Vontier ve 2. čtvrtletí zvýšil provozní zisk na 146,7 mil. USD a upravený provozní zisk na 173,8 mil. USD. Zároveň zvedl celoroční výhled upraveného zisku na akcii na 3,45 až 3,55 USD.
RALEIGH, N.C.--(BUSINESS WIRE)--Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced results for the second quarter ended July 3, 2026.
Reported sales in the second quarter decreased 2.2% year-over-year to $756.7 million. Core sales decreased 0.2% as healthy demand for convenience retail solutions, including fueling, payment and asset management technologies, was offset by a year-over-year headwind related to shipment timing. Operating profit of $146.7 million increased 7.6% from the prior year, and operating profit margin increased approximately 180 basis points, to 19.4%. Adjusted operating profit of $173.8 million increased 6.4% from the prior year and adjusted operating profit margin increased 190 basis points to 23.0%. Net earnings were $27.4 million, and adjusted net earnings were $124.3 million, resulting in GAAP diluted net earnings per share of $0.20 and adjusted diluted net earnings per share of $0.89.
“Vontier delivered a solid second quarter, with results ahead of our expectations,” said Mark Morelli, President and Chief Executive Officer. “With solid bookings growth, a building pipeline supported by new product launches, and constructive end markets, we are confident in our growth outlook for the third quarter and balance of the year. We are also making measurable progress on our cost savings program, which is running ahead of plan. Our focus on disciplined execution and capital allocation has enabled us to increase our full-year adjusted EPS guidance and reflects our commitment to creating long-term shareholder value.”
Segment Results
Environmental & Fueling Solutions
Q2 2026
Q2 2025
Change
Sales ($M)
$366.2
$361.6
1.3%
Segment Operating Profit ($M)
$115.6
$105.7
9.4%
Segment Operating Profit Margin
31.6%
29.2%
240bps
Environmental & Fueling Solutions reported sales increased 1.3% versus the prior year. Core sales increased 4.6%, led by strong demand for fuel dispensing equipment and aftermarket parts. Segment operating profit margin increased 240 basis points including a discrete benefit related to a tariff refund, volume leverage and ongoing simplification initiatives.
Mobility Technologies
Q2 2026
Q2 2025
Change
Sales(a) ($M)
$262.9
$280.2
(6.2)%
Segment Operating Profit ($M)
$55.3
$53.5
3.4%
Segment Operating Profit Margin
21.0%
19.1%
190bps
(a) Includes $21.2 million and $19.1 million of intersegment sales for Q2 2026 and Q2 2025, respectively, that are eliminated in consolidation.
Mobility Technologies reported sales decreased 6.2% versus the prior year. Core sales declined 4.9% year-over-year, reflecting lower shipments of vehicle identification solutions compared with the prior year, partially offset by healthy demand for convenience retail payment and asset management technologies. Segment operating profit margin increased 190 basis points year-over-year, driven primarily by cost savings associated with simplification initiatives, including lower R&D expense.
Repair Solutions
Q2 2026
Q2 2025
Change
Sales ($M)
$148.8
$150.8
(1.3)%
Segment Operating Profit ($M)
$28.3
$31.4
(9.9)%
Segment Operating Profit Margin
19.0%
20.8%
-180bps
Repair Solutions reported sales decreased 1.3% versus the prior year. Core sales also decreased 1.3% reflecting ongoing macroeconomic pressures impacting service technicians’ discretionary spending. Segment operating profit margin declined 180 basis points year-over-year due to unfavorable price and mix, as well as higher investments versus the prior year.
Other Items
Closed the divestiture of Teletrac Navman and received cash proceeds of $85 million. Increased share repurchase authorization to $1.0 billion. Repurchased 4.4 million shares for $130 million during the quarter; Year-to-date, share repurchases total 6.2 million shares for $200 million. Net leverage ratio ended Q2 at 2.3X 2026 Outlook
Total sales of $3,000 to $3,050 million; Core sales growth midpoint of approximately 3% Adjusted operating profit margin expansion of approximately 100 basis points year-over-year at the midpoint Adjusted diluted net EPS in the range of $3.45 to $3.55 Adjusted free cash flow conversion of approximately 95% Q3 2026 Outlook
Total sales of $720 to $735 million; Core sales growth of approximately 5% Adjusted operating profit margin expansion of approximately 110 basis points year-over-year at the midpoint Adjusted diluted net EPS in the range of $0.82 to $0.86 Conference Call Details
Vontier will discuss results and outlook during its quarterly investor conference call today starting at 8:30 a.m. ET. A link to the live webcast can be found here. Additionally, the webcast and an accompanying slide presentation can be found on the “Investors” section of Vontier’s website, www.vontier.com, under “Events & Presentations.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.
ABOUT VONTIER
Vontier (NYSE: VNT) is a global industrial technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier powers the way the world moves – delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation built upon the foundation of the Vontier Business System and embraced by colleagues worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also references “core sales growth,” “adjusted operating profit,” “adjusted operating profit margin,” “adjusted net earnings,” “adjusted diluted net earnings per share,” “free cash flow,” “adjusted free cash flow”, “adjusted free cash flow conversion,” “EBITDA,” “adjusted EBITDA,” “net debt,” and “net leverage ratio” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Vontier in this release may be different from similarly-titled non-GAAP measures used by other companies.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated sales growth, anticipated adjusted operating profit margin expansion, anticipated adjusted diluted net earnings per share, anticipated adjusted free cash flow conversion, and anticipated earnings growth, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, changes in U.S. and international geopolitics, including trade policies, volatility in financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental policies and regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with changes in applicable laws and regulations, risks relating to global economic, political, war or hostility, public health, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025. These forward-looking statements represent Vontier’s beliefs and assumptions only as of the date of this release and Vontier does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
VONTIER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
July 3, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
265.8
$
492.2
Accounts receivable, net
559.7
527.4
Inventories
323.0
326.5
Prepaid expenses and other current assets
131.2
145.7
Total current assets
1,279.7
1,491.8
Property, plant and equipment, net
144.3
129.5
Operating lease right-of-use assets
27.2
34.4
Long-term financing receivables, net
280.0
285.0
Other intangible assets, net
327.9
412.4
Goodwill
1,651.9
1,757.6
Other assets
320.0
258.1
Total assets
$
4,031.0
$
4,368.8
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
304.8
$
502.2
Trade accounts payable
356.4
361.6
Current operating lease liabilities
11.8
14.3
Accrued expenses and other current liabilities
348.8
410.4
Total current liabilities
1,021.8
1,288.5
Long-term operating lease liabilities
19.3
24.8
Long-term debt
1,595.2
1,594.2
Other long-term liabilities
195.2
210.1
Total liabilities
2,831.5
3,117.6
Commitments and Contingencies
Equity:
Preferred stock
—
—
Common stock
—
—
Treasury stock
(1,131.6
)
(929.8
)
Additional paid-in capital
120.3
111.7
Retained earnings
2,045.1
1,930.5
Accumulated other comprehensive income
158.9
131.8
Total Vontier stockholders’ equity
1,192.7
1,244.2
Noncontrolling interests
6.8
7.0
Total equity
1,199.5
1,251.2
Total liabilities and equity
$
4,031.0
$
4,368.8
VONTIER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in millions, except per share amounts)
(unaudited)
Three Months Ended
Six Months Ended
July 3, 2026
June 27, 2025
July 3, 2026
June 27, 2025
Sales
$
756.7
$
773.5
$
1,507.3
$
1,514.6
Operating costs and expenses:
Cost of sales, excluding amortization of acquisition-related intangible assets
(391.7
)
(403.1
)
(790.0
)
(794.0
)
Selling, general and administrative expenses
(167.6
)
(167.3
)
(326.6
)
(327.6
)
Research and development expenses
(35.1
)
(47.5
)
(76.5
)
(87.7
)
Amortization of acquisition-related intangible assets
(15.6
)
(19.2
)
(32.7
)
(38.8
)
Operating profit
