Core Thesis - RPM International Inc. is positioned as a leader in the global, non-cyclical repair, maintenance, and specialty coatings market through a decentralized, acquisition-driven model, with a potential to double sales over the next five years [3][6] Growth Strategy - The company's growth strategy relies on small, strategic acquisitions and geographic expansion, with Europe projected to lead growth at 20.7% in Q1 2026 [3] - Core organic growth remains modest in the low- to mid-single-digit range, making acquisitions essential for accelerating growth despite introducing integration and debt risks [4] Operational Efficiency - RPM's decentralized culture allows acquired companies to maintain autonomy while leveraging centralized resources, creating a self-sustaining consolidation engine in a fragmented industry [4] - Operational improvements under the MAP 2025 program have expanded gross margins toward 42%, with management guiding high-single- to low-double-digit adjusted EBIT growth in FY 2026 [5] Brand Strength and Market Position - The portfolio includes trusted brands like Rust-Oleum, DAP, and Zinsser, enabling the company to command premium pricing and offset weaknesses in certain segments with strengths in others [5] - Customers value RPM for its durable, problem-solving products that align with sustainability goals, supported by initiatives like "Building a Better World" [5] Financial Strategy - Capital allocation focuses on disciplined M&A, organic growth investment, and consistent shareholder returns, highlighted by 52 consecutive years of dividend increases [6] - A long-term consolidation strategy could drive RPM to become a global leader in niche markets, expanding EBIT margins into the high teens and justifying a premium valuation [6] Market Perception - Market misperceptions regarding cyclicality and complexity have led to undervaluation, presenting a compelling investment opportunity with both near-term operational upside and long-term compounding potential [6]

A month has gone by since the last earnings report for PPG Industries (PPG) . Shares have added about 8% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is PPG Industries due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.PPG Industries' Earn ...

Axalta Coating Systems Ltd. (NYSE:AXTA) is among the 9 Undervalued Chemical Stocks to Buy According to Hedge Funds. RBC Sees Modest Growth Momentum for Axalta Coating Systems Ltd. (AXTA) Despite Lower Volumes The next stock on our list is Axalta Coating Systems Ltd. (NYSE:AXTA). TheFly reported on February 12 that RBC Capital raised its price target on AXTA to $35 from $33, while keeping a Sector Perform rating. It was noted that lower volumes caused the company to fall short of fourth-quarter projectio ...

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 - 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 - GAAP EPS for Q4 2025 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 [13] - Adjusted diluted EPS was $4.92, up 28.1% year-over-year [13] - Full-year adjusted diluted EPS was $19.09, an increase of 11.1% over 2024 [19] Business Line Data and Key Metrics Changes - Infrastructure sales for Q4 2025 were $819 million, growing 7.2% year-over-year, with utility sales increasing by 21% [16] - Agriculture sales decreased by 19.9% year-over-year to $222.7 million, with an operating loss of $3.3 million in Q4 [12][18] - Coatings sales increased by 6.3%, supported by healthy infrastructure demand [16] Market Data and Key Metrics Changes - The utility market is experiencing strong demand driven by electrification, AI, and grid expansion, with a backlog of $1.5 billion, up 22% from the previous year [7][27] - North American agriculture markets remain challenged, with international sales declining due to economic conditions in Brazil [10][12] - The telecommunications market has normalized, with ongoing investments in wireless and RAN [42] Company Strategy and Development Direction - The company is focused on disciplined resource allocation, safety, and continuous improvement to enhance performance [6] - Investments in technology and aftermarket services are aimed at improving efficiency and customer experience in agriculture [11] - The company plans to host an investor day to share deeper insights into its strategy and long-term financial targets [12] 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 [27] - The agriculture segment is expected to see a meaningful recovery in Q1 2026, with a focus on restoring margins [28][29] - 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 [22][23] Other Important Information - The company acquired the remaining 40% of ConcealFab, enhancing its technology and product pipeline [9] - Full-year operating cash flows totaled $457 million, with free cash flow representing approximately 90% of net earnings [19] - The company returned $250 million to shareholders through dividends and share repurchases [20] Q&A Session Summary Question: Confidence in utility demand and competitive landscape - Management is confident in the utility market due to strong drivers like electrification and grid expansion, supported by a backlog of $1.5 billion [27] Question: Actions to restore agriculture margins - Management expects a meaningful recovery in agriculture margins in Q1 2026, having taken steps to address previous challenges [28][29] Question: Capital spending for utility capacity expansions - The company plans to increase capital spending to $170 million-$200 million in 2026 to meet durable demand in the utility sector [31][32] Question: Balance sheet utilization for pricing - The company aims to use its strong balance sheet for growth rather than trading price for prepayments, focusing on improving working capital [34][35] Question: Outlook for agriculture project wins - Management anticipates a slower first half for agriculture but is confident in the pipeline of projects for the second half of the year [39]

Q4 and Full-Year 2025 Earnings Presentation February 17, 2026 Valmont® Industries, Inc.© 2026 Disclosure Regarding Forward-Looking Statements These slides (and the accompanying oral discussion) contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on assumptions made by management, considering its experience in the industries where Valmont operates, perceptions of historical trends, current conditions, expected future develo ...

