Donnelley Financial Solutions (NYSE:DFIN) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Company ParticipantsCharlie Strauzer - Senior Managing DirectorCraig Clay - President of Global Capital MarketsDan Leib - President and CEODave Gardella - CFOEric Johnson - President of Global Investment CompaniesMike Zhao - Head of Investor RelationsPete Heckmann - Managing DirectorRoss Cole - Equity Research AssociateOperatorI would now like to turn the conference over to Mike Zhao, Head of Investor Relations. Pl ...

Financial Data and Key Metrics Changes - The company achieved a consolidated net sales growth of 10.4% year-over-year in Q4 2025, with Adjusted EBITDA increasing by $14.1 million or approximately 44% year-over-year, resulting in an Adjusted EBITDA margin of 26.6%, up 630 basis points from the previous year [4][5][26] - For the full year 2025, consolidated Adjusted EBITDA reached $239.8 million, a 10.4% increase year-over-year, with an Adjusted EBITDA margin of 31.3%, up 350 basis points from 2024 [6][19] Business Line Data and Key Metrics Changes - Software solutions net sales grew by 8.7% year-over-year to $358.4 million, representing approximately 47% of total net sales for 2025 [9][19] - The capital market software solutions segment saw net sales of $60 million, a 20% increase year-over-year, driven by strong growth in Venue and Active Disclosure, both up approximately 20% [27] - The investment company's software solution segment reported net sales of $30.9 million, a decrease of 2.2% year-over-year, attributed to tough comparisons from a strong Q4 2024 [32] Market Data and Key Metrics Changes - The company recorded $48.6 million in transactional revenue in Q4 2025, a 29% increase year-over-year, benefiting from a recovery in deal completions following a government shutdown [30] - The company maintained a high market share for large IPOs, capturing 65% of IPOs that raised over $100 million in Q4 2025 [60] Company Strategy and Development Direction - The company is transitioning to chapter three of its transformation, focusing on sustained growth and increasing the mix of predictable revenue from recurring offerings [19][20] - The introduction of new products like ArcFlex and enhancements in AI capabilities are aimed at capturing additional market demand and improving operational efficiency [15][16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing momentum in capital markets and expects to capture an uptick in deal activity in 2026, despite a continued decline in print and distribution sales [20][38] - The company does not anticipate major SEC rule changes for 2026 but is well-positioned to capture demand from future regulations [22] Other Important Information - The company repurchased approximately 3.6 million shares in 2025, representing about 12% of outstanding shares, at an average price of $48.36 per share [4][36] - Free cash flow for Q4 was $47.9 million, with a full-year total of $107.8 million, reflecting improved operational performance [35] Q&A Session Summary Question: How much of the outperformance in Q4 was volume versus price? - Management indicated that the outperformance was predominantly driven by volume, particularly in capital markets transactional revenue, with a modest contribution from price [48] Question: Can you provide more color on the drivers behind the strong margins? - Management attributed the strong margins to a favorable sales mix, cost structure improvements, and operating leverage from increased sales, with long-term guidance for margins above 30% [50] Question: How does the potential opportunity in capital allocation look given recent valuation multiples? - Management noted that while valuations have contracted, there may be interesting opportunities as companies seek liquidity, and they continue to monitor the situation [52] Question: Can you discuss the relative TAM for ArcFlex compared to ArcSuite? - Management confirmed that ArcFlex can be sold as a standalone product, with significant interest in the market for alternative investment solutions [56] Question: What is the outlook for IPO activity and DFIN's share in traditional IPOs? - Management highlighted a strong share in larger IPOs, with a 70% share of offerings greater than $1 billion in 2025, indicating readiness to support complex deals [61]

Franklin Electric (NasdaqGS:FELE) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Company ParticipantsDean Cantrell - Director of Investor RelationsJennifer Wolfenbarger - CFOJoe Ruzynski - CEOConference Call ParticipantsBryan Blair - Managing Director and Research AnalystMatt Summerville - Managing Director and Senior Research AnalystMike Halloran - Senior Research AnalystRyan Connors - Managing Director and Research AnalystWalter Liptak - Industrial AnalystOperatorHello, and welcome to the Franklin El ...

Energy Transfer (NYSE:ET) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Company ParticipantsAdam Mackay - EVP of Crude OilDylan Bramhall - CFOMackie McCrea - Co-CEOThomas Long - CFOConference Call ParticipantsElvira Scotto - Equity Research AnalystGabe Moreen - Equity Research AnalystJason Gabelman - Equity Research AnalystJean Salisbury - Equity Research AnalystJohn Mackay - Equity Research AnalystJulien Dumoulin-Smith - Equity Research AnalystKeith Stanley - Equity Research AnalystManav Gupta - Equi ...

