Pre-Market Stock Futures: Futures are trading lower this morning, as many on Wall Street feel the temporary ceasefire may be just that. But what a difference a day can make. After it was announced that the U.S. and Iran had agreed to a Pakistan-brokered 14-day cease-fire, with some renewed traffic through the Strait of Hormuz, stocks took off and never looked back on Wednesday, as oil prices crumbled. When the closing bell finally rang, all of the major indices closed higher with the Dow Jones Industrials closing up 2.85% at 47,909, while the Nasdaq closed at 22,634, up 2.80%. The S&P 500 finished the session at 6,782, up 2.51%. The winner, and the index that has had the best year so far, the small-cap Russell 2000, was last seen at 2,620, up 2.97%.
Treasury Bonds: For the second day in a row, yields were down across the entire Treasury curve, as buyers continued to snap up U.S government debt. Analysts cited ongoing safe-haven demand, despite the ceasefire, plus shifting sentiment for growth prospects for the rest of 2026. The 30-year-long bond was last seen at 4.88%, while the benchmark 10-year note closed at 4.29%.
Oil and Gas: Needless to say, the story of the day was plummeting oil prices as the ceasefire came just before the 8 PM deadline, and you can bet the short sellers were quickly covering after a massive rally that saw prices move to the highest levels since 2022 with the start of the Ukraine-Russia war. Brent Crude finished trading on Wednesday at $96.37, down a whopping 11.81%. West Texas Intermediate, which means the most to U.S. drivers and consumers, closed down a stunning 14.56% at $96.50. Natural gas was down 4.84% to close at $2.73.
Gold: After a very volatile week and with more incoming data suggesting inflation is moving slowly higher, Gold finished a wild Wednesday up 0.20% at $4,718, while Silver was last seen up 1.56% at $74.
Crypto: Crypto markets rallied strongly on Wednesday, with total market capitalization surging roughly 5% past $2.45 trillion. The move was driven by the announcement of a two-week U.S.-Iran ceasefire, which sent oil prices tumbling and triggered nearly $600 million in leveraged short liquidations. Bitcoin climbed to approximately $72,700 intraday while Ethereum rose 6% to $2,250 before settling back lower. Morgan Stanley’s new spot Bitcoin ETF (NYSEArca: MSBT) began trading with an expense ratio of 0.14%, the lowest in the market. At 8 AM EDT, Bitcoin is trading at $71,190, while Ethereum is quoted at $2,182.
24/7 Wall St. reviews dozens of analyst research reports daily to identify new investment ideas for both investors and traders. Some of these daily analyst calls cover stocks to buy. Other calls cover stocks to sell or avoid. Remember that no single analyst call should ever be used as a basis to buy or sell a stock.
Here are some of the top Wall Street analyst upgrades, downgrades, and initiations seen on Thursday, April 9, 2026.
Upgrades: Alcoa Corp. (NYSE: AA | AA Price Prediction) was upgraded to Overweight from Equal Weight at Morgan Stanley, which lifted the target price to $80 from $64. Datadog Inc. (NASDAQ: DDOG) was upgraded to Buy from Neutral at Guggenheim, with a $175 target price objective. Instacart Inc. (NASDAQ: CART) was upgraded to Outperform from Market Perform at Raymond James, which has set a $50 target price. Marvell Technology Inc. (NASDAQ: MRVL) was raised to Overweight from Equal Weight at Barclays, which boosted the target price to $150 from $105. Texas Instruments Inc. (NYSE: TXN) was upgraded to Buy from Hold at Stifel, which raised the price target for the legacy tech giant to $250 from $215. Downgrades: Bullish (NYSE: BLSH) was downgraded to Neutral from Buy at Rosenblatt, which has a $39 target price for the stock. Circle Internet Group Inc. (NYSE: CRCL) was downgraded to Sell from Neutral at Compass Point, which trimmed the target price for the shares to $77 from $79. Conagra Brands Inc. (NYSE: CAG) was downgraded to Neutral from Outperform at BNP Paribas, which trimmed the target price for the stock to $16 from $19. Hormel Foods Corp. (NYSE: HRL) was cut to Neutral from Overweight at JPMorgan, which dropped the price target to $23 from $28. W.R. Berkley Corp. (NYSE: WRB) was cut to Equal Weight from Overweight at Cantor Fitzgerald, which lowered the target price to $71 from $74. Initiations: AppLovin Inc. (NASDAQ: APP) was initiated with an Outperform rating at Macquarie, with a massive $710 target price. Cognizant Technology Solutions Corp. (NASDAQ: CTSH) was started with a Neutral rating at Wedbush, with a $61 target price. CoreWeave (NASDAQ: CRWV) was assumed with an Overweight rating at Cattor Fitzgerald, with a $149 target price for the shares. Evergy Inc. (NASDAQ: EVRG) was started with a Buy rating at BTIG, which has a $99 target price. Netflix Inc. (NASDAQ: NFLX) was assumed with an Overweight rating at Morgan Stanley, which bumped the target price for the shares to $115 from $110.
Massachusetts Financial Services Co. MA decreased its position in Evergy Inc. (NASDAQ:EVRG – Free Report) by 2.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,993,279 shares of the company’s stock after selling 53,508 shares during the period. Massachusetts Financial Services Co. MA owned 0.87% of Evergy worth $144,493,000 as of its most recent SEC filing.
Other hedge funds have also made changes to their positions in the company. Synergy Asset Management LLC grew its stake in shares of Evergy by 100.0% in the 3rd quarter. Synergy Asset Management LLC now owns 148,940 shares of the company’s stock valued at $11,322,000 after buying an additional 74,470 shares during the period. Caprock Group LLC purchased a new position in Evergy during the third quarter worth about $1,482,000. ANTIPODES PARTNERS Ltd purchased a new position in Evergy during the third quarter worth about $72,860,000. Oppenheimer Asset Management Inc. boosted its stake in Evergy by 9.9% during the third quarter. Oppenheimer Asset Management Inc. now owns 209,307 shares of the company’s stock worth $15,912,000 after buying an additional 18,783 shares during the period. Finally, iA Global Asset Management Inc. boosted its stake in Evergy by 207.0% during the third quarter. iA Global Asset Management Inc. now owns 22,624 shares of the company’s stock worth $1,720,000 after buying an additional 15,254 shares during the period. Hedge funds and other institutional investors own 87.24% of the company’s stock.
Key Evergy News Here are the key news stories impacting Evergy this week:
Positive Sentiment: BTIG initiated coverage with a “Buy” rating and a $99 price target (roughly +18% upside vs. current levels), giving investors a clear bullish analyst catalyst. Evergy (NASDAQ:EVRG) Now Covered by BTIG Research Positive Sentiment: Zacks Research nudged up near‑term and full‑year EPS estimates (examples cited: Q1 2026/2027 and Q3 2026 increases; FY2026 raised to $4.24), which supports modest upward revisions to earnings expectations and can justify a higher multiple over time. Zacks estimates summary Neutral Sentiment: Research writeups compiling analyst Q4 expectations have been published, helping set the near‑term earnings narrative but not introducing major new surprises. Investors will watch upcoming official Q4 results for confirmation. Research Analysts Set Expectations for Evergy Q4 Earnings Neutral Sentiment: Context: the stock is trading near its 50‑ and 200‑day moving averages with below‑average intraday volume, and a mid‑20s PE — analyst upgrades provide upside rationale, but muted volume and valuation mean moves may be gradual rather than immediate. Analyst Ratings Changes EVRG has been the subject of several research analyst reports. Barclays increased their target price on shares of Evergy from $82.00 to $89.00 and gave the stock an “overweight” rating in a research note on Monday, March 9th. Citigroup increased their target price on shares of Evergy from $89.00 to $95.00 and gave the stock a “buy” rating in a research note on Friday, February 20th. Wall Street Zen raised shares of Evergy from a “sell” rating to a “hold” rating in a research note on Saturday, February 21st. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Evergy in a research note on Monday, December 29th. Finally, Wells Fargo & Company increased their target price on shares of Evergy from $79.00 to $83.00 and gave the stock an “equal weight” rating in a research note on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $89.00.
Read Our Latest Stock Analysis on EVRG
Insider Transactions at Evergy In other news, SVP Heather A. Humphrey sold 3,650 shares of the stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $82.61, for a total transaction of $301,526.50. Following the sale, the senior vice president owned 44,007 shares of the company’s stock, valued at approximately $3,635,418.27. This represents a 7.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Charles L. King sold 2,440 shares of the stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $82.19, for a total transaction of $200,543.60. Following the sale, the senior vice president directly owned 18,359 shares in the company, valued at $1,508,926.21. This represents a 11.73% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 8,937 shares of company stock valued at $736,492. 1.52% of the stock is currently owned by corporate insiders.
Evergy Price Performance Shares of EVRG opened at $83.58 on Monday. The stock has a market capitalization of $19.25 billion, a PE ratio of 22.77, a P/E/G ratio of 2.16 and a beta of 0.61. Evergy Inc. has a 1 year low of $63.29 and a 1 year high of $85.27. The company has a debt-to-equity ratio of 1.27, a quick ratio of 0.27 and a current ratio of 0.49. The company’s 50-day simple moving average is $81.36 and its 200-day simple moving average is $77.61.
Evergy (NASDAQ:EVRG – Get Free Report) last issued its quarterly earnings results on Saturday, January 31st. The company reported $0.42 earnings per share (EPS) for the quarter. Evergy had a net margin of 14.35% and a return on equity of 8.79%. Analysts forecast that Evergy Inc. will post 3.83 earnings per share for the current fiscal year.
Evergy Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, March 20th. Stockholders of record on Tuesday, March 10th were given a dividend of $0.695 per share. This represents a $2.78 annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend was Tuesday, March 10th. Evergy’s dividend payout ratio is currently 75.75%.
Evergy Profile (Free Report)
Evergy, Inc is a regulated electric utility that generates, transmits and distributes electricity to residential, commercial and industrial customers primarily across Kansas and western Missouri. The company provides core utility services including retail electric delivery, grid operations, customer service and outage restoration, operating under state regulatory frameworks. Evergy serves a mix of urban and rural communities, including portions of the Kansas City metropolitan area and other population centers in its service territory.
The company’s business activities span power generation, system planning, transmission and distribution infrastructure, and customer-facing programs such as energy efficiency and demand-side management.
See Also Five stocks we like better than Evergy
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Key Takeaways Evergy gains from rising data center demand, signing four projects adding 1.9 GW peak load. EVRG plans $21.6B in 2026-2030 investments to boost grid, renewables, and rate base growth. Evergy faces risks from aging assets, outages, and regulatory hurdles in Kansas and Missouri. Evergy, Inc. (EVRG - Free Report) benefits from a rise in data center demand and customer expansion driven by economic growth in its service territory, boosting its financial performance. Strategic investments, acquisitions and joint ventures support renewable expansion and long-term growth.
This Zacks Rank #3 (Hold) company faces risks due to unplanned outages from aging assets.
EVRG’s TailwindsEvergy benefits from expanding its customer base, driven by economic development in its service territory, supporting its financial performance. The company increased its large-customer pipeline to more than 15 gigawatts (GW).
Evergy is aided by increasing electricity load growth from data center demand, enhancing revenue visibility and supporting stability. During first-quarter 2026, EVRG signed contracts for four major data center projects, adding two new facilities and expanding two existing sites. The project accounts for 1.9 GW of steady-state peak demand, representing about 20% system increase. The project is expected to add 1,300 MW in retail load growth through 2030. EVR expects load growth of nearly 2-3.5 GW from multiple customers.
The company expands its existing operations through joint ventures and strategic acquisitions, which creates long-term value. Evergy formed a joint venture with American Electric Power, named Transource Energy, LLC, to develop competitive electric transmission projects across the United States. The company holds a 13.5% ownership stake in the venture. Meanwhile, Evergy Missouri West acquired the Foxtrot solar facility assets, with operations expected to commence by summer 2027, supporting clean energy growth.
EVRG’s strategic capital investment for renewable expansion and infrastructure development supports grid modernization, improves operational efficiency and service reliability, thus boosting long-term growth. The company aims to make a $21.6 billion investment in 2026-2030, a 24% increase from its previous five-year plan, including more than $3 billion for new generation capacity. These Investments are expected to drive 11.5% rate base growth, with 6-8% long-term EPS growth target through 2030.
EVRG’s HeadwindsEVRG was formed through a merger; consequently, it inherited some aging properties that require maintenance on a regular basis. Despite maintenance, any unplanned outages of the old assets can result in service disruptions, increase operational expenses and disrupt operations.
Evergy’s performance largely depends on the outcome of retail rate proceedings in Kansas and Missouri. Failure to timely recover full investment costs of capital projects could have a material impact on the business.
Price Performance of EVRGIn the past three months, Evergy shares have rallied 11.1% compared with the industry’s 11.0% growth.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks in the same industry are CMS Energy Corporation (CMS - Free Report) , Duke Energy Corporation (DUK - Free Report) and FirstEnergy Corp. (FE - Free Report) . All stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CMS, DUK and FE have dividend yields of 2.87%, 3.23% and 3.46%, respectively, which are better than the Zacks S&P 500 composite’s yield of 1.41%.
The Zacks Consensus Estimate for CMS Energy, Duke Energy and FirstEnergy’s 2026 EPS is pegged at $3.86, $6.70 and 2.73%, suggesting year-over-year growth of 6.93%, 6.18% and 7.06%, respectively.
Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
KANSAS CITY, Mo.--(BUSINESS WIRE)--On Tuesday, May 5, 2026, Evergy, Inc. (NASDAQ: EVRG) will conduct its 2026 Annual Meeting of Shareholders. The virtual meeting will begin at 11:00 a.m. Eastern (10:00 a.m. Central) and can be accessed at www.virtualshareholdermeeting.com/EVRG2026. To participate, all shareholders must enter the control number found on their proxy cards or voting instruction forms. At the meeting, shareholders will vote to elect 12 members of the Board of Directors and other business matters set forth in the notice of the meeting.
About Evergy, Inc.
Evergy, Inc. (NASDAQ: EVRG), serves 1.7 million customers in Kansas and Missouri. Evergy’s mission is to empower a better future. We are leading the way in delivering affordable, reliable and sustainable energy that creates the foundation for thriving and growing communities. Our focus is on delivering reliable power while keeping bills as low as possible. We value innovation and adaptability to give our customers better ways to manage their energy use, to create a safe and rewarding workplace for our employees and to add value for our investors. Headquartered in Kansas City, our employees live, work and volunteer in the communities we serve.
For more information about Evergy, Inc., visit us at www.evergy.com and investors.evergy.com.
Key Takeaways Evergy to report Q1 results on May 7; EPS seen at $0.63 (up 16.67%) and revenues at $1.41B (up 2.82%).Evergy demand tailwinds include service-area expansion and growing electricity needs from data centers.Evergy expects benefits from grid modernization, energy efficiency and cost optimization. Evergy, Inc. (EVRG - Free Report) is scheduled to release first-quarter 2026 results on May 7, before market open. The company delivered a negative earnings surprise of 26.32% in the last reported quarter.
Let us discuss the factors that are likely to be reflected in the upcoming quarterly results.
EVRG’s Q1 ExpectationsThe Zacks Consensus Estimate for earnings is pegged at 63 cents per share, implying a year-over-year surge of 16.67%.
The consensus estimate for revenues is pinned at $1.41 billion, indicating an increase of 2.82% from the year-ago reported figure.
Factors Likely to Have Impacted EVRG's Q1 EarningsEvergy is likely to have benefited from economic expansion across its service areas, driving higher demand. Additionally, growing electricity needs from data centers are expected to have provided further support to its first-quarter earnings performance.
Evergy’s quarterly results are expected to reflect the positive impact of continued investments in grid modernization and enhanced service reliability. Earnings are also likely to have been supported by energy efficiency initiatives and ongoing cost optimization efforts.
Evergy is also expected to have benefited by maintaining affordable rates and high-quality services for its customers, which will result in customer and load growth.
What Our Quantitative Model Predicts for EVRGOur proven model does not conclusively predict an earnings beat for Evergy this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
Stocks to ConsiderA couple of companies from the same sector with the right combination of the two factors for an earnings beat this season are PPL Corporation (PPL - Free Report) and SOLV Energy Inc. (MWH - Free Report) . PPL and MWH currently have a Zacks Rank #3 each. These companies’ Earnings ESP are pegged at +0.41% and +3.45%, respectively.
A stock from the same industry that reported positive earnings surprise this season is Dominion Energy (D - Free Report) , among others. The Zacks Consensus Estimate for 2026 and 2027 earnings per share for Dominion Energy indicates year-over-year growth of 4.94% and 6.21%, respectively.
KANSAS CITY, Mo.--(BUSINESS WIRE)--Evergy, Inc. (NASDAQ: EVRG) today announced first quarter 2026 GAAP earnings of $151.5 million, or $0.64 per share, compared to GAAP earnings of $125.0 million, or $0.54 per share, for the first quarter 2025.
Evergy’s first quarter 2026 adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $161.8 million and $0.69 per share, respectively, compared to $127.8 million and $0.55, respectively, in first quarter 2025. Adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) are reconciled to GAAP earnings in the financial table included in this release.
Relative to the same period in 2025, first quarter 2026 adjusted earnings (non-GAAP) per share benefited from recovery of regulated investments, growth in weather-normalized demand and higher large customer and other revenues. These favorable results were partially offset by mild winter weather, higher operations and maintenance expense, and higher depreciation and amortization expense.
“We continued to advance our large customer strategy in the first quarter and are pleased to announce the signing of an electric service agreement for a large customer project in our Kansas Central service territory,” said David Campbell, chairman and chief executive officer. “Beginning in 2027, the customer will take service under our large load power service (LLPS) tariff, the framework under which new large customers will pay a premium rate that covers their fair share of existing and new system costs to drive affordability benefits for existing customers and enhance economic growth.
