Financial Data and Key Metrics Changes - The company reported a solid fiscal 2025 with sales and underlying sales increasing by 3% [10] - Operating cash flow rose by 11%, while free cash flow increased by 12% [10] - Earnings per share surged by 43%, and adjusted earnings per share grew by 9% [10] Business Line Data and Key Metrics Changes - The acquisition of Aspen Technology, along with the integration of National Instruments and the divestiture of Copeland, has created a cohesive automation portfolio [10] Market Data and Key Metrics Changes - No specific market data or key metrics changes were provided in the meeting [10] Company Strategy and Development Direction - The company is focused on transforming into a global automation leader for mission-critical industries [10] - The recent acquisitions align with long-term secular trends and the investing priorities of customers [10] Management Comments on Operating Environment and Future Outlook - Management highlighted the dedication of global teams in achieving fiscal 2025 results and emphasized the importance of the recent acquisitions in driving future growth [10] Other Important Information - The proposal to amend the company's Restated Articles of Incorporation to declassify the board of directors was not approved, failing to receive the required 85% of outstanding shares voting in favor [11] Q&A Session Summary - There were no questions from shareholders pertaining to the matters being voted on at the meeting [10]

Financial Data and Key Metrics Changes - Adjusted earnings per share increased by 18% year-over-year, reaching $3.33, aligning with the midpoint of guidance [5][15] - Quarterly revenue was reported at $7.1 billion, with segment margins hitting a record of 24.9%, up 20 basis points year-over-year [5][15] - Organic growth for the quarter was 9%, driven by strength in aerospace and Electrical Americas, partially offset by weaknesses in vehicle and e-mobility [15] Business Line Data and Key Metrics Changes - Electrical Americas segment achieved organic sales growth of 15%, primarily driven by data center demand, which surged by approximately 40% [16] - Aerospace segment reported organic sales growth of 12%, with operating margin expanding by 120 basis points to 24.1% [18] - Vehicle segment experienced a decline of 13% in organic sales, primarily due to weaknesses in the North America truck and light vehicle markets [19] Market Data and Key Metrics Changes - Orders in Electrical Americas increased by 16% on a trailing 12-month basis, with total quarterly orders rising sequentially by over 18% [16] - Backlog in Electrical Americas reached $15.3 billion, growing 29% year-over-year, while aerospace backlog increased by 16% [12] - Mega project backlog rose by 30% year-over-year to $3 trillion, with data centers representing 54% of year-to-date announcements [11] Company Strategy and Development Direction - The company plans to spin off its mobility business into a separate publicly traded entity, aiming to sharpen strategic focus and optimize its portfolio [7][10] - Investments of $13 billion were announced for 2025, including acquisitions to enhance growth in high-margin markets [5][10] - The company is focused on leading, investing, and executing for growth, particularly in electrical and aerospace markets [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in double-digit growth in data center markets, supported by strong order trends and backlog [32][36] - The company anticipates continued strong demand and structural organic growth rates through 2030, driven by record backlogs and market trends [12][24] - Management acknowledged temporary headwinds from capacity ramp-up costs but remains optimistic about long-term growth potential [54][58] Other Important Information - The company is experiencing unprecedented demand, reflected in continued order acceleration and growing backlogs [24] - The transition of CFO Olivier Leonetti is planned for April 1, 2026, as part of a management transition [20] Q&A Session Summary Question: Confidence in double-digit growth in data center markets - Management highlighted strong market indicators, including a 200% year-over-year increase in industry announcements and backlog, supporting optimism for future growth [32][34] Question: Recent market developments in liquid cooling technology - Management noted that liquid cooling is growing faster