NOV (NYSE:NOV) Q4 2025 Earnings call February 05, 2026 11:00 AM ET Company ParticipantsAmy D'Ambrosio - Director of Investor RelationsJeff LeBlanc - TPH and CompanyJim Rollyson - DirectorJose Bayardo - CEOMarc Bianchi - Managing DirectorRodney Reed - CFOStephen Gengaro - Managing DirectorConference Call ParticipantsDaniel Kutz - VP and Equity AnalystOperatorDay, and thank you for standing by. Welcome to the NOV Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only ...

O’Reilly Automotive (NasdaqGS:ORLY) Q4 2025 Earnings call February 05, 2026 11:00 AM ET Company ParticipantsBrad W. Beckham - CEOBrent G. Kirby - PresidentJeremy Fletcher - CFOSteven Zaccone - Director of Equity ResearchConference Call ParticipantsBrian Nagel - AnalystGreg Melich - Managing Director and Senior Equity Research AnalystMichael Lasser - AnalystSteven Forbes - AnalystZachary Fadem - AnalystOperatorWelcome to the O'Reilly Automotive Inc. fourth quarter and full year 2025 earnings call. My name is ...

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - The company has exceeded a $2 billion backlog, indicating strong demand across A&D sectors [5] - The semiconductor industry showed significant demand growth, contributing positively to order trends [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The company aims to maintain a capital allocation strategy focused on deleveraging and paying off debt [16] Management's Comments on Operating Environment and Future Outlook - Management described the A&D sector's outlook as extremely robust, driven by national defense priorities and commercial aircraft build rates [6][10] - The company expects continued margin improvement in A&D due to increased efficiencies and better pricing on contracts [14] - For the fourth quarter, revenue guidance is set at $495 million to $505 million, representing year-over-year growth of 13.1% to 15.4% [17] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide details on the industrial business outlook for Q4 and 2027 growth? - Management expects Q4 growth to be similar to Q3, with positive PMI trends indicating a bullish sign for the business [20] Question: What is the composition of the backlog and its relationship with revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you view the growth potential for the missile business relative to commercial aerospace? - Management indicated that while missile business growth is significant, it is not expected to surpass the commercial aircraft business [48] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 units per month in the near future [57] Question: What is the expected capital expenditure for the upcoming periods? - Capital expenditures are expected to remain around 3.5% of revenue, with modest investments to meet demand [75]

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [13][14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - Demand in the A&D sector remains robust, with a backlog exceeding $2 billion [5][6] - The semiconductor industry showed significant recovery, contributing positively to order demand [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The capital allocation strategy emphasizes deleveraging by using generated cash to pay off debt [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the A&D sector, describing it as extremely robust with unprecedented demand for products [6][10] - The outlook for the fourth quarter projects revenues between $495 million and $505 million, indicating year-over-year growth of 13.1% to 15.4% [17] - Management expects continued margin improvement driven by efficiencies and better pricing on customer contracts [14] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide insights on the industrial business and revenue outlook for Q4? - Management expects Q4 growth to resemble Q3, with a slightly conservative outlook for the industrial side [20] Question: Are there other applications for the quiet running valve technology outside submarines? - The technology has applications in space on satellites [21] Question: What is the composition of the backlog and its relationship with future revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you see the industrial business performing relative to peers? - Management anticipates the industrial business will outperform peers, expecting high single-digit growth [92] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 per month in the near future [57] Question: What is the expected growth for the missile business relative to commercial aerospace? - The missile business is expected to grow but will not reach the size of the commercial aircraft business [48]

Financial Data and Key Metrics Changes - The company achieved GAAP EPS of $3.98 for 2025, including $0.12 of merger-related transaction costs, and adjusted EPS of $4.10, a 5% increase from $3.91 in 2024 [11][12] - Operating and financing expenses increased, with O&M expenses rising by $0.36 per share, primarily due to higher employee costs and unplanned outages [12][13] - The company maintained a healthy balance sheet with a net debt to total capitalization of 55% and FFO to debt of 14%-15%, above the downgrade threshold [14] Business Line Data and Key Metrics Changes - The company successfully executed its regulatory strategy, delivering $0.95 per share of new rates and rider recovery margin, which offset higher operating costs [12] - The data center pipeline was tripled to over 3 gigawatts, with significant demand from large customers like Microsoft and Meta [4][7] Market Data and Key Metrics Changes - The company anticipates delivering 6% year-over-year earnings growth in 2026, driven by ongoing customer growth and increasing data center demand [6][15] - The company is actively pursuing additional data center pipeline demand that would contribute upside to earnings over time [16] Company Strategy and Development Direction - The company is committed to a customer-centric strategy, focusing on innovative investments and regulatory progress [6][9] - The merger with NorthWestern Energy is expected to create a stronger utility company, enhancing capabilities and growth opportunities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial commitments and maintaining a strong investment-grade credit rating [11] - The company is preparing for a rate review in South Dakota to recover customer-focused investments after holding base rates unchanged for over a decade [24] Other Important Information - The company increased its dividend for the 56th consecutive year in 2025, targeting a payout ratio of 55%-65% [17] - The company completed the 260-mile Ready Wyoming transmission project, enhancing service reliability and cost-effectiveness [20] Q&A Session Summary Question: Proportion of the 3-gigawatt pipeline within the five-year window - Management indicated that 600 MW is expected by 2030, with additional demand anticipated beyond that timeframe [36][37] Question: Filing CPCNs in advance of resource specificity - Management noted the importance of having facts present for CPCN filings and is navigating the process to ensure timely approvals [38][39] Question: Scale of data centers in the pipeline - Management confirmed that Microsoft and Meta are the primary customers, with ongoing negotiations for additional large-scale data centers [41][42] Question: Crusoe Tallgrass project and regulatory filings - Management discussed the unique setup for customer-funded construction to alleviate risks and costs for other customers [49][50] Question: Additional investments for data center customers - Management acknowledged the need for further investment beyond the current plan to accommodate growing demand [58]