“Financial results were solid despite mild weather in the first quarter, and we remain on track to achieve our 2026 adjusted EPS guidance of $4.14 to $4.34. We are also reaffirming our long-term adjusted EPS annual growth target of 6% to 8%+ through 2030 off the 2026 midpoint, with the expectation that annual EPS growth will exceed 8% beginning in 2028 and through 2030.”
Earnings Guidance
The Company reaffirmed its 2026 adjusted EPS (non-GAAP) guidance range of $4.14 to $4.34. Additionally, the Company reaffirmed its long-term adjusted EPS (non-GAAP) annual growth target of 6% to 8%+ through 2030 based on the 2026 adjusted EPS (non-GAAP) guidance midpoint of $4.24. The Company expects annual adjusted EPS growth to exceed 8% beginning in 2028 and through 2030. Adjusted EPS (non-GAAP) could differ from GAAP EPS for items such as impairments, divestitures, mark-to-market impacts, the impact of regulatory orders, or changes in accounting principles. Evergy management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, Evergy is not able to provide a corresponding GAAP equivalent for 2026 or future years’ adjusted EPS (non-GAAP) guidance.
Dividend Declaration
The Board of Directors declared a dividend on the Company’s common stock of $0.6950 per share payable on June 18, 2026. The dividends are payable to shareholders of record as of May 22, 2026.
Earnings Conference Call
Evergy management will host a conference call Thursday, May 7, 2026, with the investment community at 9:00 a.m. ET (8:00 a.m. CT). To view the webcast and presentation slides, please go to investors.evergy.com. To access via phone, investors and analysts will need to register using this link where they will be provided a phone number and access code.
This earnings announcement, a package of detailed first quarter financial information, the Company's quarterly report on Form 10-Q for the period ended March 31, 2026, and other filings the Company has made with the Securities and Exchange Commission are available on the Company's website at http://investors.evergy.com.
Adjusted Earnings (non-GAAP) and Adjusted Earnings Per Share (non-GAAP)
Management believes that adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are representative measures of Evergy's recurring earnings, assist in the comparability of results and are consistent with how management reviews performance.
Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) for the three months ended March 31, 2026, were $161.8 million or $0.69 per share. For the three months ended March 31, 2025, Evergy's adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) were recast to conform to the current year calculation of adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), resulting in adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) of $127.8 million or $0.55 per share.
In addition to net income attributable to Evergy, Inc. and diluted EPS, Evergy's management uses adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) to evaluate earnings and EPS without:
losses from the repurchase of a portion of Evergy's Convertible Notes; and unrealized gains and losses from non-regulated investments in early-stage clean energy and energy solution companies and costs related to the disposal of these investments. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are intended to aid an investor's overall understanding of results. Management believes that adjusted earnings (non-GAAP) provides a meaningful basis for evaluating Evergy's operations across periods because it excludes certain items that management does not believe are indicative of Evergy's ongoing performance or that can create period to period earnings volatility.
Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are used internally to measure performance against budget and in reports for management and the Evergy Board. Adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP) are financial measures that are not calculated in accordance with GAAP and may not be comparable to other companies' presentations or more useful than the GAAP information provided elsewhere in this report.
The following table provides a reconciliation between net income attributable to Evergy, Inc. and diluted EPS as determined in accordance with GAAP and adjusted earnings (non-GAAP) and adjusted EPS (non-GAAP), respectively.
Evergy, Inc
Consolidated Earnings and Diluted Earnings Per Share
(Unaudited)
Earnings
(Loss)
Earnings
(Loss)
per
Diluted
Share
Earnings
(Loss)
Earnings
(Loss)
per
Diluted
Share
Three Months Ended March 31
2026
2025
(millions, except per share amounts)
Net income attributable to Evergy, Inc.
$
151.5
$
0.64
$
125.0
$
0.54
Non-GAAP reconciling items:
Losses from the repurchase of convertible notes, pre-tax(a)
10.3
0.05
—
—
Losses from investments in early-stage clean energy and energy solution companies, pre-tax(b)
0.4
—
3.6
0.01
Income tax benefit (c)
(0.4)
—
(0.8)
—
Adjusted earnings (non-GAAP)
$
161.8
$
0.69
$
127.8
$
0.55
About Evergy
Evergy, Inc. (NASDAQ: EVRG) serves 1.7 million customers in Kansas and Missouri. Evergy’s mission is to empower a better future. We are leading the way in delivering affordable, reliable and sustainable energy that creates the foundation for thriving and growing communities. Our focus is on delivering reliable power while keeping bills as low as possible. We value innovation and adaptability to give our customers better ways to manage their energy use, to create a safe and rewarding workplace for our employees and to add value for our investors. Headquartered in Kansas City, our employees live, work and volunteer in the communities we serve.
For more information about Evergy, visit us at http://investors.evergy.com.
Forward-Looking Statements
Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy's strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital investment goals; the outcome of legislative efforts and regulatory and legal proceedings; future energy demand, including demand driven by new and existing customers; future power prices; plans with respect to existing and potential future generation resources; the availability and cost of generation resources and energy storage; target emissions reductions; and other matters relating to expected financial performance or affecting future operations. Forward-looking statements are often accompanied by forward-looking words such as "anticipates," "believes," "expects," "estimates," "forecasts," "guidance," "should," "could," "may," "seeks," "intends," "predict," "potential," "opportunities," "proposed," "projects," "planned," "target," "budget," "outlook," "remain confident," "goal," "will" or other words of similar meaning. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the forward-looking information.
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Evergy Companies are providing a number of risks, uncertainties and other factors that could cause actual results to differ from the forward-looking information. These risks, uncertainties and other factors include, but are not limited to: economic and weather conditions and any impact on sales, prices and costs; significant changes in the demand for electricity, including demand from data centers and other large load customers; changes in business strategy or operations, including with respect to the Evergy Companies' strategy to meet demand requirements of existing and future customers; uncertainties related to projected rapid growth in electricity demand driven primarily by data centers and other large load customers and the related requirement for new generation and transmission investments, creating capital access, revenue recovery and customer affordability risks; the impact of federal, state and local political, legislative, judicial and regulatory actions or developments, including deregulation, re-regulation, securitization and restructuring of the electric utility industry; prolonged or recurring U.S. federal government shutdowns; changes in U.S. trade policies (including tariffs and other trade measures) and responses from other countries; the ability to build or acquire generation, battery storage and transmission facilities to meet the future demand for electricity from customers; the ability to control costs, avoid cost and schedule overruns during the development, construction and operation of generation, battery storage, transmission, distribution or other projects due to challenges, which include, but are not limited to, changes in labor costs, availability and productivity, challenges with the management of contractors or vendors, subcontractor performance, shortages, delays, increased costs or inconsistent quality of equipment, materials and labor and increased financing costs as a result of changes in interest rates or as a result of project delays; decisions of regulators regarding, among other things, customer rates and the prudency of operational decisions such as capital expenditures and asset retirements; changes in applicable laws, regulations, rules, principles or practices, or the interpretations thereof, governing tax, accounting and environmental matters, including air and water quality and waste management and disposal; development, adoption and use of artificial intelligence by the Evergy Companies and its third-party vendors; the impact of climate change, including increased frequency and severity of significant weather events; risks relating to potential wildfires, including costs of litigation, potential regulatory penalties and damages in excess of insurance liability coverage; the extent to which counterparties are willing to do business with, finance the operations of or purchase energy from the Evergy Companies due to the fact that the Evergy Companies operate coal-fired generation; prices and availability of electricity and natural gas in wholesale markets; market perception of the energy industry and the Evergy Companies; the impact of future pandemic health events on, among other things, sales, results of operations, financial position, liquidity and cash flows, and also on operational issues, such as supply chain issues and the availability and ability of the Evergy Companies' employees and suppliers to perform the functions that are necessary to operate the Evergy Companies; changes in the energy trading markets in which the Evergy Companies participate, including retroactive repricing of transactions by regional transmission organizations (RTO) and independent system operators; financial market conditions and performance, disruptions in the banking industry, including volatility in interest rates and credit spreads and in availability and cost of capital and the effects on derivatives and hedges and ability to obtain capital to finance large construction projects, nuclear decommissioning trust and pension plan assets and costs; impairments of long-lived assets or goodwill; credit ratings; inflation rates; effectiveness of risk management policies and procedures and the ability of counterparties to satisfy their contractual commitments including new large data center customers; impact of physical and cybersecurity breaches, criminal activity, terrorist attacks, acts of war and other disruptions to the Evergy Companies' facilities or information technology infrastructure or the facilities and infrastructure of third-party service providers on which the Evergy Companies rely; impact of geopolitical conflicts on the global energy market, including the ability to contract for non-Russian sourced uranium; ability to carry out marketing and sales plans; cost, availability, quality and timely provision of equipment, supplies, labor and fuel; ability to achieve generation goals and the occurrence and duration of planned and unplanned generation outages; the Evergy Companies' ability to manage their generation, transmission and distribution development plans and transmission joint ventures; the inherent risks associated with the ownership and operation of a nuclear facility, including environmental, health, safety, regulatory and financial risks; workforce risks, including those related to the Evergy Companies' ability to attract and retain qualified personnel, maintain satisfactory relationships with their labor unions and manage costs of, or changes in, wages, retirement, health care and other benefits; disruption, costs and uncertainties caused by or related to the actions of individuals or entities, such as activist shareholders or special interest groups, that seek to influence Evergy's strategic plan, financial results or operations; the impact of changing expectations and demands of the Evergy Companies' customers, regulators, investors and stakeholders, including differing views on environmental, social and governance concerns; the possibility that strategic initiatives, including mergers, acquisitions, joint ventures and divestitures, and long-term financial plans, may not create the value that they are expected to achieve in a timely manner or at all; difficulties in maintaining relationships with customers, employees, contractors, regulators or suppliers; the outcome of litigation involving the Evergy Companies; and other risks and uncertainties.
This list of factors is not all-inclusive because it is not possible to predict all factors. You should also carefully consider the information contained in the Evergy Companies' other filings with the Securities and Exchange Commission (SEC). Additional risks and uncertainties are discussed from time to time in current, quarterly and annual reports filed by the Evergy Companies with the SEC. New factors emerge from time to time, and it's not possible for the Evergy Companies to predict all such factors, nor can the Evergy Companies assess the impact of each such factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained or implied in any forward-looking statement. Given these uncertainties, undue reliance should not be placed on these forward-looking statements. The Evergy Companies undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
May 7 (Reuters) - Utility Evergy (EVRG.O), opens new tab beat analysts' estimates for first-quarter adjusted profit on Thursday, helped by a recovery in regulated investments, stronger demand and higher large customer revenues.
U.S. electricity demand hit record levels in 2025 and is expected to accelerate further as large technology firms ramp up power usage at fast-growing data centers, with some individual sites using as much energy as an entire city.
The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.
"We continued to advance our large customer strategy in the first quarter and are pleased to announce the signing of an electric service agreement for a large customer project in our Kansas Central service territory," said CEO David Campbell.
U.S. utilities are seeking to raise customer power bills, mainly to pay for infrastructure upgrades, as the country's grids face an onslaught of extreme weather and ballooning demand from electrification and data centers.
Evergy provides power to 1.7 million customers in Kansas and Missouri through its operating subsidiaries Evergy Kansas Central, Evergy Metro and Evergy Missouri West.
The company reaffirmed its 2026 adjusted earning per share forecast of $4.14 to $4.34 per share.
It expects annual adjusted profit per share growth to exceed 8% beginning in 2028 and through 2030.
On an adjusted basis, Evergy reported a profit of 69 cents per share for the quarter ended March 31, beating analysts' estimate of 65 cents per share, according to data compiled by LSEG.
Reporting by Varun Sahay in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Evergy Inc (EVRG - Free Report) came out with quarterly earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +9.52%. A quarter ago, it was expected that this electric utility would post earnings of $0.57 per share when it actually produced earnings of $0.42, delivering a surprise of -26.32%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Evergy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $1.44 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 2.15%. This compares to year-ago revenues of $1.37 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Evergy shares have added about 11.7% since the beginning of the year versus the S&P 500's gain of 7.6%.
What's Next for Evergy?While Evergy has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Evergy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.87 on $1.47 billion in revenues for the coming quarter and $4.25 on $6.27 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Algonquin Power & Utilities (AQN - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 8.
This utility operator is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of -21.4%. The consensus EPS estimate for the quarter has been revised 10.5% lower over the last 30 days to the current level.
Algonquin Power & Utilities' revenues are expected to be $697.9 million, up 0.8% from the year-ago quarter.
Key Takeaways EVRG Q1 operating EPS was 69 cents vs. 63 cents estimate, up from 55 cents in the year-ago quarter.EVRG revenues rose to $1.44B and beat estimates; fuel and purchased power and O&M expenses increased.EVRG interest expense rose 14.4% to $174.5M; long-term debt edged up to $13.15B, and cash slipped. Evergy, Inc. (EVRG - Free Report) reported first-quarter 2026 operating earnings per share (EPS) of 69 cents, which beat the Zacks Consensus Estimate of 63 cents by 9.5%. In the year-ago quarter, the company reported earnings of 55 cents.
EVRG’s Total RevenuesQuarterly revenues totaled $1.44 billion, which surpassed the Zacks Consensus Estimate of $1.41 billion by 2.2%. In the year-ago quarter, the company posted revenues of $1.37 billion.
Highlights of EVRG’s Earnings ReleaseFuel and purchased power totaled $360 billion for the year, up 1.3% from last year’s $355.3 billion.
Operating and maintenance expenses for the year amounted to $243.2 million, up 4.8% from last year’s $232 million.
Interest expenses totaled $174.5 million, up 14.4% year over year.
EVRG’s Financial UpdateCash and cash equivalents as of March 31, 2026 totaled $18.4 million compared with $19.8 million as of Dec. 31, 2025.
Long-term debt as of March 31, 2026 was $13.15 billion compared with $13.04 billion as of Dec. 31, 2025.
Cash provided by operating activities in the first three months of 2026 was $362.5 million compared with $449.6 million in the year-ago period.
EVRG’s GuidanceEvergy reaffirmed its 2026 adjusted EPS guidance in the range of $4.14-$4.34. The Zacks Consensus Estimate is pegged at $4.25, which is higher than the midpoint of the company’s guided range.
The company expects its adjusted EPS annual growth target of 6-8% through 2030.
EVRG’s Zacks RankEvergy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent ReleasesPG&E Corporation (PCG - Free Report) reported first-quarter 2026 adjusted earnings per share of 43 cents, which beat the Zacks Consensus Estimate of 39 cents by 10.3%. The bottom line also increased 30.3% from the year-ago quarter’s figure of 33 cents.
PCG reported first-quarter total revenues of $6.88 billion, up 15% from $5.98 billion registered in the year-ago period. The top line also surpassed the Zacks Consensus Estimate of $6.46 billion by 6.6%.
Edison International (EIX - Free Report) reported first-quarter 2026 adjusted earnings of $1.42 per share, which outpaced the Zacks Consensus Estimate of $1.32 by 7.6%. The bottom line also increased 3.6% from $1.37 in the year-ago quarter.
Edison International's first-quarter operating revenues totaled $4.1 billion, which beat the Zacks Consensus Estimate of $3.99 billion by 2.8%. The top line also increased 7.7% from the year-ago quarter’s figure of $3.81 billion.
CenterPoint Energy, Inc. (CNP - Free Report) reported first-quarter 2026 adjusted earnings of 56 cents per share, which missed the Zacks Consensus Estimate of 58 cents by 3.8%. However, the bottom line increased 5.7% from 53 cents in the year-ago quarter.
CNP generated revenues of $2.98 billion, which lagged the Zacks Consensus Estimate of $3.04 billion by 1.4%. However, the top line improved 2% from the year-ago reported figure of $2.92 billion.
Greif delivers industrial packaging and logistics solutions to global customers across sectors from chemicals to agriculture.
EVR Research LP established a new position in Greif (GEF +2.50%) during the fourth quarter, acquiring 175,000 shares in a trade estimated at $11.85 million based on quarterly average pricing, according to a February 17, 2026, SEC filing.
What happenedAccording to its SEC filing dated February 17, 2026, EVR Research LP initiated a new position in Greif by purchasing 175,000 shares. The estimated value of the acquired stake was $11.85 million, based on the average price during the quarter. The net position change for Greif in the portfolio was $11.85 million at quarter-end, a figure reflecting both the transaction and market price shifts.
This was a new position for EVR Research LP, now representing 6.39% of its 13F reportable assets under managementTop holdings after the filing:NYSE: DAN: $17.34 million (9.4% of AUM)NYSE: WKC: $17.34 million (9.4% of AUM)NYSE: CPS: $12.31 million (6.6% of AUM)NYSE:GEF: $11.85 million (6.4% of AUM)NYSE: MEC: $11.33 million (6.1% of AUM)As of Wednesday, shares of Greif were priced at $65.28, up 17% over the year and fairly in line with the S&P 500’s roughly 19% gain in the same period.Company overviewMetricValuePrice (as of Wednesday)$65.28Market Capitalization$3.7 billionRevenue (TTM)$5.4 billionNet Income (TTM)$190 millionCompany snapshotGreif produces and sells industrial packaging products, including steel, fiber, and plastic drums, intermediate bulk containers, containerboards, corrugated sheets, and manages timber properties.The firm generates revenue through the manufacturing and distribution of packaging solutions, as well as providing logistics, warehousing, and land management services.It serves a diversified customer base across chemicals, food and beverage, agriculture, automotive, building products, and related industrial sectors worldwide.Greif, Inc. is a global leader in industrial packaging with a vertically integrated model spanning packaging manufacturing, recycling, and timberland management. The company leverages its broad product portfolio and service offerings to address complex supply chain needs for major industrial customers. With a history dating back to 1877, Greif's scale, operational expertise, and focus on customer relationships underpin its competitive position in the packaging and containers industry.