than the average market, with synergies expected between cooling and power management solutions [37][38] Question: Quarterly cadence of the 2026 EPS guidance - Management explained that the first half of 2026 is expected to show lower growth due to ramp-up costs, with a stronger performance anticipated in the second half [47][50] Question: Challenges related to capacity expansion - Management acknowledged temporary headwinds from capacity expansion but expressed confidence in the long-term growth potential of the business [52][54] Question: Clarification on Electrical Americas margins - Management indicated that the impact of ramp-up costs would be more pronounced in the first half of 2026, with expectations for margin recovery later in the year [64][82]

Financial Data and Key Metrics Changes - Total asset footprint increased to over $1 trillion, representing a 6% year-over-year growth [3] - Assets Under Management (AUM) reached $146 billion, growing by $11 billion or 8% compared to the prior year [4] - Assets Under Advisement (AUA) totaled $871 billion, up $50 billion or 6% year-over-year [4] - Total management and advisory fees increased by 11% year-over-year, with fee-related revenue growing by 31% to $507 million [4][29] - GAAP EPS for the fiscal year-to-date was $4.35, with non-GAAP EPS at $4.41 [5] Business Line Data and Key Metrics Changes - Fee-earning AUM stood at $79.1 billion, growing by $8.1 billion or 11% year-over-year [10] - Specialized funds revenue increased by $35 million or 15% compared to the prior year, driven by growth in the Evergreen Platform [29] - Customized Separate Accounts fee-earning AUM grew to $41.1 billion, up $1.3 billion or 3% year-over-year [23] Market Data and Key Metrics Changes - The Evergreen Platform generated over $1.2 billion of net inflows, with total AUM reaching over $16 billion, representing over 70% year-over-year growth [21] - The international credit Evergreen fund surpassed $2 billion in AUM, with a strong performance and positive net inflows [22] Company Strategy and Development Direction - The strategic partnership with Guardian has closed, overseeing nearly $5 billion of Guardian's private equity portfolio, with expected annual commitments of approximately $500 million for at least 10 years [9] - The company aims to broaden distribution for its flagship strategies and enhance its product offerings in the wealth management sector [8][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating changing markets and high client expectations, highlighting strong growth and momentum [7] - The exit environment is expected to improve in 2026, with increased distribution activity anticipated [49] Other Important Information - The company has invested in Pluto Financial Technologies to enhance technology solutions in private markets [25][26] - The partnership with Guardian is expected to have initial economic impacts recognized in the fiscal fourth quarter of 2026 [9][33] Q&A Session Summary Question: Product roadmap for wealth in calendar 2026 - Management indicated that while new products will be added, the volume will not match the previous year as focus shifts to scaling existing products [39] Question: Software exposure and AI risk - Management noted that their diversified portfolio mitigates concentration risk in software, and they do not see AI disruption as a significant issue [43][44] Question: Exit activity and industry evolution - Management observed an increase in distribution activity, with a stronger exit environment expected in 2026 [49] Question: Opportunities from the evolving Evergreen Platform - Management discussed the potential for using Evergreen products as tools for portfolio construction and the ongoing education around these products [50][51] Question: Institutional interest in Evergreen products - Management clarified that institutional clients are using Evergreen products for ease of use and tactical portfolio management rather than high redemption rates [56] Question: Market sentiment regarding secondary funds - Management expressed optimism about the secondary market, noting it remains undercapitalized and has significant growth potential [71]

