Financial Data and Key Metrics Changes - In Q4 2025, the company reported net income of $99.5 million, or $0.46 per diluted share, with operating earnings increasing by 28% to $94.7 million [11][12] - Operating return on assets (ROA) improved to 130 basis points, up 24 basis points year-over-year, while return on average tangible common equity rose to 13.8% from 11.3% [12] - The net interest income for Q4 was $237.4 million, an increase of $37.2 million from Q3, driven by margin improvement [12][13] Business Line Data and Key Metrics Changes - Total loans grew by $1 billion, or 5.6%, for the full year, primarily due to strong commercial lending results [8][17] - Wealth assets reached a record high of $10.1 billion at year-end, including $9.6 billion in assets under management, driven by market appreciation and positive net flows [8][14] - Non-interest income for Q4 was $46.1 million, an increase of $4.8 million from Q3, with mortgage banking income rising to $3 million [13][14] Market Data and Key Metrics Changes - The company is now the largest independent bank headquartered in Massachusetts with $31 billion in assets and the fourth largest deposit market share in Greater Boston [4] - Period-end deposits totaled $25.5 billion, an increase of $4.4 billion, or 21% from Q3, primarily due to the addition of HarborOne deposits [15][16] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, with no plans for acquisitions in the foreseeable future [5][6][27] - Strategic investments in hiring talent have been emphasized as a key driver of growth, enhancing the company's competitive position [7] - The company aims to manage its CET1 ratio towards the median of the KRX, currently at 12%, while continuing to return excess capital through share repurchases and dividends [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing growth opportunities in larger markets, expecting steady improvement in profitability metrics [6][8] - The company anticipates loan growth of 3%-5% and deposit growth of 1%-2% for 2026, with net interest income projected between $1.2 billion and $1.5 billion [25][26] - Management noted that while there are no material shifts in credit metrics, a provision expense of $30-$40 million is expected for 2026 [30][39] Other Important Information - The company repurchased 3.1 million shares for $55.4 million in Q4, representing 26% of the total authorization announced in October [9][18] - The allowance for loan losses increased to $332 million, or 144 basis points of total loans, reflecting the initial allowance for acquired HarborOne loans [21] Q&A Session Summary Question: Margin outlook and deposit growth - Management indicated that the core margin is expected to remain relatively flat in the near term, with potential expansion later in the year [28][29] Question: Provision outlook and credit landscape - The provision guidance of $30 million-$40 million is higher than the previous year, but management does not see significant concerns in credit trends [30][31] Question: Non-performing loans and resolution plans - Non-performing loans are primarily driven by HarborOne, with management confident in their resolution plans [33][34] Question: Fee income and mortgage banking business - The company expects fee income from HarborOne's mortgage business to be 8%-10% of total fee income, benefiting from potential rate drops [46]

Financial Data and Key Metrics Changes - Webster Financial generated a 17% ROTCE and a 1.2% ROA for the full year 2025, with EPS up 10% year-over-year [6] - Loans grew by 8% and deposits by 6% over the year, while tangible book value per share increased by 13% [6] - The company repurchased 10.9 million shares, enhancing capital distributions to shareholders [6] Business Line Data and Key Metrics Changes - In the fourth quarter, loans increased by $1.5 billion or 2.8%, with a full-year increase of 7.8%, primarily driven by commercial loan categories [12] - Classified commercial loans decreased by 7% and nonperforming loans were down 