What this transaction means for investorsEVR is clearly doubling down on real economy exposure with this move and others last quarter, including a similar buy of Ingevity stock. With multiple top holdings already tied to autos, materials, and industrial production, adding a packaging and logistics player reinforces a bullish thesis around demand across supply chains.
Greif’s business touches everything from chemicals to food and agriculture, which gives it a steady stream of demand tied less to consumer sentiment and more to production activity. That diversification tends to smooth out volatility, especially compared with more cyclical single-end market manufacturers. In its latest earnings report, the firm reported that net income increased to $176.6 million for the quarter, up from $6.6 million a year earlier. This was in part thanks to “meaningful” cost reductions in the quarter, according to CEO Ole Rosgaard.
Finally, the size of the new position also stands out. At more than 6% of assets, this is immediately one of the fund’s larger positions, suggesting that this is not just thematic exposure but a higher conviction addition.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Greif, Inc. (NYSE:GEF – Get Free Report) has been given a consensus rating of “Hold” by the five analysts that are covering the company, Marketbeat reports. Five research analysts have rated the stock with a hold rating. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $73.75.
Several research firms have recently commented on GEF. Truist Financial raised their price objective on Greif from $71.00 to $79.00 and gave the stock a “hold” rating in a research note on Tuesday, January 6th. Wall Street Zen raised shares of Greif from a “sell” rating to a “hold” rating in a report on Saturday, December 6th. Zacks Research raised shares of Greif from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Robert W. Baird set a $75.00 price target on shares of Greif in a research report on Thursday, January 29th. Finally, Wells Fargo & Company reduced their price objective on shares of Greif from $76.00 to $70.00 and set an “equal weight” rating for the company in a research note on Friday, March 20th.
Get Our Latest Analysis on GEF
Greif Trading Down 0.4% Shares of GEF stock opened at $66.73 on Friday. Greif has a 1 year low of $48.23 and a 1 year high of $77.14. The firm has a fifty day moving average price of $70.64 and a 200-day moving average price of $66.25. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.23 and a quick ratio of 0.93. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 24.71, a PEG ratio of 0.51 and a beta of 0.92.
Greif (NYSE:GEF – Get Free Report) last announced its earnings results on Tuesday, January 27th. The industrial products company reported $0.48 EPS for the quarter, missing analysts’ consensus estimates of $0.69 by ($0.21). The company had revenue of $994.80 million during the quarter, compared to the consensus estimate of $1.02 billion. Greif had a return on equity of 8.46% and a net margin of 7.52%.Greif’s revenue for the quarter was down 2.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.39 earnings per share. As a group, equities analysts predict that Greif will post 4.11 earnings per share for the current year.
Greif Announces Dividend The company also recently announced a quarterly dividend, which was paid on Wednesday, April 1st. Investors of record on Monday, March 16th were issued a $0.56 dividend. The ex-dividend date of this dividend was Monday, March 16th. This represents a $2.24 annualized dividend and a yield of 3.4%. Greif’s dividend payout ratio is currently 82.96%.
Insider Buying and Selling at Greif In related news, EVP Bala Sathyanarayanan sold 2,731 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $76.67, for a total value of $209,385.77. Following the transaction, the executive vice president directly owned 34,076 shares of the company’s stock, valued at approximately $2,612,606.92. The trade was a 7.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Matthew B. Leahy sold 1,300 shares of the business’s stock in a transaction dated Thursday, February 5th. The stock was sold at an average price of $73.82, for a total value of $95,966.00. Following the completion of the sale, the senior vice president owned 2,739 shares in the company, valued at $202,192.98. This represents a 32.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders purchased 22,252 shares of company stock valued at $1,971,735 and sold 54,211 shares valued at $3,950,846. Insiders own 7.70% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently bought and sold shares of GEF. Caitong International Asset Management Co. Ltd raised its stake in shares of Greif by 106.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 616 shares of the industrial products company’s stock valued at $42,000 after acquiring an additional 317 shares during the period. Blue Trust Inc. boosted its stake in shares of Greif by 36.2% during the 3rd quarter. Blue Trust Inc. now owns 662 shares of the industrial products company’s stock worth $40,000 after purchasing an additional 176 shares during the period. Rockefeller Capital Management L.P. grew its holdings in Greif by 33.3% during the 4th quarter. Rockefeller Capital Management L.P. now owns 689 shares of the industrial products company’s stock valued at $47,000 after purchasing an additional 172 shares during the last quarter. Exchange Traded Concepts LLC bought a new position in Greif during the 4th quarter valued at about $84,000. Finally, Simplex Trading LLC raised its position in Greif by 399.5% in the 4th quarter. Simplex Trading LLC now owns 1,853 shares of the industrial products company’s stock worth $125,000 after purchasing an additional 1,482 shares during the period. 45.74% of the stock is owned by hedge funds and other institutional investors.
Greif Company Profile (Get Free Report)
Greif, Inc is a global leader in industrial packaging products and services, with a history dating back to its founding in 1877. Headquartered in Cleveland, Ohio, the company has evolved from a regional barrel and drum manufacturer into a diversified packaging provider serving a wide range of end markets. Greif’s longstanding heritage in container solutions has positioned it as a trusted partner for customers seeking reliable, high-quality packaging options.
The company’s core business revolves around the design, manufacture and sale of industrial packaging products, including steel, plastic and fiber drums; intermediate bulk containers (IBCs); safety closures; rigid, flexible and reconditioned packaging; containerboard and protective packaging.
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DELAWARE, Ohio, April 06, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today it will report the company’s 2026 second quarter financial results after the market closes on Tuesday, April 28, 2026. A conference call will be held on Wednesday, April 29, 2026, at 8:30 a.m. ET to discuss the quarter results.
Greif will provide conference call slides in combination with the earnings press release. The conference call will include management’s prepared remarks and a question and answer session.
Participants may access the call using the following online registration link. Registrants will receive a confirmation containing dial in details and a unique conference call code for entry. Phone lines will open at 8:00 a.m. ET. A digital replay of the conference call will be available two hours following the call on the company’s web site at http://investor.greif.com.
Founded in 1877, Greif is a global leader in performance packaging located in over 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.
DELAWARE, Ohio, April 22, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced that it has formally committed to the Science Based Targets initiative (SBTi), marking a significant milestone in the company’s long-standing approach to climate action and emissions reduction. The company also released its 17th annual Sustainability Report, highlighting 2025 progress in advancing its responsible business practices and long-term value creation.
Advancing Toward Science-Based Net-Zero Targets
Through its SBTi commitment, Greif will develop science-based near-term and long-term greenhouse gas emissions reduction targets, including Scope 3 value chain emissions reduction targets, in accordance with the SBTi Net-Zero Standard. Once finalized, the company will submit these targets to the SBTi for independent validation. Greif will announce its validated targets following completion of the review process.
The commitment builds on a climate program that is embedded across operations and extended through its value chain and represents the fifth generation of climate targets established since 2007. Over nearly two decades, the company has consistently met its prior targets, underscoring a track record of disciplined execution, transparency, and accountability in managing its environmental impact.
Ole Rosgaard, President and Chief Executive Officer of Greif, said the announcement reflects both continuity and progress in the company’s climate strategy. “Greif has been actively working to reduce its environmental footprint for many years. Committing to the Science Based Targets initiative reinforces our focus on credible, science-based climate action and supports our customers, partners, and other stakeholders as they pursue their own climate and sustainability goals.”
Delivering Measurable Progress in 2025 Sustainability Report
This commitment is complemented by the release of Greif’s 17th annual Sustainability Report, which details the company’s progress and performance over the past year. The report demonstrates continued advancement in climate action and circular economy solutions, including the activation of a virtual power purchase agreement (VPPA) supporting solar energy in Spain and new on-site solar installations in Costa Rica and China.
Additional highlights from the report include:
Diverted 88 percent of waste from landfill and achieved Zero Waste to Landfill status at 155 facilities globally Expanded the portfolio of sustainable solutions, including the launch of EcoBalance Low Carbon Emission Steel DrumsCollected more than 3.7 million containers for reconditioning, remanufacturing, or recycling, generating more than $1.1 billion from sustainability-tagged products and services The company’s progress also continues to be recognized externally, maintaining strong third-party ratings in 2025 including CDP (B), MSCI (AA), and ISS ESG scores, and earning recognition on Newsweek’s lists of Most Loved Workplaces and Most Responsible Companies.
The full report is available on the official Greif website for more detailed information.
About Greif
Founded in 1877, Greif is a global leader in performance packaging located in over 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.
Media Contact:
Greif Media Relations [email protected]
+1 (234) 221-6001
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0d361acb-5bfb-4bea-bc26-e77e6a939843
DELAWARE, Ohio, April 28, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, today announced fiscal second quarter 2026 results.
On June 30, 2025, we entered into a definitive agreement to divest our containerboard business, including our CorrChoice sheet feeder system (the “Containerboard Business”), in an all-cash transaction for $1.8 billion to Packaging Corporation of America. The transaction closed as of August 31, 2025. As a result, the Containerboard Business was presented as discontinued operations beginning in the third quarter of 2025. Unless otherwise noted, the discussions and disclosure tables throughout this press release relate only to our continuing operations.
Effective October 1, 2025, our Integrated Solutions reportable segment was renamed Innovative Closure Solutions. Additionally, activities related to the purchase and sale of recycled fiber and the production and sale of adhesives used in paperboard products, which were previously reported within the Integrated Solutions reportable segment, are now reported within the Sustainable Fiber Solutions reportable segment. Likewise, activities related to production and sale of complimentary packaging products and services such as paints, linings and filling, that are used in or relate to our steel products and were previously reported within the Integrated Solutions reportable segment, are now reported within the Durable Metal Solutions reportable segment.
Fiscal Second Quarter 2026 Financial Highlights:
(all current period results are compared to the second quarter of 2025 and both periods reflect only continuing operations unless otherwise noted)
Net income(1) decreased 32.3% to $12.6 million or $0.22 per diluted Class A share compared to net income of $18.6 million or $0.32 per diluted Class A share.Net income, excluding the impact of adjustments(2), increased 57.5% to $62.7 million or $1.10 per diluted Class A share compared to net income, excluding the impact of adjustments, of $39.8 million or $0.68 per diluted Class A share.Adjusted EBITDA(3) increased 7.5% to $156.8 million compared to Adjusted EBITDA of $145.9 million.Net cash provided by operating activities decreased by $5.8 million to a source of $116.6 million. Adjusted free cash flow(4) increased by $92.7 million to a source of $179.3 million. Adjusted free cash flow in the prior year includes contribution from the Containerboard Business and thus is not directly comparable to current year results.Total debt of $1,005.9 million decreased by $1,769.3 million primarily due to repayment of debt of approximately $1,864.0 million from the sales of the Containerboard Business and the timberlands business. Net debt(5) decreased by $1,802.7 million to $719.8 million. Our leverage ratio(6) decreased to 1.1x from 3.3x. Strategic Actions and Announcements
Achieved $75.0 million of run-rate cost optimization by the end of second quarter of fiscal 2026, which increased from the $65.0 million reported as of the end of the first quarter of fiscal 2026.Completed previously announced $150.0 million share repurchase program on April 15, 2026, repurchasing a final total of 1.8 million shares of Class A and 0.4 million shares of Class B.Refinanced long-term debt to 2031 through $500.0 million of Term Loans and $800.0 million of available capacity on a revolving line of credit. Debt secured at favorable rates given market volatility, with a quarter-to-date weighted-average interest rate of 3.14%.Completed 2026 Gallup Colleague Engagement Survey with over 98% participation and an aggregate score of 91st percentile which is world-class across manufacturing companies.Issued 17th Annual Sustainability Report available for review at https://www.greif.com/sustainability/. We encourage investors to review this report, which includes key milestones achieved in 2025 as well as an update on our progress towards our 2030 sustainability goals. Commentary from CEO Ole Rosgaard
“Greif delivered a resilient second quarter in a continued soft industrial environment. Demand remains subdued, and our results reflect the reality of the markets we serve. That said, we executed well on the factors within our control.
Adjusted EBITDA increased 7.5% with margin expansion, and we generated strong adjusted free cash flow of $179 million reflecting disciplined operations and a structurally stronger cash generation profile.
We have also significantly strengthened our financial position. At 1.1x leverage, our balance sheet provides flexibility to invest in the business, return capital to shareholders, and navigate ongoing uncertainty from a position of strength.
Our strategy remains consistent. We are building for organic growth through operational execution, commercial discipline, and continuous improvement, while complementing that with targeted tuck-in M&A, where we will remain selective and focused on value.
We are not yet seeing a demand inflection, and geopolitical developments, including the ongoing conflict in the Middle East, continue to weigh on industrial activity. As a result, we are taking a more conservative outlook and managing the business accordingly, with a focus on cost control, cash generation, and disciplined execution.
The actions we have taken over the past year are strengthening Greif structurally. We are a more focused, more resilient, and more cash-generative company, better positioned to outperform through the cycle.”
(1)Net income for the second quarter of 2026 includes a special charitable contribution recorded in SG&A expenses, which was allocated across the reporting segments and excluded from Adjusted EBITDA as part of other costs.(2)Adjustments that are excluded from net income and from earnings per diluted Class A share are acquisition and integration related costs, restructuring and other charges, non-cash asset impairment charges, non-cash pension settlement charges, debt extinguishment charges, (gain) loss on disposal of properties, plants and equipment, net, (gain) loss on disposal of businesses, net, and other costs.(3)Adjusted EBITDA is defined as net income, plus interest expense, net, plus non-cash pension settlement charges, plus debt extinguishment charges, plus other (income) expense, net, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs.(4)Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition and integration related costs, plus cash paid for integration related Enterprise Resource Planning (ERP) systems and equipment, plus cash paid for taxes related to Containerboard Business divestment, plus cash paid for taxes related to Soterra Assets divestment, plus cash paid for other nonrecurring costs. The cash flows from Containerboard Business have not been segregated and are included within the adjusted free cash flow for comparative period.(5)Net debt is defined as total debt less cash and cash equivalents.(6)Leverage ratio for the periods indicated is defined as adjusted net debt divided by trailing twelve month EBITDA, each as calculated under the terms of the Company's Third Amended and Restated Credit Agreement dated as of February 27, 2026, filed separately as Exhibit 10.1 to the Company's Current Report on Form 8-K on March 5, 2026 (the "2026 Credit Agreement"). As calculated under the 2026 Credit Agreement, adjusted net debt was $667.6 million and $2,472.4 as of March 31, 2026 and April 30, 2025 respectively, and trailing twelve month credit agreement EBITDA was $586.4 million and $750.2 as of March 31, 2026 and April 30, 2025, respectively.
Note: A reconciliation of the differences between all non-GAAP financial measures used in this release with the most directly comparable GAAP financial measures is included in the financial schedules that are a part of this release. These non-GAAP financial measures are intended to supplement, and should be read together with, our financial results. They should not be considered an alternative or substitute for, and should not be considered superior to, our reported financial results. Accordingly, users of this financial information should not place undue reliance on these non-GAAP financial measures.
Fiscal Second Quarter 2026 Segment Results:
(all current period results are compared to the second quarter of 2025 and both periods reflect only continuing operations unless otherwise noted)
Net sales are impacted mainly by the volume of products sold, selling prices and product mix, and the impact of changes in foreign currencies against the U.S. Dollar. The table below shows the percentage impact of each of these items on net sales for our primary products for the fiscal second quarter of 2026 as compared to the prior year quarter for the business segments indicated.
Net sales increased by $22.3 million to $344.8 million primarily due to $18.3 million of positive foreign currency translation impacts and higher volumes.
Gross profit decreased by $2.7 million to $74.1 million. The decrease in gross profit was primarily due to higher raw material costs and higher manufacturing costs, partially offset by the same factors that impacted net sales.
Operating profit decreased by $15.3 million to $2.5 million primarily due to higher SG&A expenses and the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations.
Adjusted EBITDA increased by $2.4 million to $45.8 million primarily due to the same factors that impacted net sales and lower compensation expenses related to cost optimizations.
Durable Metal Solutions
Net sales increased by $7.5 million to $380.4 million primarily due to primarily due to $29.0 million positive foreign currency translation impacts, partially offset by $22.0 million attributable to lower volumes.
Gross profit increased by $5.5 million to $89.3 million. The increase in gross profit was primarily due to the same factors that impacted net sales.
Operating profit decreased by $2.1 million to $39.0 million primarily due to higher SG&A expenses, partially offset by the same factors that impacted gross profit and lower compensation expenses related to cost optimizations.
Adjusted EBITDA increased by $11.6 million to $61.6 million primarily due to the same factors that impacted gross profit and lower compensation expenses related to cost optimizations.
Sustainable Fiber Solutions
Net sales decreased by $38.9 million to $321.8 million primarily due to $35.2 million attributable to lower volumes, and impacts from the Soterra Divestiture.
Gross profit decreased by $6.8 million to $71.3 million. The decrease in gross profit was primarily due to the same factors that impacted net sales, partially offset by lower raw material, transportation and manufacturing costs.
Operating loss increased by $8.0 million to $10.2 million primarily due to higher SG&A expenses and the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations.
Adjusted EBITDA decreased by $5.5 million to $40.8 million primarily due to the same factors that impacted gross profit, partially offset by lower compensation expenses related to cost optimizations.
Innovative Closure Solutions
Net sales increased by $3.5 million to $25.8 million primarily due to higher average selling prices and positive foreign currency translation impact, partially offset by lower volumes.
Gross profit increased by $2.5 million to $12.3 million. The increase in gross profit was primarily due to the same factors that impacted net sales.
Operating profit increased by $0.1 million to $4.1 million primarily due to the same factors that impacted gross profit, partially offset by higher SG&A expenses.