146.7
136.4
281.5
266.5
Non-operating income (expense), net:
Interest expense, net
(16.6
)
(15.6
)
(30.3
)
(30.7
)
Loss on sale of business
(86.2
)
—
(86.2
)
—
Other non-operating expense, net
(0.1
)
(0.1
)
(0.1
)
(4.0
)
Earnings before income taxes
43.8
120.7
164.9
231.8
Provision for income taxes
(16.4
)
(28.8
)
(43.2
)
(52.0
)
Net earnings
$
27.4
$
91.9
$
121.7
$
179.8
Net earnings per share:
Basic
$
0.20
$
0.62
$
0.86
$
1.21
Diluted
$
0.20
$
0.62
$
0.86
$
1.21
Weighted average shares outstanding:
Basic
139.6
147.7
140.7
148.3
Diluted
139.8
148.2
141.2
148.8
VONTIER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Six Months Ended
July 3, 2026
June 27, 2025
Cash flows from operating activities:
Net earnings
$
121.7
$
179.8
Non-cash items:
Depreciation expense
25.5
25.7
Amortization of acquisition-related intangible assets
32.7
38.8
Stock-based compensation expense
16.4
16.1
Loss on sale of business
86.2
—
Change in deferred income taxes
3.9
(9.7
)
Other non-cash items
1.9
11.6
Change in accounts receivable and long-term financing receivables, net
(52.2
)
17.5
Change in other operating assets and liabilities
(73.3
)
(69.4
)
Net cash provided by operating activities
162.8
210.4
Cash flows from investing activities:
Proceeds from sale of business, net of cash provided
77.2
—
Cash paid for acquisitions
—
(10.3
)
Payments for additions to property, plant and equipment
(43.1
)
(34.4
)
Proceeds from sale of property, plant and equipment
—
0.1
Cash paid for equity investments
(1.5
)
(0.1
)
Proceeds from sale of equity investments
1.0
—
Net cash provided by (used in) investing activities
33.6
(44.7
)
Cash flows from financing activities:
Proceeds from issuance of short-term debt
300.0
—
Proceeds from issuance of long-term debt
70.0
83.3
Repayment of long-term debt
(570.0
)
(133.3
)
Net proceeds from (repayments of) short-term borrowings
3.0
(1.4
)
Payments for debt issuance costs
(0.4
)
(2.3
)
Payments of common stock cash dividend
(7.1
)
(7.4
)
Purchases of treasury stock
(200.0
)
(105.1
)
Proceeds from stock option exercises
2.4
3.1
Other financing activities
(16.8
)
(11.5
)
Net cash used in financing activities
(418.9
)
(174.6
)
Effect of exchange rate changes on cash and cash equivalents
(3.9
)
16.7
Net change in cash and cash equivalents
(226.4
)
7.8
Beginning balance of cash and cash equivalents
492.2
356.4
Ending balance of cash and cash equivalents
$
265.8
$
364.2
VONTIER CORPORATION AND SUBSIDIARIES
SEGMENT FINANCIAL SUMMARY
(in millions)
(unaudited)
Three Months Ended
Six Months Ended
July 3, 2026
June 27, 2025
July 3, 2026
June 27, 2025
Sales
Environmental & Fueling Solutions
$
366.2
$
361.6
$
711.0
691.4
Mobility Technologies
262.9
280.2
532.2
$
550.7
Repair Solutions
148.8
150.8
301.7
303.8
Intersegment eliminations
(21.2
)
(19.1
)
(37.6
)
(31.3
)
Total Vontier Sales
$
756.7
$
773.5
$
1,507.3
$
1,514.6
Segment Operating Profit
Environmental & Fueling Solutions
$
115.6
$
105.7
$
217.5
$
203.2
Mobility Technologies
55.3
53.5
100.0
105.4
Repair Solutions
28.3
31.4
58.7
64.6
Segment Operating Profit Margin
Environmental & Fueling Solutions
31.6
%
29.2
%
30.6
%
29.4
%
Mobility Technologies
21.0
%
19.1
%
18.8
%
19.1
%
Repair Solutions
19.0
%
20.8
%
19.5
%
21.3
%
Operating Profit & Adjusted Operating Profit
Operating Profit (GAAP)
$
146.7
$
136.4
$
281.5
$
266.5
Operating Profit Margin (GAAP)
19.4
%
17.6
%
18.7
%
17.6
%
Adjusted Operating Profit (Non-GAAP)
$
173.8
$
163.4
$
331.4
$
324.0
Adjusted Operating Profit Margin (Non-GAAP)
23.0
%
21.1
%
22.0
%
21.4
%
VONTIER CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AND OTHER INFORMATION
Core Sales Growth
We define core sales growth as the change in total sales calculated according to GAAP but excluding (i) sales from acquired and certain divested businesses; (ii) the impact of currency translation; and (iii) certain other items.
References to sales attributable to acquisitions or acquired businesses refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested or exited businesses or product lines not considered discontinued operations. The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales (excluding sales from acquired businesses) and (b) the period-to-period change in sales, including foreign operations, (excluding sales from acquired businesses) after applying the current period foreign exchange rates to the prior year period. The portion of sales attributable to other items is calculated as the impact of those items which are not directly correlated to core sales which do not have an impact on the current or comparable period. Core sales growth should be considered in addition to, and not as a replacement for or superior to, total sales, and may not be comparable to similarly titled measures reported by other companies.
Management believes that reporting the non-GAAP financial measure of core sales growth provides useful information to investors by helping identify underlying growth trends in our business and facilitating easier comparisons of our sales performance with our performance in prior and future periods and to our peers. We exclude the effect of acquisitions and certain divestiture-related items because the nature, size and number of such transactions can vary dramatically from period to period and between us and our peers. We exclude the effect of currency translation and certain other items from core sales because these items are either not under management’s control or relate to items not directly correlated to core sales growth. Management believes the exclusion of these items from core sales growth may facilitate assessment of underlying business trends and may assist in comparisons of long-term performance.
Adjusted Operating Profit and Adjusted Operating Profit Margin
Adjusted operating profit refers to operating profit calculated in accordance with GAAP, but excluding amortization of acquisition-related intangible assets, costs associated with restructurings including one-time termination benefits and related charges and impairment and other charges associated with facility closure, contract termination and other related activities, and the related impact of certain divested or exited businesses or product lines not considered discontinued operations (“Restructuring- and divestiture-related adjustments”), transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, and other charges which represent charges incurred that are not part of our core operating results (“Other charges”). Adjusted operating profit margin refers to adjusted operating profit divided by GAAP sales.
Adjusted Net Earnings and Adjusted Diluted Net Earnings per Share
Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments, including the tax effect of these adjustments and other tax adjustments. The tax effect of such adjustments was calculated by applying our estimated adjusted effective tax rate to the pretax amount of each adjustment. Adjusted diluted net earnings per share refers to adjusted net earnings divided by the weighted average diluted shares outstanding.
Free cash flow refers to cash flow from operations calculated according to GAAP but excluding capital expenditures. Adjusted free cash flow refers to free cash flow adjusted for cash received from the sale of property, plant and equipment and cash paid for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs and Other charges. Adjusted free cash flow conversion refers to adjusted free cash flow divided by adjusted net earnings.
Net Leverage Ratio, EBITDA and Adjusted EBITDA
EBITDA refers to net earnings calculated in accordance with GAAP, excluding interest, taxes, depreciation and amortization of acquisition-related intangible assets. Adjusted EBITDA refers to EBITDA adjusted for Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, asbestos-related adjustments associated with certain divested businesses, one-time costs related to the separation, amortization of acquisition-related inventory fair value step-up, gains and losses on sale of property, Other charges, non-cash write-offs of deferred financing costs, gains and losses on sale of businesses and gains and losses on investments. Net leverage ratio refers to net debt divided by Adjusted EBITDA.
Management believes that these non-GAAP financial measures provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our profitability to prior and future periods and to our peers.
These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
A reconciliation of each of the projected Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings Per Share and Adjusted Free Cash Flow Conversion, which are forward-looking non-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.