8%, indicating progress in credit remediation [8][15] - HSA Bank is expected to drive $1 billion-$2.5 billion in incremental deposit growth over the next five years, with $50 million-$100 million growth anticipated in 2026 [10] Market Data and Key Metrics Changes - The overall asset quality remains strong, with a decline in problem assets expected to continue [9] - The company experienced a seasonal decline in public funds of $1.2 billion but backfilled this with corporate deposits [12] - The average cost of deposits decreased to 1.91% from 1.99% in the previous quarter, reflecting competitive pricing [43] Company Strategy and Development Direction - Webster Financial's strategy in 2025 focused on execution and enhancing operational capabilities while investing in non-traditional banking verticals [6] - The company aims to maintain growth while ensuring resiliency and adaptability in a supportive macroeconomic environment [20] - Investments are being made in technology and marketing to enhance client outreach, particularly in the HSA segment [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to grow sustainably while managing risks effectively [6][20] - The outlook for 2026 anticipates loan growth of 5%-7% and deposit growth of 4%-6%, with expected revenue of $3 billion [17] - Management noted that the banking industry is experiencing positive momentum from macroeconomic and regulatory tailwinds [20] Other Important Information - The company acquired SecureSave, a provider of employer-sponsored emergency savings accounts, which is expected to enhance its offerings in the healthcare vertical [144] - The capital management strategy includes a focus on organic growth and potential share repurchases, with a CET1 target of 10.5% in the long term [96] Q&A Session Summary Question: Update on loan growth and partnership with Marathon - Management indicated that while the partnership is operational, it has not yet materially impacted loan growth, but they remain optimistic about future contributions [28] Question: Expense trends and investments in systems - Most investments are focused on marketing and client outreach to identify potential HSA account holders, with technology investments already in place [30] Question: Impact of potential changes in regulatory thresholds on expenses - Management noted that anticipated changes could provide flexibility in capital allocation, but overall strategic growth plans remain unchanged [34] Question: NIM trajectory for early 2026 - The company expects to maintain a NIM of around 335 basis points throughout 2026, with some seasonal variability [38] Question: Loan growth guidance and competition - Management explained that the 5%-7% loan growth guidance reflects a balance between growth and profitability, considering competitive pressures [61] Question: Non-interest-bearing deposits trend - There is a slowing pace in reductions of non-interest-bearing deposits, indicating a potential inflection point [113]

Booz Allen (NYSE:BAH) Q3 2026 Earnings call January 23, 2026 08:00 AM ET Company ParticipantsColin Canfield - DirectorDustin Darensbourg - Head of Investor RelationsHoracio Rozanski - Chairman, CEO, and PresidentJonathan Siegmann - Managing DirectorKristine Martin Anderson - EVP and COOMatt Calderone - EVP and CFOScott Mikus - Director of ResearchSeth Seifman - Executive DirectorSheila Kahyaoglu - Managing DirectorTobey Sommer - Managing DirectorConference Call ParticipantsGautam Khanna - AnalystJohn Godin ...

Booz Allen (NYSE:BAH) Q3 2026 Earnings call January 23, 2026 08:00 AM ET Company ParticipantsColin Canfield - DirectorDustin Darensbourg - Head of Investor RelationsHoracio Rozanski - Chairman, CEO, and PresidentJohn Godyn - Managing DirectorJonathan Siegmann - Managing DirectorKristine Martin Anderson - EVP and COOMatt Calderone - EVP and CFOScott Mikus - Director of ResearchSeth Seifman - Executive DirectorSheila Kahyaoglu - Managing DirectorTobey Sommer - Managing DirectorConference Call ParticipantsGaut ...