Financial Data and Key Metrics Changes - The company reported a strong start to fiscal Q1 2026, with revenue guidance raised by $90 million and EBITDA guidance increased by $60 million, reflecting solid performance [8][17] - EBITDA margin for the quarter was 52.4%, slightly better than expected, with strong operating cash flow generation of over $830 million [10][11] - The company ended the quarter with a cash balance of over $2.5 billion and a net debt to EBITDA ratio of 5.7 times, down from 5.8 times [33][34] Business Line Data and Key Metrics Changes - Total commercial OEM revenue increased approximately 17% year-over-year, driven by higher build rates from Boeing and Airbus [22][23] - Commercial aftermarket revenue grew by approximately 7%, with all submarkets experiencing positive growth, particularly in commercial transport [25][26] - Defense market revenue grew by approximately 7%, supported by new business wins and increased defense spending globally [26][27] Market Data and Key Metrics Changes - Commercial OEM bookings were up significantly, indicating a recovery from previous disruptions, with growth in the high teens percentage [23][24] - The commercial aftermarket is expected to grow in the high single-digit percentage range, supported by strong bookings and positive indicators [25][26] - Defense bookings were robust, significantly surpassing sales for the period, indicating a strong backlog in the defense segment [27] Company Strategy and Development Direction - The company maintains a consistent long-term strategy focused on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns [7][8] - Recent acquisitions, including Stellant Systems, Jet Parts Engineering, and Victor Sierra Aviation, align with the company's strategy to enhance its aftermarket revenue and strengthen partnerships with airlines [12][14] - The capital allocation priorities remain focused on reinvesting in businesses, disciplined M&A, and returning capital to shareholders [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fiscal year, noting that underlying market fundamentals have not changed significantly, and they are encouraged by the current trends in commercial aerospace [17][18] - The company anticipates continued growth in commercial OEM and aftermarket segments, with guidance reflecting a conservative approach due to potential risks in production rates [18][19] - Management remains focused on operational excellence and value drivers, with a commitment to closely monitor market developments [19][20] Other Important Information - The company has signed agreements for three new acquisitions, with a total expected revenue contribution of approximately $580 million for the 2025 calendar year [11][12] - The company has significant M&A firepower remaining, approaching $10 billion, providing flexibility for future opportunities [16] Q&A Session Summary Question: Profitability in the quarter - Management noted that the EBITDA margin of 52.4% was better than expected, driven by strong growth in commercial OEM and effective cost management [40] Question: Distributor POS and aftermarket growth - Management confirmed that distributor POS growth has been strong, but there has been some headwind from inventory changes, which should turn into a tailwind as the year progresses [44][46] Question: Aftermarket bookings growth - Management indicated that aftermarket bookings grew faster than revenue, but specific numbers were not disclosed, emphasizing a rolling 12-month average for bookings [60][62] Question: Acquisitions and market trends - Management acknowledged that acquisition prices reflect current market trends but believe they paid fair prices that align with their targeted IRR [81][82] Question: Material share loss from PMAs - Management stated that there has been no material share loss from PMAs, and operational teams are effectively meeting customer demand [86] Question: Margin structure of acquired businesses - Management indicated that while the acquired businesses have growth potential, they do not expect their margins to reach the company's average levels [99]

W W Grainger (NYSE:GWW) Q4 2025 Earnings call February 03, 2026 11:00 AM ET Company ParticipantsD.G. Macpherson - Chairman and CEODee Merriwether - CFOKyle Bland - VP of Investor RelationsConference Call ParticipantsChris Dankert - AnalystChristopher Glynn - AnalystChristopher Snyder - AnalystConnor Lynagh - AnalystDavid Manthey - AnalystGuy Hardwick - AnalystJacob Levinson - AnalystRyan Merkel - AnalystStephen Volkmann - AnalystTommy Moll - AnalystOperator...Greetings, and welcome to the W.W. Grainger Four ...