Financial Data and Key Metrics Changes - Sales for fiscal 2025 reached $54.4 billion, reflecting a 2.1% increase compared to the previous year [30] - Operating cash flows totaled $2.2 billion, significantly exceeding capital expenditures of $978 million and dividends of $697 million [31] - The company ended the year with $3.7 billion in liquidity and a net leverage ratio of 2.1 times, improving by half a turn from the previous year [31] Business Line Data and Key Metrics Changes - Tyson Foods is a leader in protein production, accounting for one in every five pounds of chicken, beef, and pork in the U.S. [33] - The company has three of the top ten protein brands in the U.S., including Tyson, Jimmy Dean, and Hillshire Farm, which continue to gain market share [34] Market Data and Key Metrics Changes - Demand for protein products is increasing as consumers prioritize protein in their diets, supported by new U.S. dietary guidelines [33] - Tyson's branded products are outperforming the broader food category in both retail and food service markets [34] Company Strategy and Development Direction - The company is focused on improving operational execution and driving better financial performance through disciplined capital management [30][31] - Tyson Foods aims to continue providing nutritious, affordable, and convenient food while enhancing its brand strength and market position [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on future opportunities and maintain financial strength [36] - The leadership emphasized the importance of team member development and operational expertise for long-term success [35] Other Important Information - The annual dividend per Class A share is expected to increase to $2.04 in fiscal 2026, marking the 14th consecutive year of dividend increases [32] - The company has returned $893 million to shareholders through dividends and share repurchases [31] Q&A Session Summary Question: Shareholder proposal for voting results disclosure by class of shares - Management stated that the board's disclosures comply with all requirements and provide necessary information about the company's structure and ownership, resulting in a majority vote against the proposal [17][23] Question: Shareholder proposal regarding environmental and human health impacts from waste lagoons - Management reiterated their commitment to core values and responsible practices, leading to a majority vote against the proposal [22][23] Question: Shareholder proposal on the impact of U.S. immigration practices on finances and operations - Management emphasized the company's commitment to creating a safe and supportive work environment, resulting in a majority vote against the proposal [27][28]

Financial Data and Key Metrics Changes - Sales for fiscal 2025 were $54.4 billion, representing a 2.1% increase compared to the previous year [30] - Operating cash flows for the full year reached $2.2 billion, significantly exceeding capital expenditures of $978 million and dividends of $697 million [31] - The company ended the year with $3.7 billion in liquidity and a net leverage ratio of 2.1 times, improving by half a turn compared to last year [31] Business Line Data and Key Metrics Changes - Tyson Foods is a leader in protein production, accounting for one in every five pounds of chicken, beef, and pork in the U.S. [33] - The company has three of the top ten protein brands in the U.S., including Tyson, Jimmy Dean, and Hillshire Farm, which continue to gain market share [34] Market Data and Key Metrics Changes - Demand for Tyson products is growing as consumers prioritize protein in their diets, supported by new U.S. dietary guidelines [33] - Tyson's branded products are outperforming the broader food category in both retail and food service [34] Company Strategy and Development Direction - The company is focused on improving operational execution and driving better financial performance through disciplined capital management [30] - Tyson Foods aims to continue providing nutritious, affordable, and convenient food while enhancing its leadership pipeline and operational expertise [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on future opportunities and emphasized the importance of team members in achieving success [36] - The leadership team is committed to maintaining financial strength and returning cash to shareholders while investing in the business [31] Other Important Information - The annual dividend per Class A share is expected to increase to $2.04 in fiscal 2026, marking the 14th consecutive year of dividend increases [32] - The company has faced shareholder proposals regarding transparency and environmental impacts, which were ultimately voted against [17][23][28] Q&A Session Summary Question: Shareholder proposal for voting results disclosure - Management stated that the board's disclosures comply with all requirements and emphasized their commitment to creating value for shareholders [17] - The proposal received a minority of votes in favor and was ultimately defeated [17] Question: Shareholder proposal on environmental impacts from waste lagoons - Management acknowledged the complexity of the issue and reiterated their commitment to best practices and community responsibility [22] - The proposal also received a minority of votes in favor and was defeated [23] Question: Shareholder proposal regarding the impact of immigration law changes - Management emphasized the importance of creating a safe and supportive work environment for all team members [27] - This proposal similarly received a minority of votes in favor and was defeated [28]