Financial Data and Key Metrics Changes - Gross revenue for the third quarter totaled $2.6 billion, representing a roughly 10% decline year-over-year and a 7% decline on a revenue ex-billable basis [18] - Adjusted EBITDA for the third quarter was $285 million, translating to an adjusted EBITDA margin of 10.9% [22] - Third-quarter net income was $200 million, a 7% increase year-over-year, while adjusted net income increased by about 9% to $215 million [22] Business Line Data and Key Metrics Changes - The national security portfolio declined about 1% year-over-year, but grew approximately 4% when adjusting for the impact of the government shutdown [19] - The civil business experienced a significant decline of about 28% year-over-year, with expectations for stability in the remainder of the fiscal year [19] - Net bookings for the third quarter totaled $888 million, resulting in a quarterly book-to-bill ratio of 0.3 times [20] Market Data and Key Metrics Changes - Funded backlog fell 10% year-over-year, but ended the calendar year with a record year-end backlog of over $38 billion, up about 2% from the prior year [21] - The qualified pipeline for fiscal year 2027 stands at nearly $53 billion, which is 12% higher than the fiscal year 2026 pipeline at the same point last year [21] Company Strategy and Development Direction - The company is focusing on three priorities: reducing costs, accelerating the transition to outcome-based contracting and product sales, and concentrating investments on growth vectors like cyber, national security, partnerships, and AI [6][11] - A new partnership with Andreessen Horowitz (A16Z) aims to co-create unique commercial technology for national security and public safety, with Booz Allen committing to deploy up to $400 million in A16Z's late-stage venture fund [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational and strategic trajectory, anticipating continued demand for national security technology and expertise [27] - The company expects quarter four funding to improve over quarter three but remain slower than usual, tightening revenue guidance to between $11.3 billion and $11.4 billion [26] Other Important Information - The company recognized a $7 million pre-tax gain from the divestiture of DARPA's Cedar work, which is excluded from non-GAAP adjusted income [23] - The board of directors approved a quarterly dividend of $0.59 per share, payable on March 2nd [25] Q&A Session Summary Question: End market expectations for FY27 - Management indicated that the national security business is expected to grow, while civil may remain flat, with signs of improvement in the civil sector [29] Question: Cost reduction plan - The cost reduction actions have been completed, with some impact expected in Q4, but the full effect will be felt in the next fiscal year [33][34] Question: Funded backlog and growth in fiscal 2027 - Management noted that awards are beginning to accelerate, with strong funding activity observed in December and January, positioning the company for growth [47] Question: Increased competition from new players - The competitive landscape has evolved, with a focus on leveraging unique relationships with tech companies to create opportunities [48] Question: Tactical selling and on-contract growth - Management acknowledged the importance of matching customer needs with solutions, noting encouraging signs in funding and pipeline growth [50]

Financial Data and Key Metrics Changes - The company reported net sales of SEK 69.3 billion in Q4, with organic sales growing by 6% year-on-year, despite a reported sales decrease of 5% due to negative currency effects of SEK 6.8 billion [17] - Adjusted gross margin reached 48% in Q4, supported by cost reduction measures and operational excellence [18] - Adjusted EBITDA was SEK 12.7 billion, up by SEK 2.4 billion, with an EBITDA margin increase of around 4 percentage points to 18.3% [18] - For the full year, net sales amounted to SEK 236.7 billion, with organic sales growing by 2% [19] - Adjusted EBITDA increased to SEK 42.9 billion, with a margin of 18.1% [21] Business Line Data and Key Metrics Changes - In the Networks segment, sales decreased by 6% year-over-year to SEK 44.2 billion, but organic sales increased by 4% [22] - The Cloud and Software and Services segment saw a 3% increase in sales year-over-year to SEK 20 billion, with organic sales growing by 12% [24] - Enterprise sales stabilized with a 2% organic growth in Q4, but reported sales decreased by 25% due to the sale of iconectiv [25] Market Data and Key Metrics Changes - Sales grew in the Europe, Middle East, and Africa market area, as well as in Southeast Asia, while the Americas market was broadly stable [17] - North America experienced slight growth driven by higher software sales, while Northeast Asia saw a decline due to timing of network investments [22] Company Strategy and Development Direction - The company aims to lead in mobile networks with high-performance autonomous