Financial Data and Key Metrics Changes - The total economic return for the fourth quarter was 10.2%, consisting of $0.51 of common dividends and a $0.78 increase in book value per share [25] - For the year, the book value increased by $0.75, and $2 of dividends per common share were declared, paid monthly [25] - Comprehensive income for the quarter was $190 million and $354 million for the year [25] - The company ended the quarter with leverage of 7.3x total equity and a strong liquidity position of $1.4 billion in cash and unencumbered securities, representing over 55% of total equity [25] Business Line Data and Key Metrics Changes - The TBA and mortgage-backed securities portfolio started the year at $9.8 billion, grew to $15.8 billion at the end of September, and ended the year at $19.4 billion [27] - The current book value is estimated to be in the range of $13.85-$14.05 per share, up 3%-4% from year-end [28] - The company raised $1.5 billion over the last 13 months at the most accretive levels in its history [25] Market Data and Key Metrics Changes - The company experienced a 29.4% total shareholder return in 2025, driven by both dividend income and significant share price performance [8] - The total equity market capitalization, including preferred shares, was $3 billion as of the end of last week [8] - The company raised and invested over $1 billion in 2025, with a price-to-book valuation rising [16] Company Strategy and Development Direction - The company aims to create a resilient business at the intersection of capital markets and real estate finance, focusing on disciplined execution and long-term value creation [7][30] - The management emphasizes the importance of adapting to changing environments and maintaining a performance-first mentality [4][6] - The company is evolving its business steadily, fine-tuning people, processes, technology, and structure to align with its strategy [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the impact of government policy on asset returns, indicating that it is one of the most powerful forces shaping the market [14] - The company is prepared for a wider range of outcomes and has tilted its risk appetite towards liquidity and flexibility [10] - The management expressed confidence in the mortgage market's stability and the potential for attractive returns due to rising global demand for income [11][20] Other Important Information - The company has added depth and breadth to its team, including a new Chief Operating Officer and expanded corporate development capabilities [9] - The management noted that the current environment is characterized by policy complexity, shifting rate expectations, and geopolitical crosscurrents [8] Q&A Session Summary Question: Can you quantify where you see incremental investment returns today? - Management indicated that hedged ROEs are in the mid-teens with leverage around 7x, and with targeted leverage in the low 8s, ROEs could reach mid- to high teens [33] Question: How does this compare to three months ago given the spread tightening? - The dynamic is roughly between 150 and 300 basis points tighter than at the end of the last quarter [35] Question: Can you discuss the probability of politically motivated actions to improve housing affordability? - Management acknowledged the historical role of GSEs in managing housing and indicated that government intervention is possible [48][49] Question: What are the current opportunities for capital deployment? - Management noted that the belly of the coupon stack, primarily fives, has been the most interesting, with opportunities across the coupon stack [55] Question: How do you see the GSEs' longer-term role in the market? - Management believes that the $200 billion cap could be extended and that GSEs will continue to play a significant role in the market [73]

Financial Data and Key Metrics Changes - The total economic return for Q4 2025 was 10.2%, with a common dividend of $0.51 and a book value increase of $0.78 per share [23] - For the full year 2025, the book value increased by $0.75, and total comprehensive income was $354 million [23][24] - The company ended the quarter with leverage of 7.3x total equity and maintained a strong liquidity position with $1.4 billion in cash and unencumbered securities [23] Business Line Data and Key Metrics Changes - The TBA and mortgage-backed securities portfolio grew from $9.8 billion at the beginning of the year to $19.4 billion by year-end, with current holdings at approximately $22 billion [24] - The company raised and invested over $1 billion in 2025, benefiting from spread tightening in the second half of the year [15][24] Market Data and Key Metrics Changes - The company noted that MBS spreads have tightened significantly, with current spreads being 150 to 300 basis points tighter than at the end of the previous quarter [33] - The return environment is expected to improve due to policy support for housing finance and higher liquidity [17] Company Strategy and