, partially offset by increased tariff and freight costs [26] - Non-GAAP EPS for fiscal 2025 was $0.76, compared to $0.32 in fiscal 2024, while GAAP EPS was a loss of $0.01 compared to a loss of $0.94 in the prior year [28] Business Line Data and Key Metrics Changes - Outdoor lifestyle category net sales grew by 16.2%, driven mainly by sales in Bubba, Meet Your Maker, and BOG brands [24] - Shooting sports category net sales grew by 3.8%, primarily driven by sales in the Caldwell brand [24] - Direct-to-consumer sales increased from $29.1 million to $29.6 million, representing a significant growth in DTC sales from roughly 3% to over 13% of total net sales [16][23] Market Data and Key Metrics Changes - Domestic net sales increased by almost 10%, while international net sales grew by 20% compared to fiscal 2024 [23] - E-commerce sales grew from 32% of net sales in FY 2020 to 38% in FY 2025, indicating a shift towards online sales channels [15] Company Strategy and Development Direction - The company aims to expand its reach into diverse markets and across multiple distribution channels, evolving from a focus on shooting sports to a broader outdoor lifestyle approach [14] - The company has secured 170 new patents, growing its patent portfolio by over 65%, indicating a strong commitment to innovation [16] - The company is actively exploring acquisition opportunities to bolster its outdoor lifestyle products, maintaining a clean balance sheet to facilitate potential deals [52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty in the macro environment and evolving tariff policies, which may impact consumer behavior [33] - Despite the challenges, management expressed confidence in the underlying demand for their products and the strength of their innovation pipeline [32] - The company is suspending its previously issued net sales guidance for fiscal 2026 due to the pull-forward of orders and uncertainty in retail order flow [33][58] Other Important Information - The company is set to join the Russell 3000 Index and the small-cap Russell 2000 Index, enhancing visibility within the investment community [40] - The company ended the year with cash of $23.4 million and no debt, indicating a strong balance sheet [29] Q&A Session Summary Question: Can you provide more color on the $8 million to $10 million of fiscal 2026 demand that was pulled into Q4? - Management indicated that retailers accelerated orders due to anticipated price increases from suppliers, benefiting the company [44] Question: What are the early Q1 trends for consumer discretionary spend? - Management noted strong point-of-sale trends, indicating healthy consumer demand despite some surface-level bumps related to inventory management [47][48] Question: What drove the strength in the traditional sales channel? - The strength was attributed to traditional retailers effectively launching new products, while e-commerce relies more on social proof for purchasing decisions [49][50] Question: What is the current M&A environment and appetite for acquisitions? - Management expressed readiness to pursue acquisitions, particularly with companies struggling in the current environment, while maintaining a cautious approach [52][53] Question: Can you clarify the reason for the withdrawn guidance? - Management explained that the pull-forward of orders led to a slower start in Q1, creating uncertainty in retail order flow [58][59]

Financial Data and Key Metrics Changes - For Q4, revenues decreased by 12% on a reported basis and 11% on a currency-neutral basis [28] - Gross margins declined by 440 basis points to 40.3% due to higher wholesale discounts and supply chain cost deleverage [28] - Earnings per share was $0.14, with full-year revenue down 10% on a reported basis [29] Business Line Data and Key Metrics Changes - Nike Direct revenues were down 14%, with Nike Digital declining 26% and Nike Stores increasing by 2% [28] - In North America, Q4 revenue declined 11%, with Nike Direct down 14% and wholesale down 8% [31] - In EMEA, Q4 revenue declined 10%, with Nike Direct down 19% and wholesale down 4% [33] - Greater China saw a 20% revenue decline, with Nike Direct down 15% and wholesale down 24% [35] Market Data and Key Metrics Changes - North America made progress in cleaning up the marketplace, with a focus on repositioning Nike Digital as a full-price model [31] - EMEA demonstrated growth in key performance dimensions, with women's sportswear footwear returning to growth [34] - APLA experienced a 3% revenue decline, with mixed results across countries [38] Company Strategy and Development Direction - The company is implementing "WinNow" actions to reposition its brands and business for future growth, focusing on sport and innovation [26][27] - A new partnership with Amazon will feature a select assortment of footwear and apparel, aimed at expanding distribution [17] - The company is reorganizing into sport-focused teams to drive deeper relationships with athletes and enhance product innovation [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that Q4 results were not up to Nike's standards but expressed optimism about future improvements [7] - The company expects headwinds to revenue and gross margin to begin to moderate, with a clear path to recovery ahead [22][44] - Management emphasized the importance of inspiring and innovating for consumers, with a focus on returning to sustainable growth [25] Other Important Information - The company is facing new tariffs that are expected to increase costs by approximately $1 billion, with plans to mitigate this impact over time [42][43] - Inventory remains elevated but is being managed down, with a goal to exit the first half of fiscal 2026 in a healthy position [30][47] Q&A Session Summary Question: Can you elaborate on the accelerated actions under your sport offense realignment? - The company is organizing into sport-obsessed teams to drive a relentless flow of innovative products across all brands, focusing on performance and sportswear [61][62] Question: What is the expected impact of tariffs in Q1? - The first quarter will see a larger impact from tariffs, but the company is confident in its ability to mitigate these over time as actions are implemented [74][77] Question: Are you expecting gross margin pressures to abate sequentially? - Margins are expected to remain under pressure in the first half of fiscal 2026, but moderation is anticipated in the second half [79][80] Question: Can you discuss the timeline for recovery in the China marketplace? - The company believes in the long-term opportunity in China and is focused on inspiring consumers, although recovery will take time due to unique market characteristics [102]

Financial Data and Key Metrics Changes - The company reported revenue of approximately $2,400,000,000 for Q2, an increase of 1.5% year on year on both a constant currency and as reported basis [14] - Adjusted free cash flow was $200,000,000 in the quarter, an improvement of about $240,000,000 sequentially from Q1 [18] - Non-GAAP diluted EPS was $2.7 per share, an increase of $0.1 year on year [17] - GAAP net income was $42,000,000 for the quarter, with GAAP diluted EPS at $0.63 per share [17] Business Line Data and Key Metrics Changes - Revenue from retail, travel, and e-commerce clients grew 3% year on year, led by growth with travel clients [15] - Media and Communications also grew 3% year on year, while revenue from banking, financial services, and insurance clients grew 2% [15] - The tech and healthcare verticals were relatively flat, reflecting offshore movement [15] Market Data and Key Metrics Changes - The company is seeing a strong pipeline across verticals and geographies, with a positive sentiment from clients regarding increased outsourcing budgets [9][10] - A Gartner study revealed that 85% of enterprises expect to increase their outsourcing budget over the next two to three years, primarily to support their AI agenda [9] Company Strategy and Development Direction - The company is focused on delivering integrated technology-led solutions that align with client needs and expanding the value provided across a broader portfolio of business solutions [12] - The strategy includes automating or de-investing in commodity work to keep the underlying business healthy [12] - The company is well-positioned against competitors, particularly for large-scale programs that combine consulting, IT integration, CX expertise, and AI [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second half of the year, expecting revenue and margin improvement due to a strong pipeline and new business signed [20][22] - The company anticipates meaningful sequential margin improvement in both Q3 and Q4, driven by the recovery from the tariff impact and ongoing investments in technology [16][22] - Management noted that clients are looking for pragmatic solutions and are increasingly centralizing spend with partners that have scale and expertise [12][13] Other Important Information - The company returned approximately $67,000,000 to shareholders in the quarter, including share repurchases and dividends [19] - Cash and cash equivalents at the end of the quarter were $343,000,000, with total debt at approximately $4,900,000,000 [19] Q&A Session Summary Question: Revenue acceleration in the second half - Management indicated that revenue acceleration is broad-based, with solid pipeline building across geographies and verticals, particularly in banking, tech, and media [28] Question: AI technology journey and market recognition - Management highlighted strong market traction for their AI products, with clients adopting their technology faster than expected and seeing significant growth in adjacent services [36] Question: Margin impacts in Q2 - Management explained that margins were impacted by clients pausing projects due to tariffs, but they expect margins to improve as clients resume projects and new business ramps up [40][42] Question: Revenue contribution from IX Hello and IX Hero - Management expects IX suite products to be accretive by the end of Q4 and plans to maintain spending while accelerating revenue growth [54] Question: Operating environment and sales cycles - Management noted that transformation deals are taking longer but are not shrinking, and they are seeing good win rates in their pipeline [62] Question: Pricing strategy evolution - Management mentioned an increasing interest in outcomes-based pricing but noted that traditional transactional pricing still dominates their revenue streams [87]

