Financial Data and Key Metrics Changes - Trinity Capital achieved record net investment income of $144 million or $2.08 per share in 2025, with a 15% increase in Q4 net investment income to $40 million compared to the previous year [3][4] - The company's net asset value (NAV) grew 10% quarter-over-quarter to a record $1.1 billion, with a 33% year-over-year increase [5][16] - Total investment income for Q4 was $83 million, reflecting a 17.5% year-over-year increase, and the effective yield remained strong at 15.2% [15][16] Business Line Data and Key Metrics Changes - The managed funds business saw significant growth, with $1.5 billion in fundings and $2.1 billion in commitments for the year [4][6] - The breakdown of Q4 fundings included 27% to sponsor finance, 25% to equipment financing, 20% to life sciences, 15% to tech lending, and 13% to asset-backed lending [20] Market Data and Key Metrics Changes - The company maintained strong credit quality, with non-accruals at less than 1% of the portfolio at fair value [4][19] - Portfolio companies collectively raised over $7.8 billion in equity during 2025, indicating strong access to capital [19] Company Strategy and Development Direction - Trinity Capital is focused on building a diversified platform with five complementary verticals, including sponsor finance, equipment finance, tech lending, asset-based lending, and life sciences [12][14] - The company is strategically positioned to capitalize on opportunities in the market, particularly in the software sector, while maintaining a disciplined underwriting approach [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market volatility and capitalize on opportunities, particularly in the lower middle market software sector [25][36] - The company anticipates continued strong performance driven by its diversified pipeline and disciplined investment strategy [14][21] Other Important Information - Trinity Capital transitioned to a monthly dividend of $0.17 per share starting January 2026, maintaining the same aggregate quarterly payout [15] - The company raised $95 million through its equity ATM program during Q4, contributing to a strong capital base [16] Q&A Session Summary Question: Opportunities in Software Loans - Management acknowledged the potential to capitalize on turmoil in the software sector and indicated a willingness to convert some loans to equipment finance loans for better risk-adjusted returns [23][25] Question: Portfolio Concerns - Management stated that they remain focused on industries with disruptive technology and strong capital backing, and they will continue to adapt their investment strategy as market conditions evolve [30][32] Question: Strategic Opportunities Amid Volatility - Management confirmed that they are prepared to be opportunistic in a volatile market, leveraging their liquidity to take advantage of less competitive conditions [36][37] Question: Fund Management Business Growth - Management expressed optimism about the growth of their third-party asset management business, anticipating increased interest from investors seeking diversification [41][42] Question: Portfolio Capital Raising - Management noted that portfolio companies are accessing capital through various means, including public markets and private equity sponsors, indicating a robust VC market [56][58]

Fomento Económico Mexicano (NYSE:FMX) Q4 2025 Earnings call February 25, 2026 12:00 PM ET Speaker7Hello, and welcome to FEMSA 4th quarter 2025 conference call. My name is Alger, and I'll be your moderator for today's event. Please note that this conference is being recorded. For the duration of the call, all participants will be in listen-only mode. You have the opportunity to ask questions at the end of the presentation. To do so, please use the Raise Hand feature in Zoom, and we will open up your line. If ...

