Ducommun (NYSE:DCO) Q4 2025 Earnings call February 26, 2026 01:00 PM ET Company ParticipantsBradley Eiser - Managing DirectorConnor Dezert - Global Investment Research AssociateMike Crawford - Senior Managing Director and Head of Discovery GroupStephen Oswald - Chairman, President and CEOSuman Mookerji - SVP and CFOConference Call ParticipantsKen Herbert - Managing Director and Senior Aerospace and Defense AnalystSlade Struhsaker - Equity Research AnalystTony Bancroft - Portfolio Manager and Research Analys ...

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $0.57 for Q4 2025 and $2.23 for the full year, at the high end of guidance [10][11] - Same-store revenue growth declined by 70 basis points in Q4, an improvement from a 260 basis point decline in Q3 [6][11] - Year-over-year occupancy improved, finishing the year down 70 basis points compared to a 140 basis point decline at the end of Q3 [6][7] Business Line Data and Key Metrics Changes - The company consolidated another brand, reducing the number of remaining brands to six, and formed a preferred equity investments platform [7] - Same-store revenues for the full year declined by 2.3%, with nine out of 21 markets delivering positive revenue growth [11] - Expenses declined by 80 basis points in Q4, while growing 3.1% for the year, benefiting from expense control efforts [12] Market Data and Key Metrics Changes - The company experienced sequential improvement in same-store revenue growth each month of Q4 [5] - January occupancy was up 20 basis points year-over-year, indicating positive momentum into 2026 [7][10] - The company noted that new supply in the self-storage market is stable and projected to decline over the next few years [8] Company Strategy and Development Direction - The company is focused on driving internal growth through increased marketing spend and competitive pricing strategies [9] - The portfolio optimization program will remain active in 2026, prioritizing scaling in markets while generating proceeds for deleveraging [13] - The company aims to maintain a leverage target of 5.5x-6.5x net debt to EBITDA [15][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of housing turnover and its positive impact on self-storage demand [8] - The company anticipates a steady improvement in same-store revenue growth throughout 2026, with a focus on disciplined expense controls [16][21] - Management acknowledged the potential for external factors, such as housing affordability initiatives, to positively impact the market [100][102] Other Important Information - The company completed the sale of three assets for $24 million during the quarter and has additional properties under contract [13] - The company has ample liquidity with a current revolver balance of approximately $400 million [14] - The guidance for 2026 includes same-store revenue growth of 90 basis points and Core FFO per share of $2.19 [16] Q&A Session Summary Question: Guidance for revenue growth improvement - Management indicated that the transitioning is complete, and the platform is working effectively, leading to confidence in revenue growth [20][21] Question: Expense growth components for 2026 - Management highlighted property taxes and marketing expenses as significant components, with expectations for personnel costs to remain flat [25] Question: Drivers of January occupancy increase - Management attributed the increase to higher marketing spend, effective pricing strategies, and improved conversion rates [32][34] Question: Trends in move-in rates and ECRI - Management noted that move-in rates may be negative for the first few months of the year but expected to improve later [42][44] Question: Dividend payout ratio and coverage - Management acknowledged that the guidance implies not covering the dividend this year but expects to cover it by the end of 2026 [84][85] Question: Performance in high supply vs. low supply markets - Management indicated that markets with heavy competition are slower to improve, while those with stable demand are performing well [88][89]

