RPM International (NYSE:RPM) Q2 2026 Earnings Call January 08, 2026 10:00 AM ET Company ParticipantsMatthew Schlarb - VP of Investor Relations and SustainabilityFrank Sullivan - Chair and CEOJoshua Spector - Executive Director of Chemicals Equity ResearchDavid Begleiter - Managing DirectorMichael Laroche - Vice President, Controller and Chief Accounting OfficerRussell Gordon - VP and CFOVincent Andrews - Managing DirectorJohn Roberts - Managing DirectorMichael Sison - Managing DirectorConference Call Partic ...

Richardson Electronics (NasdaqGS:RELL) Q2 2026 Earnings Call January 08, 2026 10:00 AM ET Company ParticipantsEd Richardson - CEOP. Ross Taylor - Partner and Portfolio ManagerJens Ruppert - General Manager of CanvysChip Rewey - CIOGregory Peloquin - General Manager, Power and Microwave Technologies and Green Energy Solutions GroupsWendy S. Diddell - COORobert J. Ben - CFOConference Call ParticipantsNone - AnalystBobby Brook - VP and Senior Equity Research AnalystAnja Soderstrom - Senior Financial AnalystOpe ...

Financial Data and Key Metrics Changes - Total sales for Q2 FY26 were $52.3 million, an increase of 5.7% from $49.5 million in Q2 FY25. Excluding healthcare, net sales increased by 9.0% [6][9] - Operating income improved to $132,000 in Q2 FY26 from a loss of $667,000 in Q2 FY25 [3][7] - Net loss was $0.1 million for Q2 FY26, compared to a net loss of $0.8 million in Q2 FY25, with diluted net loss per share improving to $0.01 from $0.05 [8][9] - EBITDA for Q2 FY26 was $0.7 million, up from break-even in the prior year [8] Business Line Data and Key Metrics Changes - Green Energy Solutions (GES) sales increased by 39.0% year-over-year, driven by power management products [6][12] - Canvys revenue grew by 28.1% to $8.8 million, primarily due to improved demand from medical OEMs [20][21] - Power and Microwave Technologies (PMT) sales were down 4.0% year-over-year, with PMT sales approximately flat when excluding healthcare [6][12] Market Data and Key Metrics Changes - GES sales growth was attributed to increased sales in onshore wind and electric vehicle segments, reflecting higher sales from existing customers and new products [4][12] - Canvys secured orders from both repeat and new medical OEM customers, indicating strong demand in the medical market [21][22] - Approximately 70% of GES sales are currently in North America, with plans for international expansion [17] Company Strategy and Development Direction - The company is focused on repositioning towards higher growth end markets and expanding its engineered solutions [3][18] - Strategic initiatives include the development of a battery energy storage design center and expansion into international markets [26][27] - The company aims to leverage its existing capabilities and infrastructure to support sustainable growth, with a disciplined approach to acquisitions [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the green energy sector and the semiconductor wafer fab equipment market [27][28] - The company is navigating uncertainties related to tariffs and market conditions but remains focused on pursuing growth opportunities [18][19] - Management highlighted the importance of cash flow and efficiency, with plans to invest in growth initiatives primarily in alternative energy solutions [45][46] Other Important Information - The company has a strong cash position of $33.1 million, with no outstanding debt on its revolving line of credit [10][11] - Capital expenditures in Q2 FY26 were $1.6 million, primarily related to manufacturing improvements and IT systems [10] - The board declared a regular quarterly cash dividend of $0.06 per common share, to be paid in Q3 FY26 [10] Q&A Session Questions and Answers Question: Discussion on core backlog versus non-core backlog - Management clarified that core backlog includes products like Pitch Energy Modules, while non-core backlog consists of smaller components sold to customers building green energy products [33] Question: Cadence of orders turning to backlog and revenues within GES - Management explained that as products transition from alpha to production, new customers and sales contribute to growth, with a focus on maintaining inventory for timely shipments [35][36] Question: Update on GE approval for ALTA 1000 - Management confirmed that GE approval has been obtained, and the product is featured on GE's marketplace, with expectations for testing and installation by GE's customers [40][41] Question: Impact of medical business on margins and future opportunities - Management indicated that the medical business has had a negligible impact on gross margins, with expectations for profitability to improve as production transitions to repairs [43] Question: Plans for cash utilization and potential acquisitions - Management stated that cash will primarily be used for growth initiatives in alternative energy solutions, with an openness to small acquisitions that align with strategic goals [45][46] Question: Outlook for semiconductor market recovery - Management expressed cautious optimism for growth in the semiconductor market, with positive forecasts from multiple customers indicating readiness for increased demand [52]

