Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue increase of 8% compared to 2024, with operating income and adjusted operating income rising by 9% and 12% respectively [4] - Assets under management (AUM) reached an all-time high of $180 billion, up nearly 12% from the previous year [6][11] - The December 2025 quarter saw revenues of $336 million, marking an 11% increase from the previous quarter and a 13% increase year-over-year [11] - Adjusted operating income increased by 23% compared to both the prior quarter and the same quarter last year, with an adjusted operating margin of 40.2% [14] Business Line Data and Key Metrics Changes - The credit platform's AUM grew by 29% year-over-year to $17.9 billion, with net inflows totaling $2.8 billion [7] - The alternatives platform's AUM increased by 20% to $4 billion, driven by strong organic growth [7] - The equity platform experienced outflows of $15.6 billion, primarily due to performance issues in global opportunities and U.S. mid-cap growth strategies [7] Market Data and Key Metrics Changes - Approximately 70% of AUM is from non-U.S. markets, with a noted reemergence of emerging markets allocations expected [40] - The company raised over $1 billion in net flows from emerging markets strategies within a short campaign period [40] - The global equity strategy produced a 47% return, contributing to strong performance in international markets [41] Company Strategy and Development Direction - The acquisition of Grandview Property Partners marks a strategic expansion into alternative investments and private real estate [9] - The company aims to leverage its institutional relationships to enhance Grandview's business and expand its investment capabilities [9] - The focus remains on maintaining and growing AUM in public equities through differentiated investment performance and effective client service [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining and growing equity businesses despite recent outflows, emphasizing the need for compelling investment performance [8] - The company anticipates continued growth in credit and alternatives, with Grandview expected to play a significant role in this expansion [45] - Management highlighted a disciplined allocation of resources and capital as key to compounding wealth for clients and shareholders over the long term [19] Other Important Information - The board declared a quarterly dividend of $1.01 per share and a year-end special dividend of $0.57, reflecting a 98% payout ratio relative to adjusted earnings [17] - The company ended the year with approximately $214 million in cash and a conservative leverage ratio of 0.4 times [16] Q&A Session Summary Question: Clarification on AUM levels and Grandview fund timeline - Management explained that AUM was impacted by realizations on properties in Grandview Fund I, which is in the harvesting phase [23] - Fund III had about $150 million in committed assets, with expectations for Fund IV to be significantly larger, aiming for a first close in early to mid-summer [24] Question: Insights on M&A opportunities - Management noted a focus on talent-driven outcomes rather than exclusively on M&A, with interest in private credit and private equity secondaries [27] - The company is engaged in discussions with potential partners and is optimistic about off-market transactions [29] Question: Demand for international value strategy amidst outflows - Management indicated that outflows are primarily due to institutional reallocations rather than underlying issues with the strategy [35] - They expect some continued rebalancing in the first quarter due to strong global market performance [36] Question: Interest in non-U.S. strategies - Management highlighted opportunities in emerging markets and global strategies, with significant net flows observed in recent campaigns [40] - They noted ongoing interest in credit solutions and alternatives, particularly through the Grandview acquisition [45]

Financial Data and Key Metrics Changes - The company reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), the underlying combined ratio improved to 84.3%, a 5-point improvement year-over-year, with sales increasing by 6% [5][19] - Auto reported a combined ratio of 96.5%, improving nearly 2 points over the prior year, with policyholder retention stable at 84% [6][19] - Life and Retirement saw record life sales in Q4, up 21% year-over-year, with retirement deposits increasing by 4% [6][21] - Individual Supplemental sales increased nearly 40% year-over-year, while Group Benefits recorded a 33% increase [4][7] Market Data and Key Metrics Changes - The company expanded its distribution organization significantly, increasing points of distribution by 15% across all channels [8] - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating strong market recognition [7][8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [11][12] - The introduction of the Horace Mann Club aims to provide educators with financial wellness tools and resources, enhancing community engagement [9] Management Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5][10] - The company does not expect a similarly low level of catastrophe losses in 2026 or subsequent years, indicating a cautious outlook [10][18] - Management expressed confidence in achieving long-term financial targets while navigating a competitive environment [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization for share repurchases [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated that 2025 was the strongest year for distribution, with significant sales momentum and increased brand awareness [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual EPS growth rate and anticipated accelerating top-line growth due to investments made [32][34] Question: Catastrophe loss assumptions in guidance - Management clarified that the $90 million catastrophe loss assumption for 2026 is based on a consistent year-over-year approach, not influenced by prior year developments [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Free cash flow conversion targets - The company achieved about 80% free cash flow conversion in 2025 and targets over 75% for 2026, supported by capital-efficient business growth [63][64] Question: Investment in Supplemental and Group segment - Management expressed satisfaction with progress in Individual Supplemental and Group Benefits, with strong sales and distribution efforts [70][72]

Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, and adjusted operating margin was -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing a trend of sequential and year-over-year growth [21][13] Market Data and Key Metrics Changes - The transportation industry faced prolonged softness in demand, with freight, construction, and industrial activity operating below normalized levels [3][5] - Early signs of stabilization in freight volumes were noted, but these have not yet translated into increased order activity [5][10] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - Actions taken in 2025 are believed to strengthen the company's foundation and improve its ability to perform through the cycle [4] - The company is investing in parts and services as a more durable revenue stream, with a growth of 33% year-over-year in this segment [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that the demand environment is expected to remain difficult in the first quarter of 2026, with revenue guidance set between $310 million and $330 million [11][24] - There is confidence that 2026 will represent an improvement from 2025, despite the uncertainty in the timing and shape of the demand recovery [11][25] Other Important Information - The idling of manufacturing facilities resulted in approximately $16 million of total charges during the quarter, all of which were non-cash [8] - The company expects to recognize an additional $4 million-$5 million in charges in the first half of 2026, primarily related to severance and exit-related costs [8] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management confirmed that they are not exiting the refrigerated market and are repositioning products for an improving market [32][33] Question: Continuation of parts and services run rate into 2026 - Management expects nice growth in 2026, with quarterly averages continuing from Q4, but margins may face pressure due to market conditions [34][36] Question: Changes in refrigerated truck bodies and cost structure - Management assured that capacity for refrigerated truck bodies remains intact and that strategic actions taken will optimize overhead [45][46] Question: Customer optimism and market recovery - Management noted that initial tailwinds for trailer demand are stabilizing, but it is too early to predict a significant recovery [51][52] Question: Tariff impacts on cost of goods sold - Management clarified that the impact of tariffs on material costs is minimal, with market price competition being the primary driver of margin compression [92]