Financial Data and Key Metrics Changes - The company reported Core FFO per share of $0.57 for Q4 2025 and $2.23 for the full year, at the high end of guidance, indicating operational improvements [9][10] - Same-store revenue growth declined by 70 basis points in Q4, a significant improvement from a 260 basis point decline in Q3, with year-over-year occupancy improving by 70 basis points [4][10] - Expenses declined by 80 basis points in Q4, while growing 3.1% for the year, benefiting from expense control efforts, particularly in payroll costs [11] Business Line Data and Key Metrics Changes - The company consolidated another brand, reducing the number of remaining brands to six, and exited five states while selling 15 properties totaling $97 million [5] - The company acquired 10 properties totaling $75 million across joint ventures and on balance sheet, indicating active portfolio management [5] Market Data and Key Metrics Changes - Nine out of 21 reported markets delivered positive revenue growth, with same-store revenues declining 2.3% for the full year [10] - The company noted that new supply in the self-storage market is stable and projected to decline over the next few years, which could positively impact demand [6] Company Strategy and Development Direction - The company is focused on driving internal growth through increased marketing spend, competitive pricing, and solid execution from the sales process [8] - The strategy includes capital recycling and reinvesting in properties while also expanding through acquisitions, with a focus on markets that show potential for operational efficiencies [71] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of housing turnover and the potential for increased self-storage demand due to government initiatives addressing home affordability [6][100] - The company anticipates steady improvement in same-store revenue growth throughout 2026, with a focus on disciplined expense controls [14][19] Other Important Information - The company has ample liquidity with a current revolver balance of approximately $400 million, providing $550 million of availability [13] - The guidance for 2026 includes same-store revenue growth of 90 basis points and Core FFO per share of $2.19, with expectations for continued improvement in occupancy and revenue [14] Q&A Session Summary Question: Guidance for revenue growth improvement - Management indicated that the transition is complete, and the platform is working effectively, leading to confidence in revenue growth for 2026 [18][19] Question: Expense growth components - The main components of expense growth include property taxes and marketing expenses, with expectations for personnel costs to remain flat [24][25] Question: January occupancy improvement drivers - The improvement in occupancy is attributed to higher marketing spend, effective pricing strategies, and improved conversion rates [30][32] Question: Move-in rate trends - Management expects move-in rates to be negative for the first few months of the year due to tougher comps but anticipates a return to neutral or positive rates later in the year [42][57] Question: Dividend payout ratio - The company expects to be light on covering the dividend in 2026 but anticipates returning to full coverage by the end of the year [85][86] Question: Market performance based on supply - Markets with heavy competition are slower to improve, while those with stable supply are showing positive growth in rates and occupancy [88][89]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 reached a record $215.8 million, a 9.4% increase from $197.3 million in Q4 2024, marking the 19th consecutive quarter of year-over-year revenue growth [9][24] - Gross margins improved to 27.7% in Q4 2025, up from 23.5% in Q4 2024, with adjusted gross margins at 27.7%, a 370 basis point increase from 24% in the prior year [11][25] - Adjusted EBITDA margin for Q4 2025 was 17.5%, up from 13% in 2022, indicating significant progress towards the Vision 2027 goal of 18% [12][14] - GAAP EPS was $0.48 per diluted share in Q4 2025, compared to $0.45 in Q4 2024, while adjusted diluted EPS was $1.05, up from $0.75 in the prior year [13][27] Business Line Data and Key Metrics Changes - Military and space segment revenues grew 13% to $124 million in Q4 2025, driven by strong performance in fixed-wing aircraft, rotorcraft, and missiles [18][24] - Commercial aerospace segment revenues increased by 1% to $82 million, with growth in A320 and 787 platforms offsetting declines in the 737 MAX [20][24] - Structural Systems segment revenue was $96 million, up from $90 million, with operating income margin increasing to 15.2% from 3.6% [28][29] - Electronic Systems segment revenue rose to $120 million, with operating income margin at 18.4%, up from 17.7% [30][31] Market Data and Key Metrics Changes - The remaining performance obligation (RPO) grew to a record level of $1.1 billion, increasing by $75 million sequentially, primarily in defense businesses [10] - Book-to-bill ratio was 1.3x in Q4, indicating strong order intake relative to revenue [10] - The company expects continued strength in the defense business and a recovery in commercial aerospace in the second half of 2026 [17] Company Strategy and Development Direction - The company is executing its Vision 2027 strategy, focusing on increasing the revenue percentage of engineered products and aftermarket content, which rose to 23% in 2025 from 15% in 2022 [8] - The company plans to hold an investor conference in September 2026 to present the next five-year vision, Vision 2032 [9] - The strategy includes consolidating operations, driving evaluated pricing, and expanding content on key commercial aerospace platforms [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from both military and commercial aerospace markets, anticipating mid-to-high single-digit revenue growth for 2026 [17][15] - The company highlighted the importance of relationships with defense primes and the expected ramp-up in missile production as a growth catalyst starting in 2027 [19][70] - Management noted that tariffs have not materially impacted results and expect this trend to continue [25][26] Other Important Information - The company entered into a binding settlement for the Guaymas fire litigation, resulting in a payment of $150 million, with $56 million funded by insurance [16] - The restructuring program has been completed, with expected annual savings of $11 million to $13 million by the end of 2026 [32] Q&A Session Summary Question: Inventory destocking and working capital - Management expects continued destocking in the first half of 2026, with improvements anticipated in the second half as inventory levels decrease [40][41] Question: Medium-term opportunities in defense - The company is well-positioned to benefit from increased production capacity among primes, particularly in missile programs, with significant existing capacity available [44][46] Question: Growth potential without additional CapEx - Management indicated that there is at least 30% existing capacity available for growth without significant additional CapEx [50][51] Question: Margin outlook for 2026 - The exit rate for EBITDA margins is expected to be closer to 16.5% for 2026, with opportunities for improvement as production ramps up [60][61] Question: M&A market activity - The company is seeing increased M&A activity and remains disciplined in evaluating opportunities, with a focus on assets that align with their engineered products strategy [93][94]