Components of Sales Growth
% Change Three Months Ended July 3, 2026 vs. Comparable 2025 Period
Environmental
& Fueling
Solutions
Mobility
Technologies
Repair
Solutions
Total
Total Sales Growth (GAAP)
1.3%
(6.2)%
(1.3)%
(2.2)%
Core sales growth (Non-GAAP)
4.6%
(4.9)%
(1.3)%
(0.2)%
Acquisitions and divestitures (Non-GAAP)
(3.7)%
(2.0)%
—%
(2.5)%
Currency exchange rates (Non-GAAP)
0.4%
0.7%
—%
0.5%
% Change Six Months Ended July 3, 2026 vs. Comparable 2025 Period
Environmental
& Fueling
Solutions
Mobility
Technologies
Repair
Solutions
Total
Total Sales Growth (GAAP)
2.8%
(3.4)%
(0.7)%
(0.5)%
Core sales growth (Non-GAAP)
5.3%
(3.1)%
(0.7)%
0.7%
Acquisitions and divestitures (Non-GAAP)
(3.6)%
(1.7)%
—%
(2.3)%
Currency exchange rates (Non-GAAP)
1.1%
1.4%
—%
1.1%
Reconciliation of Operating Profit to Adjusted Operating Profit
Three Months Ended
Six Months Ended
$ in millions
July 3, 2026
June 27, 2025
July 3, 2026
June 27, 2025
Operating Profit (GAAP)
$
146.7
$
136.4
$
281.5
$
266.5
Amortization of acquisition-related intangible assets
15.6
19.2
32.7
38.8
Restructuring- and divestiture-related adjustments
4.5
2.6
9.3
13.5
Transaction- and deal-related costs
0.5
1.2
1.2
2.1
Asbestos-related adjustments
6.5
4.0
6.7
3.3
Other charges
—
—
—
(0.2
)
Adjusted Operating Profit (Non-GAAP)
$
173.8
$
163.4
$
331.4
$
324.0
Operating Profit Margin (GAAP)
19.4
%
17.6
%
18.7
%
17.6
%
Adjusted Operating Profit Margin (Non-GAAP)
23.0
%
21.1
%
22.0
%
21.4
%
Reconciliation of Net Earnings to Adjusted Net Earnings
Three Months Ended
Six Months Ended
($ in millions)
July 3, 2026
June 27, 2025
July 3, 2026
June 27, 2025
Net Earnings (GAAP)
$
27.4
$
91.9
$
121.7
$
179.8
Amortization of acquisition-related intangible assets
15.6
19.2
32.7
38.8
Restructuring- and divestiture-related adjustments
4.5
2.6
9.3
13.5
Transaction- and deal-related costs
0.5
1.2
1.2
2.1
Asbestos-related adjustments
6.5
4.0
6.7
3.3
Other charges
—
—
0.3
(0.2
)
Non-cash write-off of deferred financing costs
—
—
—
0.2
Loss on sale of business
86.2
—
86.2
—
Loss (gain) on equity investments
0.1
—
(0.3
)
3.6
Tax effect of the Non-GAAP adjustments and other tax adjustments
(16.5
)
(2.2
)
(19.9
)
(9.5
)
Adjusted Net Earnings (Non-GAAP)
$
124.3
$
116.7
$
237.9
$
231.6
Diluted weighted average shares outstanding
139.8
148.2
141.2
148.8
Diluted Net Earnings Per Share (GAAP)
$
0.20
$
0.62
$
0.86
$
1.21
Adjusted Diluted Net Earnings Per Share (Non-GAAP)
$
0.89
$
0.79
$
1.68
$
1.56
Reconciliation of Operating Cash Flow to Free Cash Flow, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Conversion
Three Months Ended
Six Months Ended
($ in millions)
July 3, 2026
June 27, 2025
July 3, 2026
June 27, 2025
Operating Cash Flow (GAAP)
$
116.3
$
100.0
$
162.8
$
210.4
Less: Purchases of property, plant & equipment (capital expenditures)
(21.4
)
(16.7
)
(43.1
)
(34.4
)
Free Cash Flow (Non-GAAP)
$
94.9
$
83.3
$
119.7
$
176.0
Restructuring- and divestiture-related adjustments
1.2
5.0
3.7
7.1
Transaction- and deal-related costs
1.5
0.1
2.2
0.9
Proceeds from sale of property, plant and equipment
—
0.1
—
0.1
Adjusted Free Cash Flow (Non-GAAP)
$
97.6
$
88.5
$
125.6
$
184.1
Adjusted Net Earnings (Non-GAAP)
$
124.3
$
116.7
$
237.9
$
231.6
Adjusted Free Cash Flow Conversion (Non-GAAP)
78.5
%
75.8
%
52.8
%
79.5
%
Net Leverage Ratio and Reconciliation from Net Earnings to EBITDA to Adjusted EBITDA
Total Debt
$
1,905.1
Less: Cash
(265.8
)
Net Debt
$
1,639.3
Adjusted EBITDA (Non-GAAP)
$
714.3
Net Leverage Ratio
2.3
Three Months Ended
LTM
($ in millions)
July 3, 2026
July 3, 2026
Net Earnings (GAAP)
$
27.4
$
348.0
Interest expense, net
16.6
59.4
Income tax expense
16.4
93.3
Depreciation and amortization expense
26.3
118.9
EBITDA (Non-GAAP)
$
86.7
$
619.6
Restructuring- and divestiture-related adjustments
Společnost Vontier oznámila akvizici EKOS, poskytovatele cloudového softwaru pro správu flotil, paliva a elektromobilů. Cílem je posílit propojenou platformu pro provozovatele flotil.
RALEIGH, N.C.--(BUSINESS WIRE)--Vontier Corporation (NYSE: VNT), a leading global provider of critical technologies and solutions to connect, manage and scale the mobility ecosystem, today announced its acquisition of EKOS, a leading provider of cloud-connected fleet, fuel and electric vehicle (EV) management software. The acquisition will deepen the company’s leading fleet platform, providing a connected, end-to-end solution for operators.
EKOS provides fleet operators with centralized visibility across fuel procurement, site monitoring, fleet asset management, fuel card controls and EV charging infrastructure – all from a single connected interface. Trusted by thousands of businesses, EKOS currently supports more than 1.2 million vehicles across the U.S., helping operators reduce costs, create efficiency and scale operations without added complexity.
Vontier currently offers EKOS as a preferred fuel management software solution for its fleet customers, integrating the provider’s cloud-connected platform with the company’s industry leading equipment and turnkey solutions across fueling sites. The acquisition deepens this partnership, establishing a scalable operating layer that seamlessly integrates hardware and software solutions for Vontier commercial fleet customers.
“Today’s announcement marks a significant milestone in our relationship with EKOS, accelerating connectivity across our product portfolio and advancing our comprehensive vision for fleets,” said Mark Morelli, President and CEO of Vontier. “The acquisition enhances our ability to help fleet operators optimize performance, streamline operations and navigate an increasingly complex energy landscape. By strengthening our fleet technology ecosystem, we are creating greater value for customers today while positioning Vontier for long-term growth.”
"We built the EKOSystem™ to solve a genuine problem: operators shouldn't need fragmented tools to manage their operations,” said Phil Dorroll, President of EKOS. “A true fleet operating system requires full-stack integration across eight critical layers—hardware, communications, alarms, integrations, service, support, software and centralized reporting. By joining Vontier, we now have unparalleled coverage across every layer, positioning EKOS as the leading fully integrated operating system in the market. Together, we'll deliver integrated solutions that set a new standard for fleet operations."
EKOS’s modular platform addresses growing demand from commercial operators managing increasingly complex, multi-energy fleets, positioning Vontier at the intersection of traditional fuel and next-generation mobility infrastructure.
About Vontier
Vontier (NYSE: VNT) is a global technology company uniting productivity, automation and multi-energy technologies to meet the needs of a rapidly evolving, more connected mobility ecosystem. Leveraging leading market positions, decades of domain expertise and unparalleled portfolio breadth, Vontier powers the way the world moves - delivering smart, safe and sustainable solutions to our customers and the planet. Vontier has a culture of continuous improvement and innovation worldwide. Additional information about Vontier is available on the Company’s website at www.vontier.com.
