Banco Santander (NYSE:SAN) Q4 2025 Earnings call February 03, 2026 02:00 PM ET Company ParticipantsAlvaro Serrano - Managing Director and Head of European Banks ResearchAna Botín - Executive ChairAndrea Filtri - Co-Head of European Equity ResearchFrancisco Riquel - Head of Banking ResearchHugo Cruz - Director of European Bank Strategy and Capital MarketsHéctor Grisi Checa - CEOIgnacio Cerezo - Executive DirectorIgnacio Ulargui - Senior analyst of Spanish Banking Sector and Diversified FinancialsJosé Antonio ...

Banco Santander (NYSE:SAN) Q4 2025 Earnings call February 03, 2026 02:00 PM ET Company ParticipantsAlvaro Serrano Saenz de Tejada - Managing DirectorAna Botín - Executive ChairFrancisco Riquel Correa - Head of Equity ResearchHéctor Grisi - CEOJosé García Cantera - CFORahul Sinha - Head of Investor RelationsConference Call ParticipantsAndrea Filtri - Equity Research AnalystCarlos Peixoto - Equity Research AnalystIgnacio Cerezo Olmos - Equity Research AnalystIgnacio Ulargui - Equity Research AnalystRahul Sinh ...

Banco Santander (NYSE:SAN) Q4 2025 Earnings call February 03, 2026 02:00 PM ET Company ParticipantsAlvaro Serrano - Managing DirectorAna Botín - Executive ChairBorja Ramirez - DirectorFrancisco Riquel Correa - Head of Equity ResearchHugo Cruz - DirectorHéctor Grisi - CEOJosé García Cantera - CFORahul Sinha - Head of Investor RelationsConference Call ParticipantsAndrea Filtri - Equity Research AnalystBritta Schmidt - Senior AnalystCarlos Peixoto - Equity Research AnalystIgnacio Cerezo - Equity Research Analy ...

Banco Santander (NYSE:SAN) Q4 2025 Earnings call February 03, 2026 02:00 PM ET Company ParticipantsAlvaro Serrano - Managing Director and Head of European Banks ResearchAna Botín - Executive ChairHéctor Grisi Checa - CEOJosé Antonio García Cantera - CFORaul Sinha - Head of Investor RelationsConference Call ParticipantsAndrea Filtri - AnalystBorja Ramirez - AnalystBritta Schmidt - AnalystCarlos Peixoto - AnalystFrancisco Riquel - AnalystHugo Cruz - AnalystIgnacio Cerezo - AnalystIgnacio Ulargui - AnalystNone ...

Banco Santander (NYSE:SAN) Q4 2025 Earnings call February 03, 2026 02:00 PM ET Speaker10Good evening, everyone, and thank you for joining Santander's 2025 results presentation. We're delighted to be joined by Executive Chair, Ana Botín; our CEO, Héctor Grisi; and our CFO, José García Cantera. We are going to have a short presentation, with Ana leading the way. Ana, it's my pleasure to hand to you.Speaker1Thank you, Rahul, and good evening, everyone. Welcome to our 25 results presentation. Alongside our stro ...