Adjusted EBITDA increased by $2.4 million to $8.6 million primarily due to the same factors that impacted gross profit.
Tax Summary
During the second quarter, we recorded an income tax rate of 27.1 percent and a tax rate excluding the impact of adjustments of 25.5 percent. Income tax expense for interim periods is calculated using estimated annual effective tax rates applied to year to date earnings, which can result in quarter‑to‑quarter variability. For fiscal 2026, we expect our tax rate to range between 26.0 to 30.0 percent and our tax rate excluding adjustments to range between 28.0 to 32.0 percent.
Dividend Summary
On February 23, 2026, the Board of Directors declared quarterly cash dividends of $0.56 per share of Class A Common Stock and $0.84 per share of Class B Common Stock, resulting in a total dividend payment of approximately $31.9 million. Dividends were paid by April 1, 2026, to stockholders of record at the close of business on March 16, 2026.
Company Outlook
Our markets have now experienced a multi-year period of industrial contraction, and we have not identified any compelling demand inflection on the horizon. While we believe we are well positioned for an eventual recovery of the industrial economy, at this time we believe it is appropriate to continue to provide only low-end guidance based on the continuing demand trends reflected, both in the current year and in the past year, and current price/cost factors. As a result of current and anticipated consequences of the Middle East conflict, we have reduced our low-end annual Adjusted EBITDA guidance. Call-in details are provided below.
(in millions)Fiscal 2026 Low-End Guidance Estimate Reported at Q2Adjusted EBITDA$610Adjusted free cash flow$315
Note: Our fiscal 2026 low-end guidance estimates of Adjusted EBITDA and Adjusted free cash flow and our estimated tax rate and tax rate excluding the impact of adjustments contain forward-looking statements and actual results may differ materially as a result of known and unknown uncertainties and risks, including those set forth below under the heading “Forward-Looking Statements.” In addition, these forward-looking non-GAAP financial measures are presented on a non-GAAP basis without reconciliations to their most directly comparable GAAP financial measures, forecasted net income in the case of Adjusted EBITDA and forecasted net cash provided by operating activities in the case of Adjusted free cash flow, due to the inherent difficulty in projecting and quantifying the various adjusting items necessary for such reconciliations, such as gains or losses on the disposal of businesses or properties, plants and equipment, non-cash asset impairment charges due to unanticipated changes in the business, restructuring related activities, acquisition and integration related costs, debt extinguishment costs, stock-based compensation expense, amortization and depreciation expense, merger and acquisition activity, and other costs that have not yet occurred, are out of our control, or cannot be reasonably predicted. Accordingly, reconciliations of our guidance for Adjusted EBITDA and Adjusted free cash flow are not available without unreasonable effort.
Conference Call
The Company will host a conference call to discuss second quarter 2026 results on April 29, 2026, at 8:30 a.m. Eastern Time (ET). Participants may access the call using the following online registration link: https://register-conf.media-server.com/register/BI6b3185f6af284f9db540033cb9fee2dd. Registrants will receive a confirmation email containing dial in details and a unique conference call code for entry. Phone lines will open at 8:00 a.m. ET on April 29, 2026. A digital replay of the conference call will be available two hours following the call on the Company’s web site at http://investor.greif.com.
Investor Relations contact information
Bill D’Onofrio, Vice President, Corporate Development & Investor Relations, 614-499-7233. [email protected].
About Greif
Founded in 1877, Greif is a global leader in performance packaging located in 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “aspiration,” “objective,” “project,” “believe,” “continue,” “on track” or “target” or the negative thereof and similar expressions, among others, identify forward-looking statements. All forward-looking statements are based on assumptions, expectations and other information currently available to management. Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis, the Company can give no assurance that these expectations will prove to be correct. Such forward-looking statements are subject to certain risks and uncertainties that could cause the Company’s actual results to differ materially from those forecasted, projected or anticipated, whether expressed or implied.
Such risks and uncertainties that might cause a difference include, but are not limited to, the following: (i) historically, our business has been sensitive to changes in general economic or business conditions, (ii) our global operations subject us to political risks, instability and currency exchange that have affected and could continue to adversely affect our results of operations, including the impacts of ongoing conflicts such as with Iran, (iii) the current and future challenging global economy and disruption and volatility of the financial and credit markets may adversely affect our business and our access to financing and could delay or otherwise disrupt our share repurchase plan, (iv) the continuing consolidation of our customer base and suppliers may intensify pricing pressure, (v) we operate in highly competitive industries, (vi) our business is sensitive to changes in industry demands and customer preferences, (vii) raw material delays, shortages, price fluctuations, global supply chain disruptions and high inflation may adversely impact our results of operations, (viii) energy and transportation price fluctuations and shortages may adversely impact our manufacturing operations and costs, (ix) we may encounter difficulties or liabilities arising from acquisitions or divestitures, (x) we may incur additional rationalization costs and product dispositions and there is no guarantee that our efforts to reduce costs will be successful, (xi) several operations are conducted by joint ventures that we cannot operate solely for our benefit, (xii) certain of the agreements that govern our joint ventures provide our partners with put or call options, (xiii) our ability to attract, develop and retain talented and qualified employees, managers and executives is critical to our success, (xiv) our business may be adversely impacted by work stoppages and other labor relations matters, (xv) we may be subject to losses that might not be covered in whole or in part by existing insurance reserves or insurance coverage and general insurance premium and deductible increases, (xvi) our business depends on the uninterrupted operations of our facilities, systems and business functions, including our information technology (“IT”) and other business systems, (xvii) a cyber-attack, security breach of customer, employee, supplier or company information and data privacy risks and costs of compliance with new regulations may have a material adverse effect on our business, financial condition, results of operations and cash flows, (xviii) we have in the past been and in the future could be subject to changes in our tax rates, the adoption of new U.S. or foreign tax legislation or exposure to additional tax liabilities, (xix) we have a significant amount of goodwill and long-lived assets which, if impaired in the future, would adversely impact our results of operations, (xx) changing climate, global climate change regulations and greenhouse gas effects may adversely affect our operations and financial performance, (xxi) we may be unable to achieve our greenhouse gas emission reduction target by 2030, (xxii) legislation/regulation related to environmental and health and safety matters could negatively impact our operations and financial performance, (xxiii) product liability claims and other legal proceedings could adversely affect our operations and financial performance, and (xxiv) we may incur fines or penalties, damage to our reputation or other adverse consequences if our employees, agents or business partners violate, or are alleged to have violated, anti-bribery, competition or other laws.
The risks described above are not all-inclusive, and given these and other possible risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. For a detailed discussion of the most significant risks and uncertainties that could cause our actual results to differ materially from those forecasted, projected or anticipated, see “Risk Factors” in Part I, Item 1A of our most recently filed Form 10-K and our other filings with the Securities and Exchange Commission.
All forward-looking statements made in this news release are expressly qualified in their entirety by reference to such risk factors. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
UNAUDITED Three months ended March 31, Six months ended March 31,(in millions, except per share amounts) 2026 2025 2026 2025 Net sales $1,072.8 $1,078.4 $2,067.6 $2,095.1 Cost of products sold 825.8 829.9 1,618.0 1,647.2 Gross profit 247.0 248.5 449.6 447.9 Selling, general and administrative expenses 191.7 159.9 337.8 320.1 Acquisition and integration related costs 1.4 1.3 2.1 4.1 Restructuring and other charges 15.7 9.1 29.9 12.4 Non-cash asset impairment charges 4.5 17.2 4.7 17.5 (Gain) loss on disposal of properties, plants and equipment, net (1.7) 0.1 (217.4) (2.3)(Gain) loss on disposal of businesses, net — 0.2 0.5 1.3 Operating profit 35.4 60.7 292.0 94.8 Interest expense, net 10.0 15.5 19.7 31.4 Non-cash pension settlement charges 0.7 — 1.6 — Debt extinguishment charges 2.5 — 2.5 — Other (income) expense, net 0.4 0.2 4.8 1.1 Income from continuing operations before income tax (benefit) expense and equity earnings of unconsolidated affiliates, net 21.8 45.0 263.4 62.3 Income tax (benefit) expense 5.9 20.0 64.8 26.8 Equity earnings of unconsolidated affiliates, net of tax (0.4) (0.1) (0.6) (0.9)Net income from continuing operations 16.3 25.1 199.2 36.4 Net income (loss) from discontinued operations, net of tax — 21.3 (2.0) 36.7 Net income 16.3 46.4 197.2 73.1 Net income attributable to noncontrolling interests (3.7) (6.5) (10.0) (11.2)Net income attributable to Greif, Inc. $12.6 $39.9 $187.2 $61.9 Basic earnings per share attributable to Greif, Inc. common shareholders:Class A common stock (continued operations) - basic $0.22 $0.32 $3.31 $0.44 Class A common stock (discontinued operations) - basic $— $0.37 $(0.03) $0.63 Earnings per Class A common stock - basic $0.22 $0.69 $3.28 $1.07 Class B common stock (continued operations) - basic $0.33 $0.48 $4.95 $0.65 Class B common stock (discontinued operations) - basic $— $0.55 $(0.05) $0.95 Earnings per Class B common stock - basic $0.33 $1.03 $4.90 $1.60 Diluted earnings per share attributable to Greif, Inc. common shareholders:Class A common stock (continued operations) - diluted $0.22 $0.32 $3.27 $0.44 Class A common stock (discontinued operations) - diluted $— $0.37 $(0.03) $0.63 Earnings per Class A common stock - diluted $0.22 $0.69 $3.24 $1.07 Class B common stock (continued operations) - diluted $0.33 $0.48 $4.95 $0.65 Class B common stock (discontinued operations) - diluted $— $0.55 $(0.05) $0.95 Earnings per Class B common stock - diluted $0.33 $1.03 $4.90 $1.60 Shares used to calculate basic earnings per share attributable to Greif, Inc. common shareholders:Class A common stock 24.7 26.1 25.2 26 Class B common stock 21.5 21.3 21.4 21.3 Shares used to calculate diluted earnings per share attributable to Greif, Inc. common shareholders:Class A common stock 24.7 26.1 25.6 26.0 Class B common stock 21.5 21.3 21.4 21.3 GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED(in millions) March 31, 2026
September 30, 2025
ASSETS Current assets Cash and cash equivalents $286.1 $256.7 Trade accounts receivable 707.1 655.3 Inventories 340.0 336.8 Current assets held for sale 18.4 21.8 Other current assets 212.2 159.8 1,563.8 1,430.4 Long-term assets Goodwill 1,693.2 1,696.5 Intangible assets 794.0 840.9 Operating lease right-of-use assets 173.8 186.5 Noncurrent assets held for sale — 233.5 Other long-term assets 243.8 243.8 2,904.8 3,201.2 Properties, plants and equipment 1,128.0 1,135.2 $5,596.6 $5,766.8 LIABILITIES AND EQUITY Current liabilities Accounts payable $500.9 $429.6 Short-term borrowings 292.2 287.7 Current portion of long-term debt 12.5 — Current portion of operating lease liabilities 40.3 43.9 Current liabilities held for sale — 2.1 Other current liabilities 380.2 366.3 1,226.1 1,129.6 Long-term liabilities Long-term debt 701.2 914.8 Operating lease liabilities 134.4 143.9 Other long-term liabilities 461.0 533.8 1,296.6 1,592.5 Redeemable noncontrolling interests 92.7 92.3 Equity Total Greif, Inc. equity 2,942.2 2,914.9 Noncontrolling interests 39.0 37.5 Total equity 2,981.2 2,952.4 $5,596.6 $5,766.8 GREIF, INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS*
UNAUDITED Three months ended March 31, Six months ended March 31,(in millions) 2026 2025 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $16.3 $46.4 $197.2 $73.1 Depreciation, depletion and amortization 57.2 66.4 117.5 133.9 Asset impairments 4.5 17.2 4.7 17.5 Pension settlement charges 0.7 — 1.6 — Deferred income tax expense (benefit) (0.9) (0.6) (50.8) (86.1)Gain on disposal of businesses, net — 0.2 3.1 1.3 Gain (loss) on disposals of properties, plants and equipment, net (1.7) 0.1 (217.4) (2.3)Other non-cash adjustments to net income 55.5 14.3 67.0 25.7 Debt extinguishment charges 0.7 — 0.7 — Operating working capital changes 20.1 (30.6) 33.7 (23.4)Increase (decrease) in cash from changes in other assets and liabilities (35.8) 9.0 (65.1) (0.7)Net cash provided by (used in) operating activities 116.6 122.4 92.2 139.0 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions of companies, net of cash acquired (5.3) — (5.3) (1.2)Purchases of properties, plants and equipment (56.8) (38.6) (89.8) (81.3)Proceeds from the sale of properties, plant and equipment and businesses 2.5 2.4 463.4 5.5 Payments for deferred purchase price of acquisitions — — (0.6) (1.2)Proceeds from hedging derivatives — — — 22.5 Other (0.3) (0.7) (0.3) (3.6)Net cash provided by (used in) investing activities (59.9) (36.9) 367.4 (59.3)CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds (payments) on long-term debt, net 64.3 (17.8) (195.6) 33.1 Dividends paid to Greif, Inc. shareholders (31.8) (31.2) (64.3) (62.4)Payments for debt extinguishment and issuance costs (2.8) — (2.8) — Payments for share repurchases (19.1) — (147.2) — Tax withholding payments for stock-based awards (9.8) (7.4) (9.8) (7.4)Other (1.4) (4.6) (10.6) (18.0)Net cash provided by (used in) financing activities (0.6) (61.0) (430.3) (54.7)Effects of exchange rates on cash (13.5) 34.0 0.1 1.9 Net increase (decrease) in cash and cash equivalents 42.6 58.5 29.4 26.9 Cash and cash equivalents, beginning of period 243.5 184.8 256.7 216.4 Cash and cash equivalents, end of period $286.1 $243.3 $286.1 $243.3 *Cash flows from Containerboard Business are included in the comparative period GREIF, INC. AND SUBSIDIARY COMPANIES
FINANCIAL HIGHLIGHTS BY SEGMENT
UNAUDITED Three months ended March 31, Six months ended March 31,(in millions) 2026 2025 2026 2025 Net sales: Customized Polymer Solutions $344.8 $322.5 $649.9 $616.9 Durable Metal Solutions 380.4 372.9 735.2 728.8 Sustainable Fiber Solutions 321.8 360.7 633.7 704.7 Innovative Closure Solutions(7) 25.8 22.3 48.8 44.7 Total net sales $1,072.8 $1,078.4 $2,067.6 $2,095.1 Gross profit: Customized Polymer Solutions $74.1 $76.8 $131.9 $135.4 Durable Metal Solutions 89.3 83.8 160.0 152.8 Sustainable Fiber Solutions 71.3 78.1 136.5 142.4 Innovative Closure Solutions 12.3 9.8 21.2 17.3 Total gross profit $247.0 $248.5 $449.6 $447.9 Operating profit: Customized Polymer Solutions $2.5 $17.8 $5.0 $18.9 Durable Metal Solutions 39.0 41.1 71.9 71.6 Sustainable Fiber Solutions (10.2) (2.2) 208.3 (1.1)Innovative Closure Solutions 4.1 4.0 6.8 5.4 Total operating profit $35.4 $60.7 $292.0 $94.8 Adjusted EBITDA(8): Customized Polymer Solutions $45.8 $43.4 $81.3 $71.9 Durable Metal Solutions 61.6 50.0 107.4 86.8 Sustainable Fiber Solutions 40.8 46.3 77.4 75.8 Innovative Closure Solutions 8.6 6.2 13.2 10.2 Total Adjusted EBITDA $156.8 $145.9 $279.3 $244.7 (7) The Innovative Closure Solutions reportable segment’s total sales, including intersegment sales, was $45.4 million and $38.6 million for the second quarter of 2026 and 2025, respectively. Gross profit margin as a percentage of total sales was 27.1 percent and 25.4 percent for the second quarter of 2026 and 2025, respectively.