Financial Data and Key Metrics Changes - As of March 31, 2025, the company had a cash balance of approximately $5.5 million [16] - Operating expenses for the year were approximately $9.3 million, a reduction of about $3.3 million or 26% compared to the prior year [17] - A noncash charge of $4.6 million was recognized related to a warrant inducement offer made in March 2025 [17][18] Business Line Data and Key Metrics Changes - The company treated the first three patients in its oncology trial using the Hemopurifier at clinical sites in Australia [6] - Regulatory approval was received in India to initiate a similar oncology study [12] - The trial protocol was expanded to align with evolving standards of care in immunotherapy [6] Market Data and Key Metrics Changes - The collaboration with UCSF on long COVID research is ongoing, with findings to be presented at the upcoming Keystone Symposium [14] - The economic burden of long COVID is estimated to impact 44 to 48 million people in the US [15] Company Strategy and Development Direction - The primary focus remains on oncology, with ongoing trials in Australia and India [22][24] - The company aims to streamline operations and reduce costs while focusing resources on areas with the greatest clinical and regulatory impact [15][16] - Future exploration of the Hemopurifier's applications beyond oncology is being considered, particularly in conditions like lupus and Alzheimer's disease [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in clinical trials and the potential for future partnerships based on safety data [62] - The company anticipates needing to raise additional funds until it can secure government grants or partnerships with larger companies [61] - Management does not expect further nonrecurring expenses related to terminated executives [32][33] Other Important Information - The company has published results of a preclinical study showing a 98.5% removal of platelet-derived extracellular vesicles during Hemopurifier treatments [13] - The next earnings call is scheduled for August 2025, coinciding with the filing of the quarterly report [19] Q&A Session Summary Question: What are the focus areas for the company? - The primary focus remains on oncology, with the upcoming trial in India being parallel to the Australian trial [22][24] Question: What is the expected timeline for more robust data from the Australian trial? - Preliminary data from the first cohort is expected in about three months, with a data safety monitoring board meeting set for July [28][29] Question: Are nonrecurring expenses finished? - Management does not anticipate further nonrecurring expenses following the termination of three senior executives [32][33] Question: Will patient recruitment in India be faster than in Australia? - There is potential for faster recruitment in India due to the larger population and the hospital's capabilities [70][72] Question: What is the landscape for grant approvals currently? - The company is familiar with the grant process and is open to pursuing grants that align with its goals, though the current environment may present challenges [78][80]

Financial Data and Key Metrics Changes - As of March 31, 2025, the company had a cash balance of approximately $5.5 million [16] - Operating expenses for the year were approximately $9.3 million, a reduction of about $3.3 million or 26% compared to the prior year [17] - A noncash charge of $4.6 million was recognized related to a warrant inducement offer made in March 2025 [17] - The company recorded approximately $324,000 in other income related to the employee retention tax credit under the CARES Act [18] Business Line Data and Key Metrics Changes - The company treated the first three patients in its oncology trial using the Hemopurifier at clinical sites in Australia [6] - Regulatory approval was received in India to initiate a similar oncology study [12] - The trial protocol was expanded to align with evolving standards of care in immunotherapy [6] Market Data and Key Metrics Changes - The collaboration with UCSF on long COVID research is ongoing, with findings to be presented at the upcoming Keystone Symposium [14] - The economic burden of long COVID is estimated to impact 44 to 48 million people in the US [15] Company Strategy and Development Direction - The primary focus remains on oncology, with ongoing trials in Australia and India [22] - The company aims to streamline operations and reduce costs while focusing resources on areas with the greatest clinical and regulatory