Grifols (NasdaqGS:GRFS) Q4 2025 Earnings call February 26, 2026 12:30 PM ET Company ParticipantsDani Segarra - Head of Investor Relations and SustainabilityJaime Escribano - Head of Iberian Small and Mid Caps EquitiesNacho Abia - CEORahul Srinivasan - CFORoland Wandeler - President of BiopharmaConference Call ParticipantsJustin Smith - Biopharma Equity Research AnalystNone - AnalystNone - AnalystÁlvaro Lenze - Healthcare and SMC Equity AnalystDani SegarraHello, everyone, and thank you for joining us today f ...

Grifols (NasdaqGS:GRFS) Q4 2025 Earnings call February 26, 2026 12:30 PM ET Company ParticipantsDani Segarra - Head of Investor Relations and SustainabilityJaime Escribano - Head of Iberian Small and Mid Caps EquitiesNacho Abia - CEORahul Srinivasan - CFORoland Wandeler - President of BiopharmaConference Call ParticipantsJustin Smith - Biopharma Equity Research AnalystNone - AnalystNone - AnalystÁlvaro Lenze - Healthcare and SMC Equity AnalystDani SegarraHello, everyone, and thank you for joining us today f ...

Grifols (NasdaqGS:GRFS) Q4 2025 Earnings call February 26, 2026 12:30 PM ET Speaker1Hello, everyone, and thank you for joining us today for Grifols' fourth quarter and full year 2025 earnings call. My name is Dani Segarra, and I serve as the Head of Investor Relations and Sustainability. Today, I'm joined by Grifols' Chief Executive Officer, Nacho Abia, President of Biopharma, Roland Wandeler, and Chief Financial Officer, Rahul Srinivasan. As usual, is our usual practice, today's call will last about an hou ...