Financial Data and Key Metrics Changes - The meeting reported that proxies were received for 961,887 of the 2,277,139 shares of common stock outstanding, representing approximately 42% of the total shares, which unfortunately does not constitute a quorum for business transactions [3]. Company Strategy and Development Direction - The company has adjourned the annual stockholders' meeting due to the lack of quorum, indicating a need for further engagement with shareholders to ensure participation in future meetings [4]. Other Important Information - The company will determine a new date and time to hold the 2025 annual stockholders' meeting, reflecting ongoing efforts to maintain communication with stakeholders [4]. Summary of Q&A Session - No questions or answers were recorded during this meeting as it was adjourned due to the lack of quorum [3][4].

Financial Data and Key Metrics Changes - Consolidated sales increased by 3.5% to a record, driven by acquisitions and engineered solutions for high-performance buildings, but offset by continued DIY softness and longer construction project lead times [10] - Adjusted EBIT declined as top-line growth and MAP 2025 benefits were more than offset by higher SG&A expenses from growth initiatives, M&A deal costs, healthcare, and temporary inefficiencies from plant and warehouse facility consolidations [10] - Adjusted EPS declined due to lower adjusted EBIT and higher interest expense resulting from increased debt levels to finance M&A activity [10] Business Line Data and Key Metrics Changes - Construction Products Group sales grew to a record, led by solutions for high-performance buildings, but project lead times lengthened due to the government shutdown [11] - Performance Coatings Group achieved record sales with broad-based growth across businesses, although adjusted EBIT was approximately flat due to growth investments and unfavorable mix [12] - Consumer Group sales growth was driven by M&A and pricing to recover inflation, but volumes declined due to soft DIY demand, particularly in November [12] Market Data and Key Metrics Changes - Europe was the fastest-growing region, driven by M&A and foreign exchange, while North America grew approximately 2% [10] - Emerging markets, particularly Africa and the Middle East, showed growth by serving high-performance building and infrastructure projects [10] Company Strategy and Development Direction - The company is focused on optimizing SG&A levels in response to soft market conditions while continuing to support high-growth opportunities [9] - Investments are being made in high-performance buildings, business intelligence, and innovation, with a goal of enhancing product offerings and market reach [8] - The company is pursuing acquisitions to expand its system offerings, such as the recent agreement to acquire Kalzip, a German-based leader in metal-based roofing [16][19] Management's Comments on Operating Environment and Future Outlook - Management noted that market conditions are expected to remain sluggish, with soft DIY demand and longer lead times for construction projects, but they remain optimistic about outgrowing underlying markets due to targeted growth investments [17] - The company anticipates consolidated sales to increase by mid-single digits in the upcoming quarter, with adjusted EBIT expected to grow mid to high single digits [17][19] - Management expressed uncertainty about the timing of construction pipeline conversions to actual activity, influenced by government shutdowns and market volatility [17][19] Other Important Information - Cash flow from operations increased by $66.3 million compared to the prior year, attributed to improved working capital efficiency [15] - The company has a strong liquidity position of $1.1 billion, allowing for flexibility in capital allocation decisions [15] - The company reversed a $12.7 million liability associated with an earnout for the acquisition of Star Brands Group, reflecting a more conservative sales forecast [12][13] Q&A Session Summary Question: Performance of operating segments - Management indicated that deterioration in performance was observed across all three segments, particularly in construction and consumer, as the quarter progressed [28] Question: SG&A initiative details - The $100 million SG&A initiative includes approximately $70 million in personnel-related cuts and $30 million in discretionary expense reductions [30] Question: Incremental margins outlook - Management expects better incremental margins due to easier comps and structural SG&A actions, along with anticipated improvement in unit volume growth [36] Question: Impact of government shutdown on sales - Management noted that the government shutdown significantly impacted absorption and conversion costs, leading to a loss of nearly a percentage point in margin [45] Question: Pricing realization in Consumer Group - Price contribution was less than 1% in Q2, with expectations for similar performance in Q3 due to price elasticity issues [64] Question: Software system implementation impact - The implementation of new systems in the consumer segment was temporary, and management confirmed that operations are now fully running [70]