Financial Data and Key Metrics Changes - In 2025, the company achieved an adjusted net income of $283.9 million, an increase of 8.7% from $261.2 million in 2024, exceeding guidance by nearly $9 million [26][27] - Adjusted earnings per diluted share from continuing operations rose nearly 19% from $3.07 in 2024 to $3.65 in 2025 [25] - The adjusted return on equity for the year was 8.3%, supported by utility optimization efforts and effective cost management [6] Business Line Data and Key Metrics Changes - The utility's substantial net income growth was primarily driven by positive regulatory outcomes and strong economic activity in the service area [11] - Rate relief and continued customer growth contributed approximately $0.30 per share to EPS, while increased depreciation and amortization, along with higher interest expenses, partially offset these gains [25][27] Market Data and Key Metrics Changes - The company anticipates significant earnings per share growth of 12%-14% from 2025 to 2030, driven by improvements in the regulatory environment and the Great Basin project [8][41] - The expected revenue increase in the Arizona rate case is over $100 million, with a proposed rate base of $3.9 billion [17] Company Strategy and Development Direction - The company has transitioned to a fully regulated natural gas business following the successful disposition of Centuri, allowing for a stronger balance sheet and focus on core operations [4] - The strategic priorities for 2026 include improving returns, advancing customer-focused investments, and strengthening regulatory frameworks [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities, particularly with the anticipated improvements in regulatory frameworks in Arizona and Nevada [8][41] - The company plans to maintain a disciplined strategy focused on investing in capital plans while sustaining responsible annual dividend growth [9][39] Other Important Information - The board approved a 4% increase in the annual dividend, bringing it to an annualized $2.58 per share for 2026 [39] - The company has a cash balance of nearly $600 million, expected to fund current year dividend payments and be redeployed into utility business investments [11][33] Q&A Session Summary Question: Discussion on equity timing and engagement with rating agencies - Management indicated that they do not anticipate equity needs in 2026 and plan to utilize holding company leverage capacity to minimize equity requirements [50][53] Question: Inquiry about the Great Basin project capacity and customer interest - Management confirmed strong demand for the Great Basin project, with nearly 800 MCF subscribed, and indicated potential for future open seasons to capture additional interest [56][58] Question: Clarification on earnings uplift cadence and regulatory lag reduction - Management highlighted that upcoming rate cases in Arizona and Nevada are expected to be catalysts for reducing regulatory lag and improving earnings visibility [60][62] Question: Earnings contribution from Great Basin post-in-service - Management projected that the Great Basin project would contribute an incremental margin of approximately $215 million-$245 million once in service [70] Question: Progress in Nevada workshops and ROE considerations - Management reported positive progress in Nevada workshops and indicated that recent regulatory decisions could provide a constructive framework for future rate cases [76][79]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.32 per share, covering the $0.32 per share dividend paid on December 31 [4][5] - Net asset value (NAV) declined to $11.52 per share from $12.06 per share, primarily due to lower valuation on Edmentum [5][25] - Total investment income for the quarter was $77 million, a 4% decrease compared to the prior quarter [34] Business Line Data and Key Metrics Changes - Approximately 95% of the loan portfolio is ranked green, with no positions rated red [8][24] - PIK income is expected to decrease by 20%-25% as cash proceeds from the asset sale are redeployed [20] - The top five positions now account for 14% of NMFC's portfolio value, down from a higher concentration [19] Market Data and Key Metrics Changes - The company sold approximately $477 million of assets at a price of 94% of the 12/31/2025 marks, which is considered essentially par [12][13] - The secondary sale is expected to improve diversification, with senior-oriented assets now representing 81% of the portfolio, up from 75% [19][32] Company Strategy and Development Direction - The company plans to utilize the full Dividend Protection Program, reducing the performance fee from 20% to 15% until the end of 2026, and intends to maintain this lower fee permanently thereafter [12] - The focus is on redeploying proceeds from the asset sale into first lien assets and potentially buying back stock [41][42] - The company aims to improve earnings and book value through strategic investments and stock buybacks [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's quality, with 95% rated green, and highlighted the potential for equity appreciation in companies like UniTek [11][16] - The impact of AI on the market is acknowledged, with a focus on managing risks associated with technological changes [22] - Management believes NMFC shares should trade back towards book value, given the