Development Direction - The company emphasizes a performance-first mentality and ethical stewardship of shareholders' capital, focusing on risk management and adaptability [4][5] - The management team is committed to evolving the business steadily, fine-tuning processes and technology to align with strategic goals [12] - The company aims to leverage rising global demand for income and the expansion of passive investing to strengthen its shareholder base and lower its cost of capital [11][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of government policy in shaping asset returns and indicated a more stable and supportive framework for the mortgage market [13][14] - The company is prepared for a wider range of outcomes in a rapidly changing global landscape, with a focus on liquidity and flexibility [10][12] - Management expressed confidence in the company's ability to generate reliable dividends backed by a resilient portfolio [11] Other Important Information - The company has made significant investments in its team and infrastructure, including the appointment of a new Chief Operating Officer [9] - General and administrative expenses as a percentage of capital decreased from 2.9% to 2.1% year-over-year, reflecting operational efficiency [26] Q&A Session Summary Question: Can you quantify where you see incremental investment returns today? - Management indicated that hedged ROEs are in the mid-teens with leverage around 7x, and with targeted leverage in the low 8s, ROEs could reach mid- to high teens [31] Question: How does the current spread tightening compare to previous quarters? - The dynamic is that spreads are now between 150 and 300 basis points tighter than at the end of the previous quarter [33] Question: What is the probability of politically motivated actions to improve housing affordability? - Management acknowledged the historical role of GSEs in managing housing and indicated that government intervention is possible and anticipated [44] Question: Where has the capital raised in January been deployed? - The company is finding opportunities primarily in the belly of the coupon stack, particularly in fives and five and a halves [50] Question: What is the appropriate size of the portfolio given current opportunities? - Management believes there are significant opportunities to generate alpha and that the portfolio can grow while still maintaining strong performance [60]

MainStreet Bancshares (NasdaqCM:MNSB) Q4 2025 Earnings call January 26, 2026 10:00 AM ET Speaker1Welcome! My name is Jeff Dick. I'm the Chairman and CEO of MainStreet Bancshares, Inc., and MainStreet Bank. Thank you for joining our 2025 earnings webcast, which has been prerecorded due to inclement weather. If you have questions for us, please reach out to me or my chief of staff, Billy Freesmeier, at 703-481-4579 to schedule a meeting. We will also be attending the February 4 and 5 Janney conference in Scot ...

Baker Hughes (NasdaqGS:BKR) Q4 2025 Earnings call January 26, 2026 09:30 AM ET Company ParticipantsAhmed Moghal - CFOChase Mulvehill - VP of Investor RelationsJames West - Managing Director and Head of Energy and Power ResearchLorenzo Simonelli - Chairman and CEOConference Call ParticipantsArun Jayaram - AnalystDavid Anderson - AnalystMark Bianchi - AnalystSaurabh Pant - AnalystScott Gruber - AnalystOperatorGood day, ladies and gentlemen, and welcome to the Baker Hughes Company fourth quarter and full year ...

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 totaled $1.34 billion, contributing to a record full-year adjusted EBITDA of $4.83 billion, reflecting sustained momentum from the business system and positive performance in Industrial and Energy Technology (IET) [4][30] - Adjusted earnings per share rose to $0.78, resulting in a full-year adjusted EPS of $2.60, a 10% increase from 2024 [4][30] - Adjusted EBITDA margins for Q4 rose 30 basis points year-over-year to a record 18.1% [4][30] - Free cash flow for Q4 was $1.3 billion, contributing to a record annual free cash flow of $2.7 billion, representing a conversion rate of 57% [7][30] Business Line Data and Key Metrics Changes - IET achieved record order bookings of $4 billion in Q4, contributing to a full-year total of $14.9 billion, exceeding guidance [6][34] - IET margins increased by 160 basis points to 20% in Q4, while full-year margins rose 170 basis points to a historical high of 18.5% [4][35] - OFSE revenue declined by 8% to $14.3 billion for the full year, with EBITDA of $2.62 billion resulting in resilient margins of 18.3% [37] Market Data and Key Metrics Changes - LNG demand increased by approximately 7% in 2025, with expectations of at least 75% growth by 2040, primarily driven by growth across Asia [15][16] - The global macro environment remains resilient, with modestly stronger year-over-year GDP growth anticipated in 2026 [14][13] - Data center power demand is projected to increase at a 12% compounded annual growth rate through 2040, driven by AI workloads [20][21] Company Strategy and Development Direction - The company is focused on expanding its power systems portfolio to capture growing demand, particularly in data centers and renewable energy [3][19] - Baker Hughes aims to achieve a net debt to adjusted EBITDA ratio of 1-1.5 times within 24 months following the closing of the Chart acquisition [32] - The company is targeting $40+ billion in IET orders over the next three years, reflecting confidence in market dynamics and growth opportunities [47][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth cycle in global power demand, driven by digitization, electrification, and the transition to lower carbon energy solutions [46][14] - The company anticipates organic adjusted EBITDA growth in the mid-single-digit range for 2026, supported by strong order visibility and productivity improvements [46][41] - Management highlighted the importance of maintaining a disciplined approach to cost optimization and portfolio management to enhance long-term value creation [33][45] Other Important Information - The company secured a large slot reservation agreement for approximately 1 gigawatt of NovaLT capacity to support data center applications, expected to convert into a firm order in 2026 [9] - The pending acquisition of Chart is expected to enhance the power generation portfolio and deliver integrated tri-generation solutions [28][48] Q&A Session Summary Question: Can you elaborate on your strategy for further enhancing your current capabilities or sustaining growth from Power Systems? - Management emphasized the belief in a global power demand growth cycle, with significant opportunities in data centers and digital infrastructure, projecting a market opportunity of $100 billion annually for Power Systems by 2030 [51][52][53] Question: Can you walk through some of the moving pieces within the $14.5 billion IET order intake guide for 2026? - Management indicated that the order outlook reflects strength across the IET portfolio, with robust pipelines in power systems and continued growth in gas infrastructure and new energy solutions [61][62][63] Question: Can you discuss the margin outlook for IET and OFSE? - Management expects IET margins to reach 20% in 2026, driven by higher-margin backlog conversion and productivity improvements, while OFSE margins are projected to remain resilient despite macro headwinds [70][71][68]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 totaled $1.34 billion, contributing to a record full-year adjusted EBITDA of $4.83 billion, reflecting sustained momentum from the business system and positive performance in Industrial and Energy Technology (IET) [4][5] - Adjusted earnings per share rose to $0.78, resulting in a full-year adjusted EPS of $2.60, a 10% increase from 2024 [4] - Adjusted EBITDA margins for Q4 rose 30 basis points year-over-year to a record 18.1% [4] - For the full year, company-adjusted EBITDA margins increased by 90 basis points to a record of 17.4% [5] Business Line Data and Key Metrics Changes - IET achieved strong fourth quarter order bookings of $4 billion, contributing to a record full-year total of $14.9 billion, exceeding guidance [5][31] - IET margins increased by 170 basis points to a historical high of 18.5% for the full year [5][33] - OFSE revenue declined by 8% for the full year, but margins remained resilient at 18.3% [35] Market Data and Key Metrics Changes - LNG demand increased by approximately 7% in 2025, with expectations of at least 75% growth by 2040, primarily driven by growth across Asia [13][14] - The global macro environment remains resilient despite geopolitical uncertainties, with modestly stronger GDP growth anticipated in 2026 [11][12] Company Strategy and Development Direction - The company is focused on expanding its power systems portfolio, targeting a market opportunity exceeding $100 billion by 2030 [20][21] - The strategy includes enhancing capabilities in power generation, grid stability, and energy management, with a strong emphasis on digital integration and lifecycle services [20][21] - The pending acquisition of Chart is expected to add thermal management capabilities and enhance the power generation portfolio [25][44] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued strong demand for power systems driven by digitization, AI, and electrification trends [12][18] - The company expects to achieve a net debt to adjusted EBITDA ratio of 1-1.5 times within 24 months following the Chart acquisition [29] - The outlook for global energy infrastructure investment remains positive, particularly in gas, LNG, and power generation [43][44] Other Important Information - The company generated robust free cash flow of $1.3 billion in Q4, contributing to a record annual free cash flow of $2.7 billion [6][28] - The company returned $1.3 billion to shareholders in dividends and share repurchases in 2025 [28] Q&A Session Summary Question: Can you elaborate on your strategy for further enhancing your current capabilities