Financial Data and Key Metrics Changes - In the fourth quarter, consolidated revenue was $321 million, with adjusted EBITDA at -$26.2 million, or -8.1% of sales, and adjusted net income attributable to common stockholders at -$37.8 million, or -$0.93 per diluted share [20][21] - Adjusted gross margin was -1.1% of sales, while adjusted operating margin came in at -13.6% [20] - Full-year operating cash generation totaled $12 million, with -$31 million of free cash flow in 2025 [22] Business Line Data and Key Metrics Changes - Transportation Solutions generated revenue of $263 million, with non-GAAP operating income of -$31.7 million, or -12.1% of sales [21] - Parts and Services generated revenue of $64.5 million and operating income of $5.1 million, or 7.9% of sales, continuing the trend of both sequential and year-over-year revenue growth [21][13] Market Data and Key Metrics Changes - Demand across both the trailer and truck body industries remains soft, with freight, construction, and industrial activity operating below normalized levels [10][5] - The domestic trailer industry has filed antidumping and countervailing duty petitions concerning certain imported trailer products, with investigations currently in early stages [9] Company Strategy and Development Direction - The company is focused on aligning costs with demand, preserving liquidity, and protecting margins while pursuing market share opportunities [6][7] - The idling of manufacturing facilities is part of a longer-term strategy to reduce overall fixed costs and improve cost structure [7][8] - The Parts and Services segment is seen as a durable and resilient earnings stream, with growth expected to continue despite market challenges [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted that 2025 was a challenging year with prolonged softness in demand, but actions taken have strengthened the company's foundation for future recovery [3][4] - The company expects the first quarter of 2026 to be the weakest of the year in terms of revenue and operating margins, but anticipates improvement for the full year [11][24] - Management remains cautious about the demand environment but sees early signs of stabilization in certain parts of the freight transportation market [5][10] Other Important Information - The company expects to recognize additional charges related to the idling of facilities, with ongoing annualized cost savings projected at approximately $10 million [8] - The company is maintaining a conservative approach to cash management and does not anticipate near-term investments in revenue-generating assets for the Trailers as a Service initiative [23] Q&A Session Summary Question: Impact of idling capacity on refrigerated truck bodies - Management clarified that they are not exiting the refrigerated market and are repositioning products for future demand [32][33] Question: Continuation of Parts and Services growth into 2026 - Management expects nice growth in 2026 for Parts and Services, with margins anticipated to improve after Q1 [34][36] Question: Strategic actions and cost structure implications - Management confirmed significant impairment related to shutdowns and indicated that the operating expense differential is a temporary situation [47][48] Question: Customer optimism and market recovery - Management noted that while there are positive initial signs, it is too early to predict a significant demand increase for trailers in 2026 [51][52] Question: Tariff impacts on cost of goods sold - Management indicated that the impact on margins is more related to market pricing competition rather than direct material costs from tariffs [94]

Financial Data and Key Metrics Changes - In Q4, the company reported total revenue of $1.1 billion, an increase of just over 4.5% year-over-year on a reported basis and just over 3% on a core basis [13] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [14][15] - Adjusted EPS for Q4 was $0.90, reflecting a 13% year-over-year increase, contributing to a full-year adjusted EPS of $2.71, which represented over 12% growth [15][21] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection products [16] - Advanced Healthcare Solutions (AHS) segment revenue was $353 million, growing approximately 3% year-over-year, with adjusted EBITDA of $92 million and an adjusted EBITDA margin of 26% [18][19] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with encouraging improvements noted in Europe and Latin America, while APAC growth remained steady [13][16] - The company observed solid customer demand and strong commercial execution across all regions, with particular strength in professional instrumentation and gas detection [13][16] Company Strategy and Development Direction - The company is focused on executing the Fortive Accelerated Strategy, which includes three pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust [5][8] - The company is committed to investing in organic growth, pursuing bolt-on M&A, and maintaining a modestly growing dividend to maximize medium to long-term shareholder value [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, initiating full-year adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [21] - The management highlighted strong execution and operational rigor, with a focus on delivering benchmark-beating shareholder returns [5][24] Other Important Information - The company executed an additional $265 million in share repurchases in Q4, bringing total repurchases for the second half of the year to $1.3 billion [8][19] - The company finished the year with a gross debt to adjusted EBITDA ratio of 2.6x, indicating a strong balance sheet and ample capacity for capital deployment [20] Q&A Session Summary Question: Insights on Fluke's performance - Management noted strong demand and order growth at Fluke, with North America being the strongest region and encouraging improvements in EMEA and LATAM [32][34] Question: Price contribution and guidance - Price contributed about 2% to growth in Q4, with volume contributing roughly 1% [35] Question: First quarter expectations - Management indicated that January has started solidly, and they expect reported revenue and adjusted EBITDA to follow historical trends [41][43] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [44][45] Question: IOS organic growth sources - Management attributed the strong IOS growth to effective execution of the Fortive Business System strategy, with solid demand in data center applications and defense [72][74] Question: AI enhancements in software - Management highlighted that AI is seen as an opportunity, with strong customer demand for AI-enabled enhancements in their software offerings [53][76] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and market demand [95]

