January 2026 Investor Presentation Forward-Looking Statements This presentation contains statements or information that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipates," "intends," "plans," "goal," "seeks," "believes," "projects," "estimates," "expects," "indicates," "strategy," "future," "is likely," "may," "should," "will," and variations of such words and simil ...

Financial Data and Key Metrics Changes - In Q4 2025, the company reported organic growth of 2.2%, an operating margin of 21.1%, earnings per share (EPS) of $1.83, and free cash flow conversion exceeding 130% [4][15] - Full-year adjusted operating margin reached 23.4%, up 200 basis points year-on-year, with adjusted EPS growing to $8.06, reflecting a double-digit increase [4][21] - Free cash flow conversion for the year was slightly above 100%, with a total return to shareholders of $4.8 billion, including $1.6 billion in dividends and $3.2 billion in share repurchases [8][23] Business Line Data and Key Metrics Changes - Safety and Industrial segment saw Q4 organic sales increase of 3.8%, driven by strong performance in safety and industrial adhesives [17] - Transportation and Electronics segment reported a 2.4% increase in organic sales, supported by growth in electronics and aerospace, despite weakness in the automotive sector [19] - Consumer segment experienced a decline of 2.2% in Q4, leading to a full-year revenue decrease of 0.3% due to weaker consumer sentiment [20][21] Market Data and Key Metrics Changes - The company noted that all geographic areas delivered growth in 2025, with China growing mid-single digits, driven by strength in general industrials and electronics [22] - The U.S. market grew low single digits, supported by commercial excellence initiatives, despite challenges in the consumer and automotive sectors [22][23] - Europe showed low single-digit growth, benefiting from general industrial and safety sectors, offsetting weaknesses in consumer and automotive markets [22] Company Strategy and Development Direction - The company is focusing on three pillars of commercial excellence: improved sales effectiveness, stronger collaboration with channel partners, and increased customer loyalty [5] - A significant emphasis is placed on innovation, with 284 new products launched in 2025, exceeding targets and contributing to top-line growth [6] - The company is transitioning towards a more integrated operating model, aiming for structural cost reductions and embedding an AI-first mentality [12][13] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales growth of approximately 3% in 2026, with adjusted operating margin expansion of 70-80 basis points and EPS guidance of $8.50-$8.70 [10][24] - The macroeconomic environment is anticipated to remain similar to 2025, with watch items including U.S. consumer recovery and auto build rates [11] - Management highlighted the importance of executing their game plan and controlling internal factors to drive performance despite external challenges [11][29] Other Important Information - The company is committed to returning $10 billion to shareholders as part of its multi-year capital allocation strategy [8] - Operational excellence metrics showed significant improvements, with OTIF above 90% and cost of poor quality reduced to 6% of cost of goods [7] - The company is targeting a cost of quality reduction to 5.4% in 2026 and less than 4% over time [8] Q&A Session Summary Question: Insights on the pivot to priority verticals - Management indicated that over 60% of current revenue is aligned with priority verticals, with 80% of R&D focused on these areas [30][31] Question: Outlook on U.S. IPI and industrial business performance - Management noted solid exit rates across industrial businesses, despite a softening IPI, and expects overall industrial performance to remain strong [33][34] Question: Customer inventory levels - Customer inventory levels in industrial channels are normalized, while consumer inventory is slightly elevated but improving [37] Question: Pricing strategy - The company expects to achieve about 80 basis points in pricing improvements in 2026, focusing on material cost inflation and pricing governance [39][40] Question: Incremental margins and productivity assumptions - Management expects higher productivity and volume contributions in 2026, with a projected increase in operating income from both factors [59][60]

4Q25 Earnings Presentation Management does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Bancorp's control or cannot be reasonably predicted. For the same reas ...

2025 Fourth Quarter Investor Teleconference January 20, 2026 1 Safe Harbor Statement All statements made herein that are not historical facts (e.g., future operating results, net sales growth, long-term share gains, and business activity, as well as expectations regarding operations, including gross and operating income margin, eBusiness DSR sales growth, weighted FMI technology signings, operating costs (including SG&A), capital expenditures, sales through our digital footprint, cash flow generation, our a ...

D.R. Horton (NYSE:DHI) Q1 2026 Earnings call January 20, 2026 08:30 AM ET Company ParticipantsBill W. Wheat - EVP and CFOJessica Hansen - VP of Investor Relations and CommunicationsStephen Kim - Senior Managing DirectorPaul J. Romanowski - President and CEOAlan Ratner - MDMichael J. Murray - EVP and COOConference Call ParticipantsKenneth Zener - Research AnalystRyan Gilbert - MD and Housing and Real Estate Services AnalystSam Reid - Equity AnalystEric Bosshard - AnalystMatthew Bouley - Senior Equity Researc ...

