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3 Multi-Metal Stocks for Income and Long-Term GrowthSouthern Copper NYSE: SCCO reported record quarterly sales, adjusted EBITDA and net income for the second quarter of 2026, as sharply higher metals prices offset lower copper production in Peru, Chief Financial Officer Raúl Jacob Ruisánchez told investors on the company’s earnings call.

Jacob, Southern Copper’s vice president of finance, treasurer and CFO, said the company’s results reflected “operating excellence” amid sustained demand for copper and its by-products. He was joined on the call by Leonardo Contreras, Southern Copper’s CEO and board member.

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Copper Cools After Record January—But This ETF Is a Buy-the-Dip OpportunitySales for the quarter rose 41% year over year to $4.3 billion, an increase of $1.2 billion from the second quarter of 2025. Adjusted EBITDA reached a record $2.96 billion, up 60% from $1.79 billion a year earlier, while adjusted EBITDA margin expanded to 67% from 59%. Net income rose 72% to a record $1.67 billion, compared with $973 million in the prior-year quarter. Net income margin increased to 39% from 32%.

For the first six months of 2026, adjusted EBITDA rose 58% to $5.57 billion, while net income was 69% higher than in the same period of 2025. Cash flow from operating activities totaled $3.68 billion in the first half, up 117% year over year, which Jacob attributed to stronger operating cash generation from higher sales and a $719 million decrease in operating asset and liability requirements.

Higher Metals Prices Drive Revenue Growth The Copper Barbell: How to Profit From the Shortage—and Avoid the Dilution TrapJacob said the London Metal Exchange copper price averaged $6.04 per pound in the second quarter, up 30% from $4.32 per pound in the same quarter of 2025. COMEX copper averaged $6.16 per pound, up 31% year over year. Based on current supply and demand dynamics, Southern Copper estimates a slight copper market deficit for 2026.

Global copper inventories across London Metal Exchange, COMEX, Shanghai and London warehouses totaled 1.123 million tons as of July 21, which Jacob said represented roughly 15 days of global demand.

Copper represented 73% of Southern Copper’s sales in the quarter. Copper sales increased 38% despite a 1.5% decline in volume, reflecting the higher pricing environment. Among by-products, molybdenum sales rose 34%, zinc sales increased 24% and silver sales climbed 86%, with all three benefiting from higher prices that were partially offset by lower volumes.

Molybdenum prices averaged $29.44 per pound, up 43% from the prior-year quarter, while silver prices averaged $73.49 per ounce, up 118%. Zinc averaged $1.57 per pound, a 31% increase from the second quarter of 2025.

Production Falls in Peru, Rises in Mexico Southern Copper produced 230,662 tons of copper in the second quarter, down 3.5% from the same period last year. Jacob said the decline reflected a 12% drop in production in Peru, mainly due to lower ore grades and recoveries at Toquepala and Cuajone. That was partially offset by a 3.2% increase in Mexican operations, driven by higher production at Buenavista, La Caridad and Inca.

In response to a question from Barclays analyst Richard Garchitorena, Jacob said the lower production was mainly tied to ore grades at Cuajone, which translated into about 35,000 tons of lower copper production, with the remaining decline coming from Toquepala. He said Southern Copper now expects to produce 917,000 tons of copper in 2026, above its initial plan of about 910,000 tons.

Molybdenum production fell 11% year over year due to lower ore grades at all mines, though the company now expects to produce 27,900 tons in 2026, 7% above its initial plan. Silver production declined 4% in the quarter, despite higher output at La Caridad and Inca, because of lower production at Toquepala, Cuajone and Buenavista. Southern Copper expects to meet its plan to produce 24 million ounces of silver this year. Mine zinc production fell 14% to 39,250 tons, and the company expects 2026 zinc production of 163,900 tons.

Jacob said he expects sales volumes to improve somewhat in the second half of the year as material processed in the first half becomes available for sale.

Costs Rise, but Margins Improve Total operating costs and expenses increased $202 million, or 14%, from the second quarter of 2025. Jacob cited higher operating materials, purchased copper, diesel and fuel, workers’ participation, translation differences and other factors. These were partly offset by lower repair materials and inventory consumption.

Southern Copper reported operating cash costs before by-product credits of $2.29 in the second quarter, down $0.02 from the first quarter. Including by-product credits, operating cash costs were $0.05, compared with negative $0.11 in the first quarter. Jacob said the company still considered that “an excellent mark.”

By-product credits totaled $1.11 billion, or $2.24, in the second quarter, down 7% from the first quarter. Credits increased for molybdenum and zinc but declined for silver and sulfuric acid.

Capital Projects Advance in Peru and Mexico Southern Copper’s capital investment program for the decade exceeds $20.5 billion, including projects in Peru and Mexico. The company spent $423 million on capital investments in the second quarter, up 79% year over year, and $865 million in the first half, up 56% from the prior-year period.

In Peru, Jacob said the company remains committed to advancing Tia Maria, Los Chancas and Michiquillay, which together represent about $10.3 billion of investment. At Tia Maria in Arequipa, the project was 42% complete at the end of June, with 5,817 new jobs created, including 1,254 filled by local applicants. Jacob said mass earthworks were in their final stage and civil works and steel structure assembly had begun in key facilities.

Goldman Sachs analyst Emerson Vieira asked about the desalination plant for Tia Maria and potential delays. Jacob said purchase orders and contracts were being placed for major equipment, including the desalination plant, and that the company did not currently expect a delay.

At Los Chancas in Apurímac, Jacob said illegal miners remain in the project area despite enforcement efforts, hindering progress. At Michiquillay in Cajamarca, reserve estimation, mine planning, hydrologic and hydrogeological assessments, and technical research are underway.

In Mexico, Jacob said El Pilar in Sonora has received the necessary environmental permits and will begin early site preparation work in September. Construction is expected to start in the first quarter of 2027, with production projected for the second half of 2029. The $551 million open-pit project is expected to produce 36,000 tons of copper cathode annually over an 18-year mine life.

Debt Issuance and Dividend Southern Copper issued $1.25 billion of 10-year fixed-rate senior unsecured notes on June 24, due in 2036 with a 5.35% annual interest rate. Jacob said demand totaled $4 billion, or 3.2 times the amount issued. Proceeds will be used by Southern Peru Copper Corporation to develop Tia Maria, finance its capital expenditure program and for general corporate purposes.

The company announced a quarterly cash dividend of $1.10 per share and a stock dividend of 0.012 shares per common share, payable Aug. 27 to shareholders of record as of Aug. 11. Jacob said the total estimated dividend payment, including the cash dividend and equivalent value of the stock dividend, was $3.23 per share.

Looking ahead, Jacob said Southern Copper expects 2027 copper production to be roughly in line with 2026, with some contribution from Tia Maria late in the year. He said production is expected to rise to about 970,000 tons in 2028 and exceed 1 million tons in 2029, supported by Tia Maria, El Pilar and improved ore grades. The company’s longer-term goal remains more than 1.6 million tons of copper by 2033 or 2034 through organic growth.

About Southern Copper (NYSE:SCCO)Southern Copper Corporation NYSE: SCCO is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper's operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- SiriusXM (NASDAQ: SIRI) today announced that its Board of Directors declared a quarterly cash dividend of $0.27 per share of common stock. This regular quarterly dividend is payable in cash on August 26, 2026, to stockholders of record at the close of business on August 10, 2026.

About Sirius XM Holdings Inc.
SiriusXM is the leading audio entertainment company in North America with a portfolio of audio businesses including its flagship subscription entertainment service SiriusXM; the ad-supported and premium music streaming services of Pandora; an expansive podcast network; and a suite of business and advertising solutions. Together, SiriusXM reaches a combined monthly audience of approximately 255 million listeners. SiriusXM offers a broad range of content for listeners everywhere they tune in with a diverse mix of live, on-demand, and curated programming across music, talk, news, and sports. For more about SiriusXM, please go to: www.siriusxm.com.

Source: SiriusXM

Investor contacts:
Jennifer DiGrazia
[email protected] 

SOURCE Sirius XM Holdings Inc.

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Record quarterly revenue of $3.94 billion, up 10% year-over-year; diluted EPS of $0.54, up 23%Operating income of $1.51 billion, up 17%; operating margin expanded 240 bps to 38.3%Volume increased 6% with broad-based growth across markets led by 9% intermodal growth JACKSONVILLE, Fla., July 22, 2026 (GLOBE NEWSWIRE) -- CSX Corp. (NASDAQ: CSX) today announced second quarter 2026 operating income of $1.51 billion and net earnings of $1.00 billion, or $0.54 per diluted share. In the second quarter of 2025, the company reported operating income of $1.28 billion and net earnings of $829 million, or $0.44 per diluted share. On a year-over-year basis, operating income increased 17%, net earnings increased 21%, and EPS increased 23%.

Total volume of 1.68 million units for the quarter was 6% higher compared to second quarter 2025. Revenue totaled $3.94 billion for the quarter, increasing 10% year-over-year, due to increased fuel surcharge revenue together with higher volume and pricing across merchandise, intermodal, and coal.

“Our second quarter results reflect the solid progress we’re making at CSX. Our railroaders successfully managed substantial volume growth while maintaining a consistent focus on safety and productivity, which allowed us to deliver improved financial performance,” said Steve Angel, president and chief executive officer. “As we move into the second half of the year, we will strengthen our service execution as we continue to build momentum across the business.”

CSX executives will conduct a conference call with the investment community this afternoon, July 22, at 4:30 p.m. Eastern Time. Investors, media and the public may listen to the conference call by dialing 1-888-510-2008. For callers outside the U.S., dial 1-646-960-0306. Participants should dial in 10 minutes prior to the call and enter in 3368220 as the passcode.

In conjunction with the call, a live webcast will be accessible and presentation materials will be posted on the company’s website at investors.csx.com. Following the earnings call, a webcast replay of the presentation will be archived on the company website.

This earnings announcement, as well as additional detailed financial information, is contained in the CSX Quarterly Financial Report available through the company’s website at investors.csx.com and on Form 8-K with the Securities and Exchange Commission.

About CSX and its Disclosures

CSX, based in Jacksonville, Florida, is a premier transportation company. It provides rail, intermodal and rail-to-truck transload services and solutions to customers across a broad array of markets, including energy, industrial, construction, agricultural, and consumer products. For nearly 200 years, CSX has played a critical role in the nation's economic expansion and industrial development. Its network connects every major metropolitan area in the eastern United States, where nearly two-thirds of the nation's population resides. It also links approximately 250 short-line railroads and more than 70 ocean, river and lake ports with major population centers and farming towns alike.

This announcement, as well as additional financial information, is available on the company's website at investors.csx.com. CSX also uses social media channels to communicate information about the company. Although social media channels are not intended to be the primary method of disclosure for material information, it is possible that certain information CSX posts on social media could be deemed to be material. Therefore, we encourage investors, the media, and others interested in the company to review the information we post on X, formerly known as Twitter, (x.com/CSX) and on Facebook (facebook.com/OfficialCSX). The social media channels used by CSX may be updated from time to time. More information about CSX Corporation and its subsidiaries is available at www.csx.com.

Non-GAAP Disclosure

CSX reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). CSX also uses certain non-GAAP measures that fall within the meaning of Securities and Exchange Commission Regulation G and Regulation S-K Item 10(e), which may provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP measures do not have standardized definitions and are not defined by U.S. GAAP. Therefore, CSX’s non-GAAP measures are unlikely to be comparable to similar measures presented by other companies. The presentation of these non-GAAP measures should not be considered in isolation from, as a substitute for, or as superior to the financial information presented in accordance with GAAP.

Forward-looking Statements

This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, margins, volumes, rates, cost-savings, expenses, taxes, liquidity, capital expenditures, dividends, share repurchases or other financial items, statements of management's plans, strategies and objectives for future operations, and management's expectations as to future performance and operations and the time by which objectives will be achieved, statements concerning proposed new services, and statements regarding future economic, industry or market conditions or performance. Forward-looking statements are typically identified by words or phrases such as “will,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate,” “preliminary” and similar expressions. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. If the company updates any forward-looking statement, no inference should be drawn that the company will make additional updates with respect to that statement or any other forward-looking statements.

Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by any forward-looking statements include, among others: (i) the company's success in implementing its financial and operational initiatives; (ii) changes in domestic or international economic, political or business conditions, including those affecting the transportation industry (such as the impact of industry competition, conditions, performance and consolidation); (iii) legislative or regulatory changes; (iv) the inherent business risks associated with safety and security; (v) the outcome of claims and litigation involving or affecting the company; (vi) natural events such as severe weather conditions or pandemic health crises; (vii) changes in fuel prices, surcharges for fuel and the availability of fuel; (viii) adverse economic or operational effects from actual or threatened war or terrorist activities and any government response; and (ix) the inherent uncertainty associated with projecting economic and business conditions.

Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the company's SEC reports, accessible on the SEC's website at www.sec.gov and the company's website at www.csx.com.

Contact:

Matthew Korn, CFA, Investor Relations
904-366-4515

Austin Staton, Corporate Communications
855-955-6397

První zástupce big techu se v aktuální výsledkové sezoně vytasil se silnými čísly. Alphabet překonal svým hospodařením za druhé čtvrtletí odhady analytiků jak v případě zisku, tak i tržeb. Výrazně lépe oproti očekávání si vedla také cloudová divize, jejíž tempo růstu nadále prudce zrychluje. Mírným zklamáním naopak je hlavní byznys spojený s internetovým vyhledáváním.

