ProPetro (NYSE:PUMP) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Company ParticipantsArun Jayaram - Executive DirectorCaleb Weatherl - CFOEddie Kim - VP of Equity ResearchJeff LeBlanc - Director in Equity ResearchJohn Daniel - Founder and PresidentMatt Augustine - VP of Finance and Investor RelationsSam Sledge - CEOStephen Gengaro - Managing DirectorTravis Simmering - PresidentConference Call ParticipantsDerek Podhaizer - Director and Senior Research AnalystScott Gruber - Managing Director and Senio ...

Clean Harbors (NYSE:CLH) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Company ParticipantsAdam Bubes - VP of Equity ResearchEric Dugas - EVP and CFOEric Gerstenberg - Co-CEOLarry Solow - PartnerMichael McDonald - General CounselMike Battles - Co-CEOTobey Sommer - Managing DirectorTyler Brown - Financial AdvisorConference Call ParticipantsBryan Burgmeier - Equity Research AnalystDavid Manthey - Senior Research AnalystJames Schumm - Senior AnalystNoah Kaye - Senior Research AnalystNone - AnalystOperato ...

Financial Data and Key Metrics Changes - Consolidated earnings for 2025 were reported at $2.32 per share, an increase from $2.19 per share in 2024, reflecting a strong year [11][12] - Net income at the electric company rose to approximately $500 million, or $2.47 per share, up from $470 million, or $2.33 per share in the previous year [12] - The holding company reported a loss of $29 million, or $0.15 per share, slightly higher year-over-year due to increased interest expense [12] Business Line Data and Key Metrics Changes - The electric company experienced strong load growth, with weather-normalized load increasing approximately 7% [12] - Customer growth was just under 1%, indicating a stable service area performance [12] Market Data and Key Metrics Changes - The service area continues to attract investment, supported by low rates and reliable service [12] - The company expects customer count to increase about 1% and weather-normalized load to grow 4%-6% in 2026 [14] Company Strategy and Development Direction - The company is focused on long-term growth through generation and transmission opportunities, with plans to advance its transmission strategy and secure approvals for new projects [4][5] - A draft Integrated Resource Plan (IRP) was issued, outlining a long-term resource strategy and identifying approximately 1.9 GW of capacity needs by 2031 [17] - The company aims to maintain affordability while investing in reliability and growth, with a commitment to keeping rates among the lowest in the nation [8][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial plan, anticipating continued earnings growth in the top half of the 5%-7% EPS growth range through 2028 [18] - The company highlighted the importance of balancing affordability and execution in its investment strategy [18] Other Important Information - The company executed a well-subscribed equity offering and filed for generation pre-approval for the 300 MW Frontier Energy Storage Project [4][5] - A rate review is planned for mid-year in Oklahoma, with potential evaluations in Arkansas later in the year [14] Q&A Session Summary Question: Rate base growth versus investment plan - Management indicated that the current plan suggests a rate-based growth of about 9%, with opportunities for incremental growth [22][23] Question: Large load customer updates - Management confirmed ongoing negotiations with six to seven large load customers, with a significant agreement nearing conclusion [24] Question: Weather-normalized load growth moderation - Management explained that the moderation in load growth is typical and reflects broader trends, with expectations of continued growth [30][31] Question: Black Kettle Energy Storage capacity purchase agreement - Management affirmed a preference for owning and operating generation assets, which supports their strategy for low-cost, reliable service [34] Question: Capital prioritization and generation capacity - Management emphasized flexibility in capital allocation, focusing on affordability while planning for additional generation [35][36] Question: 765 kV transmission line project - Management provided preliminary estimates indicating that the company's portion of the project could be around 20% of the current capital plan [40][41] Question: Data center contract and customer protections - Management confirmed that the contract with Customer X is included in the IRP and highlighted customer protections being built into the tariff framework [43][44]