About EKOS
EKOS is a leading cloud-connected fleet, fuel, and EV management software platform headquartered in Wilmington, North Carolina. Built for commercial fleet operators, EKOS unifies fleet operations, fuel management, and EV charging into one connected system — managing everything from bulk fuel procurement and fuel sites to fleet maintenance, asset tracking, fuel card controls, and charging infrastructure. Trusted by thousands of businesses across North America, EKOS powers more than 2 million connected vehicles and manages over 1 billion gallons of fuel annually. By replacing fragmented tools with a single platform, EKOS gives fleet operators the visibility and control they need to reduce costs, improve compliance, and scale with confidence. For more information, visit info.myekos.com.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated sales growth, anticipated adjusted operating margin expansion, anticipated adjusted net earnings per share, anticipated adjusted cash flow conversion, and anticipated earnings growth, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” or “will” or other words of similar meaning. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, deterioration of or instability in the economy, the markets we serve, changes in U.S. and international geopolitics, including trade policies, volatility in financial markets, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental policies and regulations that may adversely impact demand for our products or our costs, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, impact of divestitures, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with changes in applicable laws and regulations, risks relating to global economic, political, war or hostility, public health, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, security breaches or other disruptions of our information technology systems, adverse effects of restructuring activities, impact of changes to U.S. GAAP, labor matters, and disruptions relating to manmade and natural disasters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025. These forward-looking statements represent Vontier’s beliefs and assumptions only as of the date of this release and Vontier does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
ATI ve 2. čtvrtletí překonala horní hranici výhledu, tržby vzrostly o 11 % na 1,261 mld. USD a upravený EBITDA o 37 % na 284,4 mil. USD. Firma zároveň zvýšila celoroční výhled.
ATI Exceeds the High End of Q2 Guidance and Raises Full-Year Outlook
GAAP diluted EPS up 56% year-over-year
Net income attributable to ATI increased 50%, adjusted EBITDA rose 37% year-over-year
Adjusted EBITDA margin expanded 440 basis points to 22.6% year-over-year
Second Quarter 2026 GAAP Financial Results
Sales of $1.26 billion, up 11% year-over-year, driven by a 13% aerospace & defense increase Net income attributable to ATI of $151 million, up 50% year-over-year Earnings per share of $1.09 compared to $0.70 per share in second quarter 2025 Second Quarter 2026 Non-GAAP Financial Information(a)
Adjusted net income attributable to ATI(a) of $170 million, up 60% year-over-year Adjusted earnings per share(a) of $1.23, compared to $0.74 per share in second quarter 2025 Adjusted EBITDA(a) of $284 million, an increase of 37% year-over-year Adjusted EBITDA(a) as a percentage of sales of 22.6%, compared to 18.2% in second quarter 2025 Guidance
The Company is providing third quarter and updated full-year 2026 guidance in the table below.
Current Guidance
Prior Guidance
Q3 2026
Full Year 2026
Full Year 2026
Adjusted EBITDA(b)
$305M - $315M
$1,135M - $1,185M
$1,010M - $1,060M
Adjusted Earnings Per Share(b)
$1.31 - $1.37
$4.90 - $5.18
$4.20 - $4.48
Adjusted Free Cash Flow(b)
$550M - $600M
$465M - $525M
(a) Reconciliations of the reported information under accounting principles generally accepted in the United States (GAAP) to non-GAAP financial measures are included in accompanying financial tables. Non-GAAP financial measures should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
(b) Detailed reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures are not available without unreasonable effort due to the complexity of the excluded components.
, /PRNewswire/ -- ATI Inc. (NYSE: ATI) reported second quarter 2026 results, with sales of $1.26 billion and net income attributable to ATI of $151 million, or $1.09 per share.
Sequential
Y-O-Y
($ in millions except per share amounts)
Q2 2026
Q1 2026
Change
Q2 2025
Change
Sales
$1,261.1
$1,151.5
10 %
$1,140.4
11 %
Net income attributable to ATI
$151.0
$118.2
28 %
$100.7
50 %
Earnings per share
$1.09
$0.85
28 %
$0.70
56 %
Non-GAAP information(a)
Adjusted net income attributable to ATI(a)
$169.7
$139.2
22 %
$106.4
59 %
Adjusted earnings per share(a)
$1.23
$1.00
23 %
$0.74
66 %
ATI adjusted EBITDA(a)
$284.4
$231.7
23 %
$207.7
37 %
Second quarter 2026 GAAP earnings per share were $1.09 and adjusted earnings per share(a) were $1.23. Net income attributable to ATI was $151.0 million and ATI adjusted EBITDA(a) was $284.4 million, or 22.6% of sales. Second quarter 2026 GAAP and non-GAAP results include a gain of $9.9 million, or $0.06 per share, from the sale of a previously closed manufacturing facility in the AA&S segment.
Second quarter 2026 adjusted results exclude pre-tax charges of $23.6 million for special items consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs, and $2.6 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $18.7 million, or $0.14 per share.
First quarter 2026 adjusted results exclude pre-tax charges of $26.4 million for special items consisting of $11.1 million of start-up and transaction costs, $8.1 million of restructuring-related costs, $4.8 million of transformation costs, and $2.4 million of losses on the sale of customer accounts receivable. The after-tax impact of these special items was a charge of $21.0 million, or $0.15 per share. Second quarter 2025 adjusted results exclude pre-tax charges of $7.4 million for special items. The after-tax impact of these special items was a charge of $5.7 million, or $0.04 per share. The Non-GAAP tables included within this release provide the reconciliations of the GAAP to Non-GAAP financial measures and additional details on the special items noted above.
"We delivered another solid quarter, with results above the high end of our guidance and adjusted EBITDA up 37% year-over-year on 11% sales growth. This is a clear example of the earnings potential we've been building across both of our segments. Adjusted EBITDA margin expanded 440 basis points to 22.6%, and our backlog reached another record at $4.4 billion, up 18% year-over-year, as demand for our unique aerospace and defense materials continues to outpace available supply," said Kimberly A. Fields, Board Chair, President and CEO. "This quarter reflects the continued evolution of ATI's portfolio toward a more differentiated, higher-margin business, anchored by long-term customer agreements and concentrated exposure in aerospace, defense and specialty energy.
"Momentum is carrying into the second half, and we are again raising our full-year guidance for adjusted earnings, EBITDA and free cash flow," Fields added. "Our outlook is supported by contracted pricing improvements, a richer product mix and increasing production volumes as targeted investments and operational execution expand our available capacity."