Nejprve k hlavním číslům: Upravený zisk na akcii činil 9,11 dolaru, což je výrazné překročení prognózy Wall Street ve výši 2,90 dolarů. Stojí za tím masivní zisky v kategorii „ostatní příjmy“ ve výši bezmála 98 miliard dolarů, které zahrnují podíly ve společnostech Anthropic a SpaceX. Celkové tržby vzrostly meziročně o 24 procent na 119,80 miliardy dolarů při konsenzu 116,9 mld. USD.

Investory bedlivě sledovaná cloudová divize, jež odráží poptávku po AI infrastruktuře a AI řešeních, se rovněž činila, když na tržbách vygenerovala 24,77 miliardy dolarů, což jednak představuje působivý meziroční růst o 82 procent a jednak výrazné překonání konsenzu analytiků, kteří podle dat agentury Bloomberg počítali s tržbami „jen“ kolem 22,46 mld. USD.

Měsíční počet aktivních uživatelů aplikace Gemini dosáhl 950 milionů, což je oproti odhadům o 30 milionů více. „Gemini je nyní jen kousek od toho, aby se stal třetím produktem od Googlu s umělou inteligencí pro spotřebitele s miliardou uživatelů, vedle AI Overviews a AI Mode,“ podotkl pro Bloomberg hlavní analytik společnosti Emarketer Nate Elliott.

Naopak reklamní příjmy z vyhledávání, které jsou nadále nejvýznamnějším zdrojem tržeb společnosti, dosáhly 63,27 miliardy dolarů. To je nepatrně pod očekáváním trhu (63,28 mld. USD).

Společnost dále uvedla, že kapitálové výdaje ve druhém čtvrtletí dosáhly 44,92 miliardy dolarů, což překonalo očekávání Wall Street (44,15 mld. USD). Alphabet letos plánuje rekordní kapitálové výdaje, aby mohl soutěžit v závodě umělé inteligence, přičemž investoři (nejen Alphabetu, nýbrž technologických gigantů obecně) sledují, zda tyto výdaje pohánějí nový růst, nebo v konečném důsledku omezí ziskovost.

Akcie Alphabetu bezprostředně po zveřejnění výsledků v aftermarketu ztrácely přibližně půl procenta.

2026 Second Quarter Conference Call Scheduled for August 5, 2026 July 22, 2026 16:10 ET  | Source: Interparfums, Inc.

NEW YORK, July 22, 2026 (GLOBE NEWSWIRE) -- Interparfums, Inc. (NASDAQ GS: IPAR) (“Interparfums” or the “Company”) today announced net sales for three and six months ended June 30, 2026.

Net Sales
($ in millions)Three Months EndedSix Months EndedJune 30,June 30,2026  
2025  
% Change  2026  
2025  
% Change  Total Interparfums, Inc.$341  
$334  
2%  
$686  
$673  
2%  
European based net sales$231  
$241  
(4%)  
$483  
$488  
(1%)  
United States based net sales$113  
$96  
18%  
$209  
$190  
10%  
Eliminations of intercompany sales($3)  
($2)  
n/a  ($6)  
($6)  
n/a   -  The average dollar/euro exchange rate for the 2026 second quarter was 1.16 compared to 1.13 in the 2025 second quarter, while for the first six months of 2026, the average dollar/euro exchange rate was 1.17 compared to 1.09 in the first six months of 2025, leading to a positive 1% and 3% foreign exchange impact for the second quarter and first six months of 2026, respectively.Data may not foot due to rounding.
Management Commentary:
Jean Madar, Chairman & Chief Executive Officer of Interparfums, stated, “Consolidated sales rose 2% in the second quarter to $341 million, bringing first half net sales to $686 million, also up 2% from the prior year period. The diversity of our overall brand portfolio again showed its strength as we saw strong growth from several of our larger brands which helped offset softness in other brands and geographies. The war in the Middle East, which again weighed on our results, represented a headwind of 3% in the second quarter and 2% for the first 6 months of the year. Excluding this effect, organic sales increased 4% in the second quarter and 1% for the first 6 months of the year.

“Growth in the quarter was driven by an 18% increase in sales by our United States based operations, along with favorable foreign exchange dynamics. While we are very pleased with our U.S. performance, it is important to note that in last year’s second quarter U.S.-based results were adversely impacted by a weak innovation program and tariff generated supply chain disruptions. Conversely, sales from our European based operations declined owing to high growth comparisons to the prior year period, continuing headwinds from the war in the Middle East, and a challenging operating environment in Eastern Europe.

“The fragrance category remains durable despite the macroeconomic and geopolitical headwinds weighing on consumers and retail partners alike. We are encouraged by the trajectory of our business at the midpoint of the year and remain cautiously optimistic about the future, drawing on a long history of performing through uncertainty with an evolving portfolio of exciting brands, disciplined execution, and a pipeline of robust innovation.”

European Based Operations
Mr. Madar continued, “Sales from European based operations declined 4% in the 2026 second quarter, reflecting an organic decline of 5% partially offset by a positive foreign exchange impact of 1%. First half sales were down 1%, despite a 3% positive contribution from foreign exchange.

“Jimmy Choo fragrance sales rebounded strongly after a weak first quarter, rising 23% in the second quarter leading to 8% growth in the first half of 2026. The brand’s fragrances have continued gain traction, particularly in the United States. This performance is supported by the continued success of the I Want Choo women's franchise, launched in 2021, combined with the successful launch of the Jimmy Choo Man Parfum line launched earlier this year.

“Coach fragrance sales declined 8% in the second quarter, reflecting an exceptionally high comparison to last year’s second quarter where brand sales grew 42%. Brand sales rose 10% in the first half of 2026 due to strong performance in the United States, its primary market. Growth has been driven by strong continued demand across most existing lines and by the first shipments of new extensions in the Coach Woman and Coach Man franchises launched earlier this year.

“Montblanc fragrance sales were essentially flat in the second quarter and increased 6% in the first half of the year, driven by favorable exchange rates and the ongoing success of the Montblanc Explorer Extreme line as well as the strength of the Legend franchise which was enhanced by the first quarter launch of Montblanc Legend Elixir. We plan to launch a third franchise in 2027, reflecting our commitment to the brand’s growth through innovation.

“Lacoste fragrance sales declined by 19% and 16% during the second quarter and first half of 2026, respectively, which followed exceptionally strong respective prior-year period growth of 59% and 44% attributable to a series of highly successful launches in early 2025. Lingering challenges in Eastern Europe also continued to impact the brand’s performance. Our confidence in the brand's future remains strong ahead of several major initiatives planned for 2027 and 2028, which we believe will drive the brand's growth.”

United States Based Operations
Mr. Madar continued, “Sales by our United States operations grew by 18% during the 2026 second quarter reflecting impressive organic growth of 17% off a challenging base in 2025 and a positive foreign exchange impact of 1%. The strong second quarter led to 10% growth in the first half of 2026, which included 8% organic growth and a 2% favorable foreign exchange impact.

“Fragrance sales of GUESS, our largest United States based brand, rose by 10% and 11% during the second quarter and first half of 2026, respectively. Growth was driven by the ongoing success of the Iconic franchise, supported by the second quarter launch of Iconic Blue, the newest men’s extension within the franchise. Second quarter growth was also supported by the launch of the newest Amore extension, Amore Napoli.

“Donna Karan/DKNY fragrance sales increased 28% and 12% during the second quarter and first half of 2026, respectively. Brand sales growth reflected healthy consumer demand across product categories, fragrance franchises, and strengthening momentum across e-commerce channels.

“Ferragamo fragrance sales increased considerably during the second quarter and first half of 2026, rising 41% and 17%, respectively. This performance, helped by a weaker prior period comparison, was primarily driven by overall strength of the Signorina line thanks to the successful launch of Signorina Romantica, and the Ferragamo line, thanks to the successful launch of Ferragamo Sublime Leather.

“Roberto Cavalli fragrance sales declined 9% in the 2026 second quarter against a very high growth comparison of 23% in the prior year period, and a challenging macro-economic environment in the Middle East which is the brand’s largest market. Despite this challenging macro environment, in the first half of 2026, brand sales increased 8%, driven by new extensions launched earlier this year across multiple fragrance franchises as well as the ongoing success of last year’s blockbuster launch of Serpentine.”

Mr. Madar concluded, “With a rich lineup of fragrance extensions planned for the second half of 2026, a series of blockbuster launches planned for 2027 and 2028, and the proven strength of our business model, we remain well positioned to continue growing as we navigate a dynamic operating environment.”

2026 Second Quarter Results and Conference Call Details
The Company will issue financial results for the three and six months ended June 30, 2026, on Tuesday, August 4, 2026, after the close of the stock market. Management will host a conference call to discuss financial results and business operations beginning at 11:00 am ET on Wednesday, August 5, 2026.

Interested parties may participate in the live call by dialing:

U.S. / Toll-free:     (877) 423-9820
International:        (201) 493-6749

Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin.

A live audio webcast will also be available in the “Events” tab within the Investor Relations section of the Company’s website at www.interparfumsinc.com, or by clicking here. The conference call will be available for webcast replay for approximately 90 days following the live event.

About Interparfums, Inc.:

Operating in the global fragrance business since 1982, Interparfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance related products under license and other agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.

Our portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Annick Goutal, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, Longchamp, MCM, Moncler, Montblanc, Off-White, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Interparfums, Inc. is also the registered owner of several trademarks including Lanvin, Rochas, and Solférino.

Forward-Looking Statements:
Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “should”, “will”, and “would” or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Interparfums' annual report on Form 10-K for the fiscal year ended December 31, 2025, and the reports Interparfums files from time to time with the Securities and Exchange Commission. Interparfums does not intend to and undertakes no duty to update the information contained in this press release.

Contact Information:

Interparfums, Inc.        or        The Equity Group Inc.
Michel Atwood                        Devin Sullivan: (212) 836-9608 / [email protected]
Chief Financial Officer            Conor Rodriguez: (212) 836-9628 / [email protected]
(212) 983-2640                       www.theequitygroup.com
www.interparfumsinc.com
               

STAMFORD, Conn.--(BUSINESS WIRE)--United Rentals, Inc. (NYSE: URI) today announced record financial results for the second quarter of 2026, and raised its 2026 full-year guidance.

Second Quarter 2026 Highlights1

Total revenue of $4.410 billion, including rental revenue2 of $3.849 billion. Net income of $753 million, at a margin3 of 17.1%. GAAP diluted earnings per share (“EPS”) of $12.03, and adjusted EPS4 of $12.76. Adjusted EBITDA4 of $2.056 billion, at a margin3 of 46.6%. Year-over-year, fleet productivity5 increased 3.4%. Year-to-date net cash provided by operating activities of $3.305 billion; free cash flow4 of $1.149 billion, including gross payments for purchases of rental equipment of $2.720 billion. Year-to-date gross rental capital expenditures of $2.931 billion. Returned $998 million to shareholders year-to-date, comprised of $750 million via share repurchases and $248 million via dividends paid. Net leverage ratio6 of 1.8x, with total liquidity6 of $2.999 billion, at June 30, 2026. CEO Comment

Matthew Flannery, chief executive officer of United Rentals, said, “As evidenced in our record second-quarter results across EPS, adjusted EBITDA and revenue, 2026 is on track to be a great year for United Rentals. Our growth accelerated in the quarter, customers remain optimistic, particularly around large projects, and we continue to demonstrate strong cost discipline. Our one-stop-shop value proposition, coupled with our technology, service levels, and unwavering focus on safety and customer productivity, continues to differentiate us in the industry.”

Flannery continued, “Looking ahead, I am very pleased that we are again raising our guidance for the year, supported by the tailwinds we see across large projects, customer backlogs, and the momentum witnessed year-to-date. We believe the healthy growth we’ve seen will continue and that we will deliver what our shareholders expect of us: profitable growth, strong free cash flow and compelling returns.”

_______________ 1.

The second quarter 2026 results include a gain of $49 million associated with the sale of part of the company's scaffolding business. The impact of the gain was a $37 million after-tax benefit, or $0.58 per diluted share, to net income and a $49 million benefit to adjusted EBITDA.

2.

Rental revenue includes owned equipment rental revenue, re-rent revenue and ancillary revenue.

3.

Net income margin and adjusted EBITDA margin represent net income or adjusted EBITDA divided by total revenue.

4.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EPS (earnings per share) and free cash flow are non-GAAP financial measures as defined in the tables below. See the tables below for reconciliations to the most comparable GAAP measures.

5.

Fleet productivity reflects the combined impact of changes in rental rates, time utilization and mix on owned equipment rental revenue.

6.

The net leverage ratio reflects net debt (total debt less cash and cash equivalents) divided by adjusted EBITDA for the trailing 12 months. Total liquidity reflects cash and cash equivalents plus availability under the asset-based revolving credit facility (“ABL facility”) and the accounts receivable securitization facility.

2026 Outlook

The company has raised its 2026 outlook, as reflected below.