Financial Data and Key Metrics Changes - For Q4 2025, sales were $1.867 billion, an increase of $93 million compared to the previous year, driven by customer recoveries and currency translation [18] - Adjusted EBITDA for Q4 was $208 million, resulting in an 11.1% margin, a 640 basis points improvement over the prior year's fourth quarter [19] - Full-year sales for 2025 were $7.5 billion, down $234 million from 2024, reflecting weakening market demand across both light vehicle and commercial vehicle sectors [20] - Full-year adjusted EBITDA was $610 million, an improvement of $215 million from the prior year, resulting in an 8.1% margin, up 300 basis points [21] Business Line Data and Key Metrics Changes - The light vehicle segment saw growth, while certain commercial vehicle markets experienced weaker demand, impacting overall sales [23] - Performance actions contributed an additional $17 million in Q4, driven by commercial recoveries and pricing initiatives [24] - For the full year, performance actions added $981 million in sales, primarily from pricing and commercial actions [26] Market Data and Key Metrics Changes - The light truck market is expected to hold steady, with flat volume year-over-year from 2025 levels [13] - There is optimism for improved volumes in the commercial vehicle sector towards the latter half of the year [14] - The company has a three-year net backlog of $750 million, with $200 million expected to flow through in 2026 [14] Company Strategy and Development Direction - The company is focused on its Dana 2030 strategy, which includes growth in aftermarket, traditional light vehicle and commercial vehicle businesses, and EV technologies [52][54] - The company plans to return $2 billion to shareholders through stock buybacks, with $300 million targeted for 2026 [53] - The management team is confident in their ability to deliver on financial objectives and capitalize on growth opportunities [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to eliminate stranded costs post-divestiture and achieve substantial growth [9] - The outlook for 2026 remains unchanged, with expected revenue of approximately $7.5 billion and adjusted EBITDA around $800 million [34][35] - The company anticipates continued operational execution and benefits from cost reduction initiatives [37] Other Important Information - The company completed the sale of its Off-Highway business, using most of the $2 billion proceeds to repay debt [8] - The company has reduced total debt by approximately $1.9 billion, resulting in a strong capital structure with no near-term maturities [47][48] Q&A Session Summary Question: Follow-up on the target for sales of $10 billion by 2030 - Management explained that the growth target includes normalization in the North American commercial vehicle market and several growth strategies in traditional and adjacent markets [57][58] Question: Impact of EV cancellations on cash flow - Management indicated that while there were some recoveries, many programs have not completely canceled, leading to adjustments in ongoing sales prices [64] Question: Guidance on EBITDA margins by 2030 - Management stated that margin enhancement will come from structural cost reductions and operational efficiencies, with confidence in achieving the targets [71][72] Question: CapEx guidance and its relation to sales - Management confirmed that a CapEx rate of around 4% is expected going forward to support growth initiatives and margin expansion [100] Question: Plans for excess cash flow - Management indicated flexibility in using excess cash flow for debt reduction or further shareholder returns, depending on market conditions [90][92]

Financial Data and Key Metrics Changes - The company reported a decline in earnings year-over-year, with Adjusted EBIT for the Acetyl Chain down approximately $400 million and Engineered Materials down about $120 million [19][20] - The focus remains on cash generation, with a strong cash generation performance in 2025 despite the earnings decline [8][9] - The company is targeting free cash flow between $650 million and $750 million for 2026, with confidence in achieving this range through various levers [44][73] Business Line Data and Key Metrics Changes - In the Acetyl Chain, the decline in Adjusted EBIT was primarily driven by volume and price changes, particularly in the acetate tow business [19][20] - Engineered Materials showed a mixed performance, with both volume and price declines impacting EBIT, but cost benefits were also noted [20] - The company is seeing stabilization in the electronics market, driven by AI and data center build-outs, while the automotive sector remains mixed due to uncertainties in China [13][14] Market Data and Key Metrics Changes - The company noted that contract pricing for 2026 is expected to remain stable, with more competition in the spot market due to increased capacity [10] - The acetyl margins in the Western Hemisphere are performing better than in the Eastern Hemisphere, where overcapacity remains a challenge [78] - Demand in China is currently low due to the Lunar New Year, but pricing has remained stable leading into the holiday [65][66] Company Strategy and Development Direction - The company is focused on divesting non-core assets, with a target of $1 billion in divestitures by the end of 2027, and is currently about halfway to that goal [16][75] - The strategy emphasizes cash generation and cost reduction, with a focus on driving growth in Engineered Materials through innovation and customer partnerships [22][81] - The company is adapting to structural changes in the market, particularly the shift from internal combustion engines to electric vehicles in China [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, emphasizing the importance of cash flow and cost management [40][82] - The outlook for 2026 includes expectations for growth in Engineered Materials, while the Acetyl Chain may face challenges [21][22] - Management acknowledged the potential for macroeconomic factors to impact performance but remains focused on executing their strategic plan [72][82] Other Important Information - The company is experiencing a moderate seasonal improvement in demand, particularly in the coatings space, but has not seen substantial changes in the acetate tow market [86] - The company is actively pursuing divestitures and has a robust pipeline of potential deals, with a focus on joint ventures [89] - Management is committed to maintaining service levels while reducing working capital, targeting an additional $100 million in inventory reductions [38][52] Q&A Session Summary Question: Thoughts on selling equity to address balance sheet issues - Management emphasized a focus on cash generation and debt management rather than selling equity, indicating confidence in their current strategy [8][9] Question: Pricing expectations for contracts in 2026 - Management noted little change in contract pricing but highlighted increased competition in the spot market [10] Question: Stability in engineering materials and macro assumptions for 2026 - Electronics is a bright spot, while the automotive sector shows mixed signals, particularly in China [13][14] Question: Timing and potential assets for divestiture - Management is optimistic about completing additional deals this year and is focusing on non-core business areas [16] Question: Analysis of EBIT changes in Acetyl Chain and Engineered Materials - The decline was driven by volume and price changes, with specific challenges noted in the acetate tow business [19][20] Question: Expectations for earnings uplift in 2026 - Management is targeting a $1-$2 uplift in EPS, contingent on demand recovery and cost management efforts [26][27] Question: Free cash flow guidance and working capital management - Management remains confident in achieving free cash flow targets despite potential headwinds from working capital changes [40][73] Question: Capacity additions in nylon and POM chains - The company is focused on flexibility in operations and is taking advantage of overcapacity in certain markets [47] Question: Future of acetyl margins in China - Management does not anticipate significant uplifts in acetyl pricing in China, given current overcapacity [66] Question: Consolidation opportunities in acetate tow industry - Management remains open to exploring consolidation opportunities but sees no significant changes in industry fundamentals [99]