or sustaining growth from Power Systems? - Management highlighted a global power demand growth cycle, with expectations for power demand to double by 2040, driven by data centers and electrification [50][51] - The company sees significant opportunities in AI infrastructure and has identified a $100 billion annual market opportunity for Power Systems by 2030 [51][52] Question: Can you walk through some of the moving pieces within the IET order intake guide for 2026? - Management indicated strong pipelines in power systems and continued growth in LNG and gas infrastructure, with expectations for robust order levels [60][61] Question: Can you discuss the margin outlook for IET and OFSE? - Management expects IET margins to reach 20% in 2026, driven by higher-margin backlog conversion and productivity improvements [69][70] - OFSE margins are expected to remain resilient despite macro headwinds, with ongoing cost actions supporting stability [70][71]

Financial Data and Key Metrics Changes - The company has paid down over $1.5 billion in debt, significantly improving its leverage and aiming to return to historic norms of leverage in the threes later this fiscal year [2] - There has been consistent improvement in performance, including significant free cash flow generation, meaningful margin improvement, and solid EBITDA growth [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation, AI, and other technologies, aimed at being the lowest-cost, high-performing manufacturer [3] Market Data and Key Metrics Changes - The company is seeing growth opportunities in the e-commerce and digital space, indicating a shift in market strategy to capture emerging customer segments [3] Company Strategy and Development Direction - The company is committed to a disciplined approach to growth with exciting value creation strategies, aiming to enhance shareholder returns [3] - The incentive structure is aligned with the successful execution of the Fiscal 2026 operating plan, reflecting a positive outlook for Fiscal 2026 and beyond [4] Management's Comments on Operating Environment and Future Outlook - Management expresses optimism about the future, indicating that discussions around leverage will become less relevant as the company stabilizes [2] - The company aims to create more value for shareholders and return to being a stable consumer product stock in investor portfolios [3] Other Important Information - The board of directors is composed of members with diverse experiences in finance, government, strategic planning, technology, and consumer marketing, which enhances governance [5] Q&A Session Summary Question: No questions were asked during the session - There were no questions submitted by shareholders during the meeting [34]

Financial Data and Key Metrics Changes - The company has paid down over $1.5 billion in debt, significantly improving its leverage and aiming to return to historic norms of leverage in the threes later this fiscal year [2] - There has been consistent improvement in performance, including significant free cash flow generation, meaningful margin improvement, and solid EBITDA growth [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation, AI, and other technologies, leading to cost reductions and optimization of the supply chain [3] Market Data and Key Metrics Changes - The company is committed to being the lowest-cost, high-performing manufacturer, which is expected to create more value for shareholders [3] Company Strategy and Development Direction - The company is taking a disciplined approach to growth with exciting value creation strategies, aiming to be a stable consumer product stock in investor portfolios [3] - The incentive structure is aligned with the successful execution of the fiscal 2026 operating plan and strategies [4] Management's Comments on Operating Environment and Future Outlook - Management has an optimistic view of fiscal 2026 and beyond, indicating that future discussions will be positive [4] - The company is focused on creating a healthy balance sheet and improving capital structure, which has led to improved performance [2] Other Important Information - The board of directors is composed of members with diverse experiences in finance, government, strategic planning, technology, and consumer marketing [5] - The meeting included proposals for electing directors, approving executive compensation, and ratifying the independent auditor for the fiscal year [14][24][28] Q&A Session Summary Question: No questions were asked during the meeting - There were no questions from shareholders during the Q&A session [34]