Labcorp (NYSE:LH) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Company ParticipantsAdam Schechter - Chairman, President and CEOChristin O'Donnell - VP of Investor RelationsDan Clark - VP in Equity ResearchElizabeth Anderson - Senior Managing Director in Health Care Technology and Distribution ResearchErin Wright - Managing Director in U.S. Healthcare Services ResearchJack Meehan - Partner in Life Science Tools and Diagnostics ResearchJulia Wang - EVP and CFOKevin Caliendo - Managing Director in Healt ...

Financial Data and Key Metrics Changes - GAAP EPS for the fourth quarter was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [20] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [21] - For the full year, adjusted diluted EPS was $19.09, an increase of 11.1% over 2024 [30] Business Line Data and Key Metrics Changes - Infrastructure sales grew 7.2% year-over-year to $819 million, with utility sales increasing by 21% due to strong market conditions and higher volumes [24] - Agriculture sales decreased 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in the fourth quarter [27] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [26] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and aging infrastructure replacement, with a backlog of $1.5 billion, up 22% from the previous year [10][44] - North American agriculture markets remain challenged, while international sales declined due to economic conditions in Brazil [27][15] - The telecommunications market has normalized, with ongoing investments in wireless and RAN [72] Company Strategy and Development Direction - The company is focused on disciplined resource allocation, safety, and continuous improvement to enhance performance [9] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [8][16] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [44] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with a focus on improving margins [45][49] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [35][36] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [12] - A total of $250 million was returned to shareholders, including $198 million through share repurchases [32] Q&A Session Summary Question: Confidence in utility demand and changes in customer investment - Management is confident in the utility market due to strong drivers like electrification and aging infrastructure, supported by a backlog of $1.5 billion [44] Question: Actions to restore agriculture margins and expected recovery timeline - Management expects a meaningful recovery in agriculture margins in Q1 2026, having taken steps to address previous challenges [45][46] Question: Capital spending increase for utility capacity expansions - The company plans to spend $170 million to $200 million in 2026 on utility capacity expansions, driven by durable demand [53][54] Question: Expected agriculture margins for Q1 and full year - Management anticipates low teens margins in Q1, potentially reaching mid-teens by year-end [51] Question: Growth expectations in non-utility infrastructure segments - Management expects growth across all infrastructure segments, including telecom, coatings, and lighting [72]

Financial Data and Key Metrics Changes - Full year 2025 sales increased by 5.4% to $2.1 billion, with segment operating income up 10% to $269 million [5][17][18] - Fourth quarter 2025 sales were $506.9 million, a year-over-year increase of 4.4%, with operating income rising 20% to $51.6 million [12][13][15][16] - Adjusted diluted earnings per share for 2025 was $4.14, a 6% increase from $3.92 in 2024, while GAAP diluted EPS was $3.22, down from $3.86 due to a pension settlement charge [12][17] Business Line Data and Key Metrics Changes - Global Water Systems sales increased by 6% for the full year 2025, driven by strong pricing and acquisitions, while operating income was up 5.2% [22][23] - Energy Systems sales rose by 9% to $299 million for the full year, with operating income increasing by 6% to $99 million [24] - Distribution segment sales increased by 2% to $700.7 million, with operating income up 64% to $39.8 million, reflecting margin enhancement initiatives [25] Market Data and Key Metrics Changes - Water Systems in the U.S. and Canada saw a 4% decline in Q4 due to softer HVAC markets, while international sales increased by 15% [19] - Energy Systems sales outside the U.S. and Canada increased by 19%, indicating strong international demand [20] - Distribution segment's operating income margin improved by 300 basis points to 3.3% in Q4, driven by higher volumes and price realization [21] Company Strategy and Development Direction - The company aims to position itself as an innovation and growth leader, with over 35 new products expected to generate $160 million in revenue by year three [8] - Focus on enhancing margins through a value acceleration office, utilizing AI and process engineering to streamline operations and manage costs [10][31] - The company is committed to strategic acquisitions to fill portfolio gaps and enhance market reach, with a healthy M&A pipeline anticipated for 2026 [60][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a turbulent global market, with a healthy order book and backlog as they move into 2026 [5][6] - The outlook for 2026 includes expected sales growth of 3% to 4% across segments, with adjusted EPS guidance of $4.40 to $4.60 [27][28] - Management noted that the company is well-positioned to capitalize on urbanization and increasing demand for high-quality water and energy solutions [29][30] Other Important Information - The company completed approximately $120 million in acquisitions and $160 million in share buybacks in 2025, maintaining a strong balance sheet [6][26] - A quarterly cash dividend of $0.28 was announced, marking the 34th consecutive year of dividend increases [26] Q&A Session Summary Question: Organic outlook across segments for revenue guidance - Management indicated a 3%-5% growth outlook for the water business, with a mix of volume and price increases expected [36] Question: Specifics on water business end markets and geographic demand - Management noted stabilization in HVAC markets and expected growth in the U.S. and Europe, with no pronounced weaknesses anticipated [40][41] Question: Impact of HVAC on water segment performance - Management clarified that HVAC weakness was isolated to Q4 and expected normalization in early 2026 [45] Question: Energy segment margin challenges - Management acknowledged tariff impacts and indicated expectations for margin recovery in 2026 [50] Question: Integration progress of recent acquisitions - Management reported smooth integration of PumpEng and Barnes, with positive growth synergies anticipated for 2026 [58][59] Question: Value acceleration office and its impact - Management highlighted the office's focus on process reengineering and growth, with expected benefits in productivity and efficiency [64][66]