Operating Results by Segment
High Performance Materials & Components (HPMC)
($ millions)
Q2 2026
Q1 2026
Q2 2025
Sales
$637.1
$614.3
$608.8
Segment EBITDA(a)
$153.5
$152.9
$144.0
% of Sales
24.1 %
24.9 %
23.7 %
HPMC's second quarter 2026 sales increased $22.8 million, or 4%, compared to first quarter 2026, primarily due to strong demand and pricing for commercial jet engine products. Aerospace & defense sales represented 93% of total HPMC sales in second quarter 2026, unchanged from first quarter 2026. Second quarter 2026 sales increased 5% compared to second quarter 2025, primarily driven by a 10% increase in commercial jet engine sales due to strong demand and pricing. HPMC second quarter 2026 segment EBITDA(a) was $153.5 million, or 24.1% of sales. The sequential decline in segment EBITDA margin was primarily due to higher manufacturing and period costs, including costs associated with revised qualification requirements for our new facility in Mexico and titanium electron-beam furnace. The higher costs were partially offset by increased volume and favorable pricing of jet engine nickel products. The year-over-year increase in the segment EBITDA margin rate was primarily due to higher volume and favorable pricing, partially offset by higher manufacturing and period costs. Advanced Alloys & Solutions (AA&S)
($ millions)
Q2 2026
Q1 2026
Q2 2025
Sales
$624.0
$537.2
$531.6
Segment EBITDA(a)
$147.6
$97.0
$76.7
% of Sales
23.7 %
18.1 %
14.4 %
AA&S second quarter 2026 sales increased $86.8 million, or 16%, compared to first quarter 2026, primarily due to higher sales in the aerospace & defense and conventional energy markets. Aerospace & defense sales increased 19%, driven by higher demand and pricing and represented 44% of total AA&S sales in the second quarter of 2026. The increase in conventional energy sales was mostly due to demand timing. Second quarter 2026 sales increased $92.4 million, or 17%, compared to the prior year quarter, primarily due to higher sales to the aerospace & defense and conventional energy markets. On a year-over-year basis, aerospace & defense sales grew by 34%, including a 90% increase in defense sales, reflecting both higher demand and pricing. AA&S second quarter 2026 segment EBITDA(a) was $147.6 million, or 23.7% of sales, inclusive of a $9.9 million gain from the sale of a previously closed manufacturing facility. Excluding the impact of the gain, the sequential and year-over-year increase in segment EBITDA margin was primarily driven by higher pricing and favorable mix. Corporate Items and Cash
Restructuring and other charges: Second quarter 2026: $23.6 million includes pre-tax charges consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs for severance and facility rationalization activities, and $2.6 million of losses on the sale of customer accounts receivable. First quarter 2026: $26.4 million includes pre-tax charges consisting of $11.1 million of start-up and transaction-related costs, $8.1 million of restructuring-related severance and impairment costs due to facility rationalization activities, $4.8 million of transformation-related costs, and $2.4 million of losses on the sale of customer accounts receivable. Second quarter 2025: $8.7 million includes pre-tax charges consisting of $7.1 million for start-up and transaction-related costs and $1.6 million of losses on the sale of customer accounts receivable. These pre-tax charges were partially offset by credits of $1.3 million due to a reduction in severance-related reserves for a previous restructuring in our AA&S segment. Corporate expenses in the second quarter 2026 were $14.9 million, compared to $17.0 million in the first quarter 2026, and $15.4 million in the prior year quarter. The decrease compared to first quarter 2026 was primarily due to a benefit from an insurance claim, partially offset by higher incentive compensation expense. Corporate expenses were relatively flat on a year-over-year basis. Closed operations and other income/expense was an expense of $1.8 million in the second quarter 2026 compared to expense of $1.2 million in the first quarter 2026, and income of $2.4 million in the prior year quarter. The increase in expense compared to first quarter 2026 was primarily due to changes in environmental reserves. Second quarter 2025 benefited from foreign exchange gains of $1.8 million and a favorable bankruptcy settlement related to an insurance claim of $1.1 million. The second quarter 2026 effective tax rate was 20.0%, compared to an effective tax rate of 11.8% in first quarter 2026 and 22% in second quarter 2025. The higher effective tax rate on a sequential basis was primarily due to the timing and amount of discrete tax benefits, mostly for share-based compensation. The year-over-year comparison was also affected by tax law changes from the One Big Beautiful Bill Act. Cash provided by operating activities was $131.8 million for second quarter 2026, while capital expenditures were $68.6 million. Managed working capital as a percent of annualized sales was 34.3% at the end of second quarter 2026, a decrease of 50 basis points compared to the end of first quarter 2026. In the second quarter 2026, the Company repurchased $50 million of its common stock at an average price per share of $159.53, retiring approximately 0.3 million shares. As of the end of second quarter 2026, total share repurchase authorization remaining was $495 million. ATI will conduct a conference call with investors and analysts on Thursday, August 6, 2026, at 8:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImaterials.com. To access the broadcast, click on "Conference Call." A replay of the conference call will be available on the ATI website.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages; (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 28, 2025, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a global producer of high performance materials and solutions for the global aerospace & defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.
ATI Inc.
Consolidated Statements of Operations
(Unaudited, dollars in millions, except per share amounts)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
June 28,
March 29,
June 29,
June 28,
June 29,
2026
2026
2025
2026
2025
Sales
$ 1,261.1
$ 1,151.5
$ 1,140.4
$ 2,412.6
$ 2,284.8
Cost of sales
951.3
888.6
897.9
1,839.9
1,806.5
Gross profit
309.8
262.9
242.5
572.7
478.3
Selling and administrative expenses
95.7
92.1
82.8
187.8
167.8
Restructuring (credits) charges
3.9
7.0
(1.3)
10.9
(1.3)
(Gain) loss on asset sales and sales of
businesses, net
(9.8)
—
—
(9.8)
3.9
Operating income
220.0
163.8
161.0
383.8
307.9
Nonoperating retirement benefit expense
(4.3)
(4.3)
(4.1)
(8.6)
(8.0)
Interest expense, net
(23.9)
(23.7)
(25.4)
(47.6)
(48.4)
Other income, net
1.1
0.8
1.8
1.9
3.3
Income before income taxes
192.9
136.6
133.3
329.5
254.8
Income tax provision
38.6
16.1
29.3
54.7
50.3
Net income
$ 154.3
$ 120.5
$ 104.0
$ 274.8
$ 204.5
Less: Net income attributable to noncontrolling
interests
3.3
2.3
3.3
5.6
6.8
Net income attributable to ATI
$ 151.0
$ 118.2
$ 100.7
$ 269.2
$ 197.7
Basic net income attributable to ATI per
common share
$ 1.11
$ 0.86
$ 0.72
$ 1.97
$ 1.40
Diluted net income attributable to ATI per
common share
$ 1.09
$ 0.85
$ 0.70
$ 1.94
$ 1.38
ATI Inc.
Selected Financial Data
(Unaudited, dollars in millions)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
June 28,
March 29,
June 29,
June 28,
June 29,
2026
2026
2025
2026
2025
Sales:
High Performance Materials & Components
$ 637.1
$ 614.3
$ 608.8
$ 1,251.4
$ 1,192.9
Advanced Alloys & Solutions
624.0
537.2
531.6
1,161.2
1,091.9
Total external sales
$ 1,261.1
$ 1,151.5
$ 1,140.4
$ 2,412.6
$ 2,284.8
Segment EBITDA(a):
High Performance Materials & Components
$ 153.5
$ 152.9
$ 144.0
$ 306.4
$ 275.0
% of Sales
24.1 %
24.9 %
23.7 %
24.5 %
23.1 %
Advanced Alloys & Solutions
147.6
97.0
76.7
244.6
160.1
% of Sales
23.7 %
18.1 %
14.4 %
21.1 %
14.7 %
Corporate, Closed Operations and Other (Income) Expense(b):
Corporate expense
$ 14.9
$ 17.0
$ 15.4
$ 31.9
$ 32.8
Closed operations and other (income) expense
1.8
1.2
(2.4)
3.0
—
Total Corporate, Closed Operations and
Other expense
$ 16.7
$ 18.2
$ 13.0
$ 34.9
$ 32.8
Depreciation & Amortization:
High Performance Materials & Components
$ 20.6
$ 19.6
$ 20.9
$ 40.2
$ 40.6
Advanced Alloys & Solutions
21.8
23.7
19.1
45.5
38.6
Other
1.6
1.7
1.6
3.3
3.2
Total depreciation & amortization
$ 44.0
$ 45.0
$ 41.6
$ 89.0
$ 82.4
Percentage of Total ATI Sales(c):
Nickel-based alloys and specialty alloys
51 %
49 %
48 %
50 %
48 %
Precision forgings, castings and components
18 %
20 %
21 %
19 %
21 %
Titanium and titanium-based alloys
15 %
17 %
17 %
16 %
18 %
Zirconium and related alloys
11 %
9 %
9 %
10 %
8 %
Precision rolled strip products
5 %
5 %
5 %
5 %
5 %
Total
100 %
100 %
100 %
100 %
100 %
(a) The Company's Chief Operating Decision Maker ("CODM") utilizes Segment EBITDA as a key metric to evaluate segment performance. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, unallocated corporate expenses, closed operations and other income (expense). See the Company's Form 10-Q for the reconciliation of Segment EBITDA to Income before taxes.
(c) Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation.
ATI Inc.