positive factors in the market [11] Other Important Information - The company repurchased approximately $52 million of shares in 2025 and has board authorization to buy an additional $80 million [16] - Nonaccruals remain low at 1.4% of the portfolio at fair value, with expectations for DCA to return to accrual status in Q2 [26] Q&A Session Summary Question: Is the 94% discount inclusive of any advisory fee? - The 94% of par was the purchase price of the assets, with expected fees and expenses around $7 million [41] Question: Did the company try to sell any struggling assets? - The company focused on reducing concentration and PIK income, selling larger positions that were scrutinized by the market [44][46] Question: How were the assets selected and priced? - The sale was a competitive process with multiple bidders, and assets were selected based on concentration and PIK characteristics [50][52] Question: How does the pricing of these assets relate to internal marks? - The sale was seen as fair for both sides, validating internal marks while improving portfolio composition [60]

Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a decrease of 6% year-over-year, primarily due to a 12% reduction in home deliveries [6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecast [6][7] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][19] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly, with January showing a 40% year-over-year increase, indicating improved buyer engagement [11] - Contracts in February 2026 were up 13% compared to the prior year, suggesting a positive trend in sales activity [12] Company Strategy and Development Direction - The company is focused on maintaining a steady sales pace and efficiently turning over existing inventory while preparing for new land opportunities that promise improved margins [10][20] - The strategy includes prioritizing the acquisition of land for move-up homes in prime locations and expanding active adult communities, moving away from lower-margin developments [20][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market but expressed confidence in meeting homebuyer demand and improving profitability in the latter half of 2026 [36][39] - The company expects adjusted pre-tax income to improve in the second half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] Other Important Information - The company ended the quarter with $471 million in liquidity, which is above target, and has significantly reduced net debt while increasing equity [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while built-to-order sales have increased, reflecting market demand rather than a strategic shift [44]

Financial Data and Key Metrics Changes - Total revenues for the first quarter reached $632 million, a 6% decrease compared to the previous year, primarily due to a 12% reduction in home deliveries [5][6][7] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecasted ranges [6][7] - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][21] Business Line Data and Key Metrics Changes - The company delivered 12% fewer homes year-over-year, impacting total revenues, but a land sale helped offset some of the decline [6][7] - Incentives accounted for 12.6% of the average sales price, with a significant increase in mortgage rate buydowns contributing to affordability challenges [8][15] - The percentage of Quick Move-in homes (QMIs) in total sales decreased from 79% to 71%, while to-be-built sales increased from 21% to 29% [16][17] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly in five of the six months shown, with January showing a 40% increase year-over-year [11] - Contracts in February 2026 were up 13% compared to the prior year, indicating a positive trend in buyer engagement [12] - The company experienced fluctuations in contracts over the past 12 months, with January showing an 11% year-over-year gain [11][12] Company Strategy and Development Direction - The company is focused on efficiently turning over existing inventory and advancing sales of Quick Move-in homes while preparing for new land opportunities that promise improved margins [10][20] - A shift in land acquisition strategy is underway, moving away from lower-margin entry-level homes to more move-up homes in prime locations and active adult communities [20][27] - The company aims to maintain a disciplined approach to land management, walking away from less attractive opportunities and focusing on higher-margin developments [24][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market, including affordability pressures and economic uncertainties, but expressed confidence in meeting homebuyer demand [36][39] - The expectation for adjusted pre-tax income is to improve in the latter half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [37][39] - The company remains committed to sustainable growth and value for shareholders, with a focus on inventory efficiency and land-light operations [39][40] Other Important Information - The company ended the quarter with $471 million in liquidity, above target, and has seen a significant reduction in net debt [28][30] - The net debt-to-capital ratio improved to 41.4%, a substantial decrease from 146.2% at the start of fiscal 2020 [30] - The company is only providing financial guidance for the next quarter due to current market volatility and challenges in predicting margins [31] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [43] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - The percentage of QMIs has dropped to 71%, while demand for built-to-order homes has been increasing, which is beneficial due to higher profit margins [44]