Financial Data and Key Metrics Changes - Adjusted EBITDA for full year 2025 was nearly $16 billion, up 3% from $15.5 billion in 2024, marking a partnership record [3] - Distributable cash flow (DCF) attributable to partners was $8.2 billion, slightly down from $8.4 billion in the previous year [3] - For Q4 2025, adjusted EBITDA was approximately $4.2 billion, compared to $3.9 billion in Q4 2024, while DCF was approximately $2 billion, consistent with Q4 2024 [4] Business Segment Data and Key Metrics Changes - NGL and refined products segment had adjusted EBITDA of $1.1 billion, consistent with Q4 2024, with higher throughput across Gulf Coast and Mariner East pipeline operations [5] - Midstream segment adjusted EBITDA was $720 million, up from $705 million in Q4 2024, driven by volume growth in various regions [6] - Crude oil segment adjusted EBITDA decreased to $722 million from $760 million in Q4 2024, impacted by lower transportation revenues [7] - Interstate natural gas segment adjusted EBITDA increased to $523 million from $493 million in the previous year, due to higher capacity sold [7] - Intrastate natural gas segment adjusted EBITDA rose to $355 million from $263 million, driven by increased pipeline and storage optimization [7] Market Data and Key Metrics Changes - Record volumes were moved across interstate, midstream, NGL, and crude segments for the year ended 2025, with record NGL exports from terminals [4] - The company expects to invest approximately $5 to $5.5 billion in organic growth capital for 2026, focusing on natural gas assets and NGL segments [8] Company Strategy and Development Direction - The company is focused on significant growth projects, including the Desert Southwest Pipeline Project, which has been upsized to a 48-inch diameter to meet customer demand [9] - Expansion projects are expected to generate mid-teen returns and considerable earnings growth over the next decade [8] - The company is committed to capital discipline and targeting projects with the highest returns while balancing project risk [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future growth driven by new projects and the ramp-up of existing operations [19] - The company anticipates continued demand for natural gas services, particularly for power plants and data centers [21] - Management noted that the operating team performed excellently during recent winter weather events, maintaining service and reliability [40] Other Important Information - The company has a significant backlog of growth opportunities and is actively engaging with stakeholders for project updates [10] - The Lake Charles LNG project has been suspended, with the company exploring alternative uses for the terminal [18] Q&A Session Summary Question: Key drivers behind commercialization momentum in natural gas assets - Management highlighted excitement about the Desert Southwest project and the ongoing expansion of the Florida Gas pipeline system [25] Question: NGL transportation and third-party volumes - Management indicated that over half of the gas transported comes from their own facilities, with expectations for growth in affiliate volumes [32] Question: Performance during winter weather and gas market volatility - Management noted that they maintained service during winter storms and did not see profits as high as previous years but performed well [40] Question: Early volumes on Hugh Brinson Pipeline - Management is confident about bringing on some volumes earlier than expected, which will benefit producers in the Permian Basin [44] Question: Medium-term growth expectations - Management reiterated a long-term distribution growth rate target of 3%-5% annually, indicating a solid foundation for growth [49] Question: Recontracting on the Mariner system - Management expressed confidence in maintaining and growing throughput on the Mariner pipelines despite upcoming contract expirations [50] Question: Storage opportunities for data centers - Management emphasized their capability to provide reliable gas supply and storage solutions for data centers [74]