Condensed Consolidated Balance Sheets
(Unaudited, dollars in millions)
June 28,
December 28,
2026
2025
ASSETS
Current Assets:
Cash and cash equivalents
$ 783.0
$ 416.7
Accounts receivable, net of allowances for doubtful accounts
646.6
686.1
Short-term contract assets
95.9
72.8
Inventories, net
1,667.5
1,403.2
Prepaid expenses and other current assets
87.4
101.2
Total Current Assets
3,280.4
2,680.0
Property, plant and equipment, net
1,980.7
1,940.6
Goodwill
225.2
225.2
Other assets
252.6
253.8
Total Assets
$ 5,738.9
$ 5,099.6
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$ 656.6
$ 568.2
Accrued liabilities
208.9
240.5
Short-term contract liabilities
143.5
146.4
Short-term debt and current portion of long-term debt
383.6
31.1
Other current liabilities
17.1
20.1
Total Current Liabilities
1,409.7
1,006.3
Long-term debt
1,808.4
1,718.3
Accrued postretirement benefits
150.8
158.5
Pension liabilities
43.2
41.4
Other long-term liabilities
328.6
258.4
Total Liabilities
3,740.7
3,182.9
Total ATI stockholders' equity
1,876.7
1,804.5
Noncontrolling interests
121.5
112.2
Total Equity
1,998.2
1,916.7
Total Liabilities and Equity
$ 5,738.9
$ 5,099.6
ATI Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited, dollars in millions)
Fiscal Year-To-Date Period Ended
June 28,
June 29,
2026
2025
Operating Activities:
Net income
$ 274.8
$ 204.5
Depreciation and amortization
89.0
82.4
Non-cash restructuring charges, net
5.1
—
Share-based compensation
14.1
14.6
Deferred taxes
17.5
33.5
Net gain from disposal of property, plant and equipment
(9.8)
0.2
Net loss on sales of businesses
3.7
Changes in operating assets and liabilities:
Inventories
(266.0)
(50.6)
Accounts receivable
39.8
(71.9)
Accounts payable
90.2
(56.0)
Retirement benefits
(3.2)
(4.1)
Accrued liabilities and other
8.5
(87.3)
Cash provided by operating activities
260.0
69.0
Investing Activities:
Purchases of property, plant and equipment
(123.8)
(125.4)
Proceeds from disposal of property, plant and equipment
5.6
0.1
Proceeds from sales of businesses, net of transaction costs
1.4
2.0
Other
—
4.1
Cash used in investing activities
(116.8)
(119.2)
Financing Activities:
Proceeds from issuance of senior notes
450.0
—
Repayment of finance lease obligations
(16.7)
(16.3)
Net borrowings under international credit facilities
2.5
—
Debt issuance costs
(5.7)
—
Purchase of treasury stock
(125.0)
(320.0)
Taxes on share-based compensation and other
(81.7)
(29.5)
Cash provided by (used in) financing activities
223.4
(365.8)
Effect of exchange rate changes on cash and cash equivalents
(0.3)
14.4
Increase (decrease) in cash and cash equivalents
366.3
(401.6)
Cash and cash equivalents at beginning of period
416.7
721.2
Cash and cash equivalents at end of period
$ 783.0
$ 319.6
ATI Inc.
Revenue by Market
(Unaudited, dollars in millions)
Fiscal Quarter Ended
Fiscal Year-To-Date Period
Ended
June 28,
March 29,
June 29,
June 28,
June 29,
2026
2026
2025
2026
2025
Aerospace & Defense:
Jet Engines-
Commercial
$ 508.3
40 %
$ 472.0
41 %
$ 447.8
39 %
$ 980.3
41 %
$ 869.2
38 %
Airframes- Commercial
191.7
15 %
186.6
16 %
195.2
17 %
378.3
16 %
401.0
17 %
Defense
162.0
13 %
139.0
12 %
118.8
11 %
301.0
12 %
246.0
11 %
Total Aerospace &
Defense
862.0
68 %
797.6
69 %
761.8
67 %
1,659.6
69 %
1,516.2
66 %
Other Markets:
Specialty Energy
59.2
5 %
61.6
5 %
63.5
6 %
120.8
5 %
114.0
5 %
Electronics
38.2
3 %
28.3
3 %
43.7
4 %
66.5
3 %
83.3
4 %
Medical
23.0
2 %
27.5
3 %
38.9
3 %
50.5
2 %
81.3
4 %
Automotive
72.3
6 %
61.5
5 %
64.8
6 %
133.8
5 %
125.4
5 %
Conventional Energy
103.5
8 %
84.2
7 %
92.9
8 %
187.7
8 %
214.7
9 %
Construction/Mining
34.9
3 %
39.0
3 %
33.3
3 %
73.9
3 %
66.2
3 %
Other
68.0
5 %
51.8
5 %
41.5
3 %
119.8
5 %
83.7
4 %
Total Other Markets
$ 399.1
32 %
$ 353.9
31 %
$ 378.6
33 %
$ 753.0
31 %
$ 768.6
34 %
Total
$ 1,261.1
100 %
$ 1,151.5
100 %
$ 1,140.4
100 %
$ 2,412.6
100 %
$ 2,284.8
100 %
ATI Inc.
Computation of Basic and Diluted Earnings Per Share Attributable to ATI
(Unaudited, dollars in millions, except per share amounts)
Fiscal Quarter Ended
Fiscal Year-To-Date
Period Ended
June 28,
March 29,
June 29,
June 28,
June 29,
2026
2026
2025
2026
2025
Numerator for Basic net income per common share -
Net income attributable to ATI
$ 151.0
$ 118.2
$ 100.7
$ 269.2
$ 197.7
Denominator for Basic net income per common share -
Weighted average shares outstanding
136.3
136.7
139.8
136.5
140.7
Effect of dilutive securities:
Share-based compensation
2.0
1.9
3.3
2.0
3.0
Denominator for Diluted net income per common
share -
Adjusted weighted average shares and assumed
conversions
138.3
138.6
143.1
138.5
143.7
Basic net income attributable to ATI per common share
$ 1.11
$ 0.86
$ 0.72
$ 1.97
$ 1.40
Diluted net income attributable to ATI per common
share
$ 1.09
$ 0.85
$ 0.70
$ 1.94
$ 1.38
ATI Inc.
Non-GAAP Financial Measures
(Unaudited, dollars in millions, except per share amounts)
The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). This report includes financial performance measures that are not defined by GAAP, including Adjusted net income attributable to ATI, Adjusted EPS, Adjusted EBITDA, Segment EBITDA, Adjusted free cash flow and Managed working capital. The Company uses these non-GAAP financial measures to assist in assessing operating performance on a consistent basis across multiple reporting periods by removing the impact of special items, which can vary from period to period, that management does not believe are directly reflective of the Company's core operations. The Company defines special items as significant non-recurring or non-operational charges or credits, restructuring and other charges/credits, gains or losses from the sale of accounts receivable, strike related costs, goodwill and long-lived asset impairments, debt extinguishment charges, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on sales of businesses.
Adjusted net income attributable to ATI and related Adjusted EPS are calculated by adjusting net income attributable to ATI for the tax-effected impact of special items. We define Adjusted EBITDA as net income, excluding net interest expense, income taxes, depreciation and amortization, and special items. Our measure of segment EBITDA, which we use to analyze the performance and results of our business segments, excludes net interest expense, income taxes, depreciation and amortization, special charges, corporate expenses, closed operations and other income (expense). Our methods of calculating Adjusted free cash flow and Managed working capital are discussed in greater detail below under the headings "Adjusted Free Cash Flow" and "Managed Working Capital," respectively.
Management believes presenting these non-GAAP financial measures is useful to investors because it (1) provides investors with meaningful supplemental information regarding financial and operating performance by excluding certain items management believes do not directly impact the Company's core operations, (2) permits investors to view performance using the same metrics that management uses to forecast, evaluate performance, and make operating and strategic decisions, and (3) provides additional information on a period-to-period consistent basis using measures commonly used to analyze companies' operating performance. Management believes that consideration of these non-GAAP financial measures, together with our GAAP financial measures and the corresponding reconciliations, provides investors with a better understanding of the Company's performance and trends that would be absent such disclosures.