Banks are preparing to sell about €4 billion ($4.7 billion) of debt to finance Carlyle’s acquisition of BASF SE’s coatings business https://t.co/2jlBqnj6A4 ...

Axalta Coating Systems Ltd. (NYSE:AXTA) is one of the most undervalued mid cap stocks to buy now. On February 11, UBS analyst Joshua Spector raised the firm’s price target on Axalta Coating to $36 from $35 and maintained a Neutral rating. On the same day, Baird raised its price target on Axalta Coating to $37 from $35 while maintaining a Neutral rating. The firm updated its financial model following the company’s Q4 2025 results and noted that execution remains solid. BMO Capital also raised its price t ...

Financial Data and Key Metrics Changes - In Q4 2025, Axalta reported net sales of approximately $1.3 billion, with adjusted EBITDA of $272 million and a margin of 21.5%, an improvement of 50 basis points year-over-year [5][12] - For the full year 2025, adjusted EBITDA reached $1.13 billion, a growth of $317 million from 2024, with margins expanding over 500 basis points to 22% [7][18] - Adjusted diluted EPS for Q4 was $0.59, roughly flat year-over-year, while for the full year, it increased approximately 55% to $2.49 [7][18] Business Line Data and Key Metrics Changes - Mobility Coatings achieved record fourth-quarter net sales of $471 million, a 1% increase year-over-year, with adjusted EBITDA rising 20% to $92 million [15][16] - Performance Coatings saw a 6% decline in Q4 net sales to $791 million, primarily due to lower volumes and unfavorable price mix [15] - Refinish net sales decreased 7% to $509 million in Q4, reflecting low claim activity and adjusted order patterns [15] Market Data and Key Metrics Changes - North America faced significant macro headwinds, impacting all business lines, with a 4% decline in net sales year-over-year [12][17] - In Asia-Pacific, the Industrial segment delivered 5% net sales growth despite a weaker macro environment [9][49] - Class 8 builds in North America were down roughly 30% compared to assumptions, indicating a broader slowdown in fleet refresh activity [10][12] Company Strategy and Development Direction - Axalta is focused on operational excellence, cost management, and strategic investments, including a record $196 million in CapEx to support productivity [9][19] - The company announced a merger of equals with AkzoNobel, expected to create a global leader in performance coatings with significant synergy potential of $600 million [26][27] - The strategy includes enhancing product offerings and expanding market presence, particularly in the economy segment and adjacencies [63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macro challenges but expressed confidence in the company's resilience and ability to manage costs effectively [8][11] - For 2026, the company anticipates a slower start but expects recovery in the second half driven by various catalysts, including interest rate reductions and improved consumer affordability [22][23] - Management emphasized the importance of maintaining strong margins and operational performance despite market pressures [11][19] Other Important Information - Axalta achieved record cash generation in Q4, with operating cash flow of $344 million and free cash flow of $290 million [14] - The company reduced interest expense by 11% and SG&A expenses by 8% year-over-year, contributing to improved financial performance [13][19] - The net leverage ratio decreased to 2.3 times at year-end, the lowest in the company's history [19] Q&A Session Summary Question: Status of global refinish markets - Management indicated that destocking trends are expected to end by Q2 2026, with confidence in recovery based on current performance and market conditions [31][32] Question: Conviction in achieving $600 million in synergies - Management noted improving investor sentiment and emphasized the creation of a leading global performance coatings company as a key message [38][39] Question: Performance Coatings and Industrial trends - Management acknowledged lower sales in Industrial but highlighted growth in Asia and expected improvements in the back half of 2026 [48][49] Question: Margin assumptions for the year - Management expects EBITDA margins to remain above 22% for 2026, driven by cost actions and productivity improvements [56] Question: Refinish strategy evolution post-merger - Management highlighted complementary strengths in refinish and mobility segments, indicating a focus on enhancing distribution and product offerings [62][63]