Financial Data and Key Metrics Changes - The company reported a record quarterly profit of EUR 14.1 billion for 2025, marking a 12% year-over-year increase in profits, and 15% excluding Argentina [1][2] - The return on tangible equity (ROTE) increased from 8.1% to 16.3%, with a cost-to-income ratio of 39% [1][5] - The fully loaded CET1 ratio rose by 70 basis points to 13.5%, exceeding the target range of 12-13% [10][28] Business Line Data and Key Metrics Changes - The Corporate and Investment Banking (CIB), Wealth, and Payments segments experienced strong revenue growth, with Wealth profit up 27% and Payments volume increasing by 9% [3][8] - The retail business saw a profit increase of 9% year-on-year, with a reduction in cost-to-serve by around 4% [5][6] - The consumer business reported a net interest income (NII) growth of 5% year-on-year, while overall group NII, excluding Argentina, grew by 3% [3][6] Market Data and Key Metrics Changes - The customer base grew by 8 million to 180 million, reflecting strong customer activity across all business lines [1] - The company maintained a prudent approach to risk, with a cost of risk ending the year at 1.15% [2] Company Strategy and Development Direction - The company is focused on "One Transformation," aiming to simplify products and improve operational efficiency [1][4] - The acquisition of Webster is expected to enhance the U.S. operations, aiming for an ROTE of 18% by 2028, and is seen as a strategic move to strengthen the retail and commercial banking presence in the U.S. [11][18] - The company plans to maintain a commitment to at least EUR 10 billion in share buybacks for 2025 and 2026 [9][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. market, highlighting its attractiveness and potential for growth, with expectations of achieving a ROTE in excess of 20% by 2028 [31][32] - The integration of TSB and Webster is expected to provide significant operational leverage and enhance profitability [32][64] Other Important Information - The company completed the disposal of Santander Polska, generating around 95 basis points of capital, which will be used for share buybacks and acquisitions [10][28] - The integration of Santander Consumer Finance and Open Bank into a single entity is aimed at simplifying the structure and enhancing customer experience [7] Q&A Session Summary Question: Can you provide more details on the $800 million cost synergies? - Management explained that the $800 million in synergies includes $480 million from headquarters and overheads, and $280 million from technology integrations, emphasizing the significant duplication in operations [36][39] Question: Why is the expected ROIC set at 15%? - Management stated that the 15% ROIC aligns with the company's capital hierarchy and reflects the current market conditions, emphasizing the U.S. market's strong performance over the past five years [37][43] Question: What has changed regarding the West Coast market? - Management clarified that the acquisition of Webster allows Santander to operate as a full-service retail commercial bank in the Northeast, which was not feasible previously [46][50] Question: What are the expected impacts from the Polish sale and TSB integration? - Management indicated that 2027 would be a clean year for assessing the full benefits of both TSB and Poland, with expectations of double-digit revenue growth and mid-teens profit increases [61][63] Question: Will new shares be issued for the Webster acquisition? - Management confirmed that 35% of the acquisition consideration will be paid in new shares, with a share buyback program also in place [64][65]

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% from $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year at $0.46 [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with a corresponding improvement in margin from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to elevated medical costs and extended duration of injury claims [8] - Medical costs are rising due to inflation, with increases noted between 5%-12% across multiple states [9] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [10] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [11] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [11] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [11] - Management emphasized the importance of technology and reputation in maintaining growth momentum despite recent revenue growth deceleration [23] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 114.9 million shares repurchased for $868 million since inception [19] - The quarter-ending cash balance was $230 million, with free cash flow of $90 million for the fiscal year to date [21] - The company maintains a strong and debt-free balance sheet, positioning it well for strategic product expansion and technological advancement [21] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth has not been a straight line historically and believes that investment in technology and reputation will support future growth [23] Question: Can you please provide more context around segment quarter three? - CorVel operates within a single segment, providing services in Patient Management and Network Solutions, and does not report products separately [24]

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% from $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year at $0.46 [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with margin improvement from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to elevated medical costs and extended duration of injury claims [8] - Medical costs are rising due to inflation, with increases noted between 5%-12% across multiple states [9] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [10] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [11] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [11] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [11] - Management emphasized the importance of technology and reputation in maintaining growth momentum despite recent revenue fluctuations [23] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 69% of shares outstanding repurchased at an average price of $7.55 per share [19] - The quarter-ending cash balance was $230 million, with free cash flow of $90 million for the fiscal year to date [20][21] - The company maintains a strong and debt-free balance sheet, positioning it for continued strategic expansion and technological advancement [21] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth has not been a straight line historically and believes that investment in technology and reputation will support future growth [23] Question: Can you please provide more context around segment quarter three? - Management clarified that CorVel operates within a single segment, providing services under Patient Management and Network Solutions without breaking them out separately [24]