Current Outlook

Prior Outlook

Total revenue

$17.5 billion to $17.8 billion

$16.9 billion to $17.4 billion

Adjusted EBITDA7

$7.975 billion to $8.125 billion

$7.625 billion to $7.875 billion

Net rental capital expenditures after gross purchases

$3.4 billion to $3.8 billion, after gross purchases of $4.85 billion to $5.25 billion

$2.95 billion to $3.35 billion, after gross purchases of $4.4 billion to $4.8 billion

Net cash provided by operating activities

$5.85 billion to $6.65 billion

$5.4 billion to $6.2 billion

Free cash flow excluding restructuring related payments8

$2.15 billion to $2.45 billion

$2.15 billion to $2.45 billion

Summary of Second Quarter 2026 Financial Results

Rental revenue increased 12.7% year-over-year to a quarterly record of $3.849 billion. Average original equipment at cost (“OEC”) increased 7.1% year-over-year, while fleet productivity increased 3.4%. Used equipment sales in the quarter increased 4.1% year-over-year. Used equipment sales generated $330 million of proceeds at a GAAP gross margin of 46.7% and an adjusted gross margin9 of 47.3%, compared to a GAAP gross margin of 46.1% and an adjusted gross margin of 48.3% for the same period last year. The company realized a 52.9% OEC recovery rate on the fleet sold in the second quarter of 2026. Net income for the quarter increased 21.1% year-over-year to a second quarter record of $753 million, while net income margin increased 130 basis points to 17.1%, including the impact of the $37 million net after-tax gain on sale of business discussed in footnote 1 above. Excluding the gain on sale of business, net income margin for the second quarter of 2026 increased 40 basis points year-over-year, primarily due to increased rental gross margin (see below for a discussion of rental gross margin by segment). Adjusted EBITDA for the quarter increased 13.6% year-over-year to a quarterly record of $2.056 billion, while adjusted EBITDA margin increased 70 basis points to 46.6%, including the $49 million impact of the gain on sale of business discussed above. Excluding the gain on sale of business, adjusted EBITDA margin for the second quarter of 2026 decreased 40 basis points year-over-year. This margin decline primarily reflects decreased rental gross margin in the specialty rentals segment, attributable to changes in revenue mix driven by growth in lower-margin ancillary and re-rent revenues, partially offset by a reduction in labor and benefits expenses as a percentage of revenue, as discussed below. General rentals segment rental revenue increased 6.6% year-over-year to a quarterly record of $2.418 billion, while rental gross margin increased by 70 basis points year-over-year to 35.8%, primarily due to a reduction in depreciation as a percentage of revenue. Specialty rentals segment rental revenue increased 24.8% year-over-year to a quarterly record of $1.431 billion. Rental gross margin decreased by 140 basis points year-over-year to 44.4%, primarily due to changes in revenue mix driven by growth in lower-margin ancillary and re-rent revenues, partially offset by a reduction in labor and benefits expenses as a percentage of revenue. _______________ 7.

Information reconciling forward-looking adjusted EBITDA to the comparable GAAP financial measures is unavailable to the company without unreasonable effort, as discussed below.

8.

Free cash flow excludes restructuring related payments, which cannot be reasonably predicted for the 2026 outlook. Restructuring related payments were $20 million for the six months ended June 30, 2026.

9.

Used equipment sales adjusted gross margin is a non-GAAP financial measure that excludes the impact ($2 million and $7 million for the three months ended June 30, 2026 and 2025, respectively) of the fair value mark-up of fleet acquired in certain major acquisitions that was subsequently sold. This adjustment is explained further in the tables below, and represents the only difference between the GAAP gross margin and the adjusted gross margin.

Cash flow from operating activities increased 20.1% year-over-year to $3.305 billion for the first six months of 2026, and free cash flow, including restructuring related payments, decreased 4.1%, from $1.198 billion to $1.149 billion. Cash flow from operating activities and free cash flow in 2025 both included a $52 million merger termination benefit associated with the terminated H&E acquisition.10 Capital management. The company’s net leverage ratio was 1.8x at June 30, 2026, as compared to 1.9x at December 31, 2025. During the six months ended June 30, 2026, the company completed its prior $2.0 billion share repurchase11 program, and commenced its new $5.0 billion share repurchase program. During the six months ended June 30, 2026, the company repurchased $750 million of common stock under these programs, and paid dividends totaling $248 million. The company expects to complete $1.5 billion of share repurchases in 2026. Additionally, the company’s Board of Directors has declared a quarterly dividend of $1.97 per share, payable on August 26, 2026 to stockholders of record on August 12, 2026. Total liquidity was $2.999 billion as of June 30, 2026, including $112 million of cash and cash equivalents. Return on invested capital (ROIC)12 was 11.8% for the 12 months ended June 30, 2026. Conference Call

United Rentals will hold a conference call tomorrow, Thursday, July 23, 2026, at 8:30 a.m. Eastern Time. The conference call number is 800-579-2568 (international: 785-424-1222). The replay number for the call is 402-220-7209. The passcode for both the conference call and the replay is 48921. The conference call will also be available live by audio webcast at unitedrentals.com, where it will be archived until the next earnings call.

_______________ 10.

The six months ended June 30, 2025 include the impact of the merger termination benefit associated with the termination of the H&E Equipment Services, Inc. d/b/a H&E Rentals (“H&E”) merger agreement. For further information on this merger termination benefit, see the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 filed with the SEC.

11.

A 1% excise tax is imposed on “net repurchases” (certain purchases minus certain issuances) of common stock. All references to share repurchases above do not include the excise tax, which totaled $6 million year-to-date through June 30, 2026.

12.

The company’s ROIC metric uses after-tax operating income for the trailing 12 months divided by average stockholders’ equity, debt and deferred taxes, net of average cash. To mitigate the volatility related to fluctuations in the company’s tax rate from period to period, the U.S. federal corporate statutory tax rate of 21% was used to calculate after-tax operating income.

Non-GAAP Financial Measures

Free cash flow, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, adjusted earnings per share (adjusted EPS) and used equipment sales adjusted gross margin are non-GAAP financial measures as defined under the rules of the SEC. Free cash flow represents net cash provided by operating activities less payments for purchases of, and plus proceeds from, equipment and intangible assets. The equipment and intangible asset items are included in cash flows from investing activities. EBITDA represents the sum of net income, provision for income taxes, interest expense, net, depreciation of rental equipment and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the restructuring charges, stock compensation expense, net, and the impact of the fair value mark-up of acquired fleet. Adjusted EPS represents EPS plus the sum of the restructuring charges, the impact on depreciation related to acquired fleet and property and equipment, the impact of the fair value mark-up of acquired fleet, merger related intangible asset amortization and asset impairment charge. Used equipment sales adjusted gross margin excludes the impact of the fair value mark-up of fleet acquired in certain major acquisitions that was subsequently sold (this adjustment is explained further in the adjusted EPS and EBITDA/adjusted EBITDA tables below). The company believes that: (i) free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements; (ii) EBITDA and adjusted EBITDA provide useful information about operating performance and period-over-period growth, and help investors gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced; (iii) adjusted EPS provides useful information concerning future profitability; and (iv) used equipment sales adjusted gross margin provides information that is useful for evaluating the profitability of used equipment sales without regard to potential distortions. However, none of these measures should be considered as alternatives to net income, cash flows from operating activities, earnings per share or GAAP gross margin from used equipment sales under GAAP as indicators of operating performance or liquidity. See the tables below for further discussion of these non-GAAP financial measures.

Information reconciling forward-looking adjusted EBITDA to GAAP financial measures is unavailable to the company without unreasonable effort. The company is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of the company’s control and/or cannot be reasonably predicted, such as the provision for income taxes. Preparation of such reconciliations would require a forward-looking balance sheet, statement of income and statement of cash flow, prepared in accordance with GAAP, and such forward-looking financial statements are unavailable to the company without unreasonable effort (as specified in the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K). The company provides a range for its adjusted EBITDA forecast that it believes will be achieved, however it cannot accurately predict all the components of the adjusted EBITDA calculation. The company provides an adjusted EBITDA forecast because it believes that adjusted EBITDA, when viewed with the company’s results under GAAP, provides useful information for the reasons noted above. However, adjusted EBITDA is not a measure of financial performance or liquidity under GAAP and, accordingly, should not be considered as an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity.

About United Rentals

United Rentals, Inc. is the largest equipment rental company in the world. The company has an integrated network of 1,665 rental locations in North America, 44 in Europe, 47 in Australia and 18 in New Zealand. In North America, the company operates in 49 states and every Canadian province. The company’s approximately 28,100 employees serve construction and industrial customers, utilities, municipalities, homeowners and others. The company offers a fleet of equipment for rent with a total original cost of $23.75 billion. United Rentals is a member of the Standard & Poor’s 500 Index, the Barron’s 400 Index and the Russell 3000 Index® and is headquartered in Stamford, Conn. Additional information about United Rentals is available at unitedrentals.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, known as the PSLRA. These statements can generally be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “seek,” “on-track,” “plan,” “project,” “forecast,” “intend” or “anticipate,” or the negative thereof or comparable terminology, or by discussions of vision, strategy or outlook. You are cautioned that our business and operations are subject to a variety of risks and uncertainties, many of which are beyond our control, and, consequently, our actual results may differ materially from those projected. Factors that could cause actual results to differ materially from those projected include, but are not limited to, the following: (1) the impact of global economic conditions (including inflation, interest rates, supply chain constraints, tariffs, trade wars and sanctions), geopolitical risks (including risks related to international conflicts) and public health crises and epidemics on us, our customers and our suppliers, in the United States and the rest of the world; (2) declines in construction or industrial activity, which can adversely impact our revenues and, because many of our costs are fixed, our profitability; (3) rates we charge and customer demand being less than anticipated; (4) changes in customer, fleet, geographic and segment mix; (5) excess fleet in the equipment rental industry; (6) inability to benefit from government spending, including spending associated with infrastructure projects, or a reduction or disruption in government spending, including as a result of a government shutdown; (7) trends in oil and natural gas, including significant fluctuations in the prices of oil or natural gas, which can adversely affect the demand for our services and products; (8) competition from existing and new competitors; (9) the cyclical nature of the industry in which we operate and the industries of our customers, such as those in the construction industry; (10) costs we incur being more than anticipated, including as a result of inflation or tariffs, and the inability to realize expected savings in the amounts or time frames planned; (11) our significant indebtedness requires a significant amount of cash for debt service, and can constrain our flexibility in responding to unanticipated or adverse business conditions; (12) inability to refinance our indebtedness on terms that are favorable to us, including as a result of volatility and uncertainty in capital or credit markets or increases in interest rates, or at all; (13) incurrence of additional debt, which could exacerbate the risks associated with our current level of indebtedness; (14) noncompliance with financial or other covenants in our debt agreements, which could result in our lenders terminating the agreements and requiring us to repay outstanding borrowings; (15) restrictive covenants and the amount of borrowings permitted under our debt instruments, which can limit our financial and operational flexibility; (16) inability to access the capital that our businesses or growth plans may require, including as a result of uncertainty in capital or credit markets; (17) the possibility that companies that we have acquired or may acquire could have undiscovered liabilities, or that companies or assets that we have acquired or may acquire could involve other unexpected costs, may strain our management capabilities, or may be difficult to integrate, and that we may not realize the expected benefits from an acquisition over the timeframe we expect, or at all; (18) incurrence of impairment charges; (19) fluctuations in the price of our common stock and inability to complete share repurchases or pay dividends in the time frames and/or on the terms anticipated; (20) our charter provisions as well as provisions of certain debt agreements and our significant indebtedness may have the effect of making more difficult or otherwise discouraging, delaying or deterring a takeover or other change of control of us; (21) inability to manage credit risk adequately or to collect on contracts with a large number of customers; (22) turnover in our management team and inability to attract and retain key personnel; (23) inability to obtain equipment and other supplies for our business from our key suppliers on acceptable terms or at all, as a result of insolvency, financial difficulties or other factors, including tariffs, affecting our suppliers; (24) increases in our maintenance and replacement costs, including as a result of tariffs, and/or decreases in the residual value of our equipment; (25) inability to sell our new or used fleet in the amounts, or at the prices, we expect; (26) risks related to security breaches, cybersecurity attacks, failure to protect personal information, compliance with privacy, data protection and cyber incident reporting laws and regulations, and other significant disruptions to our information technology systems; (27) risks related to our ability to respond adequately to changes in technology and customer demands; (28) risks related to the use of artificial intelligence, and challenges with properly managing such use; (29) risks related to severe weather events and other natural occurrences, and climate change regulation; (30) risks related to our aspirational sustainability and safety goals, including our greenhouse gas intensity reduction goal; (31) risks related to evolving requirements, expectations and perspectives from regulators and stakeholders on environmental, social and sustainability-related topics, and our ability to meet these requirements and expectations; (32) the fact that our holding company structure requires us to depend in part on distributions from subsidiaries and such distributions could be limited by contractual or legal restrictions; (33) shortfalls in our insurance coverage or inability to obtain coverage on reasonable terms or at all; (34) increases in our loss reserves to address business operations or other claims and any claims that exceed our established levels of reserves; (35) the outcome or other potential consequences of litigation, regulatory and investigatory matters; (36) incurrence of expenses (including indemnification obligations) and other costs in connection with litigation, regulatory and investigatory matters; (37) risks related to, and the costs of complying with, environmental and safety laws and regulations; (38) risks related to, and the costs of complying with, foreign laws and regulations, as well as other risks associated with non-U.S. operations, including currency exchange risk and tariffs; (39) labor shortages and/or disputes, work stoppages or other labor difficulties, which may impact our productivity and increase our costs, and changes in law that could affect our labor relations or operations generally; (40) the effect of changes in tax law; and (41) other factors described in our Annual Report on Form 10-K and in our other filings with the SEC.