Financial Data and Key Metrics Changes - In 2025, normalized adjusted EBITDA increased by 10% year-on-year, with the normalized adjusted EBITDA margin expanding by 166 basis points to 19% [25][9] - Total revenue for 2025 was $2.8 billion, up 1% year-on-year, driven primarily by growth in distribution revenue [25][22] - Pro forma free cash flow for the fourth quarter was $116 million, a year-on-year increase of $45 million [24][9] - The company ended the year with a strong cash balance of $910 million, which includes $98 million in restricted cash for debt repayments in the first quarter of 2026 [10][25] Business Line Data and Key Metrics Changes - Air distribution bookings grew by 4% year-on-year in the fourth quarter, with a total growth of 7% in December [12][22] - Hotel distribution bookings increased by 5% year-on-year to 42 million, with gross hotel booking value exceeding $20 billion annually [13][12] - Sabre Payments was one of the fastest-growing businesses, with gross spend on the platform increasing by more than 35% year-on-year [11] Market Data and Key Metrics Changes - The company recorded double-digit year-on-year growth in normalized adjusted EBITDA and generated positive pro forma free cash flow [9] - NDC (New Distribution Capability) represented approximately 4% of total air distribution bookings, with expectations for acceleration in 2026 [12][22] - The company expects mid-single-digit volume growth for both 2026 and 2027, driven by continued share gains and growth in NDC bookings [28][32] Company Strategy and Development Direction - The company is transitioning from a GDS-focused model to an AI-native technology leader, emphasizing the importance of AI in the travel ecosystem [6][7] - Recent executive leadership changes were announced to align talent and investments with the AI strategy [8] - The company aims to leverage its extensive travel data and proprietary logic to become essential in an AI-first world [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for strong, sustained performance despite challenges in 2025 [5] - The outlook for 2026 includes expectations for mid-single-digit revenue growth and continued improvements in operational efficiency [28][32] - Management highlighted the importance of maintaining operational delivery and R&D while managing costs through an inflation offset program [56][57] Other Important Information - The company paid off over $1 billion in debt in 2025, reducing pro forma net leverage by approximately 25% compared to year-end 2024 [9][26] - The company has no large debt maturities until 2029, with over 90% of its debt maturing in 2029 or later [10][26] Q&A Session Summary Question: What still needs to be done on the AI front, and what upside opportunities from AI might evolve? - Management indicated that the next stage involves demonstrating the end-to-end experience of conversational commerce in travel, with partnerships like Mindtrip and PayPal enhancing the customer experience [40][41] Question: Does the introduction of GenAI change the economic equation for direct connects? - Management explained that Sabre's scalable marketplace allows for faster response times compared to direct connects, making it a valuable partner for AI companies [49][50] Question: Can you elaborate on the inflation offset program? - The program aims to keep key cost items flat while driving efficiency, with a focus on leveraging geographical advantages and embedding AI into the workforce [56][57]

ProPetro (NYSE:PUMP) Q4 2025 Earnings call February 18, 2026 09:00 AM ET Company ParticipantsArun Jayaram - Executive DirectorCaleb Weatherl - CFOEddie Kim - VP of Equity ResearchJeff LeBlanc - Director in Equity ResearchJohn Daniel - Founder and PresidentMatt Augustine - VP of Finance and Investor RelationsSam Sledge - CEOStephen Gengaro - Managing DirectorTravis Simmering - PresidentConference Call ParticipantsDerek Podhaizer - Director and Senior Research AnalystScott Gruber - Managing Director and Senio ...