Non-GAAP financial measures should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP. The following tables provide the calculation of the non-GAAP financial measures discussed in this press release:
Net Income Attributable to ATI
Fiscal Quarter Ended
June 28, 2026
March 29, 2026
June 29, 2025
EPS
EPS
EPS
Net income attributable to ATI
$ 151.0
$ 1.09
$ 118.2
$ 0.85
$ 100.7
$ 0.70
Adjustments for special items, pre-tax:
Restructuring and other charges(a)
23.6
26.4
7.4
Pension remeasurement loss(b)
—
—
—
Loss (gain) on sales of businesses(c)
—
—
—
Total pre-tax adjustments for special items
23.6
0.17
26.4
0.19
7.4
0.05
Income tax on adjustments for special items
(4.9)
(0.03)
(5.4)
(0.04)
(1.7)
(0.01)
Adjusted Net income attributable to ATI
$ 169.7
$ 1.23
$ 139.2
$ 1.00
$ 106.4
$ 0.74
Earnings before interest, taxes, depreciation and amortization
(EBITDA)
Fiscal Quarter Ended
June 28, 2026
March 29, 2026
June 29, 2025
Net income attributable to ATI
$ 151.0
$ 118.2
$ 100.7
Net income attributable to noncontrolling
interests
3.3
2.3
3.3
Net income
154.3
120.5
104.0
(+) Depreciation and amortization
44.0
45.0
41.6
(+) Interest expense
23.9
23.7
25.4
(+) Income tax provision
38.6
16.1
29.3
EBITDA
260.8
205.3
200.3
Adjustments for special items, pre-tax:
(+) Restructuring and other charges(a)
23.6
26.4
7.4
(+) Pension remeasurement loss(b)
—
—
—
(+/-) Loss (gain) on sales of businesses(c)
—
—
—
Adjusted EBITDA
$ 284.4
$ 231.7
$ 207.7
(a) Second quarter 2026 includes pre-tax charges of $23.6 million consisting of $10.1 million of start-up and transaction-related costs, $7.0 million of transformation-related costs, $3.9 million of restructuring-related costs for severance and facility rationalization activities, and $2.6 million of losses on the sale of customer accounts receivable. First quarter 2026 includes pre-tax charges of $26.4 million consisting of $11.1 million of start-up and transaction-related costs, $8.1 million of restructuring-related severance and impairment costs primarily due to facility rationalization activities, $4.8 million of transformation-related costs, and $2.4 million of losses on the sale of customer accounts receivable. Second quarter 2025 includes pre-tax charges of $7.4 million primarily for start-up and transaction-related costs.
Adjusted Free Cash Flow
Management uses a non-GAAP measure, Adjusted free cash flow, to assess the cash flow generation of the Company's operations. Adjusted free cash flow is defined as the total cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company's U.S. qualified defined benefit pension plan.
Management utilizes this measure to assess the cash flow generation performance of its business as it excludes cash contributions to the Company's U.S. qualified defined benefit pension plan that are periodic rather than recurring. The impact of cash generated from the sale of assets and non-core businesses is included in the measure as the proceeds of such transactions are considered by Management in setting capital budgets to fund capital expenditures. Management believes this measure provides investors with additional meaningful insights as to the Company's ability to generate cash in excess of operational and investing needs. Adjusted free cash flow is not intended to be a measure of free cash flow for management's discretionary use, as it does not consider certain cash requirements such as interest, tax, or other contractually required payments. Further, adjusted free cash flow should be viewed in addition to, and not superior to or as an alternative for, the Company's reported results prepared in accordance with GAAP.
Fiscal Quarter Ended
Fiscal Year-To-Date Period
Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Cash provided by operating activities
$ 131.8
$ 161.5
$ 260.0
$ 69.0
Add back: Cash contributions to U.S.
qualified defined benefit pension plan
—
—
—
—
Cash provided by operating activities
excluding pension contributions
131.8
161.5
260.0
69.0
Cash used in investing activities
(63.2)
(68.6)
(116.8)
(119.2)
Adjusted Free Cash Flow
$ 68.6
$ 92.9
$ 143.2
$ (50.2)
Managed Working Capital
As part of managing the performance of our business, we focus on Managed working capital, a non-GAAP financial measure that we define as gross accounts receivable, short-term contract assets and gross inventories, excluding the effects of reserves for uncollectible accounts receivable and inventory valuation reserves, less accounts payable and short-term contract liabilities. We assess Managed working capital performance as a percentage of the prior three months' annualized sales. Managed working capital is not intended to replace working capital or other GAAP financial measures or to be used as a measure of liquidity.
Management believes this non-GAAP financial measure focuses on the assets and liabilities most closely attributable to our core operations, allowing Management to quantify and evaluate the asset intensity of our business. Further, Management believes this non-GAAP financial measure provides investors with additional insights into the Company's effectiveness in balancing the need to maintain appropriate asset levels to support sales growth and operations while deploying our cash effectively.
ESAB oznámila rekordní tržby za 2. čtvrtletí ve výši 808 milionů USD, meziročně o 12,9 %. Zároveň zvýšila celoroční výhled růstu tržeb v jádrovém vyjádření na 11,0 % až 14,0 %.
NORTH BETHESDA, Md.--(BUSINESS WIRE)--ESAB Corporation (“ESAB” or the “Company”) (NYSE: ESAB), a focused premier industrial compounder, today announced financial results for the second quarter of 2026.
ESAB reported record second quarter sales of $808 million, an increase of 12.9% on a reported basis or an increase of 2.5% on a core organic growth basis before acquisitions and currency translation, as compared to the prior year quarter. ESAB also reported second quarter net income from continuing operations attributable to ESAB of $35 million or $0.54 diluted earnings per share and core adjusted net income of $83 million or $1.33 diluted earnings per share, down 1% on a year-over-year basis. Core adjusted EBITDA of $150 million rose 8.0% and core adjusted EBITDA margin decreased by 90 basis points on a year-over-year basis to 19.5%, reflecting transitory price/cost neutrality, and targeted commercial investments for equipment growth.
"ESAB delivered a record second quarter, with a solid return to organic growth in both regions, underscoring the strength of our platform even in a challenging macro environment. These results reflect the strength of our teams and the value of our unrivaled workflow solution that addresses our customers' most complex issues. Despite a challenging environment in the Middle East, our performance exceeded expectations, with particular strength in North America and Asia and a resilient Europe. We expect to mitigate the transitory cost inflation related to logistics and commodity price increases over the next few quarters," said Shyam P. Kambeyanda, ESAB President and CEO.
"We are also pleased to have closed our acquisition of Eddyfi one month ahead of schedule," Kambeyanda added. "This is a defining step in our strategy to extend our workflow solutions into compelling new adjacencies that shape ESAB into a higher-growth, higher-margin enterprise. Our performance this quarter reaffirms my full confidence in achieving our long-term financial targets as we continue to focus on organic growth, margin expansion, and deleveraging the business to create sustainable, long-term shareholder value."
Updating Full Year 2026 Outlook
ESAB has updated its full-year 2026 outlook, which now projects total core sales growth of 11.0% to 14.0%, an increase from the previous guidance of 6.0% to 9.0%. Within this growth, core organic sales remains 2.0% to 4.0%, while the contribution from M&A has been revised upward to approximately 9.0% from 4.0%, and the anticipated FX impact has remained the same with the prior range of 0.0% to 1.0%. Consequently, the company has raised its core adjusted EBITDA forecast to a range of $615 million to $625 million, up from the previous $575 million to $595 million, while the outlook for core adjusted EPS has been adjusted to a range of $5.40 to $5.50.
About ESAB Corporation
Founded in 1904, ESAB Corporation is a focused industrial compounder. The Company’s rich history of innovative products, workflow solutions and its business system ESAB Business Excellence (“EBXai”), enables the Company’s purpose of Shaping the world we imagineTM. ESAB Corporation is based in North Bethesda, Maryland and employs approximately 11,300 associates and serves customers in approximately 150 countries. To learn more, visit www.ESABcorporation.com.