For a more complete description of these and other possible risks and uncertainties, please refer to our Annual Report on Form 10-K for the year ended December 31, 2025, as well as to our subsequent filings with the SEC. The forward-looking statements contained herein speak only as of the date hereof, and we make no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations, except as required by law.

UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In millions, except per share amounts)

  Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Revenues:

Equipment rentals

$

3,849

$

3,415

$

7,268

$

6,560

Sales of rental equipment

330

317

680

694

Sales of new equipment

86

75

170

145

Contractor supplies sales

44

41

84

77

Service and other revenues

101

95

193

186

Total revenues

4,410

3,943

8,395

7,662

Cost of revenues:

Cost of equipment rentals, excluding depreciation

1,644

1,443

3,136

2,821

Depreciation of rental equipment

704

651

1,385

1,288

Cost of rental equipment sales

176

171

366

381

Cost of new equipment sales

68

61

138

117

Cost of contractor supplies sales

30

28

58

54

Cost of service and other revenues

56

56

111

112

Total cost of revenues

2,678

2,410

5,194

4,773

Gross profit

1,732

1,533

3,201

2,889

Selling, general and administrative expenses (1)

472

422

913

859

Restructuring charge

6

—

51

1

Non-rental depreciation and amortization

116

108

230

222

Operating income

1,138

1,003

2,007

1,807

Interest expense, net (1)

178

171

354

355

Other income, net (1)

(47

)

(7

)

(55

)

(75

)

Income before provision for income taxes

1,007

839

1,708

1,527

Provision for income taxes

254

217

424

387

Net income (1)

$

753

$

622

$

1,284

$

1,140

Diluted earnings per share (1)

$

12.03

$

9.59

$

20.44

$

17.48

Dividends declared per share

$

1.97

$

1.79

$

3.94

$

3.58

UNITED RENTALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In millions)

  June 30, 2026

December 31,
2025

ASSETS

Cash and cash equivalents

$

112

$

459

Accounts receivable, net

2,797

2,510

Inventory

294

240

Prepaid expenses and other assets

390

399

Total current assets

3,593

3,608

Rental equipment, net

17,350

16,069

Property and equipment, net

1,134

1,134

Goodwill

7,201

7,119

Other intangible assets, net

561

477

Operating lease right-of-use assets

1,412

1,395

Other long-term assets

63

64

Total assets

$

31,314

$

29,866

LIABILITIES AND STOCKHOLDERS’ EQUITY

Short-term debt and current maturities of long-term debt

$

1,541

$

1,577

Accounts payable

1,610

776

Accrued expenses and other liabilities

1,552

1,466

Total current liabilities

4,703

3,819

Long-term debt

12,689

12,652

Deferred taxes

3,333

3,115

Operating lease liabilities

1,155

1,124

Other long-term liabilities

210

188

Total liabilities

22,090

20,898

Common stock

1

1

Additional paid-in capital

2,803

2,769

Retained earnings

16,879

15,843

Treasury stock

(10,152

)

(9,396

)

Accumulated other comprehensive loss

(307

)

(249

)

Total stockholders’ equity

9,224

8,968

Total liabilities and stockholders’ equity

$

31,314

$

29,866

UNITED RENTALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In millions)

  Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Cash Flows From Operating Activities:

Net income

$

753

$

622

$

1,284

$

1,140

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

820

759

1,615

1,510

Amortization of deferred financing costs and original issue discounts

4

4

8

8

Gain on sales of rental equipment

(154

)

(146

)

(314

)

(313

)

Gain on sales of non-rental equipment

(3

)

(6

)

(7

)

(10

)

Gain on sale of business (1)

(49

)

—

(49

)

—

Insurance proceeds from damaged equipment

(13

)

(12

)

(23

)

(23

)

Stock compensation expense, net

43

34

79

70

Restructuring charge

6

—

51

1

Debt related activity (2)

—

—

—

13

Increase (decrease) in deferred taxes

137

(22

)

220

(38

)

Changes in operating assets and liabilities, net of amounts acquired:

(Increase) decrease in accounts receivable

(243

)

(57

)

(272

)

5

Increase in inventory

(40

)

(14

)

(54

)

(41

)

(Increase) decrease in prepaid expenses and other assets

(45

)

(181

)

30

(114

)

Increase in accounts payable

425

296

623

529

Increase in accrued expenses and other liabilities

150

51

114

16

Net cash provided by operating activities

1,791

1,328

3,305

2,753

Cash Flows From Investing Activities:

Payments for purchases of rental equipment

(1,953

)

(1,460

)

(2,720

)

(2,121

)

Payments for purchases of non-rental equipment and intangible assets

(99

)

(98

)

(165

)

(182

)

Proceeds from sales of rental equipment

330

317

680

694

Proceeds from sales of non-rental equipment

13

17

26

31

Proceeds from sale of business (1)

82

—

82

—

Insurance proceeds from damaged equipment

13

12

23

23

Purchases of other companies, net of cash acquired

(4

)

1

(400

)

(16

)

Purchases of investments

—

—

—

(1

)

Proceeds from sales of investments

—

—

3

—

Net cash used in investing activities

(1,618

)

(1,211

)

(2,471

)

(1,572

)

Cash Flows From Financing Activities:

Proceeds from debt

2,448

2,731

4,503

4,829

Payments of debt

(2,145

)

(2,316

)

(4,594

)

(4,952

)

Payment of contingent consideration

—

—

(18

)

(23

)

Payments of financing and other debt related costs (2)

(1

)

(1

)

(1

)

(14

)

Common stock repurchased, including tax withholdings for share-based compensation (3)

(395

)

(431

)

(816

)

(720

)

Dividends paid

(123

)

(117

)

(248

)

(235

)

Net cash used in financing activities

(216

)

(134

)

(1,174

)

(1,115

)

Effect of foreign exchange rates

(1

)

23

(7

)

25

Net (decrease) increase in cash and cash equivalents

(44

)

6

(347

)

91

Cash and cash equivalents at beginning of period

156

542

459

457

Cash and cash equivalents at end of period

$

112

$

548

$

112

$

548

Supplemental disclosure of cash flow information:

Cash paid for income taxes, net

$

141

$

498

$

158

$

540

Cash paid for interest

146

117

342

339

UNITED RENTALS, INC.
RENTAL REVENUE

Fleet productivity is a comprehensive metric that provides greater insight into the decisions made by our managers in support of growth and returns. Specifically, we seek to optimize the interplay of rental rates, time utilization and mix in driving rental revenue. Fleet productivity aggregates, in one metric, the impact of changes in rates, utilization and mix on owned equipment rental revenue.

We believe that this metric is useful in assessing the effectiveness of our decisions on rates, time utilization and mix, particularly as they support the creation of shareholder value. The table below shows the components of the year-over-year change in rental revenue using the fleet productivity methodology:

Year-over-
year
change in
average
OEC

Assumed
year-over-
year inflation
impact (1)

Fleet
productivity
(2)

Contribution
from ancillary
and re-rent
revenue (3)

Total
change in
rental
revenue

Three Months Ended June 30, 2026

7.1%

(1.5)%

3.4%

3.7%

12.7%

Six Months Ended June 30, 2026

6.4%

(1.5)%

2.9%

3.0%

10.8%

Please refer to our Second Quarter 2026 Investor Presentation for additional detail on fleet productivity.

(1)

Reflects the estimated impact of inflation on the revenue productivity of fleet based on OEC, which is recorded at cost.

  (2)

Reflects the combined impact of changes in rental rates, time utilization and mix on owned equipment rental revenue. Changes in customers, fleet, geographies and segments all contribute to changes in mix.

  (3)

Reflects the combined impact of changes in other types of equipment rental revenue: ancillary and re-rent (excludes owned equipment rental revenue).

UNITED RENTALS, INC.
SEGMENT PERFORMANCE
($ in millions)

  Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

Change

2026

2025

Change

General Rentals

Reportable segment equipment rentals revenue

$

2,418

$

2,268

6.6

%

$

4,647

$

4,367

6.4

%

Reportable segment equipment rentals gross profit

865

796

8.7

%

1,618

1,475

9.7

%

Reportable segment equipment rentals gross margin

35.8

%

35.1

%

70 bps

34.8

%

33.8

%

100 bps

Specialty

Reportable segment equipment rentals revenue

$

1,431

$

1,147

24.8

%

$

2,621

$

2,193

19.5

%

Reportable segment equipment rentals gross profit

636

525

21.1

%

1,129

976

15.7

%

Reportable segment equipment rentals gross margin

44.4

%

45.8

%

(140) bps

43.1

%

44.5

%

(140) bps

Total United Rentals

Total equipment rentals revenue

$

3,849

$

3,415

12.7

%

$

7,268

$

6,560

10.8

%

Total equipment rentals gross profit

1,501

1,321

13.6

%

2,747

2,451

12.1

%

Total equipment rentals gross margin

39.0

%

38.7

%

30 bps

37.8

%

37.4

%

40 bps

UNITED RENTALS, INC.
DILUTED EARNINGS PER SHARE CALCULATION
(In millions, except per share data)

  Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Numerator:

Net income available to common stockholders (1)

$

753

$

622

$

1,284

$

1,140

Denominator:

Denominator for basic earnings per share—weighted-average common shares

62.6

64.9

62.7

65.1

Effect of dilutive securities:

Employee stock options

—

—

—

—

Restricted stock units

—

—

0.1

0.1

Denominator for diluted earnings per share—adjusted weighted-average common shares

62.6

64.9

62.8

65.2

Diluted earnings per share (1)

$

12.03

$

9.59

$

20.44

$

17.48

UNITED RENTALS, INC.
ADJUSTED EARNINGS PER SHARE GAAP RECONCILIATION

We define “earnings per share – adjusted” as the sum of earnings per share – GAAP, as-reported plus the impact of the following special items: merger related intangible asset amortization, impact on depreciation related to acquired fleet and property and equipment, impact of the fair value mark-up of acquired fleet, restructuring charge and asset impairment charge. See below for further detail on the special items. Management believes that earnings per share - adjusted provides useful information concerning future profitability. However, earnings per share - adjusted is not a measure of financial performance under GAAP. Accordingly, earnings per share - adjusted should not be considered an alternative to GAAP earnings per share. The table below provides a reconciliation between earnings per share – GAAP, as-reported, and earnings per share – adjusted.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Earnings per share - GAAP, as-reported (1)

$12.03

$9.59

$20.44

$17.48

After-tax (2) impact of:

Merger related intangible asset amortization (3)

0.39

0.47

0.82

1.00

Impact on depreciation related to acquired fleet and property and equipment (4)

0.22

0.29

0.48

0.58

Impact of the fair value mark-up of acquired fleet (5)

0.03

0.08

0.10

0.21

Restructuring charge (6)

0.07

0.01

0.61

0.02

Asset impairment charge (7)

0.02

0.03

0.02

0.03

Earnings per share - adjusted (1)

$12.76

$10.47

$22.47

$19.32

Tax rate applied to above adjustments (2)

25.1%

25.2%

25.1%

25.2%

(1)

For the three and six months ended June 30, 2026, the impact of the gain on sale of business that is discussed above was a net benefit of $0.58 per diluted share. For the six months ended June 30, 2025, the impact of the merger termination benefit associated with the terminated H&E acquisition was a net benefit of $0.45 per diluted share.

(2)

The tax rates applied to the adjustments reflect the statutory rates in the applicable entities.

(3)

Reflects the amortization of the intangible assets acquired in the major acquisitions completed since 2012 that significantly impact our operations (the "major acquisitions," each of which had annual revenues of over $200 million prior to acquisition).

(4)

Reflects the impact of extending the useful lives of equipment acquired in certain major acquisitions, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.

(5)

Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain major acquisitions and subsequently sold.

(6)

Primarily reflects severance and branch closure charges associated with our restructuring programs. We only include such costs that are part of a restructuring program as restructuring charges. The designated restructuring programs generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition, and result in significant costs that we would not normally incur absent a major acquisition or other triggering event that results in the initiation of a restructuring program. Since the first such restructuring program was initiated in 2008, we have completed seven restructuring programs and have incurred total restructuring charges of $435 million. In the fourth quarter of 2025, we initiated a restructuring program associated with the consolidation of certain common functions and certain other cost reduction measures, and the charges above were primarily recognized under this program.

(7)

Reflects write-offs of leasehold improvements and other fixed assets.

UNITED RENTALS, INC.
EBITDA AND ADJUSTED EBITDA GAAP RECONCILIATIONS
($ in millions, except footnotes)

EBITDA represents the sum of net income, provision for income taxes, interest expense, net, depreciation of rental equipment, and non-rental depreciation and amortization. Adjusted EBITDA represents EBITDA plus the sum of the restructuring charges, stock compensation expense, net, and the impact of the fair value mark-up of acquired fleet. See below for further detail on each adjusting item. These items are excluded from adjusted EBITDA internally when evaluating our operating performance and for strategic planning and forecasting purposes, and allow investors to make a more meaningful comparison between our core business operating results over different periods of time, as well as with those of other similar companies. The net income and adjusted EBITDA margins represent net income or adjusted EBITDA divided by total revenue. Management believes that EBITDA and adjusted EBITDA, when viewed with the company’s results under GAAP and the accompanying reconciliation, provide useful information about operating performance and period-over-period growth, and provide additional information that is useful for evaluating the operating performance of our core business without regard to potential distortions. Additionally, management believes that EBITDA and adjusted EBITDA help investors gain an understanding of the factors and trends affecting our ongoing cash earnings, from which capital investments are made and debt is serviced.