Financial Data and Key Metrics Changes - For the first quarter of fiscal 2026, total consolidated net sales increased by 9.2% to a record $23.3 million compared to the same period last year [5] - Gross profit as a percentage of net sales was 36% for the first quarter, down from 38.3% in the prior fiscal year, primarily due to a temporary supplier lead time issue [12] - Net income for the first quarter was $238,000 or $0.03 per diluted share, compared to $561,000 or $0.06 per diluted share in the first quarter of fiscal 2025 [12] Business Line Data and Key Metrics Changes - Zerust Oil & Gas net sales increased by 58.1% to $2.4 million, marking a record for the first quarter [7] - Zerust Industrial net sales increased by 6.9% [5] - Natur-Tec product net sales increased by 2.2% to a record $6 million, driven primarily by higher sales in North America [9] Market Data and Key Metrics Changes - NTIC China reported a 23.5% year-over-year increase in net sales to $4.9 million, indicating strong demand in that market [6] - Joint venture sales increased by 2.9% year-over-year to $24.5 million, despite a mid-single-digit decline at the German joint venture [5] Company Strategy and Development Direction - The company is focused on improving profitability by flattening operating expenses and driving sales in higher-margin segments [4] - NTIC plans to enhance operations in China, viewing it as a significant market for industrial and bioplastic segments [6] - The company is investing in its Zerust Oil & Gas business to enhance its sales team and support anticipated future growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the start of fiscal 2026, expecting higher year-over-year sales and profitability as the year progresses [4] - The company anticipates that economic recovery from government stimulus packages in Europe will positively impact joint venture operating income [6] - Management believes that the investments made over the past three years will begin to yield benefits in terms of improved profitability [4] Other Important Information - As of November 30, 2025, working capital was $19.4 million, with outstanding debt slightly reduced to $12 million [13] - The company declared a quarterly cash dividend of $0.01 per common share, payable on November 12, 2025 [14] Q&A Session Summary Question: What are some levers to improve profitability? - Management indicated that driving sales growth is key to increasing gross margin and operating profit, with expectations for significant growth in the latter half of the fiscal year [16][17] Question: Are there opportunities for cost-cutting? - Management noted that while there are some opportunities, the focus is on allowing revenues to catch up to previous expense increases rather than cutting expenses that could hinder long-term growth [19][20] Question: Are you pleased with the sales team's performance in oil and gas? - Management confirmed that the sales team is starting to secure business, particularly with a significant contract in Brazil and growing opportunities in India and the Middle East [21] Question: Are there other major opportunities in oil and gas? - Management acknowledged the ongoing discussions with other oil companies globally, expecting business growth across various regions [26]

Financial Data and Key Metrics Changes - The company reported a consolidated net sales decrease of 3.4%, with organic net sales declining by 10.8% [18][19] - Adjusted EPS was reported at $1.71, reflecting challenges in pricing realization and increased operational costs [23] - Gross profit margin decreased by 200 basis points to 46.9%, primarily due to higher tariffs and inventory obsolescence [21] - SG&A ratio increased by 160 basis points, influenced by the acquisition of Olive & June and higher freight costs [22] Business Segment Performance Changes - Home and outdoor segment net sales declined by 6.7%, while beauty and wellness segment net sales decreased by 0.5% [11][20] - Organic beauty and wellness sales fell by 13.9%, with tariff-related disruptions contributing significantly [20] - Olive & June outperformed expectations with nearly $38 million in sales, indicating strong brand performance amidst overall declines [11] Market Data and Key Metrics Changes - International sales fell by 8.1%, reflecting challenges in global markets [11] - The company noted a bifurcated economy, with high-income households showing robust spending while lower-income consumers are cautious due to inflation [4] Company Strategy and Development Direction - The company is focused on re-energizing brands, improving operational efficiency, and investing in innovation to drive growth [7][9] - Strategic priorities include enhancing consumer engagement, sharpening execution, and fostering brand loyalty [6][8] - The company plans to maintain a disciplined approach to resource allocation, focusing on high-impact opportunities for long-term growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment but expressed confidence in the company's ability to stabilize and grow [4][5] - The focus will shift towards revenue improvement rather than cost reduction, with an emphasis on innovation and brand building [32][55] - Management expects to provide a more detailed fiscal 2027 outlook in April, indicating a commitment to long-term growth strategies [10][24] Other Important Information - The company is implementing mitigation strategies for tariffs, including supplier diversification and cost reductions, to reduce the impact on operating income [17][18] - Inventory levels are projected to be between $475 million and $490 million at year-end, including tariff-related costs [25] Q&A Session Summary Question: Insights on top-line trends and brand performance - Management is encouraged by growth in brands like Osprey and Olive & June, while acknowledging the need for improvement in declining categories [29][30] Question: Earnings guidance and future outlook - Management indicated that the current earnings guidance may serve as a base for future growth, emphasizing the importance of investing in innovation [31][32] Question: Return to consumer-centric innovation - Management is committed to revitalizing underperforming brands and expects to see benefits from these efforts in the upcoming quarters [38][40] Question: Category demand and consumer behavior - Management noted that while some categories are experiencing growth, others are declining, and they are focused on leveraging strong brands to navigate the market [48][50] Question: Leverage and portfolio optimization - Management is focused on improving balance sheet efficiency and is open to evaluating the brand portfolio for long-term value creation [70][72]