Financial Data and Key Metrics Changes - GAAP EPS for Q4 was $9.05, including a tax benefit of $78.5 million, or $3.98 per share, primarily due to a U.S. tax deduction related to the Prospera investment [20] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [21] - Full-year net sales were $4.1 billion, slightly increasing year-over-year, with operating income at $538 million, or 13.1% of revenue [28] Business Line Data and Key Metrics Changes - Infrastructure sales grew 7.2% to $819 million, with utility sales increasing by 21% due to strong market conditions and higher volumes [24] - Agriculture sales decreased 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in Q4 [27] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [26] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and aging infrastructure, with a backlog of $1.5 billion, up 22% from the previous year [10] - North American agriculture markets remain challenged, while international sales declined due to economic conditions in Brazil [27][15] - The telecommunications market has normalized capital spending, with ongoing demand for 5G and broadband expansion [12] Company Strategy and Development Direction - The company is focused on disciplined resource allocation and continuous improvement to enhance operational performance [9] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [8] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the utility market's strength, citing multiple demand drivers and a robust backlog [46] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with North America maintaining double-digit operating margins [50][52] - The company anticipates net sales for 2026 to be between $4.2 billion and $4.4 billion, with diluted EPS projected in the range of $20.50 to $23.50 [35] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [12] - Full-year operating cash flows totaled $457 million, with free cash flow at $311 million, representing approximately 90% of net earnings [30] - The company returned $250 million to shareholders through dividends and share repurchases [32] Q&A Session Summary Question: Confidence in utility demand and changes in customer investment - Management is confident in the utility market due to strong drivers like electrification and AI, with a backlog of $1.5 billion supporting the outlook [46] Question: Actions to restore agriculture margins and expected recovery - Management expects a meaningful recovery in agriculture margins in Q1 2026, with steps taken to strengthen the foundation in Brazil [50][52] Question: Expected ag margins for Q1 and full year - Management anticipates low teens for Q1 margins, potentially reaching mid-teens by year-end [58] Question: Increasing capital spending for utility capacity expansions - Capital spending is projected to be $170 million-$200 million in 2026, primarily for utility, driven by durable demand [61] Question: Balance sheet utilization for pricing - The company plans to use its strong balance sheet for growth rather than trading for better pricing [66] Question: Aftermarket share in a soft ag market - The company is enhancing its e-commerce system to improve aftermarket services for farmers [71] Question: Utility growth potential and pricing - Management sees potential upside in utility growth, with expectations of more volume than price contributing to growth in 2026 [82]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenues were $5.2 billion, up 6% from Q4 of 2024, with adjusted net income at $246 million and adjusted EPS at $0.19, up from $0.15 in Q4 2024 [10][14] - For the full year 2025, consolidated revenues were down 9% year-over-year, while industrial sales decreased in double digits [11] - Industrial adjusted EBIT margin was 4.3% for 2025, primarily driven by higher tariff costs and unfavorable geographic mix [11][14] Business Line Data and Key Metrics Changes - Agriculture segment sales in Q4 were about $3.6 billion, up 5% year-over-year, with EMEA up 33% and North America down 10% [10][15] - Construction net sales in Q4 were up 19% year-over-year to $853 million, driven by better sales in North and South America [10][16] - Financial services segment net income in Q4 was $109 million, an 18% year-over-year increase [17] Market Data and Key Metrics Changes - North America is expected to see the largest decrease in large equipment industry retail demand, while EMEA is forecasted to show slight growth [28][30] - Global industry retail demand is projected to be around 80% of mid-cycle, down approximately 5% from 2025 levels [29][30] Company Strategy and Development Direction - The company strategy focuses on five key pillars: expanding product leadership, advancing tech integration, driving commercial excellence, operational excellence, and quality as a mindset [19] - A robust pipeline of new product launches is planned, including over 15 new tractor launches and 30 precision technology releases by the end of 2027 [19][20] - The company aims to improve agriculture EBIT margin to 16%-17% by 2030, despite tariff impacts [26] Management Comments on Operating Environment and Future Outlook - The management noted that commodity prices remain low, affecting farmers' ability to purchase equipment, and the trade environment is still uncertain [9][11] - The company expects 2026 to represent the trough of the cycle, with a focus on improving underlying profitability [30][32] - Management expressed confidence in North and South American markets delivering growth in revenue and profit pools as trade flows stabilize [11][30] Other Important Information - The company has been recognized for its sustainability efforts, ranking number one in its industry on S&P Global's Corporate Sustainability Assessment [12] - The company repurchased $45 million worth of stock in Q4 and returned $432 million to shareholders through dividends and share repurchases for the full year [18] Q&A Session Summary Question: Clarification on inventory situation and setup for 2027 - Management acknowledged a shortfall in inventory reduction targets, primarily due to Europe, and indicated that dealer destocking is largely accomplished [43][44] Question: EBIT bridge for 2026 - Management provided a breakdown of expected margin impacts, indicating a reduction in margin due to volumes and geographic mix, but improvements from pricing and operational efficiencies [48] Question: North America farmer sentiment and government initiatives - Management noted that farmer sentiment is currently low due to flat income projections and commodity prices, with ongoing discussions about potential government support [70][71] Question: Product launch pipeline and competitive environment in Europe - Management highlighted excitement around new mid-range tractors and combines, with positive feedback from farmers, while cautioning about the fragile market conditions in Europe [74][78]