The table below provides a reconciliation between net income and EBITDA and adjusted EBITDA.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net income (1)

$

753

$

622

$

1,284

$

1,140

Provision for income taxes

254

217

424

387

Interest expense, net

178

171

354

355

Depreciation of rental equipment

704

651

1,385

1,288

Non-rental depreciation and amortization

116

108

230

222

EBITDA

$

2,005

$

1,769

$

3,677

$

3,392

Restructuring charge (2)

6

—

51

1

Stock compensation expense, net (3)

43

34

79

70

Impact of the fair value mark-up of acquired fleet (4)

2

7

8

18

Adjusted EBITDA (1)

$

2,056

$

1,810

$

3,815

$

3,481

Net income margin

17.1

%

15.8

%

15.3

%

14.9

%

Adjusted EBITDA margin

46.6

%

45.9

%

45.4

%

45.4

%

(1)

For the three and six months ended June 30, 2026, the impact of the gain on sale of business that is discussed above was a net after-tax benefit of $37 million for net income and a $49 million benefit for adjusted EBITDA. For the six months ended June 30, 2025, the impact of the merger termination benefit associated with the terminated H&E acquisition was a net after-tax benefit of $29 million for net income and a net $52 million benefit for adjusted EBITDA.

(2)

Primarily reflects severance and branch closure charges associated with our restructuring programs. We only include such costs that are part of a restructuring program as restructuring charges. The designated restructuring programs generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition, and result in significant costs that we would not normally incur absent a major acquisition or other triggering event that results in the initiation of a restructuring program. Since the first such restructuring program was initiated in 2008, we have completed seven restructuring programs and have incurred total restructuring charges of $435 million. In the fourth quarter of 2025, we initiated a restructuring program associated with the consolidation of certain common functions and certain other cost reduction measures, and the charges above were primarily recognized under this program.

(3)

Represents non-cash, share-based payments associated with the granting of equity instruments.

(4)

Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain major acquisitions and subsequently sold.

UNITED RENTALS, INC.
EBITDA AND ADJUSTED EBITDA GAAP RECONCILIATIONS (continued)
(In millions, except footnotes)

The table below provides a reconciliation between net cash provided by operating activities and EBITDA and adjusted EBITDA.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net cash provided by operating activities (1)

$

1,791

$

1,328

$

3,305

$

2,753

Adjustments for items included in net cash provided by operating activities but excluded from the calculation of EBITDA:

Amortization of deferred financing costs and original issue discounts

(4

)

(4

)

(8

)

(8

)

Gain on sales of rental equipment

154

146

314

313

Gain on sales of non-rental equipment

3

6

7

10

Gain on sale of business (1)

49

—

49

—

Insurance proceeds from damaged equipment

13

12

23

23

Restructuring charge (2)

(6

)

—

(51

)

(1

)

Stock compensation expense, net (3)

(43

)

(34

)

(79

)

(70

)

Debt related activity (4)

—

—

—

(13

)

Changes in assets and liabilities

(239

)

(300

)

(383

)

(494

)

Cash paid for interest

146

117

342

339

Cash paid for income taxes, net

141

498

158

540

EBITDA

$

2,005

$

1,769

$

3,677

$

3,392

Add back:

Restructuring charge (2)

6

—

51

1

Stock compensation expense, net (3)

43

34

79

70

Impact of the fair value mark-up of acquired fleet (5)

2

7

8

18

Adjusted EBITDA (1)

$

2,056

$

1,810

$

3,815

$

3,481

(1)

For the three and six months ended June 30, 2026, the impact of the gain on sale of business that is discussed above was a $49 million benefit for adjusted EBITDA. For the six months ended June 30, 2025, the impact of the merger termination benefit associated with the terminated H&E acquisition was a net $52 million benefit for both net cash provided by operating activities and adjusted EBITDA.

(2)

Primarily reflects severance and branch closure charges associated with our restructuring programs. We only include such costs that are part of a restructuring program as restructuring charges. The designated restructuring programs generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition, and result in significant costs that we would not normally incur absent a major acquisition or other triggering event that results in the initiation of a restructuring program. Since the first such restructuring program was initiated in 2008, we have completed seven restructuring programs and have incurred total restructuring charges of $435 million. In the fourth quarter of 2025, we initiated a restructuring program associated with the consolidation of certain common functions and certain other cost reduction measures, and the charges above were primarily recognized under this program.

(3)

Represents non-cash, share-based payments associated with the granting of equity instruments.

(4)

The amount for the six months ended June 30, 2025 reflects bridge financing fees associated with the terminated H&E acquisition.

(5)

Reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in certain major acquisitions and subsequently sold.

UNITED RENTALS, INC.
FREE CASH FLOW GAAP RECONCILIATION
(In millions, except footnotes)

We define “free cash flow” as net cash provided by operating activities less payments for purchases of, and plus proceeds from, equipment and intangible assets. The equipment and intangible asset items are included in cash flows from investing activities. Management believes that free cash flow provides useful additional information concerning cash flow available to meet future debt service obligations and working capital requirements. However, free cash flow is not a measure of financial performance or liquidity under GAAP. Accordingly, free cash flow should not be considered an alternative to net income or cash flow from operating activities as an indicator of operating performance or liquidity. The table below provides a reconciliation between net cash provided by operating activities and free cash flow.

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net cash provided by operating activities (1)

$

1,791

$

1,328

$

3,305

$

2,753

Payments for purchases of rental equipment

(1,953

)

(1,460

)

(2,720

)

(2,121

)

Payments for purchases of non-rental equipment and intangible assets

(99

)

(98

)

(165

)

(182

)

Proceeds from sales of rental equipment

330

317

680

694

Proceeds from sales of non-rental equipment

13

17

26

31

Insurance proceeds from damaged equipment

13

12

23

23

Free cash flow (1) (2)

$

95

$

116

$

1,149

$

1,198

The table below provides a reconciliation between 2026 forecasted net cash provided by operating activities and free cash flow.

Net cash provided by operating activities

$5,850-$6,650

Payments for purchases of rental equipment

$(4,750)-$(5,350)

Proceeds from sales of rental equipment

$1,350-$1,550

Payments for purchases of non-rental equipment and intangible assets, net of proceeds from sales and insurance proceeds from damaged equipment

$(300)-$(400)

Free cash flow excluding restructuring related payments

$2,150- $2,450

More News From United Rentals, Inc.

Nuclear energy demand is on the rise, driven by the massive power needs of artificial intelligence (AI) data centers. Because nuclear power possesses high power density and provides reliable, 24/7 baseload energy, it is increasingly becoming a top choice among major hyperscalers.

In the nuclear energy industry, innovative companies like NuScale Power (SMR -0.57%) have the potential to reimagine nuclear energy deployment with their small modular reactors. Meanwhile, established utilities such as Constellation Energy (CEG +4.66%), with their extensive nuclear fleet, stand ready to meet today's power challenges.

If you're looking to diversify your portfolio with nuclear energy stocks, there are a few key things you need to consider when considering an investment between NuScale Power and Constellation Energy right now.

Image source: Getty Images.

Next-generation data centers need nuclear power Modern data centers require massive amounts of energy. Training large language models requires running thousands of high-performance graphical processing units (GPUs) for months on end, while AI queries provide steady demand for AI-generated answers. The emergence of autonomous AI agents is another massive driver of non-stop loops that require continuous, reliable operation of AI data centers.

To meet growing AI demand, data center chips are packed into compact clusters that handle parallel computing across billions of variables. Because servers generate significant heat, they also require large liquid-cooling systems that consume substantial energy.

According to Goldman Sachs, U.S. data center power demand could spike to 66 GW and account for up to 8.5% of U.S. peak summer demand by 2027. Bank of America analysts forecast that over the next five years, data centers could add 125 GW of new U.S. electric load, representing a compound annual growth rate of electricity demand of 4.1%.

Hyperscalers like Alphabet, Amazon, Meta Platforms, and Microsoft need reliable energy while also meeting their long-term carbon-reduction goals. These data centers can't afford interruptions, which means intermittent wind and solar power need an extra boost, which is where nuclear energy comes into play.

Over the last couple of years, hyperscalers have invested in small modular reactors (SMRs) and nuclear plant restarts to meet these massive future energy demands.

NuScale's small modular reactors could change how nuclear energy is deployed NuScale Power is uniquely positioned in the SMR space, as it is the only company with a Standard Design Approval (SDA) from the Nuclear Regulatory Commission for its SMR technology. The company has an SDA for its 50-megawatt (MW) and 77 MW modules, giving it a crucial first-mover advantage in the advanced nuclear reactor space, where NRC approval can be a long and drawn-out process.

Today's Change

(

-0.57

%) $

-0.05

Current Price

$

8.66

The company has one approved project in Romania, where it will look to install 462 MWe using six modules at a former coal plant site. The company received a Final Investment Decision from shareholders and the Romanian government. As part of the deal, NuScale will install one 77 MW module to ensure it is functional, with the remaining five modules contingent on the module proving operational. Operations for this power plant are planned to start in 2033.

Beyond this, NuScale hopes to deploy a massive 6 GW of its power modules with the Tennessee Valley Authority (TVA). The company is working closely with ENTRA1 to secure a firm power purchase agreement and hopes to finalize a deal by the end of the year.

Constellation Energy operates the biggest nuclear energy fleet in the U.S. While NuScale is an up-and-coming nuclear energy company with a long timeline until its plants begin operations, Constellation Energy is an established utility company with a massive nuclear energy fleet. Constellation controls 22 GW of U.S. nuclear generation capacity and operates 21 commercial reactors at 12 locations.

Constellation has secured major deals over the past few years. In 2024, the company announced a 20-year power purchase agreement (PPA) with Microsoft, which involves the launch of the Crane Clean Energy Center and the restart of Three Mile Island Unit 1. The Crane Clean Energy Center will come online in 2028.

Today's Change

(

4.66

%) $

12.23

Current Price

$

274.45

In June of last year, Constellation signed a 20-year power purchase agreement with Meta Platforms to provide 1,121 MW of nuclear energy, beginning in June 2027. As part of this agreement, Constellation will relicense and expand its Clinton nuclear facility located in Illinois.

The company also continues to build on its massive energy platform. On July 16, Constellation's venture capital arm, Constellation Technology Ventures, invested in Blue Energy, which builds prefabricated modular nuclear power plant structures off-site and ships them to their final location. The company uses phased delivery, meaning it deploys gas turbines first, which will eventually transition to nuclear plants when reactor installations are completed.

Which stock is a better buy today? NuScale Power has a first-mover advantage with its NRC-approved SMRs. However, the company faces risks from the Department of Energy's Reactor Pilot Program, in which the DOE is leveraging its authority to reduce red tape and fast-track the testing and licensing of new reactor technologies by competitors.

For investors seeking explosive upside potential, NuScale could be an appealing buy, but it also carries massive risk, as it needs to secure additional contracts and prove it can successfully deploy and commercialize its SMR technology over the coming decade.

In contrast, Constellation Energy has an established fleet of nuclear capacity and is well positioned to benefit from booming energy demand in the near term, making it the better stock for investors looking to gain exposure to the growing nuclear energy industry right now.

Second Quarter 2026 Financial Data

(Dollars in 000s, except
per share data)

Q2-2026

Q1-2026

Q2-2025

Summary Income Statement

Total interest income

$           148,315

$           142,390

$           136,731

Total interest expense

37,049

35,274

40,065

Net interest income

111,266

107,116

96,666

Provision for credit losses

1,169

3,083

2,212

Noninterest income

16,034

15,178

14,292

Noninterest expenses

62,761

60,218

58,924

Income tax expense

12,851

12,334

11,256

Net income

$             50,519

$             46,659

$             38,566

Key Metrics

Diluted EPS

$                 1.22

$                 1.13

$                 0.93

Book value per share

41.49

40.68

37.53

Tangible book value per
share

29.84

29.01

25.82

ROA

1.56 %

1.48 %

1.24 %

ROCE

11.89 %

11.22 %

10.11 %

ROTCE

16.88 %

16.05 %

15.25 %

NIM

3.71 %

3.67 %

3.32 %

NIM- T/E

3.73 %

3.69 %

3.32 %

Efficiency ratio

49.12 %

49.05 %

53.00 %

Quarterly NCO ratio

0.04 %

0.06 %

0.06 %

ACL ratio

1.39 %

1.42 %

1.47 %

Capital Ratios (1)

Tangible common equity
to tangible assets

9.83 %

9.63 %

8.83 %

Common equity tier I
capital ratio

14.09 %

14.13 %

14.64 %

Total risk-based capital
ratio

16.06 %

16.12 %

16.90 %

(1) June 30, 2026 ratios are preliminary.