Financial Data and Key Metrics Changes - Reported earnings for Q4 2025 were $2.9 billion or $7.17 per share, while adjusted earnings were $1 billion or $2.47 per share, reflecting a flat performance compared to the previous quarter [11][12] - Capital spending for the quarter was $682 million, with operating cash flow generated at $2.8 billion [12][15] - Net debt to capital ratio stood at 38%, with a commitment to return over 50% of net operating cash flow to shareholders through dividends and share repurchases [11][12] Business Line Data and Key Metrics Changes - Midstream adjusted EBITDA increased by 40% since 2022, reaching approximately $1 billion in Q4 2025, driven by higher volumes despite lower margins [8][12] - Refining results improved due to the acquisition of WRB, with higher realized margins in the Gulf Coast, offset by weaker Central Corridor crack spreads [12][13] - Renewable Fuels saw improved results primarily due to higher realized margins, while Chemicals experienced a decrease due to lower polyethylene margins [12][13] Market Data and Key Metrics Changes - The acquisition of WRB increased exposure to Canadian heavy crude differentials by 40%, which have widened by approximately $4 per barrel since the acquisition announcement [7][12] - The worldwide crude utilization rate is expected to be in the low 90s for Q1 2026, with anticipated turnaround expenses between $170 million and $190 million [16][16] Company Strategy and Development Direction - The company is focused on safe, reliable operations, continuous improvement, and disciplined capital allocation to maximize profitability [4][18] - Strategic actions in 2025 included acquiring the remaining 50% interest in WRB, selling a 65% interest in the Germany and Austria retail marketing business, and idling the Los Angeles refinery [5][6] - The company aims to achieve an adjusted controllable cost per barrel of approximately $5.50 by the end of 2027 [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the refining sector, anticipating continued demand growth in 2026, with challenges in meeting that demand due to low refinery additions [80] - The company is optimistic about achieving a run-rate adjusted EBITDA of approximately $4.5 billion by year-end 2027, supported by organic growth opportunities [9][78] - Management emphasized the importance of maintaining a conservative balance sheet while returning cash to shareholders [11][18] Other Important Information - The company reported its best year ever for safety performance in 2025, highlighting the commitment to safety as foundational to operations [4] - The company plans to add a gas plant approximately every 12-18 months, with the Iron Mesa gas plant expected to be in service in early 2027 [9] Q&A Session Summary Question: Outlook for Mid-Continent products and feedstock opportunities post-WRB consolidation - Management highlighted the integration of refining, midstream, and marketing assets, emphasizing the advantages of heavy Canadian crude and the robust demand profile in PADD 2 [20][21] Question: 2026 priorities on cost outlook - Management indicated a target of $5.50 per barrel for controllable refining costs, with continuous improvement initiatives in place [24][27] Question: Turnaround management and utilization rates - Management noted a relatively light turnaround cycle in 2026, with a focus on maintaining low turnaround costs while maximizing utilization [32][34] Question: Cash flow framework and stock buyback capacity - Management outlined a framework for returning cash to shareholders, with approximately $4 billion available for debt reduction and buybacks [36][38] Question: Dynamics of WCS spreads and Venezuelan crude - Management confirmed the ability to process Venezuelan crude and its potential impact on heavy crude differentials, while also addressing market expectations [42][44] Question: Refining operational performance and M&A opportunities - Management acknowledged the potential for M&A if value-creating opportunities arise, particularly in the Mid-Continent or Gulf Coast regions [90][92]

Phillips 66 (NYSE:PSX) Q4 2025 Earnings call February 04, 2026 12:00 PM ET Company ParticipantsBrian Mandell - EVP, Marketing and CommercialDon Baldridge - EVP of Midstream and ChemicalsJason Gabelman - Director of Energy Equity ResearchKevin Mitchell - CFOMark Lashier - Chairman and CEOMatthew Blair - MD of Refiners, Chemicals, and Renewable Fuels ResearchNeil Mehta - Head of Americas Natural Resources Equity ResearchPaul Cheng - MDRich Harbison - EVP of RefiningSean Maher - VP of Investor Relations and Ch ...