(8) Adjusted EBITDA is defined as net income, plus interest expense, net, plus other (income) expense, net, plus non-cash pension settlement charges, plus debt extinguishment charges, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs. GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
SEGMENT ADJUSTED EBITDA(9)
UNAUDITED
Three months ended March 31, 2026(in millions) Customized Polymer Solutions
Durable Metal Solutions Sustainable Fiber Solutions Innovative Closure Solutions ConsolidatedOperating profit (loss) 2.5 39.0 (10.2) 4.1 35.4 Less: Equity earnings of unconsolidated affiliates, net of tax — — — (0.4) (0.4)Plus: Depreciation and amortization expense 25.0 7.6 23.3 1.3 57.2 Plus: Acquisition and integration related costs 0.7 — — 0.7 1.4 Plus: Restructuring and other charges 3.9 4.6 7.1 0.1 15.7 Plus: Non-cash asset impairment charges — — 4.5 — 4.5 Plus: (Gain) loss on disposal of properties, plants and equipment, net 0.4 (2.4) 0.3 — (1.7)Plus: Other costs* 13.3 12.8 15.8 2.0 43.9 Adjusted EBITDA $45.8 $61.6 $40.8 $8.6 $156.8 Three months ended March 31, 2025(in millions) Customized Polymer Solutions
Durable Metal Solutions Sustainable Fiber Solutions Innovative Closure Solutions ConsolidatedOperating profit (loss) 17.8 41.1 (2.2) 4.0 60.7 Less: Equity earnings of unconsolidated affiliates, net of tax — — — (0.1) (0.1)Plus: Depreciation, depletion and amortization expense 22.9 7.0 25.7 1.5 57.1 Plus: Acquisition and integration related costs 1.3 — — — 1.3 Plus: Restructuring and other charges 0.6 0.7 7.6 0.2 9.1 Plus: Non-cash asset impairment charges 0.7 2.1 14.0 0.4 17.2 Plus: (Gain) loss on disposal of properties, plants and equipment, net 0.1 (1.1) 1.1 — 0.1 Plus: (Gain) loss on disposal of businesses, net — 0.2 — — 0.2 Plus: Other costs* — — 0.1 — 0.1 Adjusted EBITDA $43.4 $50.0 $46.3 $6.2 $145.9 *includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses Six months ended March 31, 2026(in millions) Customized Polymer Solutions
Durable Metal Solutions Sustainable Fiber Solutions Integrated Solutions ConsolidatedOperating profit 5.0 71.9 208.3 6.8 292.0 Less: Equity earnings of unconsolidated affiliates, net of tax — — — (0.6) (0.6)Plus: Depreciation and amortization expense 52.9 15.2 46.7 2.7 117.5 Plus: Acquisition and integration related costs 1.4 — — 0.7 2.1 Plus: Restructuring and other charges 6.2 8.4 15.1 0.2 29.9 Plus: Non-cash asset impairment charges — — 4.7 — 4.7 Plus: (Gain) loss on disposal of properties, plants and equipment, net 0.4 (2.5) (215.3) — (217.4)Plus: (Gain) loss on disposal of businesses, net 0.5 — — — 0.5 Plus: Other costs* 14.9 14.4 17.9 2.2 49.4 Adjusted EBITDA $81.3 $107.4 $77.4 $13.2 279.3 Six months ended March 31, 2025(in millions) Customized Polymer Solutions
Durable Metal Solutions Sustainable Fiber Solutions Integrated Solutions ConsolidatedOperating profit (loss) 18.9 71.6 (1.1) 5.4 94.8 Less: Equity earnings of unconsolidated affiliates, net of tax — — — (0.9) (0.9)Plus: Depreciation, depletion and amortization expense 45.9 14.2 52.3 3.2 115.6 Plus: Acquisition and integration related costs 4.1 — — — 4.1 Plus: Restructuring and other charges 1.7 1.4 9.0 0.3 12.4 Plus: Non-cash asset impairment charges 1.0 2.1 14.0 0.4 17.5 Plus: (Gain) loss on disposal of properties, plants and equipment, net 0.2 (3.9) 1.4 — (2.3)Plus: (Gain) loss on disposal of businesses, net — 1.3 — — 1.3 Plus: Other costs* 0.1 0.1 0.2 — 0.4 Adjusted EBITDA $71.9 $86.8 $75.8 $10.2 244.7 *includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses
(9)Adjusted EBITDA is defined as net income, plus interest expense, net, plus non-cash pension settlement charges, plus debt extinguishment charges, plus other (income) expense, net, plus income tax (benefit) expense, plus depreciation, depletion and amortization expense, plus acquisition and integration related costs, plus restructuring and other charges, plus non-cash asset impairment charges, plus (gain) loss on disposal of properties, plants and equipment, net, plus (gain) loss on disposal of businesses, net, plus other costs. However, because the Company does not calculate net income by segment, this table calculates Adjusted EBITDA by segment with reference to operating profit by segment, which, as demonstrated in the table of consolidated Adjusted EBITDA, is another method to achieve the same result.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
CONSOLIDATED ADJUSTED EBITDA
UNAUDITED Three months ended March 31, Six months ended March 31,(in millions) 2026 2025 2026 2025 Net income $16.3 $25.1 $199.2 $36.4 Plus: Interest expense, net 10.0 15.5 19.7 31.4 Plus: Non-cash pension settlement charges 0.7 — 1.6 — Plus: Debt extinguishment charges 2.5 — 2.5 — Plus: Other (income) expense, net 0.4 0.2 4.8 1.1 Plus: Income tax (benefit) expense 5.9 20.0 64.8 26.8 Plus: Equity earnings of unconsolidated affiliates, net of tax (0.4) (0.1) (0.6) (0.9)Operating profit $35.4 $60.7 $292.0 $94.8 Less: Equity earnings of unconsolidated affiliates, net of tax (0.4) (0.1) (0.6) (0.9)Plus: Depreciation, depletion and amortization expense 57.2 57.1 117.5 115.6 Plus: Acquisition and integration related costs 1.4 1.3 2.1 4.1 Plus: Restructuring and other charges 15.7 9.1 29.9 12.4 Plus: Non-cash asset impairment charges 4.5 17.2 4.7 17.5 Plus: (Gain) loss on disposal of properties, plants and equipment, net (1.7) 0.1 (217.4) (2.3)Plus: (Gain) loss on disposal of businesses, net — 0.2 0.5 1.3 Plus: Other costs* 43.9 0.1 49.4 0.4 Adjusted EBITDA $156.8 $145.9 $279.3 $244.7 *includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
ADJUSTED FREE CASH FLOW(10)
UNAUDITED Three months ended March 31, Six months ended March 31,(in millions) 2026 2025 2026 2025 Net cash provided by (used in) operating activities $116.6 $122.4 $92.2 $139.0 Cash paid for purchases of properties, plants and equipment (56.8) (38.6) (89.8) (81.3)Free cash flow $59.8 $83.8 $2.4 $57.7 Cash paid for acquisition and integration related costs 1.4 1.2 2.1 2.9 Cash paid for integration related ERP systems and equipment(11) 3.7 1.5 5.7 2.5 Cash paid for taxes related to Containerboard Business divestment — — 13.7 — Cash paid for taxes related to Soterra Assets divestment 100.0 — 100.0 — Cash paid for other nonrecurring costs(12) 14.4 0.1 14.4 0.1 Adjusted free cash flow $179.3 $86.6 $138.3 $63.2 (10) Adjusted free cash flow is defined as net cash provided by operating activities, less cash paid for purchases of properties, plants and equipment, plus cash paid for acquisition and integration related costs, plus cash paid for integration related ERP systems and equipment, plus cash paid for taxes related to Containerboard Business divestment, plus cash paid for taxes related to Soterra Assets divestment, plus cash paid for other nonrecurring costs. The cash flows from Containerboard Business are included within adjusted free cash flow for the comparative period.
(11) Cash paid for integration related ERP systems and equipment is defined as cash paid for ERP systems and equipment required to bring the acquired facilities to Greif’s standards.
(12) Cash paid for other nonrecurring costs is defined as cash paid for fiscal year-end change costs, cost optimization and debt issuance costs. GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET INCOME, CLASS A EARNINGS PER SHARE AND TAX RATE EXCLUDING ADJUSTMENTS
UNAUDITED(in millions, except for per share amounts) Income before Income Tax (Benefit) Expense and Equity Earnings of Unconsolidated Affiliates, net Income Tax (Benefit) Expense Equity Earnings Non-Controlling Interest
Net Income (Loss) Attributable to Greif, Inc. Diluted Class A Earnings Per Share Tax RateThree months ended March 31, 2026 $21.8 $5.9 $(0.4) $3.7 $12.6 $0.22 27.1%Acquisition and integration related costs 1.4 0.4 — — 1.0 0.02 Restructuring and other charges 15.7 3.8 — 0.2 11.7 0.21 Non-cash asset impairment charges 4.5 1.1 — — 3.4 0.06 (Gain) loss on disposal of properties, plants and equipment, net (1.7) (0.3) — — (1.4) (0.02) Non-cash pension settlement charges 0.7 0.2 — — 0.5 0.01 Debt extinguishment charges 2.5 0.6 — — 1.9 0.03 Other costs* 43.9 10.9 — — 33.0 0.57 Excluding adjustments $88.8 $22.6 $(0.4) $3.9 $62.7 $1.10 25.5% Three months ended March 31, 2025 $45.0 $20.0 $(0.1) $6.5 $18.6 $0.32 44.4%Acquisition and integration related costs 1.3 0.3 — — 1.0 0.02 Restructuring and other charges 9.1 2.2 — — 6.9 0.12 Non-cash asset impairment charges 17.2 4.2 — — 13.0 0.22 (Gain) loss on disposal of properties, plants and equipment, net 0.1 0.1 — — — — (Gain) loss on disposal of businesses, net 0.2 — — — 0.2 — Other costs* 0.1 — — — 0.1 — Excluding adjustments $73.0 $26.8 $(0.1) $6.5 $39.8 $0.68 36.7% Six months ended March 31, 2026 $263.4 $64.8 $(0.6) $10.0 $189.2 $3.27 24.6%Acquisition and integration related costs 2.1 0.5 — — 1.6 0.03 Restructuring and other charges 29.9 7.2 — 0.2 22.5 0.38 Non-cash asset impairment charges 4.7 1.2 — — 3.5 0.06 (Gain) loss on disposal of properties, plants and equipment, net (217.4) (49.4) — — (168.0) (2.88) (Gain) loss on disposal of businesses, net 0.5 0.2 — — 0.3 0.01 Non-cash pension settlement charges 1.6 0.4 — — 1.2 0.02 Debt extinguishment charges 2.5 0.6 — — 1.9 0.03 Other costs* 49.4 12.2 — — 37.2 0.64 Excluding adjustments $136.7 $37.7 $(0.6) $10.2 $89.4 $1.56 27.6% Six months ended March 31, 2025 $62.3 $26.8 $(0.9) $11.2 $25.2 $0.44 43.0%Acquisition and integration related costs 4.1 1.0 — — 3.1 0.05 Restructuring and other charges 12.4 3.0 — — 9.4 0.16 Non-cash asset impairment charges 17.5 4.3 — — 13.2 0.23 (Gain) loss on disposal of properties, plants and equipment, net (2.3) (0.5) — — (1.8) (0.02) (Gain) loss on disposal of businesses, net 1.3 0.3 — — 1.0 0.02 Other costs* 0.4 0.1 — — 0.3 — Excluding adjustments $95.7 $35.0 $(0.9) $11.2 $50.4 $0.88 36.6%*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses
The income‑tax effects of the non‑GAAP reconciling adjustments are calculated using the applicable statutory tax rate for each relevant jurisdiction and may include both current and deferred components, determined in a manner consistent with the nature of each adjustment. Non‑GAAP reconciling adjustments are presented on a gross (pre‑tax) basis, and the related income‑tax effects of those adjustments are disclosed separately from other tax items (e.g., discrete tax benefits or expenses). When a tax item could be viewed as both a discrete tax item and related to a non‑GAAP reconciling adjustment, the Company classifies the item in a single category for the period and does not double‑count the impact.
GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
NET DEBT
UNAUDITED(in millions) March 31, 2026 April 30, 2025Total debt $1,005.9 $2,775.2 Cash and cash equivalents (286.1) (252.7)Net debt $719.8 $2,522.5 GREIF, INC. AND SUBSIDIARY COMPANIES
GAAP TO NON-GAAP RECONCILIATION
LEVERAGE RATIO
UNAUDITED
Trailing twelve month Credit Agreement EBITDA
(in millions) Trailing Twelve Months Ended 3/31/2026 Trailing Twelve Months Ended 4/30/2025(13)Net income $1,013.1 $238.1 Plus: Interest expense, net 83.5 153.1 Plus: Non-cash pension settlement charge 1.6 — Plus: Debt extinguishment charges 2.5 — Plus: Other (income) expense 11.7 1.6 Plus: Income tax (benefit) expense 467.7 86.0 Plus: Equity earnings of unconsolidated affiliates, net of tax 0.6 (2.7)Operating profit $1,580.7 $476.1 Less: Equity earnings of unconsolidated affiliates, net of tax 0.6 (2.7)Plus: Depreciation, depletion and amortization expense 243.7 268.0 Plus: Acquisition and integration related costs 6.2 8.6 Plus: Restructuring and other charges 82.8 23.8 Plus: Non-cash asset impairment charges 25.4 25.3 Plus: (Gain) loss on disposal of properties, plants and equipment, net (224.6) (6.9)Plus: (Gain) loss on disposal of businesses, net (1,092.9) (44.6)Plus: Other costs* 78.7 3.7 Adjusted EBITDA $699.4 $756.7 Credit Agreement adjustments to EBITDA(14) (113.0) (6.5)Credit Agreement EBITDA $586.4 $750.2 Adjusted net debt
(in millions) For the Period Ended 3/31/2026 For the Period Ended 4/30/2025Total debt $1,005.9 $2,775.2 Cash and cash equivalents (286.1) (252.7)Net debt $719.8 $2,522.5 Credit Agreement adjustments to debt(15) (52.2) (50.1)Adjusted net debt $667.6 $2,472.4 Leverage ratio(16) 1.1x 3.3x*includes fiscal year-end change costs, share-based compensation impact of disposals of businesses and special charitable contribution expenses
(13) Represents trailing twelve months amounts as filed in the prior year quarter ended April 30, 2025.
(14) Adjustments to EBITDA are specified by the 2026 Credit Agreement and include certain equity earnings of unconsolidated affiliates, net of tax, certain acquisition savings, deferred financing costs, capitalized interest, income and expense in connection with asset dispositions, and other items.
(15) Adjustments to net debt are specified by the 2026 Credit Agreement and include the European accounts receivable program, letters of credit, and balances for swap contracts and other items.
(16) Leverage ratio is defined as Credit Agreement adjusted net debt divided by Credit Agreement adjusted EBITDA.
DELAWARE, Ohio, June 02, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in industrial packaging products and services, announced today that its Board of Directors has declared quarterly cash dividends of $0.62 per share on its Class A Common Stock, and $0.93 per share on its Class B Common Stock.
"As part of our disciplined and balanced capital allocation framework, our Board has approved a 10.7% increase to our quarterly dividend," said Larry Hilsheimer, Greif’s Executive Vice President and Chief Financial Officer. "This increase reflects the continued strength of our free cash flow generation, the significant progress we have made strengthening our balance sheet, and our confidence in Greif’s long-term earnings power. We remain committed to a disciplined capital allocation approach which includes maintaining leverage below 2.0x, investing in high-return organic growth opportunities, executing opportunistic share repurchases, and returning cash to shareholders through dividends."
Dividends are payable on July 1, 2026, to stockholders of record at the close of business on June 17, 2026.
About Greif
Founded in 1877, Greif is a global leader in performance packaging located in 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.
Concerning Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other statements about future expectations, prospects, estimates and other matters that are dependent upon future events or developments. These forward-looking statements may be identified by words such as "expect," "anticipate," "intend," "plan," "believe," "will," "should," "could," "would," "project," "continue," "likely," and similar expressions, and include statements reflecting future results, trends or guidance and statements of outlook. All forward-looking statements are based on assumptions, expectations and other information currently available to management. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those forecasted, projected or anticipated, whether expressed or implied. Greif is subject to additional risks and uncertainties described in its Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. Except to the extent required by applicable law, Greif undertakes no obligation to update or revise any forward-looking statement.
DELAWARE, Ohio, June 10, 2026 (GLOBE NEWSWIRE) -- Greif, Inc. (NYSE: GEF, GEF.B), a global leader in performance packaging products and services, announced today it is implementing a price increase of $60 per short ton for all grades of uncoated recycled paperboard (URB) products and a minimum 6.5 percent increase on all tube and core and protective packaging products.
The URB increase is effective with new orders and shipments on and after July 6, 2026. The tube and core and protective packaging product increase is effective with shipments on and after July 13, 2026.
The URB price increase is in response to increasing input and transportation costs along with strengthening demand for all URB products. The tube and core and protective packaging products price increase is a consequence of the URB and adhesive price increases, the primary raw materials contained in those products, increasing transportation costs, and strengthening demand across end markets Greif serves.
About Greif
Founded in 1877, Greif is a global leader in performance packaging located in over 35 countries. The company delivers trusted, innovative, and tailored solutions that support some of the world’s most demanding and fastest-growing industries. With a commitment to legendary customer service, operational excellence, and global sustainability, Greif packages life’s essentials – and creates lasting value for its colleagues, customers, and other stakeholders. Learn more about the company’s Customized Polymer, Sustainable Fiber, Durable Metal, and Innovative Closure Solutions at www.greif.com and follow Greif on Instagram and LinkedIn.
Media Contacts:
Greif Media Relations [email protected]
+1 (234) 221-6001
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Comfort Systems (FIX - Free Report) .
Comfort Systems currently has an average brokerage recommendation (ABR) of 1.44, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.44 approximates between Strong Buy and Buy.
Of the nine recommendations that derive the current ABR, seven are Strong Buy, representing 77.8% of all recommendations.
Brokerage Recommendation Trends for FIX
Check price target & stock forecast for Comfort Systems here>>>
While the ABR calls for buying Comfort Systems, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is FIX Worth Investing In?Looking at the earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 16.5% over the past month to $42.74.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Comfort Systems. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Comfort Systems may serve as a useful guide for investors.
Key Takeaways Comfort Systems generated 90% of Q1 2026 revenues from construction-driven projects.FIX backlog surged 80.8% year over year to a record $12.45 billion in Q1 2026.Data center and advanced technology projects contributed more than half of FIX revenues. Comfort Systems USA, Inc. (FIX - Free Report) continues riding a powerful wave of construction demand, but investors are beginning to question whether the current pace of new-build activity can remain sustainable. Its latest results reveal an increasingly construction-heavy revenue mix, driven largely by hyperscale data center and advanced technology projects.
In the first quarter of 2026, construction activity accounted for roughly 90% of FIX’s total revenues, with projects tied to new buildings representing 75% of sales. Advanced technology markets, dominated by data center work, contributed more than half of quarterly revenues, highlighting the company’s growing exposure to one of the hottest infrastructure themes in the market. That demand translated into impressive financial performance, with revenues surging 56% year over year to $2.87 billion, while diluted earnings per share more than doubled to $10.51.
Backlog also climbed to a record $12.45 billion as of the first quarter of 2026, up 80.8% year over year from $6.89 billion. This signaled that customers continue committing capital to large-scale projects despite macro uncertainty. Still, some caution may be warranted. Management acknowledged that comparisons become tougher in the second half of 2026 after several exceptionally strong quarters. In addition, construction-heavy businesses remain vulnerable to project timing delays, labor shortages and shifts in customer spending patterns.