New Mountain Finance (NasdaqGS:NMFC) Q4 2025 Earnings call February 25, 2026 11:30 AM ET Company ParticipantsEthan Kaye - VP of Equity ResearchFinian O'Shea - Director of WFS ResearchJohn Kline - President and CEOKris Corbett - CFO and TreasurerLaura Holson - COOSteven Klinsky - ChairmanOperatorGood day, and welcome to the New Mountain Finance Corporation Fourth Quarter 2025 Earnings Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pr ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2026 reached $632 million, a 6% decrease compared to the previous year, primarily due to a 12% reduction in home deliveries [8][10] - Adjusted gross margin was 13.4%, slightly below expectations, while SG&A expenses were 13.3%, better than the low end of guidance [5][6] - Adjusted EBITDA for the quarter was $63 million, significantly higher than guidance, and adjusted pre-tax income was $31 million, also above forecast [6][10] Business Line Data and Key Metrics Changes - Income from unconsolidated joint ventures totaled $3 million, slightly below expectations, while income from consolidated joint ventures exceeded expectations with a gain of $27 million recorded as other income [6][22][23] - The company delivered 12% fewer homes year-over-year, impacting overall revenues, but a land sale helped offset some of the decline [8][10] - Incentives accounted for 12.6% of the average sales price, with a significant increase in mortgage rate buydowns contributing to affordability challenges [9][15] Market Data and Key Metrics Changes - Monthly traffic per community increased significantly in 5 of the 6 months leading up to January 2026, with January showing a 40% increase compared to the same month last year [12] - Contracts per community held steady at about 9.5 for the past 3 years, with February 2026 contracts on track to be higher than the same month last year [13][14] - The company experienced fluctuations in contracts over the past 12 months, with January showing an 11% year-over-year gain [12] Company Strategy and Development Direction - The company is focused on efficiently turning over existing inventory and advancing sales of Quick Move-in homes while preparing for new land opportunities that promise improved margins [11][21] - A shift in land acquisition strategy is noted, moving away from lower-margin entry-level homes to more move-up homes in prime locations and active adult communities [21][29] - The company aims to maintain a disciplined approach to land management, walking away from less attractive opportunities and focusing on higher-margin developments [28][29] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing challenges in the housing market, including affordability pressures and economic uncertainties, but expressed confidence in meeting homebuyer demand [38][41] - The expectation for adjusted pre-tax income is to improve in the latter half of 2026, supported by stronger contract activity and the delivery of higher-margin homes [40][42] - The company remains committed to sustainable growth and value for shareholders, with a focus on inventory efficiency and land-light operations [42][43] Other Important Information - The company ended Q1 2026 with $471 million in liquidity, above target, despite significant spending on land and stock repurchases [29][30] - The net debt-to-capital ratio improved to 41.4%, a significant reduction from previous years, indicating stronger financial health [32] - The company expects to provide financial guidance for the next quarter only, reflecting the current market volatility [33] Q&A Session Summary Question: On the topic of incentives and their pressure on margins, is there an opportunity to offer less incentives for higher margins? - Management prefers to focus on sales pace rather than price, maintaining incentives to clear lower-margin land and drive liquidity [45][46] Question: What is the current percentage of Quick Move-in homes versus built-to-order homes? - Quick Move-in sales dropped from 79% to 71%, not due to a strategic shift but rather market demand, with built-to-order homes showing higher profit margins [48][49]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.32 per share, covering the $0.32 per share dividend paid on December 31, 2025 [4] - Net asset value (NAV) declined to $11.52 per share from $12.06 per share, primarily due to lower valuation on Edmentum [5][25] - Total investment income for the quarter was $77 million, a 4% decrease compared to the prior quarter [35] - Total net expenses decreased by 5% to $44 million, including a fee waiver [35] Business Line Data and Key Metrics Changes - Approximately 95% of the loan portfolio is ranked green, with no positions rated red [8][24] - The company sold $477 million of assets, diversifying the portfolio and reducing PIK income [12][18] - Senior-oriented assets now represent 81% of the portfolio, up from 75% in the prior year [19][32] Market Data and Key Metrics Changes - The company expects to see some spread widening and increased pricing dispersion in