Financial Data and Key Metrics Changes - Pre-tax net investment income was $34.6 million, or $0.60 per share, an increase from the previous quarter [16] - Total investment income rose to $61.4 million from $56.9 million, driven by increases in PIK income, fees, and dividend income [16][18] - Undistributed taxable income (UTI) increased to $1.02 per share, up from $0.68 per share in December 2024 [3][17] - NAV per share increased to $16.75 from $16.62 in the prior quarter [18] Business Line Data and Key Metrics Changes - Closed $244 million in total new commitments across eight new portfolio companies and 16 existing portfolio companies [4] - The weighted average spread on new commitments was approximately 6.4% [5] - The on-balance sheet credit portfolio ended at $1.8 billion, representing a 19% year-over-year growth [10] - 100% of new portfolio company debt originations were first lien senior secured [10] Market Data and Key Metrics Changes - Approximately 93% of the credit portfolio is sponsor-backed, providing strong governance and operational support [10] - The credit portfolio generated a weighted average yield of 11.3% with a weighted average leverage of 3.6x EBITDA [12] - Cash flow coverage improved to 3.4 times, up from 2.9 times during peak base rates [14] Company Strategy and Development Direction - The company announced a joint venture to enhance competitiveness in the lower middle market, allowing participation in larger, higher-quality deals [7] - The joint venture is expected to generate low to mid-teens equity returns for the company [7] - The company aims to maintain disciplined growth and create long-term value for shareholders [21][73] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive position in the lower middle market despite challenges faced by peers [25] - The company is focused on executing its strategy and maintaining a conservative leverage cushion to mitigate capital market volatility [19][73] - Management noted that the lower middle market remains active, with private equity sponsors still looking for deals [32] Other Important Information - The company has a robust liquidity position with approximately $438 million in cash and undrawn leverage commitments [19] - Non-accruals represented just 1.5% of the investment portfolio at fair value [16] Q&A Session Summary Question: Can you expand on the competitive dynamics in the lower middle market? - Management noted that while regional banks have fluctuated in their lending, the competitive landscape remains stable with fewer BDCs currently trading at book value [24][25] Question: What is the outlook for spreads in the coming quarters? - Management indicated that spreads have stabilized, with expectations to remain between 7% and 7.25% over the next 12 months [26] Question: What is the breakdown of the portfolio between sponsored and non-sponsored deals? - The portfolio consists of approximately 93% sponsored and 7% non-sponsored deals [30] Question: How are sponsors behaving in the current market environment? - Sponsors are still looking for deals, although last year was considered weak for deployment [31] Question: How is AI disruption risk being evaluated in the portfolio? - The company has formed an AI committee to assess AI risks in existing and new investments, indicating a proactive approach to potential disruptions [68]

Eaton Corporation (NYSE:ETN) Q4 2025 Earnings call February 03, 2026 11:00 AM ET Company ParticipantsAndrew Obin - Managing Director of Equity ResearchNigel Coe - Managing DirectorOlivier Leonetti - EVP and CFOPaulo Ruiz - CEOYan Jin - SVP of Investor RelationsConference Call ParticipantsChris Snyder - Research AnalystDeane Dray - Managing Director and Multi-Industry and Electrical Equipment Equity AnalystNicole DeBlase - Managing Director and Lead AnalystOperatorGood day and welcome to the Eaton fourth qua ...

Financial Data and Key Metrics Changes - The company generated pre-tax net investment income of $0.60 per share, with total investment income increasing to $61.4 million from $56.9 million in the prior quarter [3][16] - The undistributed taxable income (UTI) balance rose from $0.68 per share in December 2024 to $1.02 per share, reflecting strong realized gains of $44.5 million from equity exits over the last 12 months [3][16] - The company declared total dividends of $0.64 per share for the March quarter, including a regular dividend of $0.58 and a supplemental dividend of $0.06 [4][17] Business Line Data and Key Metrics Changes - The company closed $244 million in total new commitments across eight new portfolio companies and 16 existing portfolio companies, with add-on financings representing 29% of total new commitments [4] - The weighted average spread on new commitments was approximately 6.4%, which is considered attractive in the current competitive environment [5] - The on-balance sheet credit portfolio ended the quarter at $1.8 billion, reflecting a 19% year-over-year growth from $1.5 billion [10] Market Data and Key Metrics Changes - The credit portfolio