Financial Data and Key Metrics Changes - CorVel's revenue for the nine months ending December 31, 2025, was $710 million, a 7% increase from $664 million in the same period of the previous fiscal year [5] - Earnings per share for the same period were $1.53, up 16% compared to $1.32 during the nine months ending December 31, 2024 [5] - For the December 2025 quarter, revenues were $236 million, a 3% increase from $228 million in the December 2024 quarter [5] - Earnings per share for the December 2025 quarter were $0.47, an increase of 2% over the same quarter of the prior year [5] - Overall net income for the December 2025 quarter was $24.1 million, up from $23.8 million in December 2024 [6] Business Line Data and Key Metrics Changes - Key growth drivers included Independent Medical Evaluations, CERIS, Ancillary Care Solutions, Medical Bill Re-review, and Claims Management [7] - The allocation of general and administrative expenses decreased from 9.7% to 9.6%, with a corresponding improvement in margin from 23.2% to 23.3% [6] Market Data and Key Metrics Changes - The U.S. Department of Labor reported a small decline in total work-related injuries from 2023 to 2024, consistent with a decade-long trend [7] - Average medical and lost time claim severity increased by 6% in 2024, leading to higher medical costs and longer injury claim durations [9] - Medical costs are rising due to inflation, with increases reported between 5%-12% across multiple states [10] Company Strategy and Development Direction - CorVel is focusing on product innovation, savings through clinical outcomes, and effective management to adapt to industry shifts and leverage growth opportunities [11] - The company is investing in AI initiatives to enhance operational efficiency and improve outcomes for partners [12] - A technology-centric acquisition was closed at the end of June, contributing to increased efficiency in health payment integrity services [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the December quarter results were modest relative to expectations, primarily due to short-term operational factors [12] - The net revenue retention for the business was 107%, with a 44% close rate on new business opportunities [12] - Management emphasized that the historical revenue growth pattern is expected to continue despite recent deceleration [24] Other Important Information - CorVel repurchased 185,559 shares at a cost of $13.4 million during the quarter, totaling 69% of the shares outstanding repurchased at an average price of $7.55 per share [21] - The company reported a Day Sales Outstanding of 39 days, an improvement of three days compared to the same period a year ago [21] - Free cash flow for the fiscal year to date was $90 million, with increased capital expenditures due to proprietary software development [22] Q&A Session Summary Question: Can you provide more detail on the deceleration of year-over-year revenue growth for each segment? - Management indicated that revenue growth is not a straight line and believes that investment in technology and the company's reputation will support future growth [24] Question: Can you please provide more context around segment quarter three? - Management clarified that CorVel operates within a single segment, providing services in Patient Management and Network Solutions without breaking down products separately [25]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1.77 per share for Q1 2026, an increase from $1.34 per share a year ago, reflecting strong execution in the gas utility business and contributions from marketing and midstream segments [4][10] - Adjusted earnings for the quarter totaled $108 million, compared to $81 million in the previous year, indicating a year-over-year growth of approximately 33% in gas utilities earnings [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25 to $5.45 per share and 2027 guidance of $5.65 to $5.85 per share, with a long-term adjusted EPS growth target of 5% to 7% [6][12] Business Line Data and Key Metrics Changes - Gas utilities earned $104 million, up over 33% from the previous year, driven by new rates in Missouri and higher margins in Alabama [10] - Gas marketing segment earnings increased to $4.5 million, up $2.3 million due to enhanced portfolio optimization opportunities [11] - Midstream earnings rose to $12.7 million, an increase of nearly $1 million from last year, attributed to additional capacity at Spire Storage [11] Market Data and Key Metrics Changes - The company experienced record natural gas demand during Winter Storm Fern, delivering natural gas equivalent to 31 gigawatts of electric generation capacity [3] - The new Missouri rates became effective in October, and a request for a $30.3 million revenue increase was filed in November, expected to be effective by May [5] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, primarily targeting utility investments, and maintaining a disciplined approach to capital deployment [6][9] - The company is committed to customer affordability through cost management and is pursuing constructive regulatory outcomes across all jurisdictions [4][15] - The integration planning for the Tennessee acquisition is underway, with an 18-month transition services agreement to ensure continuity for customers and employees [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the ability to achieve long-term growth targets despite the challenges posed by extreme weather conditions [4][6] - The company is focused on simplifying its portfolio and expects to provide updates on the potential sale of natural gas storage assets later this quarter [8][25] - Management highlighted the importance of maintaining a strong balance sheet and flexibility, targeting a funds from operations (FFO) to debt ratio of 15%-16% [14] Other Important Information - The merger of the STL and MoGas pipelines was completed on January 1, 2026, and will operate as the Spire MoGas pipeline [13] - The company invested $230 million in capital expenditures during the quarter, primarily directed toward gas utility operations [8][9] Q&A Session Summary Question: How did the marketing segment perform during January's gas market volatility? - Management indicated that the marketing segment performed well and met all customer obligations during the volatility, with a positive outlook for further discussions in the next quarter [17][18] Question: Can you provide an update on the storage asset sales process? - Management confirmed strong interest in the storage assets and is focused on achieving the right value, with an announcement expected later this quarter [24][25] Question: What are the expectations for equity issuance related to the Tennessee acquisition? - Management indicated that announcements regarding equity issuance would likely occur after the next call in May or June, depending on the progress of the acquisition [31] Question: What is the regulatory strategy and timeline for the next rate case in Missouri? - Management anticipates filing the next rate case after the fiscal year-end but before Thanksgiving, with preparations already underway [55]