impact [15] - Future exploration of the Hemopurifier in addressing long COVID is being considered, but oncology remains the main priority [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in clinical and laboratory settings, noting it as the most significant advancement since joining the company [16] - The company is preparing for potential partnerships and government grants to support ongoing research and development [57] Other Important Information - The company plans to file its annual report on Form 10-K following the call and will hold its next earnings call in August 2025 [19] Q&A Session Summary Question: What are the focus areas for the company? - The focus remains primarily on oncology, with the upcoming trial in India being parallel to the Australian trial [22][24] Question: What is the expected timeline for delivering more robust data from the Australian trial? - Preliminary data from the first cohort is expected in about three months, with a data safety monitoring board meeting set for July [28][29] Question: Are there any nonrecurring costs expected in the future? - Management does not anticipate additional nonrecurring expenses following the termination of senior executives [32][33] Question: How quickly can patient recruitment be expected in India? - Recruitment in India may proceed faster than one patient per month, depending on oncologists' comfort levels [66][68] Question: What is the landscape for grant approvals currently? - The company is familiar with the grant process and is open to pursuing grants that align with its goals, though the current environment may present challenges [72][74] Question: What is the current expense run rate? - The company is operating at a level that is necessary to continue operations, with potential increases in expenses as clinical activities ramp up [76][78]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 FY2025 increased by 22% to $169.5 million compared to $139.2 million in the prior year [9] - Net earnings for the quarter were $19.5 million or $1.78 per diluted share, down from $20.4 million or $1.85 per diluted share in the prior year, primarily due to a one-time income tax credit in the previous year [9][10] - Excluding the tax credit impact, current year earnings per share represent a 26% increase over the prior year [10] Business Line Data and Key Metrics Changes - Irrigation segment revenues increased by 25% to $143.7 million compared to $114.8 million in the prior year [10] - North America irrigation revenues increased by 1% to $69.1 million, with unit sales volume comparable to the prior year [10][11] - International irrigation revenues surged by 60% to $74.7 million, driven by a large project in the MENA region and higher sales in Brazil [11] - Infrastructure segment revenues increased by 6% to $25.7 million, primarily due to higher sales of road safety products [12] Market Data and Key Metrics Changes - In North America, the irrigation market is influenced by weather conditions affecting crop yields and net farm income, with a projected decline in crop revenue [4][5] - The federal government in Brazil raised the benchmark interest rate to 15%, impacting market conditions and credit availability [5] - The project funnel in the MENA region remains strong, with countries prioritizing food security and water resource conservation [6] Company Strategy and Development Direction - The company focuses on growing road safety products and the Road Zipper system, particularly leasing for stable revenue [4] - Continued investment in technology partnerships, such as with Pessil Instruments, enhances precision irrigation capabilities [8] - The company aims to leverage its global footprint to navigate tariff uncertainties and maintain operational efficiency [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the international markets, particularly Brazil, despite short-term challenges due to high interest rates [46][47] - The company anticipates continued growth in the MENA region and is optimistic about the upcoming crop plan in Brazil [46][47] - Management is confident in the ability to manage through domestic market headwinds while capitalizing on international opportunities [74] Other Important Information - Total available liquidity at the end of Q3 was $261 million, including $211 million in cash and equivalents [13] - The company is experiencing operational efficiencies from the modernization of its manufacturing facility, contributing to margin expansion [68][70] Q&A Session Summary Question: Impact of Middle East situation on large project activity and long-term growth in Brazil - Management does not foresee significant short-term impacts from the Middle East situation and remains optimistic about long-term growth opportunities in Brazil, citing low irrigation adoption rates and improving credit conditions [19][21] Question: Impact of tax credits and bonus depreciation on demand outlook - Tax credits and bonus depreciation are expected to have a more significant impact on the irrigation