direct lending [28] - Approximately 41% of pro forma PIK income will be generated by high-performing companies like Benevis and UniTek [20] Company Strategy and Development Direction - The company plans to utilize the full Dividend Protection Program, reducing the incentive fee from 20% to 15% until the end of 2026 [12] - Following the asset sale, the company aims to redeploy proceeds primarily into first lien assets [19][32] - The company is focused on business building and leveraging its expertise in software loans, particularly in the context of AI [10][22] Management's Comments on Operating Environment and Future Outlook - Management believes NMFC shares should trade back towards book value, citing several positive factors [11] - The company acknowledges increased risks related to AI but sees opportunities for well-informed lenders [22] - Management remains optimistic about the potential for equity appreciation in companies like UniTek [16] Other Important Information - The company repurchased approximately $52 million of shares in 2025 and has authorization to buy an additional $80 million [16] - Nonaccruals remain low at 1.4% of the portfolio at fair value [26] Q&A Session Summary Question: Is the 94% discount on the asset sale inclusive of any advisory fees? - The 94% of par was the purchase price, with expected fees and expenses of about $7 million [41] Question: Did the company try to sell any struggling assets? - The company focused on reducing concentration and PIK income, selling larger positions that were scrutinized by the market [44][45] Question: How were the assets selected for the sale? - The assets were chosen based on concentration and PIK characteristics, aiming to improve portfolio composition [51][52] Question: How does the pricing of the assets compare to internal marks? - The sale was seen as fair for both sides, validating internal marks while reducing concentration [61]

Financial Data and Key Metrics Changes - Q4 revenue grew by 13.7% and Q4 EBITDA increased by 37.6% [4] - Gross margin for the quarter finished at 41.9%, relatively flat compared to Q3 [10] - Net income attributable to stockholders increased by 50.7% to $13.4 million, reflecting an 11% net income margin [22] - EPS for the quarter was $0.48, and for the year, net income attributable to stockholders grew 12.6% to $51.2 million, with a 10.8% net income margin [22] Business Line Data and Key Metrics Changes - Total window film product line grew by 10% in Q4 and 21.7% for the year, driven by market share gains in auto and Windshield Protection Film [19] - Total installation revenue increased by over 17% in the quarter and 17.2% for the year [19] - Corporate store, dealership, service business, and aftermarket all saw growth in their respective segments [5] Market Data and Key Metrics Changes - U.S. region revenue grew by 11% in Q4, despite ongoing market dynamics [4] - Canada experienced a slight revenue decline, with car sales down 13% sequentially in Q4 [9] - Europe showed strong performance with revenue growing by 26.8% in Q4 [9] - China revenue came in at $14 million, higher than expected, marking the first full quarter post-acquisition [8] Company Strategy and Development Direction - The company is focused on investments in manufacturing and supply chain to support growth in key markets [4][16] - A strategic pivot has been made to concentrate on core products and improve sales efficiency [13][14] - The company aims to enhance its DAP platform and integrate it further into customer operations [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing increased customer engagement and positive feedback from the dealer conference [17][50] - The company anticipates a rebound in EV sales through its referral channel and expects gross margins to improve as the year progresses [10][11] - Management acknowledged headwinds in Canada and the impact of weather on Q1 performance but remains confident in overall growth prospects [9][31] Other Important Information - The effective tax rate for the quarter was just under 14%, with a future planning assumption of a 21% effective rate [21] - Cash flow from operations was $2.7 million for the quarter and $66.9 million for the year, representing a 40% increase from the previous year [24] Q&A Session Summary Question: What is contemplated in the Q1 revenue guide? - Management acknowledged the impact of weaker auto demand and weather on Q1 performance but indicated that they have factored these elements into their guidance [27][30] Question: How do you see in-house manufacturing playing out over time? - Management indicated that the build-out could be gradual or involve larger chunks depending on decisions made in the coming months [33][35] Question: Can you provide more color on the increase in DSO? - Management noted that the increase in DSO is likely due to new OEM business with longer payment terms, but there is nothing alarming [39][43] Question: What underpins your optimism for 2026? - Management highlighted increased optimism from customers, structural improvements in vehicle affordability, and a positive pipeline of new customer wins as key factors [50][53] Question: How do you expect gross margin to trend this year? - Management expects gross margin headwinds to abate in Q1, with improvements anticipated in Q2 as pricing issues resolve [55][57]