D.R. Horton (NYSE:DHI) Q1 2026 Earnings call January 20, 2026 08:30 AM ET Company ParticipantsBill W. Wheat - EVP and CFOJessica Hansen - VP of Investor Relations and CommunicationsStephen Kim - Senior Managing DirectorPaul J. Romanowski - President and CEOAlan Ratner - MDMichael J. Murray - EVP and COOConference Call ParticipantsKenneth Zener - Research AnalystRyan Gilbert - MD and Housing and Real Estate Services AnalystSam Reid - Equity AnalystEric Bosshard - AnalystMatthew Bouley - Senior Equity Researc ...

Financial Data and Key Metrics Changes - D.R. Horton reported consolidated pre-tax income of $798 million on revenues of $6.9 billion, with a pre-tax profit margin of 11.6% for Q1 2026 [4] - Earnings per diluted share decreased to $2.03 from $2.61 in the prior year quarter, with net income of $595 million [7] - Home sales revenues were $6.5 billion from 17,818 homes closed, down from $7.1 billion from 19,059 homes closed in the prior year quarter [7][8] - The average closing price for homes was $365,500, flat sequentially but down 3% year over year [8] Business Line Data and Key Metrics Changes - Net sales orders increased by 3% year over year to 18,300 homes, while order value remained unchanged at $6.7 billion [10] - The gross profit margin on home sales revenues was 20.4%, up 40 basis points sequentially, primarily due to a recovery of prior-period warranty costs [11] - Home building SG&A expenses decreased by 1% year over year, but as a percentage of revenues, it increased to 9.7% from 8.9% in the prior year quarter [12] Market Data and Key Metrics Changes - 64% of mortgage company closings were to first-time home buyers, indicating a focus on affordable housing [6] - The average number of active selling communities increased by 2% sequentially and 12% year over year [10] - The company ended the quarter with 30,400 homes in inventory, of which 20,000 were unsold [14] Company Strategy and Development Direction - D.R. Horton is focused on capital efficiency to generate strong operating cash flows and deliver returns to shareholders, with $3.6 billion generated from operations over the past 12 months [5] - The company aims to tailor product offerings and sales incentives based on demand in each market to maximize returns [6] - The strategy includes managing investments in lots, land, and development based on current market conditions, with a focus on relationships with land developers [15] Management's Comments on Operating Environment and Future Outlook - Management noted that new home demand is impacted by affordability constraints and cautious consumer sentiment, but they are responding with discipline [4] - The company expects consolidated revenues for Q2 2026 to be in the range of $7.3-$7.8 billion and homes closed to be between 19,700-20,200 [24] - For the full year, the company anticipates consolidated revenues of approximately $33.5-$35 billion and homes closed to be in the range of 86,000-88,000 [25] Other Important Information - D.R. Horton repurchased 4.4 million shares for $670 million and paid cash dividends of $0.45 per share, totaling $132 million [21] - The company has a strong balance sheet with $6.6 billion of consolidated liquidity and plans to maintain leverage around 20% over the long term [22] Q&A Session Summary Question: Inquiry about SG&A expenses - Management stated that SG&A was in line with expectations and attributed the increase to lower closings, but they expect it to stabilize over the year [28][29] Question: Capital allocation and cash flow expectations - Management confirmed that cash flow expectations remain reasonable, with a target of over $3 billion for the year [32] Question: Community count growth and future expectations - Management expects community count growth to continue but may drift down to mid-single to high-single digit range [35] Question: Warranty costs impact on gross margin - Management indicated that warranty recovery was unexpected but beneficial, and they expect warranty costs to normalize going forward [59][61] Question: Demand trends and inventory levels - Management noted that demand remains strong despite low job growth, and inventory levels are more balanced compared to the previous year [97][91]

Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][4] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [6][16] - The fourth quarter net interest margin (NIM) was 2.82%, an increase of 7 basis points sequentially, and above the previously indicated target of 2.75%-2.8% [21][25] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [6][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [6][10] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9][10] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15%-plus return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][32] - Investments in technology, particularly in AI, are a priority, with spending increasing from $900 million to $1 billion [34] - The company plans to repurchase at least $300 million of stock in the first quarter and anticipates similar amounts in subsequent quarters throughout 2026 [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [11][28] - The company expects to continue growing priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][10] - Management noted that the current environment plays well to the company's strengths, with expectations for improved middle market M&A activity in 2026 [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with other board members retiring [14] Q&A Session Summary Question: Strategic priorities for 2026 - Management emphasized organic growth in middle market, payments, investment banking, and wealth management, alongside a focus on return on capital and technology investments [30][32] Question: Investment banking fee guidance - Management acknowledged the competitive hiring environment and expressed caution regarding visibility for investment banking fees, despite recent positive trends [36][38] Question: Expectations for growth and banker productivity - Management highlighted the importance of recent hires and backlogs, expressing optimism for growth as new bankers ramp up productivity [41][43] Question: Deposit beta assumptions and margin expectations - Management indicated a stable deposit base with expectations for low-to-mid 50s beta throughout the year, with a focus on remixing brokered deposits into client deposits [55][56] Question: Capital priorities and acquisition appetite - Management reiterated a focus on supporting clients, investing in technology, and pursuing complementary acquisitions, while maintaining a cautious stance on bank acquisitions [66][68]

Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][4] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [6] - The net interest margin (NIM) for the fourth quarter was 2.82%, an increase of 7 basis points sequentially, and above the target range of 2.75%-2.8% [21] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [6][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [6] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15% return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][30] - Investments in technology, particularly in AI, are prioritized to enhance operational efficiency and client experience [34] - The company plans to repurchase at least $300 million of stock in the first quarter of 2026 and anticipates similar amounts in subsequent quarters [4][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [11][28] - The company expects to grow priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][11] - Management noted that the current environment plays to the company's strengths, with expectations for continued growth in investment banking and M&A activity [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with a focus on strong corporate governance [14] Q&A Session Summary Question: What are the strategic priorities for 2026? - The company is focused on organic growth in middle market, payments, investment banking, and wealth management, with significant investments in technology and AI [30][32] Question: Why is the investment banking fee guidance conservative? - The company is cautious due to limited visibility beyond the first quarter, despite recent improvements in middle market M&A activity [36][38] Question: What are the expectations for growth as new bankers start producing? - The company anticipates a positive impact from recent hires, with historically high backlogs and a hospitable market for deals [44][46] Question: What is the deposit beta assumption for margin expectations? - The company expects a low-to-mid 50s beta throughout the year, with a focus on remixing brokered deposits into client deposits [56] Question: What is the outlook for middle market M&A activity? - Management believes that recent market conditions will lead to increased activity, with visibility improving for the first quarter [70][72]

Financial Data and Key Metrics Changes - The company reported fourth quarter earnings of $0.43 per share, with revenue exceeding $2 billion, growing 12% year-over-year on an adjusted basis, while expenses grew by 2% [3][15] - Full-year record revenue increased by 16% compared to the prior year, with net interest income and fee revenue both exceeding projections [5][15] - The fourth quarter net interest margin (NIM) was 2.82%, an increase of 7 basis points sequentially, above the previously indicated target of 2.75%-2.8% [20][25] Business Line Data and Key Metrics Changes - Loan growth was particularly strong in commercial and industrial (C&I) loans, which grew by 9%, while consumer loans were intentionally reduced [5][18] - Fee income growth was 7.5%, with all priority fee-based businesses growing at a high single or low double-digit rate [5][15] - Investment banking fees increased by 10% year-over-year, driven by debt capital markets and commercial mortgage debt placement activity [20][22] Market Data and Key Metrics Changes - The company raised nearly $140 billion of capital on behalf of clients in 2025, retaining 20% on its balance sheet [9] - Assets under management in wealth management reached a record $70 billion, with significant growth in the mass affluent segment [9][22] - Commercial payments fee-equivalent revenue grew by 11% in 2025, reflecting successful investments in bankers and new geographies [10] Company Strategy and Development Direction - The company aims to achieve a 15%-plus return on tangible common equity by year-end 2027, focusing on organic growth in middle market, payments, investment banking, and wealth management [8][29] - Investments in technology have increased from $900 million to $1 billion, with a focus on enhancing customer-facing capabilities and operational efficiency [6][31] - The company plans to repurchase at least $300 million of stock in the first quarter of 2026 and anticipates similar amounts in subsequent quarters [4][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering another year of outsized revenue and earnings growth, supported by favorable macro conditions and strong business momentum [8][11] - The company expects to continue growing priority fee-based businesses at a mid to high single-digit pace, capitalizing on strong pipelines [8][11] - Management noted that the current environment plays well to the company's strengths, with expectations for improved middle market M&A activity in 2026 [9][11] Other Important Information - The company announced changes to its board, nominating two new directors with extensive experience in financial services [12][13] - The lead independent director role transitioned to Todd Vassos, with a focus on strong corporate governance and long-term shareholder value [12][13] Q&A Session Summary Question: What are the strategic priorities for 2026? - The company is focused on organic growth in middle market, payments, investment banking, and wealth management, with significant investments in technology and talent [28][29] Question: Why is the investment banking fee guidance conservative? - The company is cautious due to limited visibility beyond the first quarter, despite recent improvements in middle market M&A activity [32][33] Question: What are the expectations for loan growth and banker productivity? - The company anticipates continued hiring and expects new bankers to contribute to growth, with optimism about the market conditions [34][36] Question: What is the outlook for net interest margin and earning assets? - The company expects to see a bottoming out of earning assets, with a gradual increase throughout the year, driven by a remixing of loan types [40][41] Question: What is the appetite for bank acquisitions? - The company remains focused on organic growth and technology investments rather than pursuing bank acquisitions, despite board changes [46][49]