Second Quarter 2026 Highlights

D-EPS was $1.22 per share for the second quarter of 2026 compared to $1.13 for the linked quarter and $0.93 for the like quarter.  The net interest margin was 3.71% for the quarter ended June 30, 2026, an expansion of 0.04% from the linked quarter and 0.39% from the like quarter. The efficiency ratio for the quarter ended June 30, 2026 was 49.12%, compared to 49.05% for the linked quarter and 53.00% for the like quarter. Total assets exceeded $13 billion at June 30, 2026, the highest level in First Bancorp's history. Total loans were $9.0 billion at June 30, 2026, representing an increase of $194.9 million, or 8.9% annualized. Total loan yield was 5.67%, up 10 basis points from the linked quarter and 14 basis points from the like quarter.  The yield on securities decreased 3 basis points to 2.71% from 2.74% for the linked quarter.  Total cost of funds increased 3 basis points to 1.34% for the quarter ended June 30, 2026 from 1.31% for the linked quarter and decreased 14 basis points from the like quarter. Average core deposits were $11.0 billion, an increase of $181.0 million for the linked quarter and $268.1 million from the like quarter.  Total cost of deposits was 1.31%, an increase of 3 basis points for the linked quarter and a decrease of 12 basis points from the like quarter.  Noninterest expenses of $62.8 million represented a $2.5 million increase from the linked quarter and a $3.8 million increase from the like quarter.  The linked quarter increase was driven by a $2.0 million increase in Total personnel expense. Noninterest-bearing demand deposits were $3.6 billion, representing 32% of total deposits at June 30, 2026.  During the second quarter of 2026, period end customer deposits grew by 2.6% annualized. The loan-to-deposit ratio was 81.1% as of June 30, 2026. On July 14, 2026, First Bancorp announced its pending acquisition of First Carolina Bancshares Corporation, scheduled to close in late 2026 or early 2027. , /PRNewswire/ -- First Bancorp (the "Company") (NASDAQ - FBNC), the parent company of First Bank, reported unaudited second quarter earnings today.  The Company reported net income of $50.5 million, or $1.22 diluted earnings per share ("D-EPS"), for the three months ended June 30, 2026 compared to $46.7 million, or $1.13 D-EPS, for the three months ended March 31, 2026 ("linked quarter") and $38.6 million, or $0.93 D-EPS, for the second quarter of 2025 ("like quarter").

On July 14, 2026, the Company announced an agreement to acquire First Carolina Bancshares Corporation ("First Carolina"), and its subsidiary, Carolina Bank & Trust Company ("Carolina Bank") headquartered in Florence, South Carolina, in a 75% stock and 25% cash transaction.  This transaction is subject to regulatory approvals and approval of First Carolina's shareholders, and is expected to close in the late fourth quarter of 2026 or early first quarter of 2027. Carolina Bank operates 14 branches throughout the Pee Dee region of South Carolina and had approximately $831 million in total assets, $596 million in loans, and $714 million in deposits at June 30, 2026.

The Company continued to enhance net interest income and net interest margin ("NIM") during the second quarter of 2026. The Company recorded net interest income of $111.3 million for the current quarter, compared to $107.1 million for the linked quarter and $96.7 million for the like quarter. NIM for the second quarter of 2026 expanded to 3.71% from 3.67% for the linked quarter and 3.32% for the like quarter. 

Noninterest expenses were $62.8 million for the second quarter of 2026, up from $60.2 million for the linked quarter, and $58.9 million for the like quarter.  The efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Richard H. Moore, Chairman and CEO of the Company, stated, "First Bancorp continued to build on its positive start to 2026 with strong second quarter financial results driven by continued margin expansion, prudent balance sheet execution, high quality loans and a controlled efficiency ratio.  Earnings continue to benefit from the repositioning of lower-yielding assets into higher-yielding opportunities, while our liquidity position, capital levels, and credit quality remain strong.  We are pleased with our performance through the first half of the year and remain confident in our ability to sustain positive momentum and deliver continued success in 2026.  We are excited about the acquisition of First Carolina which brings talented bankers and will help us accelerate our South Carolina growth expansion."

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2026 was $111.3 million, an increase of 3.9% from the linked quarter of $107.1 million and an increase of 15.1% from the like quarter of $96.7 million.  The increase in net interest income from the linked and like quarters resulted from additional loan volume and increasing loan yield through originations as well as one additional earning day compared to the linked quarter.  The increase from the like quarter also resulted from our focused efforts to manage deposit costs after the rate cuts by the Federal Reserve in 2025.

The Company's NIM for the second quarter of 2026 was 3.71%, an increase of 4 basis points from the linked quarter and 39 basis points from the like quarter. 

The linked quarter expansion of NIM was driven a $114.9 million increase in average loans along with a 10 basis points expansion in loan yield.  Additionally, short-term investments contributed an additional $1.5 million from increased balances partially reduced by lower yields. Offsetting these increases, the cost of interest bearing deposits increased 5 basis points on growth of $98.8 million in average balances.  Driving these increases, the average balance of money market deposits increased $99.6 million while the cost of those deposits increased 8 basis points. 

The like quarter expansion of NIM was driven by growth of $708.9 million in average loans, coupled with a 14 basis point yield increase as well as the cost of interest bearing deposits decreasing 20 basis points.  The Company shifted its mix of interest-earning assets to higher yielding assets from the like quarter, with loans increasing from 70.1% of average interest-earning assets to 74.1% in the current quarter, while securities contracted from 25.6% of average interest-earning assets to 22.3% and short-term investments contracted from 4.3% of average interest-bearing assets to 3.7%.

For the Three Months Ended

YIELD INFORMATION

June 30,
2026

March 31,
2026

June 30,
2025

Yield on loans

5.67 %

5.57 %

5.53 %

Yield on securities

2.71 %

2.74 %

2.41 %

Yield on other earning assets

3.99 %

4.36 %

4.63 %

Yield on total interest-earning assets

4.95 %

4.88 %

4.69 %

Cost of interest-bearing deposits

1.94 %

1.89 %

2.14 %

Cost of borrowings

6.64 %

6.68 %

7.22 %

Cost of total interest-bearing liabilities

1.99 %

1.94 %

2.20 %

Total cost of funds

1.34 %

1.31 %

1.48 %

Cost of total deposits

1.31 %

1.28 %

1.43 %

Net interest margin (1)

3.71 %

3.67 %

3.32 %

Net interest margin - tax-equivalent (2)

3.73 %

3.69 %

3.32 %

Average prime rate

6.75 %

6.75 %

7.50 %

(1)  Calculated by dividing annualized net interest income by average earning assets for the period.

(2)  Calculated by dividing annualized tax-equivalent net interest income by average earning assets for the period. The tax-equivalent amount reflects the tax benefit that the Company receives related to its tax-exempt loans and securities, which carry interest rates lower than similar taxable investments due to their tax-exempt status.  This amount has been computed using the expected tax rate and is reduced by the related nondeductible portion of interest expense.

See Appendix H regarding loan purchase discount accretion and its impact on the Company's NIM.

Provision for Credit Losses and Credit Quality

For the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, the Company recorded $1.2 million, $3.1 million and $2.2 million in provision for credit losses, respectively. The provision for the second quarter of 2026 was driven by net charge-offs of $1.0 million.  The Allowance for Credit Losses increased  $0.2 million to $124.9 million, or 1.39% of loans.  Additionally, the $22 thousand provision for unfunded commitments during the quarter was the result of additional unfunded lending commitments. 

The Company did not adjust its incremental reserve for potential exposure from Hurricane Helene, maintaining a $1.9 million reserve as of June 30, 2026.  The remaining incremental reserve contributed two basis points to the Allowance for Credit Losses at period end. 

Asset quality remained strong with annualized net loan charge-offs of 0.04% for the second quarter of 2026.  Total nonperforming assets ("NPAs") totaled $44.9 million at June 30, 2026, or 0.34% of total assets, up slightly from 0.32% at March 31, 2026 and 0.28% at June 30, 2025.  

The following table presents the summary of NPAs and asset quality ratios for each period.

ASSET QUALITY DATA

($ in thousands)

June 30,
2026

March 31,
2026

June 30,
2025

Nonperforming assets

Nonaccrual loans

$      44,283

$      41,032

$      34,625

Accruing loans > 90 days past due

—

—

—

Total nonperforming loans

44,283

41,032

34,625

Foreclosed real estate

659

740

1,218

Total nonperforming assets

$      44,942

$      41,772

$      35,843

Asset Quality Ratios

Quarterly net charge-offs to average loans - annualized

0.04 %

0.06 %

0.06 %

Nonperforming loans to total loans

0.49 %

0.47 %

0.42 %

Nonperforming assets to total assets

0.34 %

0.32 %

0.28 %

Allowance for credit losses to total loans

1.39 %

1.42 %

1.47 %

Noninterest Income

Total noninterest income for the second quarter of 2026 was $16.0 million, a $0.9 million increase from the linked quarter, primarily related to a $0.7 million increase in Other income, net.  The current quarter reflected a 12.2% increase from $14.3 million for the like quarter, primarily related to a $1.0 million increase in Other income net.

Noninterest Expenses

Noninterest expenses amounted to $62.8 million for the second quarter of 2026 compared to $60.2 million for the linked quarter and $58.9 million for the like quarter.  The $2.5 million, or 4.2%, increase in noninterest expense from the linked quarter was driven by a $2.0 million increase in Total personnel expenses. The $3.8 million increase from the like quarter was driven by a $3.3 million increase in Total personnel expenses.  While noninterest expenses have been increasing, they are the result of the Company's continued growth as the efficiency ratio was 49.12% for the quarter ended June 30, 2026, compared to 49.05% for the linked quarter and 53.00% for the like quarter.

Income Taxes

Income tax expense totaled $12.9 million for the second quarter of 2026 compared to $12.3 million for the linked quarter and $11.3 million for the like quarter, reflecting effective tax rates of 20.3%, 20.9% and 22.6% for the respective periods.

Balance Sheet

Total assets at June 30, 2026 were $13.0 billion, an increase of $93.9 million, or 2.9% annualized, from the linked quarter and $433.4 million, or 3.4%, from a year earlier.

Key period end balance sheet components are presented below.

BALANCES

($ in thousands)

June 30,
2026

March 31,
2026

June 30,
2025

Change
2Q26 vs 1Q26

Change
2Q26 vs 2Q25

Total assets

$  13,041,615

$  12,947,734

$  12,608,265

0.7 %

3.4 %

Loans

8,988,748

8,793,814

8,225,650

2.2 %

9.3 %

Investment securities

2,448,787

2,491,035

2,661,236

(1.7) %

(8.0) %

Total cash and cash equivalents

550,332

597,991

711,286

(8.0) %

(22.6) %

Noninterest-bearing deposits

3,597,565

3,596,629

3,542,626

— %

1.6 %

Interest-bearing deposits

7,487,302

7,415,854

7,287,754

1.0 %

2.7 %

Borrowings

74,717

74,643

92,237

0.1 %

(19.0) %

Shareholders' equity

1,716,460

1,682,950

1,556,180

2.0 %

10.3 %

Driven by principal paydowns and maturities, total investment securities decreased to $2.4 billion at June 30, 2026, a $42.2 million decrease from the linked quarter.  Total unrealized losses on available for sale investment securities were $204.5 million at June 30, 2026, as compared to $197.7 million at March 31, 2026 and $298.9 million at June 30, 2025.

Total loans were $9.0 billion at June 30, 2026, an increase of $194.9 million, or 8.9% annualized, from March 31, 2026 and an increase of $763.1 million, or 9.3%, from June 30, 2025.  Adjusting for the paydown of one larger seasonal loan, loan growth for the current quarter was 10.9% annualized.  Please see the below table for total loan portfolio mix.  As of June 30, 2026, there were no notable concentrations in geographies within North Carolina or South Carolina or within industries, including in office or hospitality categories, which are included in the "commercial real estate - non-owner occupied" category in the table below.  The Company's exposure to non-owner occupied office loans represented approximately 6.2% of the total portfolio at June 30, 2026, with the largest loan being $33.0 million and with an average loan outstanding balance of $1.4 million.  Non-owner occupied office loans are generally in non-metro markets and the ten largest loans in this category represent less than 2% of the total loan portfolio.

The following table presents the period end balance and portfolio percentage by loan category.

LOAN PORTFOLIO

June 30, 2026

March 31, 2026

June 30, 2025

($ in thousands)

Amount

Percentage

Amount

Percentage

Amount

Percentage

Commercial and industrial

$  1,014,295

11 %

$  1,000,037

11 %

$     911,227

11 %

Construction, development & other land
     loans

847,912

10 %

821,826

10 %

633,529

8 %

Commercial real estate - owner occupied

1,358,100

15 %

1,352,473

15 %

1,254,596

15 %

Commercial real estate - non-owner
     occupied

2,974,749

33 %

2,921,210

33 %

2,758,629

34 %

Multi-family real estate

619,489

7 %

545,586

6 %

509,419

6 %

Residential 1-4 family real estate

1,728,367

19 %

1,717,550

20 %

1,731,397

21 %

Home equity loans/lines of credit

377,949

4 %

369,062

4 %

355,876

4 %

Consumer loans

68,692

1 %

66,430

1 %

70,137

1 %

Loans, gross

8,989,553

100 %

8,794,174

100 %

8,224,810

100 %

Unamortized net deferred loan
     fees/(costs)

(805)

(360)

840

Total loans

$  8,988,748

$  8,793,814

$  8,225,650

Total deposits were $11.1 billion at June 30, 2026, an increase of $72.4 million, or 2.6% annualized, from  March 31, 2026 and $254.5 million, or 2.3%, from June 30, 2025.