and programmable networks that are 5G native, while also scaling its mobile platform to new areas like Mission Critical Enterprise Solutions [10] - The focus is on investing in technology leadership, particularly in areas like AI applications and defense, with a commitment to organic growth rather than large acquisitions [14] - The board proposed an increased dividend of SEK 3 per share and a buyback program of up to SEK 15 billion, totaling SEK 25 billion in shareholder distributions [14][15] Management's Comments on Operating Environment and Future Outlook - Management noted a strong end to the year with improved margins and cash flow, despite a flattish demand environment for mobile networks [5][6] - The outlook for 2026 anticipates a flattish RAN market, but growth is expected from new areas such as Mission Critical networks and 5G Core [31][32] - The company is preparing for potential geopolitical impacts and market changes, particularly in Europe regarding high-risk vendors [61][63] Other Important Information - The company reduced headcount by 5,000 over the past year and plans to continue this trend to improve operational efficiency [5] - Cash flow before M&A was SEK 14.9 billion in Q4, contributing to a net cash position of SEK 61.2 billion [27] Q&A Session Summary Question: Medium-term trajectory and R&D balance - Management emphasized the need for continuous R&D efficiency and strategic investment in key areas like Mission Critical networks and defense applications [37][39] Question: Investment in Defense and Mission Critical - The company sees a sizable market opportunity in defense due to increased spending in the U.S. and Europe, and plans to ramp up investments in this area [42][45] Question: Supply chain shortages and memory price increases - Management stated that they have worked on supply chain resiliency and are in a good position to handle memory price fluctuations [48][50] Question: Buyback program and net cash position - The board's capital allocation principles emphasize maintaining a solid net cash position while distributing excess cash to shareholders [54][56] Question: Changes in the mobile networks market - Management noted that the market has been flattish for two decades, with potential growth opportunities arising from geopolitical changes and competition dynamics [61][63] Question: Revenue outlook and growth opportunities - Management indicated that while the market outlook is flattish, there are opportunities for low to mid single-digit growth driven by new areas like Mission Critical and Enterprise solutions [76][78]

Financial Data and Key Metrics Changes - The company reported net sales of SEK 69.3 billion in Q4, with organic sales growing by 6% year-on-year, despite a reported sales decrease of 5% due to negative currency effects [14][16] - Adjusted gross margin reached 48% in Q4, supported by cost reduction measures and operational excellence [14][15] - Adjusted EBITDA was SEK 12.7 billion, up by SEK 2.4 billion, with an EBITDA margin of 18.3%, reflecting improved operational efficiency [15][16] Business Line Data and Key Metrics Changes - In the Networks segment, sales decreased by 6% year-on-year to SEK 44.2 billion, but organic sales increased by 4% [17][18] - The Cloud and Software and Services segment saw a 3% increase in sales year-on-year to SEK 20 billion, with organic sales growing by 12% [18][19] - The Enterprise segment's sales stabilized with a 2% organic growth, although reported sales decreased by 25% due to the sale of iconectiv [19][20] Market Data and Key Metrics Changes - Sales growth was observed in the Europe, Middle East, and Africa markets, as well as in Southeast Asia, while the Americas market remained stable with slight growth in North America [14][16] - The Northeast Asia market experienced a decline due to timing of network investments [17][18] Company Strategy and Development Direction - The company aims to lead in mobile networks with high-performance, autonomous, and programmable networks that are 5G native, while also expanding into mission-critical enterprise solutions [9][10] - The focus is on investing in technology leadership, particularly in areas like AI applications and mission-critical networks, to capture new growth opportunities [12][26] - The company plans to maintain a solid net cash position while increasing shareholder distributions, proposing a dividend increase and a share buyback program [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategic direction, highlighting the importance of operational efficiency and continued investment in technology [25][26] - The outlook for the mobile networks market is expected to remain flattish, but growth is anticipated from new areas such as mission-critical 5G and enterprise solutions [25][27] - Global uncertainties, including potential tariff changes and macroeconomic factors, are acknowledged, but the company remains focused on executing its strategy [23][25] Other Important Information - The company has reduced its headcount by 5,000 over the past year as part of cost initiatives [4] - The board proposed a total shareholder distribution of approximately SEK 25 billion, marking the largest in the company's history [12][13] Q&A Session Summary Question: Medium-term trajectory and R&D balance - Management acknowledged the need for continuous R&D efficiency and strategic allocation to new areas like Mission Critical and defense applications [31][33] Question: Exposure in Defense and Mission Critical - The company sees significant opportunities in the defense market due to increased spending, particularly in the U.S. and Europe [36][39] Question: Supply chain shortages and memory price increases - Management indicated that they have worked on supply chain resiliency and are in a good position to handle memory price increases [42][43] Question: Revenue outlook in a flattish market - Management believes that low to mid single-digit growth is possible due to opportunities in mission-critical and enterprise segments [71][72] Question: Silicon strategy and competition - The company has chosen a strategy to disaggregate software and hardware, allowing flexibility in hardware choices for customers [75][76] Question: Visibility of North American RAN market - Management noted that while investment levels are healthy, the timing of capital investments may vary between quarters [88][90]

Financial Data and Key Metrics Changes - The company reported net sales of SEK 69.3 billion in Q4, with organic sales growing by 6% year on year, despite a reported sales decrease of 5% due to negative currency effects [13][15] - Adjusted gross margin reached 48% in Q4, supported by cost reduction measures and operational excellence [13][14] - Adjusted EBITDA was SEK 12.7 billion, up by SEK 2.4 billion, with an EBITDA margin of 18.3%, reflecting improved operational efficiency [14][16] Business Line Data and Key Metrics Changes - In the Networks segment, sales decreased by 6% year on year to SEK 44.2 billion, with organic sales increasing by 4% [17][18] - The Cloud and Software and Services segment saw a 3% year-on-year sales increase to SEK 20 billion, with organic sales growing by 12% [18][19] - Enterprise sales stabilized with a 2% organic growth, although reported sales decreased by 25% due to the sale of iconectiv [19] Market Data and Key Metrics Changes - Sales growth was observed in Europe, the Middle East, and Africa, as well as Southeast Asia, while the Americas market was broadly stable, impacted by intense competition in Latin America [13][15] - Northeast Asia experienced a decline due to timing of network investments [17] Company Strategy and Development Direction - The company aims to lead in mobile networks with high-performance autonomous and programmable networks that are 5G native, while also expanding into mission-critical enterprise solutions [7][25] - The strategy includes significant investments in AI applications and devices, anticipating a shift towards hyper-connectivity [5][25] - The company plans to maintain a strong focus on technology leadership through R&D investments, with a proposed increased dividend and share buyback program reflecting confidence in its strategy [11][12][21] Management Comments on Operating Environment and Future Outlook - Management noted a stable demand environment for mobile networks, with expectations for modest growth driven by new areas such as mission-critical applications and enterprise solutions [24][26] - The geopolitical landscape and macroeconomic factors were highlighted as potential risks, with a cautious outlook for the North American RAN market in 2026 [22][24] Other Important Information - The company has reduced headcount by 5,000 over the past year as part of cost initiatives, with expectations for continued reductions [3][4] - The board proposed a total shareholder distribution of SEK 25 billion, the largest in the company's history, including a dividend increase and a buyback program [11][12] Q&A Session Summary Question: Medium-term trajectory and R&D balance - Management emphasized the need for continuous R&D efficiency and strategic allocation to critical areas like Mission Critical and defense applications, despite a flattish market outlook [29][31] Question: Exposure in Defense and Market Size - The company sees significant potential in the defense market due to increased spending in the U.S. and Europe, with a shift towards cost-effective, 3GPP-enabled solutions [33][35] Question: Supply Chain Shortages and Memory Price Increases - Management stated that they have worked on supply chain resiliency and are in a good position to handle memory price increases, maintaining strong relationships with suppliers [38][40] Question: North American RAN Market Visibility - Management indicated healthy investment levels in North America but noted that capital investment timing may vary between quarters [80][82] Question: Revenue Outlook and Growth Opportunities - Management expressed optimism about mid-single-digit revenue growth driven by mission-critical and enterprise opportunities, despite a flattish RAN market [62][64]

Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [11] - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4 [9] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [8] - The average loan-to-value of CRE loans remained steady at 49% [6] Market Data and Key Metrics Changes - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5] - For 2026, deposit growth is expected to range between 4% and 5% [9] Company Strategy and Development Direction - The company plans to announce a new buyback program after approvals are received, with $12 million remaining under the current buyback program [4] - The management is focused on transitioning some of the maturing CDs into non-interest-bearing deposits while being sensitive to defending the existing base [18] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [11] - The competitive landscape in the local LA and New York markets remains strong, particularly for maturing CDs [18] - Management does not see any particular trends in credit migration but is closely monitoring special mention loans [20] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [9] - The effective tax rate for Q4 2025 was 20.23% compared to 17.18% for Q3 [13] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - The company is assuming deposit betas in the 60% range, with market competition remaining rational in Q4 [17] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - Management noted that there are no particular trends in credit migration, with some loans being downgraded to special mention due to short-term financial issues [20][21] Question: Have you seen an elevated level of competition for incremental loan growth? - Management indicated strong competition in the C&I segment, with existing portfolios facing the most competition [29][30]

Financial Data and Key Metrics Changes - The company reported a net income of $90.5 million for Q4 2025, a 16.5% increase from $77.7 million in Q3 2025 [4] - Diluted earnings per share increased by 18.3% to $1.33 in Q4, up from $1.13 in Q3 [4] - For the full year 2025, net income was $315.1 million, a 10.1% increase from $286 million in 2024 [4] - The net interest margin increased to 3.36% in Q4 from 3.31% in Q3 [11] - Total deposits increased by $373 million or 7.6% on an annualized basis during Q4 [9] Business Line Data and Key Metrics Changes - Total gross loans grew by $42 million, driven by increases of $80 million in commercial real estate (CRE) loans and $17 million in residential loans [5] - Non-accrual loans were 0.6% of total loans as of December 31, 2025, down $53.3 million to $112.4 million compared to the prior quarter [8] - The average loan-to-value of CRE loans remained steady at 49% [7] - Net charge-offs for Q4 were $5.4 million, down from $15.6 million in the prior quarter [8] Market Data and Key Metrics Changes - Total uninsured deposits were $9.3 billion, net of $0.9 billion in collateralized deposits, representing 44.6% of total deposits [9] - The company has $7.5 billion of unused borrowing capacity from the Federal Home Loan Bank, $1.3 billion from the Federal Reserve Bank, and $1.6 billion in unpledged securities [9] Company Strategy and Development Direction - The company plans to announce a new stock buyback program after approvals are received, with $12 million remaining under the current buyback program [4] - The company expects loan growth in 2026 to be between 3.5% and 4.5% [5] - The effective tax rate for 2026 is expected to be between 20.5% and 21.5% [13] Management's Comments on Operating Environment and Future Outlook - Management anticipates further benefit to the net interest margin from declining deposit costs supported by the fixed-rate proportion of the loan portfolio [11] - The company expects deposit growth to range between 4% and 5% for 2026 [9] - Management noted that the local LA and New York landscape remains competitive, particularly with nearly $4 billion of maturing CDs in the first quarter [18] Other Important Information - The company recorded $17.2 million in provisions for credit losses in Q4 compared to $28.7 million in Q3 [9] - The Tier 1 risk-based capital ratio increased to 13.27% from 13.15% in Q3 [13] Q&A Session Summary Question: Can you speak more in terms of what you're assuming for deposit betas embedded in that NIM outlook? - Management assumes deposit betas in the 60% range, with market competition remaining rational in Q4 [17] Question: What are you seeing in terms of credit and any migration into criticized and overall trends? - Management noted some migrations into special mention but does not see any particular trends [20] Question: Have you seen an elevated level of competition for incremental loan growth? - Management observed strong competition in the C&I segment, with a decline in rates, while residential mortgage growth was strong [30][31]