Financial Data and Key Metrics Changes - The company achieved a 15% reduction in breakevens in the Haynesville, which positively impacts reinvestment rates and inventory management [5] - The company reported $200 million in gains from its hedging program, which has been effective in managing gas price volatility [7] - The company is focused on reducing debt while also returning capital to shareholders, indicating a balanced approach to financial management [6] Business Line Data and Key Metrics Changes - The marketing business has shifted towards premium markets, with nearly 50% of sales now outside of basin sales, showing significant progress [8] - The company aims to capture new demand and improve realizations across its business, targeting an increase of $0.20 in margins, which could translate to approximately $500 million in EBITDA [18][19] Market Data and Key Metrics Changes - The Gulf Coast is experiencing growing demand, with approximately 25 billion cubic feet per day of gas demand expected to come online, half of which is driven by LNG [26] - The company is well-positioned to capture this demand due to its proximity to key assets and pipeline capacity [27] Company Strategy and Development Direction - The company is adapting its strategy to address the changing natural gas business, focusing on getting gas to premium markets and managing volatility through hedging and storage [9][10] - The company is committed to operational excellence and maintaining a strong balance sheet while exploring potential M&A opportunities to enhance its position [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's operational capabilities and the potential for future growth, emphasizing the importance of execution and competitiveness [12] - The company anticipates continued volatility in gas prices but believes its hedging strategies will mitigate risks [7] Other Important Information - The company has added 3.5 billion cubic feet of storage capacity, which is crucial for managing market volatility [90] - The company is exploring opportunities in the Utica region, indicating potential for future growth and development [92] Q&A Session Summary Question: Characteristics sought in the next CEO - The company is looking for a leader with a broad view of the energy sector who can continue the mission of looking beyond the wellhead and closer to customers [15] Question: Potential uplift in cash flow from marketing optimization - Management believes that moving gas to premium markets will be a near-term catalyst for increasing realizations across the portfolio [17] Question: Changes in supply-demand dynamics in the Gulf Coast - The company is seeing increased demand in the Gulf Coast, particularly from LNG, which is beneficial for its operations [25] Question: Maintenance capital expenditures and production guidance - The company has improved its maintenance CapEx, reflecting a stronger business, and is focused on maintaining flexibility in production based on market conditions [46][47] Question: Integrated operations and midstream ownership - The company is more focused on partnerships with midstream companies rather than outright ownership, aiming to enhance its market access [54] Question: Cash tax visibility and future expectations - The company expects to be a full cash taxpayer by the end of the decade, with a gradual increase in cash tax rates [55] Question: Challenges in expanding volumes to demand growth areas - The company faces challenges in both transaction aggressiveness and physical transportation to customers, necessitating partnerships with midstream companies [66] Question: Potential monetization of inventory - While not actively seeking to monetize inventory, the company remains open to attractive offers that could enhance shareholder value [82]