The Company has a diversified and granular deposit base which has remained a stable funding source with noninterest-bearing deposits comprising 32% of total deposits at June 30, 2026.  As presented in the table below, our deposit mix has remained relatively consistent.

DEPOSIT PORTFOLIO

June 30, 2026

March 31, 2026

June 30, 2025

($ in thousands)

Amount

Percentage

Amount

Percentage

Amount

Percentage

Noninterest-bearing checking accounts

$   3,597,565

32 %

$   3,596,629

33 %

$   3,542,626

33 %

Interest-bearing checking accounts

1,422,592

13 %

1,462,606

13 %

1,443,010

13 %

Money market accounts

4,754,782

43 %

4,631,619

42 %

4,446,485

41 %

Savings accounts

510,392

5 %

519,266

5 %

536,247

5 %

Other time deposits

475,744

4 %

489,257

4 %

514,865

5 %

Time deposits >$250,000

318,821

3 %

308,177

3 %

337,382

3 %

Total customer deposits

11,079,896

100 %

11,007,554

100 %

10,820,615

100 %

Brokered deposits

4,971

— %

4,929

— %

9,765

— %

Total deposits

$ 11,084,867

100 %

$ 11,012,483

100 %

$ 10,830,380

100 %

As of June 30, 2026 and March 31, 2026, estimated insured deposits totaled $6.5 billion, or 58.9%, and $6.5 billion, or 59.0%, of total deposits, respectively.  In addition, at June 30, 2026 and March 31, 2026, there were collateralized deposits of $748.7 million and $723.8 million, respectively, such that approximately 65.7% and 65.6%, respectively, of our total deposits were insured or collateralized at those dates.

Capital

The Company maintains capital in excess of well-capitalized regulatory requirements, with an estimated total risk-based capital ratio at June 30, 2026 of 16.06%, down from the linked quarter ratio of 16.12% and from the like quarter ratio of 16.90%. 

The Company has elected to exclude accumulated other comprehensive income ("AOCI") related primarily to available for sale securities from common equity tier 1 capital.  AOCI is included in the Company's tangible common equity ("TCE") to tangible assets ratio (a non-GAAP financial measure) which was 9.83% at June 30, 2026, an increase of 20 basis points from the linked quarter and 100 basis points from June 30, 2025.  The increase in TCE from the like quarter was driven by improvements in the level of unrealized losses on the available for sale securities portfolio, arising from market value improvements and the 2025 securities loss-earnback transactions. Please refer to Appendix A for a reconciliation of common equity to TCE (a non-GAAP measure) and Appendix C for a calculation of the TCE ratio (a non-GAAP measure).

CAPITAL RATIOS

June 30,
2026
(estimated)

March 31,
2026

June 30,
2025

Tangible common equity to tangible assets (non-GAAP)

9.83 %

9.63 %

8.83 %

Common equity tier I capital ratio

14.09 %

14.13 %

14.64 %

Tier I leverage ratio

11.60 %

11.46 %

11.23 %

Tier I risk-based capital ratio

14.81 %

14.87 %

15.45 %

Total risk-based capital ratio

16.06 %

16.12 %

16.90 %

Liquidity

Liquidity is evaluated as both on-balance sheet (primarily cash and cash-equivalents, unpledged securities and other marketable assets) and off-balance sheet (readily available lines of credit and other funding sources).  The Company continues to manage liquidity sources, including unused lines of credit, at levels believed to be adequate to meet its operating needs for the foreseeable future. 

The Company's on-balance sheet liquidity ratio (net liquid assets as a percent of net liabilities) at June 30, 2026 was 15.7%.  In addition, the Company had approximately $2.4 billion in available lines of credit at that date resulting in a total liquidity ratio of 32.8%. 

About First Bancorp

First Bancorp is a bank holding company headquartered in Southern Pines, North Carolina, with total assets of $13.0 billion. Its principal activity is the ownership and operation of First Bank, a state-chartered community bank that operates 113 branches in North Carolina and South Carolina.  Since 1935, First Bank has taken a tailored approach to banking, combining best-in-class financial solutions, helpful local expertise, and technology to manage a home or business.  First Bank also provides SBA loans to customers through its nationwide network of lenders. Member FDIC, Equal Housing Lender.

Please visit our website at www.LocalFirstBank.com for more information.

First Bancorp's common stock is traded on The NASDAQ Global Select Market under the symbol "FBNC."

Caution about Forward-Looking Statements: This News Release release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties.  Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results or otherwise are not statements of historical fact.  Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other words or phrases concerning opinions or judgments of the Company and its management about future events.  Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of the Company's customers, the risks and uncertainties relating to the level of success in integrating acquisitions, (including the ability to successfully integrate First Carolina into First Bank; to realize the anticipated benefits of the acquisition; deposit attrition, customer loss or other revenue loss following completed acquisitions may be greater than anticipated; and the integration of operations and personnel may require more time and expense); actions of government regulators; the level of market interest rates; and general economic conditions.  For additional information about the factors that could affect the matters discussed in this paragraph, see the "Risk Factors" section of the Company's most recent Annual Report on Form 10-K available at www.sec.gov.  Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements.  The Company is also not responsible for changes made to this press release by wire services, internet services or other media.

Non-GAAP Measures

In this Earnings Release, we present certain measures of our performance that are calculated by methods other than in accordance with generally accepted accounting principles ("GAAP").  Company management uses these non-GAAP measures for purposes of evaluating our performance. Non-GAAP measures exclude or include amounts that are not normally excluded or included in the most directly comparable measure determined in accordance with GAAP. Company management believes an appropriate analysis of the Company's financial performance requires an understanding of the factors underlying such performance.  Non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP. Please see the Appendices attached to this Earnings Release for reconciliations of return on tangible common equity, tangible common equity, tangible book value per share, the tangible common equity ratio, adjusted net income and adjusted diluted earnings per share. 

First Bancorp and Subsidiaries

Financial Summary

CONSOLIDATED INCOME STATEMENT

For the Three Months Ended

For the Six Months Ended

($ in thousands, except per share data - unaudited)

June 30,
2026

March 31,
2026

June 30,
2025

June 30,
2026

June 30,
2025

Interest income

Interest and fees on loans

$     125,845

$     120,747

$     112,921

$     246,592

$     223,418

Interest on investment securities:

Taxable interest income

16,925

17,556

16,857

34,481

32,381

Tax-exempt interest income

1,115

1,115

1,116

2,230

2,232

Other, principally overnight investments

4,430

2,972

5,837

7,402

11,324

Total interest income

148,315

142,390

136,731

290,705

269,355

Interest expense

Interest on deposits

35,812

34,046

38,405

69,858

76,524

Interest on borrowings

1,237

1,228

1,660

2,465

3,318

Total interest expense

37,049

35,274

40,065

72,323

79,842

Net interest income

111,266

107,116

96,666

218,382

189,513

Provision for credit losses

1,169

3,083

2,212

4,252

3,328

Net interest income after provision for
credit losses

110,097

104,033

94,454

214,130

186,185

Noninterest income

Service charges on deposit accounts

4,205

3,954

3,976

8,159

7,743

Other service charges and fees

5,986

5,942

6,605

11,928

12,524

Presold mortgage loan fees and gains on sale

660

669

315

1,329

765

Commissions from sales of financial products

1,707

1,492

1,388

3,199

2,796

SBA loan sale gains

529

903

151

1,432

203

Bank-owned life insurance income

1,358

1,340

1,221

2,698

2,449

Other Income, net

1,589

878

636

2,467

768

Total noninterest income

16,034

15,178

14,292

31,212

27,248

Noninterest expenses

Salaries, incentives and commissions expense

31,529

29,978

29,005

61,507

57,666

Employee benefit expense

6,958

6,516

6,187

13,474

12,282

Total personnel expense

38,487

36,494

35,192

74,981

69,948

Occupancy and equipment expense

4,961

5,355

5,195

10,316

10,387

Intangibles amortization expense

1,199

1,247

1,468

2,446

2,984

Other operating expenses

18,114

17,122

17,069

35,236

33,516

Total noninterest expenses

62,761

60,218

58,924

122,979

116,835

Income before income taxes

63,370

58,993

49,822

122,363

96,598

Income tax expense

12,851

12,334

11,256

25,185

21,626

Net income

$       50,519

$       46,659

$       38,566

$       97,178

$       74,972

Earnings per common share:

Basic

$           1.22

$           1.13

$           0.93

$           2.35

$           1.81

Diluted

1.22

1.13

0.93

2.35

1.81

First Bancorp and Subsidiaries

Financial Summary

CONSOLIDATED BALANCE SHEETS

($ in thousands - unaudited)

June 30,
2026

March 31,
2026

June 30,
2025

Assets

Cash and due from banks, noninterest-bearing

$         128,424

$         135,176

$         139,486

Due from banks, interest-bearing

421,908

462,815

571,800

 Total cash and cash equivalents

550,332

597,991

711,286

Securities available for sale

1,939,075

1,979,606

2,144,831

Securities held to maturity

509,712

511,429

516,405

Presold mortgages and SBA loans held for sale

12,304

11,191

8,928

Loans

8,988,748

8,793,814

8,225,650

Allowance for credit losses on loans

(124,894)

(124,734)

(120,545)

 Net loans

8,863,854

8,669,080

8,105,105

Premises and equipment, net

138,129

139,374

141,661

Accrued interest receivable

38,272

37,296

36,681

Goodwill

478,750

478,750

478,750

Other intangible assets, net

14,786

15,985

19,920

Bank-owned life insurance

195,984

194,626

190,817

Other assets

300,417

312,406

253,881

 Total assets

$    13,041,615

$    12,947,734

$    12,608,265

Liabilities

Deposits:

Noninterest-bearing deposits

$      3,597,565

$      3,596,629

$      3,542,626

Interest-bearing deposits

7,487,302

7,415,854

7,287,754

 Total deposits

11,084,867

11,012,483

10,830,380

Borrowings

74,717

74,643

92,237

Accrued interest payable

3,813

3,733

4,340

Other liabilities

161,758

173,925

125,128

 Total liabilities

11,325,155

11,264,784

11,052,085

Shareholders' equity

Common stock

966,777

968,675

973,041

Retained earnings

906,976

866,387

812,657

Stock in rabbi trust assumed in acquisition

(534)

(893)

(869)

Rabbi trust obligation

534

893

869

Accumulated other comprehensive loss

(157,293)

(152,112)

(229,518)

 Total shareholders' equity

1,716,460

1,682,950

1,556,180

Total liabilities and shareholders' equity

$    13,041,615

$    12,947,734

$    12,608,265

First Bancorp and Subsidiaries

Financial Summary

TREND INFORMATION

For the Three Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

PERFORMANCE RATIOS (annualized)

ROA (1)

1.56 %

1.48 %

0.49 %

0.64 %

1.24 %

Adjusted ROA (2)

1.56 %

1.48 %

1.54 %

1.31 %

1.24 %

ROCE (3)

11.89 %

11.22 %

3.83 %

5.14 %

10.11 %

Adjusted ROCE (4)

11.89 %

11.22 %

12.01 %

10.55 %

10.11 %

ROTCE (5)

16.88 %

16.05 %

5.80 %

7.83 %

15.25 %

Adjusted ROTCE (6)

16.88 %

16.05 %

17.45 %

15.66 %

15.25 %

Efficiency ratio (7)

49.12 %

49.05 %

73.75 %

66.95 %

53.00 %

Adjusted efficiency ratio (7)

49.12 %

49.05 %

48.53 %

51.09 %

53.00 %

COMMON SHARE DATA

Cash dividends declared - common

$         0.24

$         0.24

$            0.23

$             0.23

$         0.23

Book value per common share

$       41.49

$       40.68

$          39.89

$           38.67

$       37.53

Tangible book value per share (8)

$       29.84

$       29.01

$          28.23

$           26.98

$       25.82

Common shares outstanding at end of period

41,374,221

41,375,026

41,466,227

41,465,437

41,468,098

Weighted average shares outstanding - diluted

41,375,377

41,459,357

41,481,132

41,481,542

41,441,393

CAPITAL INFORMATION (preliminary for current quarter)

Tangible common equity to tangible assets (9)

9.83 %

9.63 %

9.61 %

9.12 %

8.83 %

Common equity tier I capital ratio

14.09 %

14.13 %

14.10 %

14.35 %

14.64 %

Total risk-based capital ratio

16.06 %

16.12 %

16.12 %

16.58 %

16.90 %

(1)  Calculated by dividing annualized net income by average assets.

(2) See Appendix D for a reconciliation of ROA to adjusted ROA.

(3) Calculated by dividing annualized tangible net income (net income adjusted for intangible asset amortization, net of tax), by average common equity.  See Appendix E for the components of the calculation.

(4) See Appendix E for a reconciliation of ROCE to adjusted ROCE.

(5) Return on average tangible common equity is a non-GAAP financial measure.  See Appendix F for the components of the calculation and the reconciliation of average common equity to average TCE.

(6) See Appendix F for a reconciliation of ROTCE to adjusted ROTCE.

(7)  See Appendix G for a reconciliation of the efficiency ratio to the adjusted efficiency ratio.

(8)  Tangible book value per share is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix B for the resulting calculation.

(9)  Tangible common equity ratio is a non-GAAP financial measure.  See Appendix A for a reconciliation of common equity to tangible common equity and Appendix C for the resulting calculation.