However, Comfort Systems appears better positioned than many peers. Its expanding modular construction capabilities, national workforce flexibility and growing collaboration between mechanical and electrical operations could help the company sustain efficiency and profitability even if growth moderates.
For now, new-build demand remains exceptionally strong. The bigger question is not whether demand is slowing today, but how long the current data center construction cycle can continue at this extraordinary pace.
Comfort Systems, Quanta & AECOM: Infrastructure Race OnComfort Systems is seeing exceptional momentum from data center and advanced technology construction, supported by a rapidly expanding backlog and strong demand for mechanical, electrical and modular solutions. Given this environment, it still competes with renowned market players, including Quanta Services, Inc. (PWR - Free Report) and AECOM (ACM - Free Report) .
Quanta benefits more from the infrastructure side of the cycle, leveraging investments in power grids, utility modernization and communications networks needed to support AI-driven electricity demand. Its backlog strength reflects long-duration energy and transmission projects rather than commercial building construction.
AECOM, meanwhile, offers broader exposure across engineering, infrastructure design and program management services. It benefits from public infrastructure spending, transportation modernization and environmental projects, giving it a more diversified and less construction-concentrated growth profile compared with Comfort Systems and Quanta.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 101.8% year to date, significantly outperforming the Zacks Building Products - Air Conditioner and Heating industry, the Zacks Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 40.93, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $42.74 and $50.89 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 48% and 19.1%, respectively.
Image Source: Zacks Investment Research
Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
On May 28, 2026, we present a DCF analysis for Comfort Systems USA Inc FIX , a company that has shown remarkable price performance over the past year. The stock has appreciated significantly, with a year-to-date increase of 100.2% and a staggering 285.5% rise over the past year. Here are some key highlights from our analysis:
DCF Earnings-based intrinsic value of $2668.99 compared to the current price of $1867.09, indicating a margin of safety of -68.3%. DCF Free Cash Flow (FCF)-based intrinsic value of $1223.22, providing a second opinion on valuation. GF Score™ of 86/100, suggesting a high reliability of the DCF inputs. What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model employs a two-stage approach to estimate the intrinsic value of Comfort Systems USA Inc. In the first stage, we project the company's earnings growth over the next ten years, followed by a terminal phase where growth stabilizes. Below are the key assumptions used in our model:
Parameter Value Current EPS (TTM, excl. non-recurring) $35.50 10-Year Growth Rate 33.2% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we expect the EPS to grow at a rate of 33.2% per year for the next ten years, which is then discounted at a rate of 11%. The calculated value for this growth stage is $1105.81 per share. In the second stage, we assume a terminal growth rate of 4% for the following ten years, also discounted at 11%, leading to a terminal stage value of $1563.18 per share. The summary of our calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.2%, discounted at 11% $1105.81 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $1563.18 Intrinsic Value Growth + Terminal $2668.99 Comparing the current price of $1867.09 with our intrinsic value of $2668.99, we find that the stock is modestly overvalued, with a margin of safety of -68.3%. It is important to note that GuruFocus uses EPS excluding non-recurring items because research indicates that stock prices correlate more closely with earnings than with free cash flow. For further details, you can access the FIX DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Comfort Systems USA Inc is calculated at $1223.22. When we compare this with the earnings-based intrinsic value of $2668.99, we see a divergence in the two models. Both models indicate that the stock is modestly overvalued, with the FCF-based model showing a margin of safety of -52.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc is calculated at $655.39, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. When we consider all three models—DCF earnings, DCF FCF, and GF Value™—there is a consensus that the stock is overvalued. For more information, visit the GF Value™ page.
What Does FIX's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtesting from 2006 to 2021. Below is a summary of FIX's GF Score™:
Metric Rating GF Score™ 86/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The predictability rank for FIX is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For more details, visit the FIX stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as FIX, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.
What This Means for Investors In synthesizing the results from the three valuation models—DCF earnings, DCF FCF, and GF Value™—it is clear that Comfort Systems USA Inc is currently overvalued. The DCF earnings model suggests a significant discrepancy between intrinsic value and market price, while the FCF model supports this view. The GF Value™ further corroborates the overvaluation perspective.
For the full DCF analysis, visit the FIX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is FIX's intrinsic value based on DCF?
Answer: Both DCF and GF Value™ indicate that FIX is overvalued.
How reliable is the DCF model for FIX?
Answer: The predictability rank of 1/5 suggests that the DCF model is less reliable for FIX.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
In the latest trading session, Comfort Systems (FIX - Free Report) closed at $1,828.21, marking a -1.45% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.22%. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.21%.
The heating, ventilation and air conditioning company's shares have seen an increase of 0.81% over the last month, not keeping up with the Construction sector's gain of 0.87% and the S&P 500's gain of 6.04%.
Investors will be eagerly watching for the performance of Comfort Systems in its upcoming earnings disclosure. The company's upcoming EPS is projected at $10.3, signifying a 57.73% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.94 billion, indicating a 35.42% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $42.74 per share and a revenue of $11.88 billion, indicating changes of +47.99% and +30.48%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Comfort Systems. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Comfort Systems currently has a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Comfort Systems is at present trading with a Forward P/E ratio of 43.41. This indicates a premium in contrast to its industry's Forward P/E of 21.79.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 34, finds itself in the top 14% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow FIX in the coming trading sessions, be sure to utilize Zacks.com.
Comfort Systems USA rated BUY with a $2,150 12-month price target, leveraging a recent 14% correction as an attractive entry into a secular growth story. FIX's growth is underpinned by surging AI data center construction and US manufacturing reshoring, with technology clients now 56% of Q1 2026 revenues. Revenues surged 29.5% in 2025 and 56% YoY in Q1 2026, with gross margins expanding to 24.1% and a record $12.5Bn backlog driven by strong order intake.
Comfort Systems USA delivered 56.5% YoY revenue growth in Q1 2026, driven by strong performance in both electrical and mechanical segments. Robust demand, a record backlog, and secular AI infrastructure tailwinds underpin double-digit topline growth visibility through and beyond FY26. Execution and operational efficiency remain a key focus for profitability growth in the future.
Comfort Systems USA, Inc. FIX is riding one of the strongest growth waves in its history, but its increasing reliance on technology customers raises an important question: could concentration risk eventually become a concern? The company delivered an exceptional first quarter of 2026, with revenues soaring 56% year over year to $2.87 billion and earnings per share more than doubling to $10.51.
On June 03, 2026, we present a detailed DCF analysis for Comfort Systems USA Inc FIX . The company has shown impressive price performance, with a year-to-date increase of 102.0% and a remarkable 295.6% rise over the past year.
DCF Earnings-based intrinsic value of $2668.99 vs current price of $1883.26 (margin of safety: -69.8%) DCF FCF-based intrinsic value of $1223.22 vs current price (second opinion: -54.0% margin of safety) GF Score™ of 86/100 indicates strong reliability of the DCF inputs What Is FIX Worth? DCF Earnings-Based Model The DCF earnings-based model for Comfort Systems USA Inc employs a two-stage approach to evaluate the intrinsic value of the stock. The first stage considers a high growth rate for the initial ten years, while the second stage accounts for a more stable growth rate thereafter. Below is a summary of the key assumptions used in this model:
Parameter Value Current EPS (TTM, excl. non-recurring) $35.50 10-Year Growth Rate 33.2% 10-Year Treasury Rate 4.48% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the two-stage model is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 33.2%, discounted at 11% $1105.81 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $1563.18 Intrinsic Value Growth + Terminal $2668.99 Comparing the current price of $1883.26 to the intrinsic value of $2668.99 indicates that the stock is modestly overvalued, with a margin of safety of -69.8%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further analysis, you can visit the FIX DCF Calculator.
What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Comfort Systems USA Inc is calculated at $1223.22. When compared with the earnings-based intrinsic value of $2668.99, the two models indicate a consensus that the stock is modestly overvalued, with a margin of safety of -54.0%. This suggests that both valuation approaches are aligned in their assessment of the stock's current price relative to its intrinsic value.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Comfort Systems USA Inc is calculated at $657.16, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—indicate that the stock is overvalued at its current price. For more information, visit the GF Value™ page.
What Does FIX's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns based on backtesting from 2006 to 2021.
Metric Rating GF Score™ 86/100 Financial Strength 9/10 Profitability 10/10 Growth 10/10 Valuation 1/10 Momentum 6/10 The predictability rank for Comfort Systems USA Inc is 1 out of 5 stars, indicating that the DCF model may be less reliable for this stock. For additional insights, visit the FIX stock page.
Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as Comfort Systems USA Inc, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not accurately reflect future market conditions.
What This Means for Investors In synthesizing the findings from the DCF earnings model, the DCF FCF model, and the GF Value™, it is clear that Comfort Systems USA Inc is currently overvalued. The consensus from all three valuation models suggests caution for potential investors.
For the full DCF analysis, visit the FIX DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is FIX's intrinsic value based on DCF?
Answer: Both DCF and GF Value™ indicate that FIX is overvalued.
How reliable is the DCF model for FIX?
Answer: The predictability rank of 1/5 suggests that the DCF model is less reliable for FIX.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investors interested in Construction stocks should always be looking to find the best-performing companies in the group. Is Comfort Systems (FIX - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Comfort Systems is one of 88 individual stocks in the Construction sector. Collectively, these companies sit at #16 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Comfort Systems is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for FIX's full-year earnings has moved 17.2% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the most recent data, FIX has returned 101.8% so far this year. At the same time, Construction stocks have gained an average of 12.6%. As we can see, Comfort Systems is performing better than its sector in the calendar year.
Another stock in the Construction sector, Sterling Infrastructure (STRL - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 185.9%.
The consensus estimate for Sterling Infrastructure's current year EPS has increased 40.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Comfort Systems belongs to the Building Products - Air Conditioner and Heating industry, which includes 7 individual stocks and currently sits at #43 in the Zacks Industry Rank. Stocks in this group have gained about 40.3% so far this year, so FIX is performing better this group in terms of year-to-date returns.
On the other hand, Sterling Infrastructure belongs to the Engineering - R and D Services industry. This 22-stock industry is currently ranked #68. The industry has moved +37.9% year to date.
Going forward, investors interested in Construction stocks should continue to pay close attention to Comfort Systems and Sterling Infrastructure as they could maintain their solid performance.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Comfort Systems (FIX - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
While there are numerous reasons why the stock of this heating, ventilation and air conditioning company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Comfort Systems is 61.3%, investors should actually focus on the projected growth. The company's EPS is expected to grow 49.1% this year, crushing the industry average, which calls for EPS growth of 7.4%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Comfort Systems is 74.3%, which is higher than many of its peers. In fact, the rate compares to the industry average of -0.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 42.5% over the past 3-5 years versus the industry average of 14.3%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Comfort Systems. The Zacks Consensus Estimate for the current year has surged 0.5% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Comfort Systems a Zacks Rank #1 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Comfort Systems is a potential outperformer and a solid choice for growth investors.
Comfort Systems (FIX - Free Report) closed at $1,843.94 in the latest trading session, marking a -3.69% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 2.65% for the day. Meanwhile, the Dow experienced a drop of 1.35%, and the technology-dominated Nasdaq saw a decrease of 4.18%.
Heading into today, shares of the heating, ventilation and air conditioning company had lost 1.41% over the past month, lagging the Construction sector's gain of 1.85% and the S&P 500's gain of 5.47%.
The investment community will be paying close attention to the earnings performance of Comfort Systems in its upcoming release. The company's upcoming EPS is projected at $10.38, signifying a 58.96% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.94 billion, showing a 35.42% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $43.05 per share and a revenue of $11.88 billion, signifying shifts of +49.07% and +30.48%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Comfort Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% higher within the past month. Comfort Systems is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Comfort Systems is presently trading at a Forward P/E ratio of 44.48. This valuation marks a premium compared to its industry average Forward P/E of 22.96.
The Building Products - Air Conditioner and Heating industry is part of the Construction sector. This industry, currently bearing a Zacks Industry Rank of 41, finds itself in the top 17% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Comfort Systems (FIX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Comfort Systems currently has an average brokerage recommendation (ABR) of 1.20, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 10 brokerage firms. An ABR of 1.20 approximates between Strong Buy and Buy.
Of the 10 recommendations that derive the current ABR, nine are Strong Buy, representing 90% of all recommendations.
Brokerage Recommendation Trends for FIX
Check price target & stock forecast for Comfort Systems here>>>
While the ABR calls for buying Comfort Systems, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in FIX?In terms of earnings estimate revisions for Comfort Systems, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $43.05.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Comfort Systems. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Comfort Systems may serve as a useful guide for investors.
Key Takeaways FIX's Electrical segment revenues surged 88% in Q1 2026, outpacing 47% growth in the Mechanical segment.Segment margins improved to 24.9%, supported by strong demand from hyperscale data center projects.Its record $12.45B backlog and technology pipeline support continued electrical-services momentum. Comfort Systems USA, Inc. (FIX - Free Report) delivered another eye-catching quarter in early 2026, but one development stood out from the rest: the extraordinary performance of its Electrical segment. As demand for data centers and advanced technology infrastructure accelerates, investors are increasingly asking whether electrical services could become a much larger part of the company’s growth story.
In the first quarter of 2026, the Electrical segment’s revenues soared 88% year over year, significantly outpacing the Mechanical segment’s still-impressive 47% growth. Management attributed the strength in both segments to robust demand from technology customers, particularly hyperscale data center projects. Beyond revenue growth, the segment is also contributing to profitability. Segment margins improved to 24.9% in the first quarter of 2026 from 23% a year ago, demonstrating that the business is not sacrificing profitability to capture market share.
The growth is occurring at an ideal time. Data centers require increasingly sophisticated electrical infrastructure to support AI workloads, cloud computing and power-intensive applications. As a result, electrical contracting services have become a critical component of modern construction projects, creating a sizable opportunity for companies with the scale and expertise to execute complex installations. Notably, FIX’s record backlog of $12.45 billion (up 80.8% year over year) and strong technology-sector pipeline suggest that demand remains firmly intact. As electrical and mechanical teams increasingly collaborate on integrated projects, the company may be able to capture greater wallet share from customers seeking end-to-end infrastructure solutions.
While the Mechanical segment remains the larger business today (73.3% of total revenues in 2025), the Electrical segment’s rapid expansion suggests a meaningful shift may be underway. If technology spending remains robust, electrical services could play an increasingly important role in shaping Comfort Systems’ future growth profile.
Comfort Systems vs. Watsco vs. Carrier Global: Who Wins?Comfort Systems, alongside its close peers, Watsco, Inc. (WSO - Free Report) and Carrier Global Corporation (CARR - Free Report) , is benefiting from rising investment in data centers and advanced technology infrastructure, but their exposure to these trends differs significantly.
FIX has the most direct leverage to hyperscale data center construction, with advanced technology projects driving a substantial portion of revenues and supporting record backlog growth. Its mechanical, electrical and modular construction capabilities position it at the center of AI-driven infrastructure expansion. Meanwhile, Carrier Global participates through its portfolio of cooling, HVAC and building solutions that are increasingly critical for high-density data centers. Growing demand for energy-efficient cooling systems and lifecycle services provides Carrier Global with long-term exposure to technology infrastructure spending.
Watsco’s opportunity is more indirect. As the largest HVAC distributor in North America, it benefits from rising demand for HVAC equipment, replacement cycles and commercial construction activity. While less dependent on large-scale data center projects, Watsco gains from broader HVAC market growth and ongoing investments in energy-efficient building systems. Together, all three companies are positioned to benefit from technology-driven infrastructure trends, albeit through different business models and demand channels.
FIX Stock’s Price Performance & Valuation TrendShares of this Texas-based heating, ventilation, air conditioning and electrical contracting service provider have surged 98.4% year to date, significantly outperforming the Zacks Building Products - Air Conditioner and Heating industry, the broader Construction sector and the S&P 500 Index.
Image Source: Zacks Investment Research
FIX stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 39.31, as the trend lines suggest below.
Image Source: Zacks Investment Research
Earnings Estimate Trend Favors FIXFIX’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $43.05 and $52.32 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 49.1% and 21.5%, respectively.
Image Source: Zacks Investment Research
Comfort Systems currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Two AI Titans Flash Entries As Rocket Lab Readies For Launch Comfort Systems USA Comfort Systems USA FIX $ 1,782.86 $69.18 3.74% 75% IBD Stock Analysis Stock could be actionable on rebound from 10-week support. Shares are four weeks into a possible base, after early April breakout. IBD Composite Rating 97/99 Industry Group Ranking 59/197 Emerging Pattern Pullback Pullback A stock may pull back after a breakout, often to the 50-day…
Key Takeaways FIX Q1 2026 profits more than doubled as record revenue and margin expansion drove results.FIX backlog hit a record $12.45B, up from $11.94B at 2025 year-end and $6.89B a year ago.FIX sees modular revenue at 17% of Q1 sales, with capacity targeted near 4M sq. ft. by end-2026. Comfort Systems USA (FIX - Free Report) is delivering the kind of earnings growth that investors rarely ignore. After posting another quarter of record revenue, expanding margins and sharply higher profits, the company is increasingly emerging as one of the biggest beneficiaries of the ongoing boom in data centers, semiconductor manufacturing and industrial construction. With earnings more than doubling in the first quarter of 2026, backlog reaching a record level and analysts continuing to raise profit estimates, Comfort Systems appears to be entering a new phase of growth.
The accelerating earnings trajectory has not gone unnoticed by Wall Street. Analysts have raised their earnings estimates for both 2026 and 2027 over the past month, reflecting growing confidence in the company's ability to sustain its momentum, as shown below. Current estimates imply earnings growth of 49.1% in 2026 and another 21.5% in 2027. Revenue expectations are equally impressive, with consensus projections calling for growth of 30.5% in 2026 and 16.3% in 2027. The estimate revision trend suggests analysts believe Comfort Systems can continue translating strong demand and backlog into higher profits.