generated a weighted average yield of 11.3% with a weighted average leverage of 3.6x EBITDA [12] - Approximately 93% of the credit portfolio is sponsor-backed, providing strong governance and operational support [10] - Cash flow coverage improved to 3.4x, up from 2.9x during the peak of base rates, indicating strong portfolio performance [14] Company Strategy and Development Direction - The company announced a joint venture with a private credit asset manager to enhance competitiveness in the lower middle market, allowing participation in larger, higher-quality deals [7][8] - The joint venture is expected to generate low to mid-teens equity returns for the company, reinforcing its strategy of disciplined growth and long-term value creation [7][8] - The company aims to maintain a conservative leverage cushion to mitigate capital market volatility while continuing to raise secured and unsecured debt capital [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the competitive position in the lower middle market, noting a reduction in competition from peers due to dividend cuts among other BDCs [25] - The company remains focused on executing its strategy and maintaining disciplined growth, with a strong emphasis on risk management and portfolio granularity [21][22] - Management highlighted the importance of maintaining strong relationships with private equity sponsors, which continue to seek opportunities despite a challenging market environment [31][32] Other Important Information - The company raised approximately $53 million in gross equity proceeds through its Equity ATM Program at a weighted average share price of $21.11, reinforcing its ability to raise capital efficiently [6][18] - The liquidity position remains robust, with approximately $438 million in cash and undrawn leverage commitments, representing more than 1.5x coverage of unfunded commitments [19] Q&A Session Summary Question: Competitive dynamics in the lower middle market - Management noted that while regional banks have become more active, the competitive landscape remains stable, with fewer BDCs currently offering dividends [24][25] Question: Outlook for spreads - The company expects spreads to remain between 7% and 7.25% over the next 12 months, with recent deals showing spreads in the mid-sixes [26] Question: Breakdown of portfolio between sponsored and non-sponsored - The portfolio consists of approximately 93% sponsored and 7% non-sponsored deals, with sponsors still actively seeking opportunities [30] Question: Activity level in deal flow - Management expressed bullishness regarding deal flow, citing strong sponsor relationships and the recent joint venture as key factors for future growth [37][39] Question: AI disruption risk evaluation - The company has established an AI committee to assess AI risks in existing and new investments, indicating a proactive approach to potential disruptions [69]

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, marking a year-over-year increase of approximately 33% in gas utilities earnings [10][11] - The company reaffirmed its 2026 adjusted EPS guidance of $5.25-$5.45 per share and 2027 guidance of $5.65-$5.85 per share, indicating confidence in long-term growth [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][11] - Gas marketing segment earnings increased to $4.5 million, up $2.3 million due to enhanced portfolio optimization opportunities [10] - 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 company’s capital expenditures for the quarter were $230 million, primarily directed towards gas utility operations, with expectations of $809 million in total CapEx for 2026 [8][9] Company Strategy and Development Direction - The company is focused on executing its ten-year capital plan of $11.2 billion, with a majority aimed at utility investments [7] - The company is committed to maintaining customer affordability through disciplined cost management and achieving constructive regulatory outcomes [4][15] - The ongoing evaluation of potential sales of natural gas storage assets aims to simplify the portfolio while ensuring the right value is achieved [8][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the disciplined approach to capital deployment, reaffirming long-term adjusted EPS growth targets of 5%-7% [6][12] - The integration planning for the Tennessee acquisition is underway, with a focus on ensuring seamless continuity for customers and employees [8][40] - Management highlighted the importance of maintaining a strong balance sheet and flexibility, targeting a funds from operations to debt ratio of 15%-16% [14] Other Important Information - The company completed the merger of the STL and MoGas pipelines, which will now operate as the Spire MoGas pipeline [13] - The company anticipates minimal common equity needs and plans to rely on long-term debt for refinancing and capital requirements [14] Q&A Session Summary Question: How did the marketing segment perform during January's gas market volatility? - Management indicated satisfaction with the