Financial Data and Key Metrics Changes - Modine reported a 31% increase in total sales for Q3, driven primarily by growth in the Climate Solutions segment [17] - Adjusted EBITDA improved by 37%, with a margin increase of 70 basis points to 14.9% [18] - Adjusted earnings per share rose by 29% to $1.19, excluding a $116 million non-cash settlement loss related to the termination of the U.S. pension plan [18] Business Line Data and Key Metrics Changes - Performance Technologies revenue increased by 1% year-over-year, with adjusted EBITDA margin rising by 400 basis points to 14.8% [15] - Climate Solutions segment saw a 51% increase in revenues, with data center sales growing by 78% [8][16] - HVAC technology sales increased by 48%, driven by acquisitions and stronger heating product sales [16] Market Data and Key Metrics Changes - The Performance Technologies segment faced challenges with end markets, but commercial execution and cost recoveries led to a slight revenue increase [6] - Data center sales are projected to exceed $1 billion this fiscal year, with expectations of 50%-70% annual growth over the next two years [12][13] Company Strategy and Development Direction - The company is focusing on high-margin, high-growth businesses, including a strategic divestiture of the automotive business and a spin-off of the Performance Technologies segment [4][5] - Modine aims to become a pure-play, diversified climate solutions company, emphasizing investments in data centers and HVAC technologies [6][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the Climate Solutions segment, particularly in data centers, and anticipates further margin improvements [19][22] - The company raised its fiscal 2026 revenue outlook to a growth range of 20%-25%, with Climate Solutions expected to grow 40%-45% [22][23] Other Important Information - Free cash flow was negative $17 million in Q3, primarily due to inventory builds and higher capital expenditures [20] - The company expects to generate positive free cash flow in Q4 and anticipates capital expenditures to be in the range of $150 million-$180 million for the full fiscal year [21] Q&A Session Summary Question: Can you discuss the margin outlook for Climate Solutions and Performance Technologies in Q4? - Management expects Climate Solutions to achieve a margin improvement to 20%-21%, while Performance Technologies may see a temporary dip in margins due to material costs and inventory cleanup [26][29] Question: What defines the high and low end of the 50%-70% CAGR for data center growth? - The growth range is influenced by capacity expansion and demand, with confidence in achieving the higher end as capacity comes online [30][31] Question: Can you provide insights on record order intake in data centers? - The majority of growth is driven by existing customer relationships, particularly with hyperscalers, indicating strong future potential [38][39] Question: How will working capital investments impact free cash flow? - Management anticipates a return to normalized free cash flow levels as inventory and capital expenditures trend back to typical ratios [40][41] Question: What are the top priorities for data center customers regarding cooling needs? - Customers are focused on securing capacity and innovating to reduce energy and water usage, which are critical issues in the industry [71]

Helmerich & Payne (NYSE:HP) Q1 2026 Earnings call February 05, 2026 11:00 AM ET Company ParticipantsChris Nickel - Head of Investor RelationsJohn Lindsay - CEOKevin Vann - CFOMike Lennox - SVP of U.S. Land OperationsTrey Adams - PresidentConference Call ParticipantsArun Jayaram - Research AnalystAtidrip Modak - Equity Research AnalystDerek Podhaizer - Director and Senior Research AnalystEddie Kim - Equity Research AnalystKeith Mackey - Managing Director and AnalystOperatorThank you for your continued patien ...

O’Reilly Automotive (NasdaqGS:ORLY) Q4 2025 Earnings call February 05, 2026 11:00 AM ET Company ParticipantsBrad W. Beckham - CEOBrent G. Kirby - PresidentJeremy Fletcher - CFOSteven Zaccone - Director of Equity ResearchConference Call ParticipantsBrian Nagel - AnalystGreg Melich - Managing Director and Senior Equity Research AnalystMichael Lasser - AnalystSteven Forbes - AnalystZachary Fadem - AnalystOperatorWelcome to the O'Reilly Automotive Inc. fourth quarter and full year 2025 earnings call. My name is ...