For the Three Months Ended

INCOME STATEMENT

($ in thousands except per share data)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Net interest income

$      111,266

$     107,116

$     106,199

$     102,489

$       96,666

Provision for credit losses

1,169

3,083

4,732

3,442

2,212

Noninterest income

16,034

15,178

(22,299)

(12,879)

14,292

Noninterest expense

62,761

60,218

62,223

60,211

58,924

Income before income taxes

63,370

58,993

16,945

25,957

49,822

Income tax expense

12,851

12,334

1,232

5,594

11,256

Net income

$       50,519

$       46,659

$       15,713

$       20,363

$       38,566

Earnings per common share - diluted

$           1.22

$           1.13

$           0.38

$           0.49

$           0.93

First Bancorp and Subsidiaries

Financial Summary

AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - QUARTERS

For the Three Months Ended

June 30, 2026

March 31, 2026

June 30, 2025

($ in thousands)

Average

Volume

Interest

Earned

or Paid

Average

Rate

Average

Volume

Interest

Earned

or Paid

Average

Rate

Average

Volume

Interest

Earned

or Paid

Average

Rate

Assets

Loans (1) (2)

$   8,896,592

$  125,845

5.67 %

$   8,781,728

$  120,747

5.57 %

$   8,187,662

$  112,921

5.53 %

Taxable securities

2,384,076

16,925

2.84 %

2,442,140

17,556

2.88 %

2,697,338

16,857

2.50 %

Non-taxable securities

283,645

1,115

1.57 %

284,712

1,115

1.57 %

287,848

1,116

1.55 %

Short-term investments, primarily interest-bearing cash

444,845

4,430

3.99 %

276,471

2,972

4.36 %

505,912

5,837

4.63 %

Total interest-earning assets

12,009,158

148,315

4.95 %

11,785,051

142,390

4.88 %

11,678,760

136,731

4.69 %

Cash and due from banks

136,181

147,124

153,074

Premises and equipment

139,177

139,775

142,090

Other assets

664,823

690,864

484,448

Total assets

$ 12,949,339

$ 12,762,814

$ 12,458,372

Liabilities

Interest-bearing checking

$   1,420,738

$      2,233

0.63 %

$   1,416,600

$      2,230

0.64 %

$   1,434,559

$      2,426

0.68 %

Money market deposits

4,666,044

28,268

2.43 %

4,566,409

26,516

2.35 %

4,358,877

29,947

2.76 %

Savings deposits

516,779

250

0.19 %

524,123

241

0.19 %

538,843

252

0.19 %

Other time deposits

487,071

2,790

2.30 %

495,115

2,819

2.31 %

534,242

3,088

2.32 %

Time deposits >$250,000

314,506

2,271

2.90 %

304,089

2,240

2.99 %

345,916

2,692

3.12 %

Total interest-bearing deposits

7,405,138

35,812

1.94 %

7,306,336

34,046

1.89 %

7,212,437

38,405

2.14 %

Short-term borrowings

757

1

0.72 %

745

1

0.61 %

848

2

1.09 %

Long-term borrowings

73,950

1,236

6.70 %

73,858

1,227

6.74 %

91,351

1,658

7.28 %

Total interest-bearing liabilities

7,479,845

37,049

1.99 %

7,380,939

35,274

1.94 %

7,304,636

40,065

2.20 %

Noninterest-bearing checking

3,597,511

3,515,359

3,522,117

Other liabilities

167,595

179,753

101,069

Shareholders' equity

1,704,388

1,686,763

1,530,550

Total liabilities and shareholders' equity

$ 12,949,339

$ 12,762,814

$ 12,458,372

Net yield on interest-earning assets and net interest income

$  111,266

3.71 %

$  107,116

3.67 %

$    96,666

3.32 %

Net yield on interest-earning assets and net interest income –
tax-equivalent (3)

$  111,732

3.73 %

$  107,595

3.69 %

$    96,877

3.32 %

Interest rate spread

2.96 %

2.94 %

2.49 %

Average prime rate

6.75 %

6.75 %

7.50 %

(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes accretion of discount on acquired loans of $1.1 million, $1.1 million and $1.5 million for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

First Bancorp and Subsidiaries

Financial Summary

AVERAGE BALANCES AND NET INTEREST INCOME ANALYSIS - YEAR-TO-DATE

For the Six Months Ended

June 30, 2026

June 30, 2025

($ in thousands)

Average

Volume

Interest

Earned

or Paid

Average

Rate

Average

Volume

Interest

Earned

or Paid

Average

Rate

Assets

Loans (1) (2)

$   8,839,477

$  246,592

5.62 %

$   8,147,750

$  223,418

5.52 %

Taxable securities

2,412,948

34,481

2.86 %

2,663,390

32,381

2.43 %

Non-taxable securities

284,176

2,230

1.57 %

288,373

2,232

1.55 %

Short-term investments, primarily interest-bearing cash

361,123

7,402

4.13 %

504,652

11,324

4.52 %

Total interest-earning assets

11,897,724

290,705

4.92 %

11,604,165

269,355

4.67 %

Cash and due from banks

141,622

143,469

Premises and equipment

139,474

142,574

Other assets

677,771

453,023

Total assets

$ 12,856,591

$ 12,343,231

Liabilities

Interest-bearing checking

$   1,418,681

$      4,462

0.63 %

$   1,433,066

$      4,923

0.69 %

Money market deposits

4,616,502

54,785

2.39 %

4,348,277

59,126

2.74 %

Savings deposits

520,429

491

0.19 %

538,973

493

0.18 %

Other time deposits

491,071

5,609

2.30 %

546,377

6,441

2.38 %

Time deposits >$250,000

309,327

4,511

2.94 %

349,028

5,541

3.20 %

Total interest-bearing deposits

7,356,010

69,858

1.92 %

7,215,721

76,524

2.14 %

Short-term borrowings

751

2

0.66 %

822

3

0.86 %

Long-term borrowings

73,904

2,463

6.72 %

91,259

3,315

7.32 %

Total interest-bearing liabilities

7,430,665

72,323

1.96 %

7,307,802

79,842

2.20 %

Noninterest-bearing checking

3,556,662

3,449,013

Other liabilities

173,640

87,032

Shareholders' equity

1,695,624

1,499,384

Total liabilities and shareholders' equity

$ 12,856,591

$ 12,343,231

Net yield on interest-earning assets and net interest income

$  218,382

3.69 %

$  189,513

3.28 %

Net yield on interest-earning assets and net interest income – tax-equivalent (3)

$  219,327

3.71 %

$  190,161

3.30 %

Interest rate spread

2.96 %

2.47 %

Average prime rate

6.75 %

7.50 %

(1) Average loans include nonaccruing loans, the effect of which is to lower the average rate shown.

(2) Includes accretion of discount on acquired loans of $2.1 million and $3.2 million for the six months ended June 30, 2026 and June 30, 2025, respectively.

(3) Includes tax-equivalent adjustments to reflect the net tax benefit that we receive related to tax-exempt securities and loans as reduced by the related nondeductible portion of interest expense.

Reconciliation of non-GAAP measures

APPENDIX A:  Reconciliation of Common Equity to Tangible Common Equity ("TCE")

For the Three Months Ended

($ in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Total shareholders' common equity

$      1,716,460

$      1,682,950

$      1,654,168

$      1,603,323

$      1,556,180

Less: Goodwill and other intangibles, net of
related taxes

(481,673)

(482,640)

(483,644)

(484,623)

(485,657)

Tangible common equity

$      1,234,787

$      1,200,310

$      1,170,524

$      1,118,700

$      1,070,523

APPENDIX B:  Calculation of Tangible Book Value Per Share ("TBVPS")

For the Three Months Ended

($ in thousands except per share data)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Tangible common equity (Appendix A)

$      1,234,787

$      1,200,310

$      1,170,524

$      1,118,700

$      1,070,523

Common shares outstanding

41,374,221

41,375,026

41,466,227

41,465,437

41,468,098

Tangible book value per common share

$             29.84

$             29.01

$             28.23

$             26.98

$             25.82

APPENDIX C:  TCE Ratio

For the Three Months Ended

($ in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Tangible common equity (Appendix A)

$      1,234,787

$      1,200,310

$      1,170,524

$       1,118,700

$      1,070,523

Total assets

13,041,615

12,947,734

12,668,339

12,750,263

12,608,265

Less: Goodwill and other intangibles, net of
related taxes

(481,673)

(482,640)

(483,644)

(484,623)

(485,657)

Tangible assets ("TA")

$    12,559,942

$    12,465,094

$    12,184,695

$    12,265,640

$    12,122,608

TCE to TA ratio

9.83 %

9.63 %

9.61 %

9.12 %

8.83 %

APPENDIX D:  Calculation of Return on Average Assets ("ROA") and Adjusted ROA

For the Three Months Ended

($ in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Net income (A)

$           50,519

$           46,659

$           15,713

$           20,363

$           38,566

After-tax impact of loss-earnback

—

—

33,581

21,433

—

Adjusted net income (B)

$           50,519

$           46,659

$           49,294

$           41,796

$           38,566

Average total assets (C)

$    12,949,339

$    12,762,814

$    12,716,139

$    12,640,016

$    12,458,372

ROA (A/C)

1.56 %

1.48 %

0.49 %

0.64 %

1.24 %

Adjusted ROA (B/C)

1.56 %

1.48 %

1.54 %

1.31 %

1.24 %

APPENDIX E:  Calculation of Return on Common Equity ("ROCE") and Adjusted ROCE

For the Three Months Ended

($ in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Net income (A)

$           50,519

$           46,659

$           15,713

$           20,363

$           38,566

After-tax impact of loss-earnback

—

—

33,581

21,433

—

Adjusted net income (B)

$           50,519

$           46,659

$           49,294

$           41,796

$           38,566

Average common equity (C)

$      1,704,388

$      1,686,763

$      1,627,976

$      1,571,104

$      1,530,550

ROCE (A/C)

11.89 %

11.22 %

3.83 %

5.14 %

10.11 %

Adjusted ROCE (B/C)

11.89 %

11.22 %

12.01 %

10.55 %

10.11 %

APPENDIX F:  Calculation of Return on TCE ("ROTCE") and Adjusted ROTCE

For the Three Months Ended

($ in thousands)

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Net Income

$           50,519

$           46,659

$           15,713

$           20,363

$           38,566

Intangible asset amortization, net of taxes

923

960

994

1,066

1,123

Tangible Net income  (A)

51,442

47,619

16,707

21,429

39,689

After-tax impact of loss-earnback

—

—

33,581

21,433

—

Adjusted tangible net income  (B)

$           51,442

$           47,619

$           50,288

$           42,862

$           39,689

Average common equity

$      1,704,388

$      1,686,763

$      1,627,976

$      1,571,104

$      1,530,550

Less: Average goodwill and other intangibles,
net of related taxes

(482,326)

(483,314)

(484,313)

(485,331)

(486,393)

Average TCE  (C)

$      1,222,062

$      1,203,449

$      1,143,663

$      1,085,773

$      1,044,157

ROTCE (A/C)

16.88 %

16.05 %

5.80 %

7.83 %

15.25 %

Adjusted ROTCE (B/C)

16.88 %

16.05 %

17.45 %

15.66 %

15.25 %

APPENDIX G: Efficiency Ratio and Adjusted Efficiency Ratio

For the Three Months Ended

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

June 30,
2025

Noninterest expenses (A)

$           62,761

$           60,218

$           62,043

$           60,171

$           58,924

Nointerest income (B)

16,034

15,178

(22,479)

(12,951)

14,292

Securities losses, net

—

—

(43,722)

(27,905)

—

Adjusted nointerest income (C)

16,034

15,178

21,243

14,954

14,292

Net interest income – tax-equivalent (D)

111,732

107,595

106,601

102,829

96,877

Efficiency ratio A/(B+D)

49.12 %

49.05 %

73.75 %

66.95 %

53.00 %

Adjusted efficiency ratio A/(C+D)

49.12 %

49.05 %

48.53 %

51.09 %

53.00 %

Supplemental information

APPENDIX H: Loan purchase discount accretion and its impact on the Company's NIM

Included in interest income for the second quarter of 2026 was loan purchase accounting discount accretion of $1.1 million compared to $1.1 million for the linked quarter and $1.5 million for the like quarter, with the activity primarily related to the continued repayments/reduction of the loan portfolio acquired from GrandSouth Bancorporation in January of 2023. Loan discount accretion had positive impacts of three basis points, three basis points and four basis points, respectively, on the Company's NIM and NIM-T/E in the second quarter of 2026, the linked quarter and the like quarter. 

The following table presents the impact to net interest income of the purchase accounting adjustments for each period.

For the Three Months Ended

NET INTEREST INCOME PURCHASE ACCOUNTING ADJUSTMENTS

($ in thousands)

June 30,
2026

March 31,
2026

June 30,
2025

Interest income - increased by accretion of loan discount on acquired loans

$         1,083

$         1,065

$         1,457

Total interest income impact

1,083

1,065

1,457

Interest expense - increased by discount accretion on deposits

(62)

(61)

(102)

Interest expense - increased by discount accretion on borrowings

(87)

(86)

(194)

Total net interest expense impact

(149)

(147)

(296)

 Total impact on net interest income

$            934

$            918

$         1,161

SOURCE First Bancorp