FIX EPS Estimate Revision Trend
Image Source: Zacks Investment Research
The market has certainly taken notice. Shares of FIX have gained 96.2% year to date, significantly outperforming its Zacks Building Products - Air Conditioner and Heating industry, the broader Zacks Construction sector and the S&P 500. Yet despite the strong rally, rising earnings expectations and continued demand strength suggest the growth story may not be over.
FIX Price Performance (YTD)
Image Source: Zacks Investment Research
Analyst sentiment remains highly favorable. Out of 10 recommendations contributing to the company’s Average Brokerage Recommendation (ABR), nine have rated the stock as a Strong Buy, leading to an impressive ABR of 1.20, reflecting overwhelmingly positive views. Wall Street's average price target of $2,096.29 suggests additional upside of 13.2% from current levels.
Image Source: Zacks Investment Research
The key question for investors is whether Comfort Systems' accelerating earnings momentum can continue and justify further upside in the stock.
Strong End Markets Continue to Fuel Growth for FIX StockComfort Systems operates as a leading provider of mechanical, electrical and plumbing services across the United States. The company has increasingly positioned itself in some of the fastest-growing construction markets, which is helping drive exceptional growth.
Technology-related projects remain the largest contributor to revenue. Data centers and semiconductor manufacturing facilities continue to generate significant demand for the company's services. In the first quarter of 2026, advanced technology projects accounted for more than half of total revenues, highlighting the company's deep exposure to one of the strongest infrastructure investment themes in the country.
Beyond technology, Comfort Systems is benefiting from investments in manufacturing, healthcare, pharmaceuticals, food processing, government facilities and energy-storage projects. The growing trend toward domestic manufacturing and onshoring is creating additional opportunities across these markets. Management continues to describe demand as robust, supported by healthy project pipelines and strong customer activity.
The company's nationwide footprint, with nearly 200 locations across the country, enables it to participate in large-scale projects across multiple regions and end markets.
Record Backlog Supports Earnings Visibility for Comfort SystemsOne of the strongest indicators of future growth is Comfort Systems' expanding backlog. At the end of the first quarter, backlog reached a record $12.45 billion compared with $11.94 billion at year-end 2025 and $6.89 billion a year ago. The increase is particularly impressive, given the company's ability to execute projects at a faster pace while still adding new work.
Management noted that bookings remained especially strong in the technology sector. Demand from data-center customers continues to drive substantial project awards, while the broader project pipeline remains healthy.
This backlog provides meaningful visibility into future revenue and earnings. As projects move through execution over the coming quarters, Comfort Systems appears well-positioned to sustain strong top-line growth.
Modular Construction Is Becoming a Key Lead for FIX StockAnother important driver of Comfort Systems' long-term growth is its expanding modular construction platform. The company continues to invest heavily in off-site manufacturing facilities where mechanical and electrical systems can be assembled before arriving at project sites. Modular construction helps reduce project timelines, improve productivity and address labor shortages.
Modular revenues represented 17% of total revenues during the first quarter. Management expects modular capacity to reach approximately four million square feet by the end of 2026 and continues to evaluate additional expansion opportunities.
These investments not only support future growth but also help differentiate Comfort Systems from many competitors that lack comparable modular capabilities.
Margin Gains & Cash Strength Reinforce the Bull CaseComfort Systems is translating strong revenue growth into even stronger profitability while maintaining an exceptionally healthy balance sheet. First-quarter revenue increased 56.5% year over year to $2.87 billion, with gross margin expanding to 26.3% from 22% and operating income surging 132%. Both Mechanical and Electrical segments delivered margin improvement, reflecting disciplined project execution and operating leverage. The company ended the quarter with more than $1 billion in cash and only $39 million in debt, while operating cash flow reached nearly $389 million. Its long history of free cash flow generation, dividend growth and continued investments in acquisitions and capacity expansion further strengthens its financial position and growth outlook.
What Could Slow the Momentum for FIX Stock?Despite the favorable outlook, investors should not overlook potential risks. Labor availability remains the primary constraint on growth. Management acknowledged that workforce capacity continues to be the biggest limiting factor as demand remains exceptionally strong. Recruiting and retaining skilled workers will be critical to sustaining current growth rates.
The company is also exposed to project delays, supply-chain disruptions, material-cost inflation and broader economic uncertainty. Although demand from technology customers remains strong today, any slowdown in data-center spending could eventually affect growth.
Valuation is another consideration. FIX currently trades at 38.86X forward 12-month earnings, above the industry average of 28.86X and above its three-year median valuation. While investors appear willing to pay a premium for the company's growth profile, the valuation leaves less room for disappointment.
FIX Valuation – P/E F12M
Image Source: Zacks Investment Research
How Does Comfort Systems Compare With Peers?Comfort Systems competes with several well-established infrastructure and engineering companies, including EMCOR Group (EME - Free Report) , Quanta Services (PWR - Free Report) and Sterling Infrastructure (STRL - Free Report) .
EMCOR remains one of the closest competitors in mechanical and electrical contracting. EMCOR continues to benefit from demand in healthcare, industrial and technology-related projects. EMCOR's scale and project expertise make EMCOR a formidable competitor, although Comfort Systems has recently delivered faster backlog growth and stronger earnings momentum.
Quanta focuses heavily on utility, energy and infrastructure projects. It is benefiting from grid modernization and electrification trends, while Quanta also maintains exposure to data-center-related opportunities. However, Comfort Systems offers greater direct exposure to building systems and advanced technology construction.
Sterling has become increasingly involved in data-center and advanced manufacturing projects. The company continues to expand its presence in mission-critical infrastructure markets, and Sterling is benefiting from many of the same secular growth trends. Nevertheless, Comfort Systems' deeper mechanical and electrical capabilities provide a broader service offering.
Should Investors Buy FIX Stock?Comfort Systems enters the remainder of 2026 with significant momentum. Record backlog, accelerating earnings, expanding margins, strong cash generation and continued demand from technology and industrial customers provide a compelling foundation for future growth.
The valuation premium reflects these strengths and may limit near-term upside if growth slows. However, rising earnings estimates, robust project pipelines and the company's expanding modular capabilities suggest the business remains well positioned for continued success.
With a Zacks Rank #1 (Strong Buy), strong analyst support and favorable industry trends, Comfort Systems appears capable of delivering further growth. For investors seeking exposure to data-center construction, industrial expansion and infrastructure modernization, FIX remains an attractive stock to consider despite its impressive run. You can see the complete list of today’s Zacks #1 Rank stocks here.
Due to the "big, beautiful bill" passed last year, many taxpayers can expect a larger refund from the Internal Revenue Service this tax season. That's because the bill reduced individual taxes by $129 billion for 2025. But many Americans didn't change their withholding for the year, so they'll get back the extra amounts withheld from their paychecks in their tax returns.
As of late February, the average refund is a bit more than 10% higher so far this year, pushing the average refund amount for individual filers from around $3,450 to more than $3,800. Unless you have urgent spending needs or you can pay down expensive debt, the wisest thing to do with that refund is to invest it and give your retirement portfolio a bit of a shot in the arm.
But in such uncertain times, when the war in the Middle East is pushing major stock indexes down and driving market volatility higher -- with no clear end to the conflict in sight -- it's difficult to know where to invest.
Image source: Getty Images.
Certain sectors are less impacted by volatility or economic slowdowns Fortunately, there are prudent investments that should outperform other assets in volatile or down markets. And if you look at a heat map of the S&P 500, you can see that many of these stocks are already outperforming the broader market over the past month as the war has ground on.
First of all, consider stocks of companies that provide essential goods that people won't stop buying even if the economy stagnates or inflation rises. The consumer staples sector includes discount retailers like Costco Wholesale (COST +0.23%), Target (TGT +1.89%), and Walmart (WMT 0.16%). People will continue to shop at these low-cost chains even when the economy falters. Even better, higher-income consumers looking to cut costs in tough times will increase their visits to these stores.
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Healthcare is another great defensive sector. I like Johnson & Johnson (JNJ +0.60%) and CVS (CVS +1.11%) -- they provide essential medical supplies or services that people will need in good times and bad. Healthcare is not a luxury.
And utilities are always a great bet if you think the market and/or economy is about to turn downward, as they provide essential services that don't see a decline in demand in recessions. Three top utilities to consider are American Water Works (AWK +1.21%), a water utility; Brookfield Infrastructure (BIPC +0.72%), a gas utility; and NextEra Energy (NEE +0.98%), an electric utility.
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Those are just a few safe, reliable investments to make when the rest of the market looks a bit iffy, as it does right now.
Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, NextEra Energy, Target, and Walmart. The Motley Fool recommends CVS Health and Johnson & Johnson. The Motley Fool has a disclosure policy.
I discuss two elite investment vehicles specifically designed to provide attractive current yields and long-term reliability for your retirement. I detail how these 'dividend machines' utilize inflation-indexed contracts and global diversification to protect your purchasing power in any economic climate. I also share the risks that could undermine WPC's and BIP's total return propositions.
Discover the essential 'two qualifiers' that determine if a high-yield strategy is the right fit for your retirement goals. Learn the four-pillar framework for identifying sustainable dividends and avoiding common yield traps that lead to capital loss. Explore a diversified selection of high-income opportunities across numerous sectors of individual stocks, ETFs, and CEFs to bolster your monthly cash flow.
I own lots of stocks, most of which pay dividends. I focus on dividends stocks because I like earning passive income. They've also historically delivered much higher returns compared to non-dividend payers.
Three of my favorite dividend stocks are Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%), Enterprise Products Partners (EPD 0.51%), and Realty Income (O +0.64%). I already have sizable positions in all three. However, I wouldn't think twice about doubling my positions. Here's why.
Image source: Getty Images.
Robust growth ahead Brookfield Infrastructure has everything I look for in a core dividend holding. It generates very durable cash flows to support its high-yielding payout (currently 4.8%). About 85% of its earnings come from long-term, fixed-rate contracts or government-regulated revenue frameworks, which either indexes its revenue to inflation or protect it from inflation's impact.
The diversified global infrastructure operator also has a strong financial profile. It has a conservative dividend payout ratio (60% to 70% of its stable cash flows) and a strong, investment-grade balance sheet. That gives it significant financial flexibility to continue growing its operations and its dividend.
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Brookfield Infrastructure also has solid growth prospects. It expects to grow its cash flow per share at a more than 10% annual rate going forward, driven by inflation-linked rate increases, expansion projects, and acquisitions. That should support dividend growth of 5% to 9% per year. Brookfield has increased its payout for 16 straight years, growing it at a 9% compound annual rate.
A big growth wave with more coming down the pipeline Enterprise Products Partners is an exceptional income holding. The master limited partnership (MLP) -- it sends investors a Schedule K-1 Federal tax form -- currently yields 5.6%. The energy midstream company has increased its distribution for 27 consecutive years.
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The MLP is in a strong position to continue growing its high-yielding payout. It has a fortress financial profile. Enterprise Products Partners generates very stable cash flow, primarily backed by long-term, fixed-rate contracts or government-regulated rate structures. The company generated enough cash to cover its distribution by 1.7 times last year, enabling it to retain lots of cash to reinvest in the partnership. It also has the strongest balance sheet in the energy midstream sector.
Enterprise Products Partners completed $6 billion of growth capital projects during the second half of last year, which will meaningfully boost its cash flow in 2026. Meanwhile, the company has another $4.8 billion in expansion projects under construction that should enter commercial service over the next two years, providing it with strong growth visibility.
The model of consistency Realty Income is the epitome of an income stock in my book. The real estate investment trust (REIT) pays a high-yielding monthly dividend (5.3% current yield) that it routinely increases. It has raised its dividend 134 times since its public market listing in 1994, growing it at a 4.2% compound annual rate. The REIT has increased its payout for 31 consecutive years and 114 quarters in a row.
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The company owns a diversified real estate portfolio secured by long-term, triple-net leases. That lease structure produces very stable cash flow because tenants cover all property operating costs. Meanwhile, the REIT has a conservative dividend payout ratio (75%) and a top-tier balance sheet, giving it lots of flexibility to invest in additional income-generating properties.
Realty Income expects to invest $8 billion in expanding its real estate portfolio this year. It should have no shortage of investment opportunities. It estimates there's a $14 trillion opportunity to invest in net-lease real estate across the U.S. and Europe.
Core income holdings Brookfield Infrastructure, Enterprise Products Partners, and Realty Income have all the features I desire in a dividend stock. They pay well-supported, high-yielding dividends that should continue growing. That's why I wouldn't think twice about doubling my positions right now if I had the available cash.
Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Enterprise Products Partners, and Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Enterprise Products Partners. The Motley Fool has a disclosure policy.
Recent market volatility triggered by the Iran war has created sharp pullbacks in two high-quality dividend growth stocks, making their current valuations and yields among the most attractive in years. Both picks feature highly contracted, recession-resilient cash flows, investment-grade balance sheets, and long track records of consistent dividend growth that meet or beat inflation. We detail the risks and total return prospects for O and BIP.
The 4% rule is quietly failing millions of retirees, and the S&P 500's measly 1% yield is forcing dangerous asset liquidation strategies that could collapse under a single bad decade. I detail my proven 7–8% yielding portfolio engineered to deliver sustainable income that outpaces inflation without relying on selling shares. I also discuss the opportunistic capital recycling strategy that turns market volatility from a retirement threat into a compounding accelerator.
After 3 months in 2026, I heard more noise than quality information. Therefore, I don't intend to make any modifications to my portfolio at this point. Dollarama reported a mixed quarter with revenue up 12%, but EPS was up only 2%. That sent the stock price down and created the temptation to invest a little more in this amazing company. I'm accumulating more dividends in this portfolio, and I'll shortly have another $1,000 to invest! I will likely add more of Broadcom as I'm not yet fully invested at 3% of the portfolio in this security.
Investing involves risk. However, some investments are much lower risk than others. Companies that generate contractually guaranteed revenues, have fortress financial profiles, and boast clearly visible growth profiles are at the lower end of the risk spectrum.
Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%), NextEra Energy (NEE +0.98%), and Vici Properties (VICI +1.03%) have all those traits. That enables them to pay growing dividends. Their combination of income, financial strength, and growth makes them as close to a sure thing as you'll find in a stock investment.
Image source: Getty Images.
A robust growth outlook Brookfield Infrastructure operates a globally diversified portfolio of utility, midstream, transport, and data infrastructure assets. Most of its businesses operate under highly contracted or regulated frameworks (85% of its funds from operations or FFO) with a very long duration (nine years on average). As a result, it produces very stable cash flow (only 5% is market sensitive), which benefits from inflation (70% indexed to inflation).
The company has a strong financial profile. Brookfield pays out 60% to 70% of its stable cash flow in dividends (a current yield of 4.3%). It also has a healthy balance sheet (BBB+ credit rating). The company's financial flexibility enables it to invest in organic expansion projects and make acquisitions to grow its operations and earnings.
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Brookfield currently has over $9 billion of organic expansion projects it expects to complete over the next three years, including multiple data centers worldwide and two U.S. semiconductor foundries. Additionally, Brookfield routinely recycles capital by selling mature businesses and reinvesting the proceeds into higher-returning new investments (it secured $1.5 billion of new investments last year). The company's multiple growth drivers should support FFO per share growth of more than 10% annually and dividend growth of 5% to 9% per year. Brookfield has increased its dividend for 16 straight years.
A powerful growth forecast NextEra Energy operates the country's largest electric utility (FPL) and a leading clean energy infrastructure development platform (NextEra Energy Resources). FPL generates stable government-regulated revenues while the energy resources segment produces steady cash flow by selling power to other utilities and large corporations under long-term, fixed-rate power purchase agreements.
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The energy company has a conservative dividend payout ratio and a top-tier balance sheet (Baa/A- credit ratings). That gives it the financial flexibility to invest in growing its operations.
NextEra Energy sees the potential to invest up to $325 billion in capex through 2032, including building new renewable energy capacity, investing in data center hubs, and constructing electricity transmission lines. This investment level should support more than 8% annual adjusted earnings-per-share growth over that time frame. That should enable NextEra to continue increasing its 2.7%-yielding dividend (6% annual growth targets for 2027 and 2028), which it has done for more than 30 years.
A low-risk gamble on a growing income stream Vici Properties is a real estate investment trust (REIT). It invests in experiential real estate, including gaming, hospitality, wellness, entertainment, and leisure destinations. It leases its owned properties back to high-quality operating companies under very long-term triple-net leases (a nearly 40-year weighted-average remaining lease term). Vici Properties also invests in real estate-backed loans. These investments generate very stable income.
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The REIT pays out about 75% of its adjusted FFO in dividends (a current yield of 6.3%), retaining the rest to reinvest in new experiential real estate. It also has a solid investment-grade balance sheet, with its leverage ratio currently at the low end of its target range.
Vici Properties' leases increasingly escalate rents at rates tied to inflation (42% of its leases in 2026, rising to 90% by 2035). As a result, its existing portfolio should generate stable and steadily rising rental income. Meanwhile, Vici Properties routinely invests in new properties, often through existing partnerships. It has the option to acquire several properties from existing partners. These growth drivers should enable Vici to continue increasing its dividend. The REIT has grown its payout at a 6.6% compound annual rate since the end of 2018, triple the pace of other REITs focused on investing in triple-net lease real estate.
Bankable dividend stocks While there's no sure thing in investing, Brookfield Infrastructure, NextEra Energy, and Vici Properties look like safe bets. They should continue growing their earnings and dividends at healthy rates, positioning them to deliver strong total returns over the long run. They're ideal stocks for those seeking investments with a high likelihood of paying off.
Brookfield Corporation (BN) should be the core holding, anchoring exposure to the broader Brookfield ecosystem and serving as a capital growth vehicle. BN's subsidiaries, including BIP/BIPC and BEP/BEPC, provide inflation-protected, income-generating hard asset exposure with differentiated risk and yield profiles. Strategic partnerships with hyperscalers like Google, Microsoft, and Nvidia drive long-term growth for BEP/BEPC and BIP/BIPC, leveraging AI and renewable demand.