Ares Capital (NasdaqGS:ARCC) Q4 2025 Earnings call February 04, 2026 12:00 PM ET Company ParticipantsBrian McKenna - Director of Equity ResearchJana Markowicz - Partner and COOJim Miller - Partner and PresidentJohn Stilmar - Partner and Co-Head of the Ares Public Markets Investor RelationsKort Schnabel - Partner, Co-Head for US Direct Lending, and CEOScott Lem - CFOConference Call ParticipantsArren Cyganovich - Managing Director and Senior Equity Research AnalystCasey Alexander - Managing Director and Senio ...

Ares Capital (NasdaqGS:ARCC) Q4 2025 Earnings call February 04, 2026 12:00 PM ET Company ParticipantsBrian McKenna - Director of Equity ResearchJana Markowicz - COOJim Miller - PresidentJohn Stilmar - Partner and Co-Head of the Ares Public Markets Investor RelationsKort Schnabel - CEOScott Lem - CFOConference Call ParticipantsArren Cyganovich - Managing Director and Senior Equity Research AnalystCasey Alexander - Managing Director and Senior Equity AnalystDerek Hewitt - AnalystDoug Harter - Director and Sen ...

Financial Data and Key Metrics Changes - Horace Mann reported record 2025 full-year core earnings per share of $4.71, a 39% increase over the prior year, with a shareholder return on equity of 12.4% [4][15] - Total revenues increased by 7% year-over-year, with net premiums and contract deposits earned also up more than 7% [4][15] - Core earnings for 2025 were $196 million, reflecting strong underlying profitability across the business [15][19] Business Line Data and Key Metrics Changes - In Property and Casualty (P&C), core earnings were $112 million, more than double the prior year, with a reported combined ratio of 89.7, improving over 8 points year-over-year [19] - Auto net written premiums increased to $502 million, with a combined ratio of 96.5, improving nearly 2 points [19] - Life and retirement segment saw core earnings increase by 13% to $61 million, with net premiums written and contract deposits growing to $612 million, up 7% year-over-year [21] - Individual supplemental sales increased nearly 40% year-over-year, while group benefits recorded a 33% increase [6][22] Market Data and Key Metrics Changes - Unaided brand awareness reached 35% in 2025, up from less than 10% a year ago, indicating significant growth in market recognition [7] - New business customer interactions increased by 37% in the fourth quarter, reflecting improved marketing effectiveness [8] Company Strategy and Development Direction - The company aims for a 10% average compound annual growth rate in core EPS and a sustainable 12%-13% shareholder return on equity over the next three years [11][26] - Investments in marketing, infrastructure improvements, and product expansion are prioritized to support sustained profitable growth [12][14] - The introduction of the Horace Mann Club aims to enhance engagement with educators and provide financial wellness tools [9] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 benefited from unusually light severe weather activity, with pre-tax catastrophe losses of $62 million contributing positively to core earnings [5] - The company expects a normalized core earnings per share guidance range of $4.20-$4.50 for 2026, reflecting a nearly 10% increase [11][17] - Management expressed confidence in achieving long-term financial targets despite potential macroeconomic uncertainties [26] Other Important Information - The company repurchased $21 million of shares in 2025, the highest annual level since 2022, with an additional $50 million authorization in May [14][25] - The early retirement offering was taken up by about 8% of eligible employees, aimed at aligning the workforce with future needs [56][59] Q&A Session Summary Question: Distribution initiatives and policy count growth outlook - Management indicated strong sales momentum driven by distribution efforts, with brand awareness and website traffic significantly increasing [30][31] Question: EPS outlook for 2026 and growth acceleration - Management confirmed expectations for a 10% annual earnings per share growth rate, with anticipated accelerating top-line growth due to investments made [33][34] Question: Catastrophe loss assumptions and reinsurance program - Management clarified that the catastrophe loss guidance for 2026 is based on a consistent approach, not influenced by one year's results [36][37] Question: Early retirement offering participation - Approximately 8% of eligible employees participated in the early retirement offering, aimed at workforce planning [56][59] Question: Investment in supplemental and group segment - Management expressed satisfaction with progress in individual supplemental and group benefits, with strong sales and distribution efforts [70][72]