Financial Data and Key Metrics Changes - Acme United reported record sales and earnings in 2025, with net sales of $196.5 million, net income of $10.2 million, and earnings per share of $2.49, reflecting a 1% increase in sales compared to 2024 [3][10] - The gross margin for the fourth quarter was 38.2%, slightly down from 38.7% in 2024, while the annual gross margin was 39.4%, up from 39.3% in 2024 [11] - Net income for the fourth quarter increased by 10% to $1.9 million, and for the year, it rose by 2% compared to 2024 [13] Business Line Data and Key Metrics Changes - Sales of first aid and medical products were strong, while school and office products saw a decline due to tariff uncertainties [10][11] - The Westcott team expanded market share in cutting tools, particularly in the craft market, and introduced differentiated products using patented non-stick technology [5] - The acquisition of My Medic contributed approximately $19 million in revenues, enhancing the first aid segment [8][22] Market Data and Key Metrics Changes - Net sales in Europe increased by 22% in local currency for the fourth quarter and 4% for the year, driven by the acquisition of cutting and sharpening tools [11] - In Canada, net sales increased by 14% in local currency for the quarter and 16% for the year, with strong performance in first aid products [11] Company Strategy and Development Direction - The company is focusing on expanding its first aid and medical segments, with plans to integrate My Medic into its offerings and explore selective retail partnerships [21][24] - Investments in domestic production and international sourcing are expected to position the company well for growth in 2026 [9] - Future acquisitions may target both first aid and medical segments, as well as suppliers of components for existing products [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from high inflation, interest rates, and supply chain disruptions but expressed optimism about the company's positioning and growth potential [2][9] - The company anticipates a return to normal merchandising and promotion in the retail market as it moves into 2026 [9] Other Important Information - Acme United's bank debt decreased from $21.5 million in 2024 to $18.5 million in 2025, reflecting lower debt levels and interest rates [13] - The company generated $13 million in free cash flow before the purchase of a new facility in Tennessee for $6 million [14] Q&A Session Summary Question: Integration of My Medic and its revenue multiple - Management indicated that My Medic will be integrated into the first aid offering, with expected revenues of $19 million and an EBITDA of $1 million to $1.5 million, with a purchase price of $18.6 million including an earn-out and holdback [19][22] Question: Retail distribution for My Medic products - Management stated that the distribution will be selective and may include existing retailers, with plans still being developed [24] Question: Future acquisitions focus - Management noted that future acquisitions could be in first aid, medical, or components suppliers, with a focus on expanding capabilities in pre-hospital emergencies [25]

Hudson Pacific Properties (NYSE:HPP) Q4 2025 Earnings call February 26, 2026 12:00 PM ET Company ParticipantsAlex Goldfarb - Managing DirectorArt Suazo - EVP of LeasingCaitlin Burrows - VPHarout Diramerian - CFOJana Galan - DirectorKen Young - SVP of LeasingLaura Campbell - EVP of Investor Relations and MarketingMark Lamas - PresidentRich Anderson - Managing DirectorRonald Kamdem - Managing Director and Head of U.S. REITs and CRE ResearchVictor Coleman - Chairman and CEOVikram Malhotra - Managing DirectorCo ...

Financial Data and Key Metrics Changes - Total revenue for 2025 was reported at $24.9 million, with a net income of $1.5 million, translating to $0.30 per share [3] - The company experienced steady growth in new customer acquisitions and non-beef-related revenue streams, although this was offset by smaller herd sizes and tariffs affecting beef-related verification activities [3][4] Business Line Data and Key Metrics Changes - Verification and tag sales were impacted due to ranchers reducing investments in certain verifications amid shrinking cattle supply [4] - Non-beef-related business lines, including verifications for pork, dairy, and egg operations, showed year-over-year increases, contributing to overall revenue growth [11][12] Market Data and Key Metrics Changes - The U.S. cattle supply is at a 70-year low, leading to record high beef prices, which has affected the company's beef-related activities [4] - The company is optimistic about the cattle industry's recovery, expecting a rebuilding of cattle supply over the next couple of years [4][11] Company Strategy and Development Direction - The company is expanding its services portfolio with new certifications and protein programs to position itself for accelerated growth as the industry recovers [5] - The launch of the RaiseWell Certified program aims to enhance animal care standards and create traceable supply chains, targeting high-end retailers and food service operators [5][6][7] - Collaboration with Pangea and Walmart to introduce CARE Certified sustainable leather is another strategic initiative aimed at enhancing value and connecting with consumers focused on sustainability [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current cattle industry disruption but expressed optimism about long-term prospects for the beef-related business [11] - The company believes its diverse solutions portfolio and customer base will continue to grow, maintaining that shares represent excellent value [12] Other Important Information - The company repurchased 183,016 shares in 2025, bringing total buybacks to 1,374,652 shares, valued at $15.2 million [12] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.