Financial Data and Key Metrics Changes - The company has improved its capital structure, resulting in significant free cash flow generation, margin improvement, and solid EBITDA growth [2][3] - Over $1.5 billion in debt has been paid down, with a path to return to historic leverage norms in the threes later this fiscal year [2] Business Line Data and Key Metrics Changes - The company is investing heavily in brand and business innovation, focusing on e-commerce and digital marketing to reach new customers [3] - Operational efficiencies have been achieved through automation and AI, optimizing the supply chain [3] Market Data and Key Metrics Changes - The company is seeing growth opportunities in the digital space, indicating a shift in market strategy [3] Company Strategy and Development Direction - The company aims to be the lowest-cost, high-performing manufacturer, with a disciplined approach to growth and value creation strategies [3] - Management envisions a stable consumer product stock in investor portfolios, with potential for outsized shareholder returns [3] Management's Comments on Operating Environment and Future Outlook - Management has an optimistic view of Fiscal 2026 and beyond, encouraging shareholders to listen to the upcoming earnings call for more details [4] - The focus remains on creating value for shareholders while navigating the current operating environment [3] Other Important Information - The board of directors consists of members with diverse backgrounds in finance, government, and consumer marketing, enhancing oversight of management [5] Q&A Session Summary Question: No questions were asked during the meeting - There were no questions from shareholders, and the meeting was adjourned without further business [33]

Financial Data and Key Metrics Changes - The company generated net income of $3.3 million, or $0.34 per diluted share in Q4 2025, which was higher than the prior quarter [6] - Gross revenue increased by 1.5% from the prior quarter and 12.2% from Q4 2024 [10] - Net interest income rose by 5.6% from the prior quarter and 21.7% from Q4 2024, with net interest margin (NIM) increasing to 2.71% [10][11] - Tangible book value per share increased by 1.6% this quarter [6] Business Line Data and Key Metrics Changes - Loans held for investment increased by $59 million from the end of the prior quarter, with new loan production of $146 million in Q4 [7] - Total deposits increased by $102 million from the end of the prior quarter, with average deposits up 10% compared to Q4 2024 [8][9] - Assets under management in Trust and Investment Management decreased by $155 million, primarily due to net withdrawals [9] Market Data and Key Metrics Changes - The company experienced solid loan production diversified across markets, industries, and loan types, supported by healthy economic conditions [6] - The market remains competitive in terms of pricing on loans and deposits, but the company focuses on service quality rather than competing on rates [4] Company Strategy and Development Direction - The company aims to maintain a conservative approach to new loan production with disciplined underwriting and pricing criteria [4] - There is a focus on organic growth and leveraging market disruption to recruit talent and new clients [14][87] - The company is investing in technology infrastructure, product teams, and marketing to enhance efficiency and value [91] Management's Comments on Operating Environment and Future Outlook - Management sees healthy economic conditions in their markets and expects continued loan and deposit growth in 2026 [14] - Positive trends in net interest margin and fee income are anticipated, with a goal of achieving a 1% return on assets (ROA) [43][94] - The company does not foresee any meaningful deterioration in asset quality based on current portfolio trends [15] Other Important Information - A one-time $1.4 million write-down on an OREO property impacted non-interest expenses, but excluding this, expenses decreased by $100,000 [12] - The company has shifted its focus in Trust and Investment Management from investment management to fiduciary and planning-driven services [26] Q&A Session Summary Question: Margin outlook and loan repricing - Management expects further NIM expansion through 2026, with $250 million in fixed-rate loans maturing over the next year providing repricing opportunities [22][23] Question: Asset management and mortgage banking trends - AUM decline was due to net withdrawals in lower-yielding categories, but higher-yielding categories are improving [25] - Mortgage production is expected to be stronger in Q2 and Q3 of 2026, with a focus on building the MLO team [28] Question: Expense growth rate in 2026 - The company aims to keep expenses below $20 million per quarter while investing in growth opportunities [38] Question: Profitability improvement potential in 2026 - The company targets a 1% ROA, with expectations for continued NIM improvement and operating growth [43] Question: Deposit competition and loan pipeline - Both loan and deposit pipelines are strong, with a focus on optimizing the balance sheet [47] Question: Tax rate outlook - The effective tax rate is expected to stabilize around 23%-24% moving forward [76][77] Question: Mortgage market expectations for 2026 - The company is well-positioned for future mortgage opportunities as market conditions improve [82][83]