Due to tariffs and the Iran war, stagflation fears are growing. I detail 2 dividend stocks that are well-positioned to thrive in a stagflationary environment. These stocks have attractive yields, 10%+ per share CAGR guidance, investment-grade balance sheets, and a proven record of growing payouts through COVID-19 and every rate cycle in between.
On April 29, 2026, Brookfield Infrastructure Corp BIPC shares fell 10.8% today, bringing the current price to $35.49. The stock has experienced a 52-week range between $34.18 and $51.72, indicating significant volatility in recent months.
GF Value™ verdict: Current price of $35.49 vs GF Value of $45.25, representing a 21.6% undervaluation.GF Score™ of 85/100 indicates a strong overall stock performance.Most notable signal: No insider transactions in the last 3 months. Is BIPC Overvalued or Undervalued? Brookfield Infrastructure Corp BIPC currently trades at $35.49, which is significantly below the GF Value™ estimate of $45.25. This suggests that the stock is undervalued by approximately 21.6%. The GF Valuation label indicates that the stock is modestly undervalued, presenting an opportunity for potential investors. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
While the undervaluation suggests a potential opportunity, it is crucial to consider the underlying risks associated with the company's financial strength, which is rated at 3/10. This low rating may indicate that the company could be facing challenges that could affect its stock performance in the future. Therefore, while the current price may present an attractive entry point, investors should proceed with caution and conduct thorough due diligence.
How Does BIPC's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)3.4x11.4x The current P/E ratio of 3.4x is significantly below the 5-year median P/E of 11.4x, indicating that the stock is trading at a much lower valuation compared to its historical performance. This aligns with the GF Value™ verdict that suggests the stock is undervalued. The substantial difference in P/E ratios highlights the potential for recovery and price appreciation if the company can stabilize its financial performance.
What Does BIPC's GF Score™ Tell Us? MetricRating GF Score™85 Financial Strength3/10 Profitability7/10 Growth9/10 Valuation8/10 Momentum7/10 The GF Score™ of 85/100 reflects a strong overall performance, particularly in the areas of Growth (9/10) and Valuation (8/10). These scores suggest that the company has significant growth potential and is currently undervalued. However, the Financial Strength score of 3/10 indicates potential concerns regarding the company's financial stability. This disparity highlights the need for investors to weigh the growth potential against the risks associated with financial strength.
What Are Insiders Doing with BIPC Stock? There have been no insider transactions in the last three months for Brookfield Infrastructure Corp BIPC . This lack of activity may suggest that insiders are currently not making significant moves regarding the stock, which could imply a level of uncertainty about the company's short-term outlook. Typically, insider buying can be a positive signal, while selling could raise concerns; however, the absence of transactions leaves the current sentiment ambiguous.
What This Means for Investors Based on the GF Value™ analysis, Brookfield Infrastructure Corp BIPC is currently undervalued. The share price of $35.49 is significantly below the estimated fair value of $45.25, indicating a potential investment opportunity. However, investors should consider the company's low financial strength rating and lack of insider transactions, which may pose risks to future performance.
For the complete analysis, visit the Brookfield Infrastructure Corp BIPC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is BIPC's GF Score™?
BIPC's GF Score™ is 85/100, indicating a strong overall stock performance based on various factors.
Is BIPC overvalued or undervalued?
BIPC is currently undervalued with a GF Value™ estimate of $45.25 compared to its current price of $35.49.
What is BIPC's P/E ratio?
BIPC's P/E ratio is 3.4x, which is significantly lower than its 5-year median P/E of 11.4x, indicating a lower historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Investing in dividend stocks is one of the simplest ways to generate passive income. Many companies pay dividends, with several offering attractive yields. However, not every high-yielding dividend stock will provide a sustainable passive income stream.
Here are three high-yielding dividend stocks ideal for those looking to start generating passive income. They have an excellent record of paying a growing dividend, which should continue.
Image source: Getty Images.
Brookfield Infrastructure Brookfield Infrastructure (BIPC +0.72%)(BIP +0.03%) operates a globally diversified portfolio of critical infrastructure assets. It focuses on owning assets in the utilities, transport, midstream, and data sectors secured by long-term contracts and government-regulated rate structures. Those frameworks provide it with stable, durable cash flows.
The infrastructure company currently yields over 4%, several times higher than the S&P 500's 1.1% dividend yield. Brookfield Infrastructure has increased its dividend in each of its 17 years as a public company, growing the payout at a 9% compound annual rate. The company aims to increase its dividend at a 5% to 9% annual rate over the long term.
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It's in a strong position to achieve that goal. Brookfield Infrastructure estimates that its organic growth drivers, which include inflation-indexed rate increases, volume growth as the global economy expands, and expansion projects, will deliver 6% to 9% annual growth in funds from operations (FFO) per share. Meanwhile, acquisitions should push its long-term FFO growth rate above 10% annualized.
Realty Income Realty Income (O +0.64%) is one of the world's largest real estate investment trusts (REITs). The company owns a diversified portfolio of more than 15,500 retail, industrial, gaming, and other properties across the U.S. and Europe. It invests in properties secured by long-term net leases with many of the world's leading companies. Those leases supply it with very stable rental income.
The REIT pays a monthly dividend that currently yields more than 5%. Realty Income has increased its dividend 134 times since its public market listing in 1994, growing it at a 4.2% compound annual rate. It has raised its payment for 114 consecutive quarters and 31 straight years.
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Realty Income is in a strong position to continue increasing its dividend. It has a conservative dividend payout ratio, fortress balance sheet, and a growing list of strategic partners, giving it ample financial capacity to continue expanding its portfolio. Meanwhile, the REIT sees a $14 trillion total addressable market, giving it a very long growth runway.
Verizon Verizon (VZ +2.59%) is a leading mobile and broadband provider. The company generates recurring revenue by delivering these vital services to customers.
The telecom giant currently offers a dividend yielding nearly 6%. Verizon has raised its payment for 19 consecutive years.
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Verizon's dividend costs it about $11.6 billion annually. It generates plenty of cash to cover that payout. The telecom giant is on track to produce at least $21.5 billion in free cash flow this year, after funding capital expenditures of up to $16.5 billion to maintain and expand its networks. That's a 7% increase from last year. Verizon uses its surplus cash to maintain its balance sheet strength and repurchase shares (at least $3 billion planned for 2026). The company's growing free cash flow should support continued dividend increases.
Core income holdings Brookfield Infrastructure, Realty Income, and Verizon are ideal dividend stocks to buy for passive income. They generate very stable cash flow to support their high-yielding dividends and continued growth. Their combination of stable cash flows, higher-yielding dividends, growth track records, and financial strength makes them some of the first dividend stocks to buy if you're seeking to start generating some passive income.
Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, Realty Income, and Verizon Communications. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Brookfield Infrastructure Partners and Verizon Communications. The Motley Fool has a disclosure policy.
ResMed Inc (RMD) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Acquisitions ResMed Inc (RMD) reports an 11% revenue increase and strategic acquisition plans, while navigating supply chain challenges and competitive pressures. Summary
Revenue: $1.43 billion, an 11% increase year-over-year, 8% in constant currency.Gross Margin: 62.8%, increased by 290 basis points year-over-year.Operating Margin: Improved to 36.7% from 34.4% in the prior year period.Net Income: Increased by 20% year-over-year.Non-GAAP Earnings Per Share: Increased by 21% year-over-year.Free Cash Flow: $520 million, with above 100% free cash flow conversion.Cash Flow from Operations: $554 million.Cash Balance: $1.7 billion at the end of the quarter.Net Cash: $996 million.Dividend: Quarterly dividend of $0.60 per share declared.Share Repurchases: Approximately 673,000 shares repurchased for $175 million.Device Sales Growth: 6% increase globally on a constant currency basis.Masks and Other Sales Growth: 12% increase globally on a constant currency basis.Residential Care Software Revenue Growth: 4% increase on a constant currency basis.SG&A Expenses: Increased to 19.5% of revenue from 19% in the prior year period.R&D Expenses: Increased to 6.6% of revenue from 6.5% in the prior year period.Acquisition: Agreement to acquire Noctrix Health for $340 million, expected to close on June 1, 2026.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points ResMed Inc RMD reported an 11% growth in headline revenue, or 8% growth on a constant currency basis, demonstrating strong financial performance.The company achieved a 21% growth in non-GAAP earnings per share, indicating effective cost management and operational efficiency.ResMed Inc (RMD) continues to expand its global digital health ecosystem, focusing on sleep health, breathing health, and healthcare technology delivered in the home.The company is investing in innovative products, such as the AirTouch N30i mask, which has shown a 6% higher 90-day compliance rate compared to its silicone equivalent.ResMed Inc (RMD) maintains a robust balance sheet with $1.7 billion in cash and a net cash position of $996 million, providing flexibility for future investments and shareholder returns. Negative Points ResMed Inc (RMD) faces challenges with component cost inflation and geopolitical uncertainties impacting supply chain logistics.The company's Residential Care software business experienced only a 4% growth, with ongoing challenges in the senior living and long-term care verticals.There are concerns about the profitability of the new fabric masks for traditional HME providers, potentially affecting adoption rates.The acquisition of Noctrix Health is expected to reduce non-GAAP EPS by approximately $0.02 in Q4 FY26, indicating short-term financial impact.ResMed Inc (RMD) is facing competitive dynamics in the US devices segment, with new product launches from competitors potentially impacting market share. Q & A Highlights Q: Could you discuss the changes you're seeing in component costs and freight, and any supply chain changes post-COVID?
A: Michael Farrell, CEO: We're not seeing any impacts from geopolitical uncertainty on our core supply chain. We've shifted from air freight to sea freight, and our supply chain improvement pipeline remains strong. We expect gross margin accretion through 2030 despite external challenges. Brett Sandercock, CFO: We've done well with component cost improvements, but it gets tougher. We focus on productivity, platform standardization, vendor management, and logistics efficiencies to offset cost inflation.
Q: Can you provide more details on the Noctrix acquisition, its impact on SG&A and R&D, and reimbursement opportunities?
A: Michael Farrell, CEO: Noctrix Health's Nidra device for restless leg syndrome is growing faster and has higher gross margins than ResMed. We will invest in R&D and sales and marketing. Our market access team will drive reimbursement further. Brett Sandercock, CFO: We'll continue to invest in SG&A and R&D, with expected EPS dilution guidance provided earlier.
Q: What is driving the strong growth in Europe/Asia revenue, particularly in masks?
A: Michael Farrell, CEO: Our teams in Western Europe and Asia Pacific have done well with partnerships and omni-channel approaches. The AirTouch N30i fabric technology mask is changing the basis of competition, contributing to robust mask growth. Our device growth is supported by macro trends and re-PAP programs.
Q: Are there any concerns about changes in funding models, such as Synap, affecting DME customers?
A: Michael Farrell, CEO: We see Synap as similar to past utilization management efforts like CareCentrix. We believe the ROI for payers and the low cost of CPAP therapy will mitigate concerns. We work closely with payers and HMEs to manage these changes, and we don't see it as a major issue.
Q: How does the educational program for primary care physicians convert into new prescribers for CPAP therapy?
A: Michael Farrell, CEO: We target PCPs already engaged in home sleep apnea testing. The goal is to increase their referral volume. Our VirtuOx data shows a double-digit increase in home sleep testing. The program is more about increasing existing engagement rather than converting brand-new prescribers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RMD Q3 EPS rose 20.7% to $2.86 and beat estimates, while revenues climbed 11% to $1.43B.RMD saw growth across Sleep and Breathing Health and Residential Care Software segments.RMD expanded margins, with gross margin up 289 bps and operating margin rising to 36.7%. Resmed Inc.’s (RMD - Free Report) adjusted earnings per share (EPS) in the third quarter of fiscal 2026 were $2.86, up 20.7% year over year. The metric beat the Zacks Consensus Estimate by 2.58%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, along with the income tax effect on those adjustments.
GAAP EPS in the reported quarter was $2.74, up 10.5% from the year-ago level.
RMD’s Revenue DetailsOn a reported basis, revenues increased 11% year over year (up 8% at the constant exchange rate or CER) to $1.43 billion. The figure topped the Zacks Consensus Estimate by 0.79%.
Following the earnings announcement yesterday, Resmed shares dropped 2.3% in the after-market session.
Resmed’s Q3 Sales: A Closer ViewResmed operated through two reporting units — Sleep and Breathing Health (formerly Sleep and Respiratory Care) and Residential Care Software (formerly Software as a Service).
Sleep and Breathing HealthTotal revenues improved 11% (up 8% at CER) from the prior-year period’s level to $1.26 billion.
Within this business, Devices revenues were $735.7 million, up 9% (6% at CER). This includes an increase of 6% year over year in the United States, Canada and Latin America, and a jump of 14% in combined Europe, Asia and other markets.
Revenues from Masks and other were $524.8 million, up 15% (12% at CER). This includes a rise of 14% year over year in the United States, Canada and Latin America, and 20% growth in combined Europe, Asia and other markets.
Residential Care SoftwareRevenues in this segment grew 6% year over year (up 4% at CER) to $170.9 million.
Resmed’s Q3 Margin PerformanceIn the fiscal third quarter, the company’s cost of sales (excluding amortization of acquired intangible) totaled $532.6 million, up 2% year over year. Adjusted gross margin was 62.8%, reflecting an expansion of 289 basis points (bps), supported by cost improvements and manufacturing and logistics efficiencies, alongside a minor positive impact of product mix and foreign currency movements.
Selling, general and administration expenses jumped 14.1% year over year to $279.8 million. Research and development expenses increased 12.3% to $94.3 million.
The adjusted operating profit was $524.8 million in the quarter, up 18% from the year-ago quarter’s level. The adjusted operating margin expanded 224 bps year over year to 36.7%.
RMD’s Financial UpdatesResmed exited the third quarter of fiscal 2026 with cash and cash equivalents of $1.66 billion compared with $1.42 billion at the end of the second quarter.
The cumulative net cash provided by operating activities at the end of the fiscal third quarter was $554.1 million compared with $578.7 million in the year-ago period.
The company paid out $87 million in dividends in the fiscal third quarter and also repurchased 673,000 shares for consideration of $175 million as part of its ongoing capital management.
Our Take on RMD StockResmed closed the fiscal third quarter on a solid note, with both earnings and revenues beating respective estimates. Performance reflects sustained global strength, driven by steady demand for the company’s products and strategic execution. Resmed benefited from continued growth in its mask portfolio and ReSupply, as well as incremental revenues from the VirtuOx acquisition. Growth in Residential care software revenues reflects the robust performance from the MediFox Dan software vertical.
Resmed continued the global rollout of its portfolio of novel fabric-based masks and also advanced the AirSense 11 platform rollout, most recently in the Latin America market. The expansion of both margins in the quarter is highly encouraging.
RMD’s Zacks Rank and Key PicksResmed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed, Inc. holds a major position as designer, manufacturer, as well as a distributor in the worldwide market for generators, masks, and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $11.13 per share. RMD also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
On May 11, 2026, ResMed Inc RMD shares fell 3.9% to a current price of $198.76. This decline comes amid broader market pressures, with the stock now trading close to its 52-week low of $198.64, significantly off its 52-week high of $293.81.
GF Value™ verdict: Current price is $198.76 versus GF Value™ of $270.01, indicating a 26.4% undervaluation.GF Score™ of 97/100 suggests a strong overall performance in key financial metrics.Notable signal: Insiders sold $4.9 million in stock over the last three months without any buying activity. Is RMD Overvalued or Undervalued? Currently, ResMed Inc RMD is trading at $198.76, which is significantly lower than its GF Value™ of $270.01. This translates to a 26.4% margin of safety, indicating that the stock is undervalued according to GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label categorizes RMD as modestly undervalued, presenting an opportunity for potential investors. However, it is essential to consider the market dynamics and recent trends that have led to a notable decline in the stock's price.
The current undervaluation could provide a favorable entry point, but prospective investors should remain cautious, especially given the recent insider selling, which may reflect concerns about the company's future performance or market conditions.
How Does RMD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.2x 32.7x Forward P/E 16.4x N/A ResMed's current P/E ratio of 19.2x is 41% below its 5-year median P/E of 32.7x, suggesting that the stock is trading below its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that RMD is undervalued at its current price.
What Does RMD's GF Score™ Tell Us? Metric Rating GF Score™ 97 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 97/100 indicates a strong overall performance, particularly in profitability and growth, where the company scored 10/10. The financial strength rating of 8/10 also reflects solid fundamentals. However, the momentum rank of 5/10 suggests that the stock is not currently performing well in terms of price movement, which could be a concern for investors looking for short-term gains.
What Are Insiders Doing with RMD Stock? In the past three months, insiders have sold $4.9 million worth of ResMed stock, with no reported buying activity. This pattern of selling could indicate a lack of confidence among insiders regarding the company's short-term outlook. While insider selling does not always predict stock performance, it may suggest that those closest to the company are cautious about its future prospects.
What This Means for Investors Based on the analysis of GF Value™, ResMed Inc RMD is currently undervalued. However, potential investors should weigh this opportunity against recent insider selling and market conditions, which may impact future performance.
For the complete analysis, visit the ResMed Inc RMD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RMD's GF Score™?
RMD has a GF Score™ of 97/100, indicating a strong overall performance in key financial metrics, suggesting potential for higher long-term returns.
Is RMD overvalued or undervalued?
RMD is currently undervalued, trading at $198.76 compared to its GF Value™ of $270.01, which indicates a significant margin of safety.
What is RMD's P/E ratio?
RMD's P/E (TTM) ratio is 19.2x, which is 41% below its 5-year median P/E of 32.7x, further supporting the assessment of the stock as undervalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