operational performance and confirmed that customer obligations were met during the volatility [17][18] Question: Can you provide an update on the storage asset sales process? - Management noted that the evaluation process is taking longer than expected but remains optimistic about achieving good value for the assets [24][25] Question: What are the opportunities for large loads or generation facilities in service territories? - Management is actively engaging with parties regarding opportunities to serve generation needs as they convert from coal to gas [27] Question: What is the timeline for equity issuance related to the Tennessee acquisition? - Management indicated that announcements regarding equity issuance would likely occur after the next earnings call in May or June [31] Question: What is the regulatory strategy and timeline for the next rate case in Missouri? - Management anticipates filing the next rate case in October-November 2026, following the pattern of previous cases [55]

Financial Data and Key Metrics Changes - The company reported a Q1 EBITDA margin of 52.4%, which includes about two full percentage points of dilution from recent acquisitions [10][19] - Operating cash flow generation in Q1 exceeded $830 million, with a cash balance of over $2.5 billion at the end of the quarter [11][32] - The midpoint of fiscal 2026 revenue guidance is now $9.94 billion, reflecting a 13% increase over the prior year, while EBITDA guidance was raised to $5.21 billion, up approximately 9% [17][18] Business Line Data and Key Metrics Changes - Commercial OEM revenue increased approximately 17% in Q1 compared to the prior year, driven by higher build rates from Boeing and Airbus [21][22] - Commercial aftermarket revenue grew by approximately 7%, with all submarkets experiencing positive growth [25] - Defense market revenue grew by approximately 7%, supported by new business wins and strong performance in both domestic and international markets [26] Market Data and Key Metrics Changes - Bookings in the commercial OEM channel were up significantly, indicating a recovery from previous disruptions [23] - The commercial aftermarket growth is lagging behind the broader market by approximately 5-6 percentage points, attributed to underexposure in engine content and distribution channel lumpiness [9] - Defense bookings were robust, surpassing sales for the period, indicating a strong backlog in the defense market segment [27] Company Strategy and Development Direction - The company focuses on proprietary aerospace businesses with significant aftermarket content, aiming for private equity-like returns with public market liquidity [7] - Recent acquisitions include Stellent Systems, Jet Parts Engineering, and Victor Sierra Aviation, which align with the company's strategy of enhancing aftermarket revenue [12][15] - The capital allocation strategy prioritizes reinvestment in businesses, disciplined M&A, and returning capital to shareholders [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the fiscal 2026 outlook, citing strong first-quarter results and favorable market trends in commercial aerospace [17][19] - The guidance assumes no additional acquisitions or divestitures, with a focus on maintaining a conservative approach to projections [40][64] - Management remains vigilant regarding potential risks in the aerospace and capital markets, while being encouraged by operational performance [19][30] Other Important Information - The company ended the quarter with a net debt to EBITDA ratio of 5.7 times, down from 5.8, indicating improved financial health [32][33] - Free cash flow for the quarter was just under $900 million, with a full-year guidance of approximately $2.4 billion [31][32] - The company continues to actively seek small to mid-size acquisition opportunities that fit its business model [14][101] Q&A Session Summary Question: How is the company thinking about profitability through the year? - Management noted a stronger start to the year on margins than expected, with a 52.4% EBITDA margin driven by a favorable mix and cost management efforts [39] Question: Can you comment on distributor POS and aftermarket growth? - Management confirmed that distributor POS growth has been strong, but some headwinds from inventory changes have affected overall aftermarket growth [44][66] Question: What is the expected growth for the aftermarket segment? - Management indicated that the aftermarket growth is expected to be in the high single-digit percentage range, with positive indicators in bookings and distribution sales [26][64] Question: What are the implications of the recent acquisitions? - The acquisitions of Jet Parts Engineering and Victor Sierra are expected to enhance aftermarket growth, but the primary rationale was their strong business fundamentals [73][81] Question: How does the company view the current M&A environment? - Management acknowledged that while valuations are high, they believe the prices paid for recent acquisitions are fair and aligned with their target IRR [81][82]