Financial Data and Key Metrics Changes - For the full year, the business excluding Hive saw gross billings increase in the high single digits year over year, with improvements in both gross margin and operating margin [5] - In Q4, non-GAAP gross billings reached $24.3 billion, a 15% increase year over year, or 13% in constant currency, while non-GAAP diluted earnings per share rose 24% year over year to $3.83, setting new records for the company [5][6] - Net revenue for Q4 was $17.4 billion, up 10% year over year, with gross profit increasing 15% to $1.2 billion [17] Business Line Data and Key Metrics Changes - The Endpoint Solutions portfolio increased gross billings by 12% year over year, driven by demand for PCs due to the Windows 11 refresh [15] - The Advanced Solutions portfolio saw a 17% increase in gross billings year over year, with Hive contributing over 50% growth primarily from server and networking rack builds [16] - Hive's operating income also grew significantly year over year, becoming a larger portion of the overall mix [6] Market Data and Key Metrics Changes - North America experienced steady growth supported by demand across key customer segments and increased security requirements [7] - Europe outperformed expectations with growth driven by infrastructure software and PC device upgrades, despite a slow macroeconomic backdrop [7] - Asia-Pacific and Japan remained key growth engines, driven by rapid cloud expansion and strong demand from digitizing economies [7] Company Strategy and Development Direction - The company is focusing on four strategic pillars: omnichannel engagement, specialized go-to-market, best-in-class enablement, and expanding brand visibility [8][13] - Investments in the Partner-First Digital Bridge and AI capabilities are aimed at enhancing customer engagement and simplifying transactions [8] - The company aims to strengthen its competitive position as a strategic business partner, focusing on sustainable long-term growth [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value proposition of Hive and IT distribution, highlighting substantial untapped market opportunities [14] - The company anticipates continued growth in the PC market, driven by ongoing refresh cycles and AI compatibility [62] - Management remains focused on generating sustainable free cash flow and improving return on invested capital [22][24] Other Important Information - Free cash flow for FY25 was $1.4 billion, marking the third consecutive year of over $1 billion in free cash flow [19] - The company returned $742 million to shareholders over the fiscal year, representing approximately 61% of free cash flow [20] - The board approved a cash dividend of $0.48 per common share, payable on January 30, 2026 [22] Q&A Session Summary Question: Growth in Europe and Asia-Pacific - Management noted that growth in Asia-Pacific is driven by significant market share gains and investments in high-growth segments, particularly in India [27][28] - In Europe, the company is gaining market share by targeting technologies and customer segments that offer higher growth than the market average [30] Question: Impact of Component Costs on Demand - Management confirmed that while memory prices have increased, they have not seen demand destruction, and guidance reflects a bottom-up assessment from regions [34][37] Question: Visibility for Hyve Programs - Management expressed confidence in the margin profile of Hyve and noted ongoing investments to expand capabilities and capacity [51][60] Question: Net Revenue Conversion Dynamics - Management explained that the increase in gross-to-net adjustments is influenced by a higher mix of software and certain Hive programs, which are netted [70][71]

Helen of Troy (NasdaqGS:HELE) Q3 2026 Earnings Call January 08, 2026 09:00 AM ET Company ParticipantsBob Labick - PresidentAnne Rakunas - Director of External CommunicationsScott Ezell - CEOBrian Grass - CFOConference Call ParticipantsOlivia Tong - Managing Director and Senior Analyst of ConsumerSusan Anderson - Managing Director and Senior AnalystRupesh Parikh - Managing Director of Senior Equity Research AnalystPeter Grom - Equity Research AnalystOperatorGreetings. Welcome to Helen of Troy Ltd, third quar ...

TD SYNNEX (NYSE:SNX) Q4 2025 Earnings Call January 08, 2026 09:00 AM ET Company ParticipantsPatrick Zammit - CEONate Friedel - Head of Investor RelationsDavid Jordan - CFOAusten Baker - Managing DirectorDavid Paige - AVP of Equity ResearchConference Call ParticipantsRuplu Bhattacharya - Managing Director and Equity Research AnalystErik Woodring - Executive Director and Equity Research AnalystAdam Tindle - Managing Director and Senior Equity Research AnalystKeith Housum - Managing Director and Senior Equity ...