Financial Data and Key Metrics Changes - For Q4 2025, sales were $1.867 billion, an increase of $93 million compared to the previous year, driven by customer recoveries and currency translation [18] - Adjusted EBITDA for Q4 was $208 million, resulting in an 11.1% margin, a 640 basis points improvement over the prior year's fourth quarter [19] - Full-year sales for 2025 were $7.5 billion, down $234 million from 2024, reflecting weakening market demand across both light vehicle and commercial vehicle sectors [20] - Full-year adjusted EBITDA was $610 million, an improvement of $215 million from the prior year, resulting in an 8.1% margin, up 300 basis points [21] Business Line Data and Key Metrics Changes - The light vehicle segment saw growth, while certain commercial vehicle markets experienced weaker demand, impacting overall sales [23] - Performance actions contributed an additional $17 million in Q4, driven by commercial recoveries and pricing initiatives [24] - For the full year, performance actions added $981 million in sales, primarily from pricing and commercial actions [26] Market Data and Key Metrics Changes - The light truck market is expected to hold steady, with flat volume year-over-year from 2025 levels [13] - There is optimism for improved volumes in the commercial vehicle sector towards the latter half of the year [14] - The company’s backlog is $750 million, with $200 million expected to flow through in 2026 [9] Company Strategy and Development Direction - The company is focused on its Dana 2030 strategy, which includes a target of close to $10 billion in sales by 2030, with a margin increase to 14%-15% at the EBITDA line [52] - The strategy includes growth in aftermarket business, traditional light vehicle and commercial vehicle sectors, and EV and Applied Technologies [54] - The company plans to return $2 billion to shareholders through stock buybacks, with $300 million targeted for 2026 [53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to deliver on financial objectives and highlighted strong momentum exiting 2025 [10] - The outlook for 2026 remains unchanged, with expectations for revenue to be approximately $7.5 billion and adjusted EBITDA around $800 million [34] - Management noted that the operational execution and cost reduction initiatives are expected to drive meaningful profit expansion [35] Other Important Information - The company completed the sale of its Off-Highway business and used most of the $2 billion proceeds to repay debt [8] - The company returned just over $700 million to shareholders in 2025, including a 20% increase in dividends [11] - The company’s balance sheet is significantly stronger post-divestiture, with reduced debt and improved liquidity [46] Q&A Session Summary Question: Follow-up on the target for sales of $10 billion by 2030 - Management explained that the growth target includes normalization in the North American commercial vehicle market and several growth strategies in traditional vehicles and aftermarket opportunities [58][60] Question: Impact of EV cancellations on 2025 guidance - Management indicated that while there were some recoveries, many programs have not completely canceled, leading to adjustments in ongoing sales prices [64][68] Question: Breakdown of contributions to EBITDA margin targets - Management refrained from providing detailed breakdowns but emphasized structural cost reductions and operational efficiencies as key drivers for margin enhancement [71][72] Question: Sustainability of commercial vehicle margins - Management expressed confidence in the sustainability of margin levels, attributing improvements to operational efficiencies and new plant performance [75][78] Question: Future capital deployment strategies - Management indicated flexibility in capital deployment, considering both shareholder returns and potential acquisitions to accelerate growth [82][90]

Financial Data and Key Metrics Changes - The company reported a decline in earnings year-over-year, with a focus on cash generation despite the earnings drop [7][8] - Adjusted EBIT for the Acetyl Chain was down approximately $400 million, while Engineered Materials saw a decrease of about $120 million, primarily driven by volume and price changes [18][19] Business Line Data and Key Metrics Changes - In the Acetyl Chain, the decline was largely attributed to volume and price pressures, particularly in the acetate tow business [18][19] - Engineered Materials experienced a mixed performance, with volume and price declines offset by cost benefits [19] Market Data and Key Metrics Changes - The electronics market is showing positive signs due to global demand from AI and data centers, while the automotive sector remains mixed, particularly in China [12][13] - The company noted that contract pricing for 2026 is expected to remain stable, with more competition in the spot market due to increased capacity [9] Company Strategy and Development Direction - The company is focused on cash generation and has plans for divestitures totaling $1 billion by the end of 2027, with a current target of achieving half that amount this year [15][16] - The strategy includes prioritizing parts of the business that align with core operating models and enhancing operational efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow between $650 million and $750 million, despite a challenging operating environment [43][74] - The company is prepared for various demand scenarios and is focused on cost reduction and operational efficiency to drive growth [27][73] Other Important Information - The company is experiencing a significant reduction in debt maturities over the next couple of years, which positions it well for recovery [8] - Management indicated that the first half of 2026 is expected to be more challenging, with a focus on the second half for potential growth [29] Q&A Session Summary Question: Thoughts on selling equity to address balance sheet issues - Management emphasized a focus on cash generation and debt management rather than equity sales [7] Question: Pricing expectations for contracts in 2026 - Management indicated little change in contract pricing, with more competition in the spot market [9] Question: Stabilization in engineering materials and macro assumptions for 2026 - Electronics are a bright spot, while automotive remains mixed, particularly in China [12][13] Question: Timing and potential assets for divestiture - Management is optimistic about completing additional deals this year to meet divestiture targets [15][16] Question: Analysis of EBIT changes in Acetyl Chain and Engineered Materials - The decline was primarily driven by volume and price changes, with some margin compression noted [18][19] Question: Expectations for earnings growth in 2026 - Management believes Engineered Materials has more controllable growth opportunities compared to the Acetyl Chain [20][21] Question: Free cash flow guidance and working capital management - Management is confident in achieving free cash flow targets through various levers, including working capital reductions [37][43] Question: Impact of capacity additions in Nylon and POM chains - The company is focused on flexibility in operations and is taking advantage of overcapacity in certain regions [46] Question: Expectations for acetyl pricing in China - Management does not anticipate significant uplifts in pricing, with demand currently low due to the Lunar New Year [65][67]