business, potentially shifting demand timing rather than increasing overall demand [23][24] Question: Pricing trends and regional demand variations - Pricing actions have been proactive in response to tariff impacts, with slight revenue support noted, particularly in the U.S. market [30][31] Question: Drought impact on machine demand - Management does not expect a significant increase in machine demand due to drought conditions, although there may be increased service and parts business [35] Question: Details on the $20 million MENA project and future project visibility - The $20 million project is part of a broader trend towards smaller projects in the region, with a robust project pipeline to fill gaps left by larger projects [41][44] Question: North American pivot sales correlation with major equipment manufacturers - Differences in go-to-market models and regional demand variations explain the disconnect between pivot sales and major equipment manufacturers' volumes [58][59] Question: Impact of steel and aluminum tariffs on costs - Limited impact from steel costs has been observed, with no significant price increases sticking due to lack of demand [64] Question: Progress on manufacturing facility modernization and margin improvements - The modernization is on track, contributing to operational efficiencies and margin expansion across various facilities [68][70]

Financial Data and Key Metrics Changes - The company reported a strong first quarter with significant identical sales growth driven by pharmacy, ecommerce, and fresh categories [34] - A dividend increase from $1.28 to $1.40 per year was approved, marking the 19th consecutive year of dividend increases [38] Business Line Data and Key Metrics Changes - The ecommerce segment experienced double-digit growth, indicating a successful strategy in online sales [54] - The company plans to complete 30 store projects in 2025, maintaining the same level as the previous year, with intentions to increase this number in 2026 and beyond [54] Market Data and Key Metrics Changes - The company lowered prices on over 2,000 additional products in the first quarter, aiming to make savings more visible to customers [52] - The competitive pricing environment remains rational, with a focus on keeping prices affordable to attract more customers [51] Company Strategy and Development Direction - The company is focusing on core retail business investments, including lower prices and extended store hours, funded by reducing corporate expenses [34] - A strategic reevaluation of non-core assets is underway to enhance focus on the primary business [33] Management's Comments on Operating Environment and Future Outlook - Management emphasized the need to adapt quickly to competition, particularly in ecommerce, to improve profitability and customer base [35] - The company is committed to investing in associates, having increased average store hourly pay by 38% over the past seven years [36] Other Important Information - The company has donated over 3.4 billion meals through its Zero Hunger, Zero Waste plan, showcasing its commitment to community support [38] - The board of directors expressed confidence in the company's strategy through the approved dividend increase [39] Q&A Session Summary Question: Update on the CEO search - The board has a search committee in place working with a recognized search firm, while the current CEO remains committed to leading during the transition [48] Question: Raising employee wages in line with cost of living - The company has invested $2.4 billion in wages since 2018, resulting in a 38% increase in average hourly store wages [49] Question: Pricing strategies in a competitive environment - The company is focused on lowering prices to attract customers, having reduced prices on over 2,000 products in the first quarter [52] Question: Store plans and future growth - The company is on track to complete 30 store projects in 2025 and plans to close approximately 60 underperforming stores, reallocating resources to new store growth [55] Question: Approach to customer health data requests - The company prioritizes customer trust and has a team ensuring compliance with data protection laws [56] Question: Justification of executive pay ratios - Compensation is based on various factors, and the company continues to invest in associates' wages and benefits [58] Question: Board's stance on supporting farm workers - The company believes its existing standards for suppliers make the shareholder proposal unnecessary [60] Question: Impact of proposed changes to SNAP on sales - The company is prepared to navigate changes to the SNAP program without expecting a significant impact on sales [61] Question: Alignment of waste reduction vision with cigarette waste proposal - The company views the cigarette waste proposal as redundant given its existing waste reduction commitments [63] Question: Thoughts on changing tariff situations - The company is monitoring tariff changes and is prepared to manage any potential cost impacts [65]