Conference Call and Webcast
The Company will hold a conference call to discuss its second quarter 2026 results beginning at 8:00 a.m. Eastern on Thursday, August 6, 2026, which will be open to the public by calling +1-833-461-5787 (U.S. callers) and +1-585-542-9983 (International callers) and referencing the conference ID number 503859747 and through webcast via ESAB’s website www.ESABcorporation.com under the “Investors” section. Access to a supplemental slide presentation can also be found on ESAB's website under the same heading. Both the audio of this call and the slide presentation will be archived on the website later today and will be available until the next quarterly call. The Company’s quarterly report on Form 10-Q for the fiscal quarter ended July 3, 2026, filed August 6, 2026, is also available on ESAB’s website under the “Investors” section.
Non-GAAP Financial Measures and Other Adjustments
ESAB has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the United States (“non-GAAP”). ESAB presents some of these non-GAAP financial measures including and excluding Russia due to economic and political volatility caused by the war in Ukraine, which results in enhanced investor interest in this information. Core non-GAAP financial measures exclude Russia for the three and six months ended July 3, 2026 and July 4, 2025. These non-GAAP financial measures may include one or more of the following: adjusted net income from continuing operations, Core adjusted net income from continuing operations, adjusted EBITDA (earnings before interest, taxes, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value step up on acquired inventories, depreciation and other amortization and compensation expense related to the Performance Option Awards), Core adjusted EBITDA, organic sales, Core organic sales, adjusted free cash flow and ratios based on the foregoing measures. ESAB also provides adjusted EBITDA and adjusted EBITDA margin on a segment basis, as well as Core adjusted EBITDA and Core adjusted EBITDA margin on a segment basis.
Adjusted net income from continuing operations represents Net income from continuing operations attributable to ESAB Corporation, excluding Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value step up on acquired inventories and compensation expense related to the Performance Option Awards. Adjusted net income, includes the tax effect of non-GAAP adjusting items at applicable tax rates and excludes the impact of discrete tax charges or gains in each period. ESAB also presents adjusted net income margin from continuing operations, which is subject to the same adjustments as adjusted net income from continuing operations. Adjusted net income per diluted share from continuing operations is a calculation of adjusted net income from continuing operations over the weighted-average diluted shares outstanding. ESAB also presents Core adjusted net income from continuing operations and Core adjusted net income per share - diluted from continuing operations, which are subject to the same adjustments as Adjusted net income from continuing operations and Adjusted net income per diluted share from continuing operations, further removing the impact of Russia for the three and six months ended July 3, 2026 and July 4, 2025. We present the earnings per share-related non-GAAP measures on a basis that assumes the MCPS had already been converted as of the beginning of the applicable period (and accordingly also exclude the dividends accrued on the MCPS during such period, since such dividends would no longer be paid once the MCPS convert). We believe this presentation provides useful information to investors by helping them understand what the net impact will be on ESAB’s earnings per share - related measures once the MCPS convert into ESAB’s common stock.
Adjusted EBITDA excludes from Net income from continuing operations the effect of Income tax expense, Interest expense and other, net, Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value step up on acquired inventories, depreciation and other amortization and compensation expense related to the Performance Option Awards. ESAB presents adjusted EBITDA margin, which is subject to the same adjustments as adjusted EBITDA. Further, ESAB presents these non-GAAP performance measures on a segment basis, which excludes the impact of Restructuring and other related charges, acquisition transaction, due diligence and integration expenses, amortization of intangibles and fair value step up on acquired inventories, depreciation and other amortization and compensation expense related to the Performance Option Awards from operating income. ESAB also presents Core adjusted EBITDA and Core adjusted EBITDA margin, which are subject to the same adjustments as Adjusted EBITDA and Adjusted EBITDA margin, respectively, further removing the impact of Russia for the three and six months ended July 3, 2026 and July 4, 2025.
ESAB presents organic sales, which excludes the impact of acquisitions and foreign exchange rate fluctuations and presents core organic sales, which further excludes the impact of the Russia business for the three and six months ended July 3, 2026 and July 4, 2025.
Adjusted free cash flow represents cash flows from operating activities excluding cash outflows related to discontinued operations and acquisition-related payments less purchases of property, plant and equipment.
These non-GAAP financial measures assist ESAB management in comparing its operating performance over time because certain items may obscure underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to unusual events or discrete restructuring plans and other initiatives that are fundamentally different from the ongoing productivity and core business of the Company.
ESAB management also believes that presenting these measures allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of non-GAAP financial measures presented above to GAAP results has been provided in the financial tables included in this press release.
Forward-Looking Statements
This press release includes forward-looking statements, including forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning the Company’s plans, goals, objectives, outlook, expectations, and intentions, and other statements that are not historical or current fact. Forward-looking statements are based on the Company’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements, including general risks and uncertainties such as market conditions, economic conditions, geopolitical events, changes in laws, regulations or accounting rules, fluctuations in interest rates, terrorism, wars or conflicts, major health concerns, natural disasters or other disruptions of expected business conditions. Factors that could cause the Company’s results to differ materially from current expectations include, but are not limited to, risks related to the impact of the war in Ukraine and the conflict in the Middle East and the resulting escalating geopolitical tensions; impact of supply chain disruptions; the impact of creditworthiness and financial viability of customers; impact of inflationary pressures, tariffs and trade policies, foreign exchange fluctuations and commodity prices; other impacts on the Company’s business and ability to execute business continuity plans; and the other factors detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 20, 2026, and the Form 10-Q for the quarterly period ended April 3, 2026 filed with the SEC on May 7, 2026, as well as other risks discussed in the Company’s filings with the SEC. In addition, these statements are based on assumptions that are subject to change. This press release speaks only as of the date hereof. The Company disclaims any duty to update the information herein.
ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF OPERATIONS
Dollars in thousands, except per share data
(Unaudited)
Three Months Ended
Six Months Ended
July 3, 2026
July 4, 2025
July 3, 2026
July 4, 2025
Net sales
$
807,627
$
715,586
$
1,553,224
$
1,393,724
Cost of sales
500,416
449,539
970,901
872,475
Gross profit
307,211
266,047
582,323
521,249
Selling, general and administrative expense
210,169
155,563
384,641
296,421
Restructuring and other related charges
18,317
1,390
28,478
5,889
Operating income
78,725
109,094
169,204
218,939
Interest expense and other, net
30,623
20,999
56,200
37,781
Income from continuing operations before income taxes
48,102
88,095
113,004
181,158
Income tax expense
11,701
18,283
24,812
38,782
Net income from continuing operations
36,401
69,812
88,192
142,376
Loss from discontinued operations, net of taxes
(2,413
)
(1,708
)
(4,967
)
(4,440
)
Net income
33,988
68,104
83,225
137,936
Income attributable to noncontrolling interest, net of taxes
(1,634
)
(1,221
)
(3,227
)
(3,690
)
Net income attributable to ESAB Corporation
32,354
66,883
79,998
134,246
Mandatory convertible preferred stock dividends
(1,390
)
—
(1,390
)
—
Net income attributable to common stockholders
$
30,964
$
66,883
$
78,608
$
134,246
Earnings (loss) per share – basic
Income from continuing operations
$
0.54
$
1.13
$
1.36
$
2.28
Loss on discontinued operations
(0.04
)
(0.03
)
(0.08
)
(0.07
)
Net income per share – basic
$
0.50
$
1.10
$
1.28
$
2.21
Earnings (loss) per share – diluted
Income from continuing operations
$
0.54
$
1.12
$
1.35
$
2.26
Loss on discontinued operations
(0.04
)
(0.03
)
(0.08
)
(0.07
)
Net income per share – diluted
$
0.50
$
1.09
$
1.27
$
2.19
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions, except per share data
(Unaudited)
Three Months Ended(1)
Six Months Ended(1)
July 3, 2026
July 4, 2025
July 3, 2026
July 4, 2025
Adjusted Net Income
Net income from continuing operations (GAAP)
$
36.4
$
69.8
$
88.2
$
142.4
Income attributable to noncontrolling interest, net of taxes
(1.6
)
(1.2
)
(3.2
)
(3.7
)
MCPS dividends
(1.4
)
—
(1.4
)
—
Net income from continuing operations attributable to ESAB Corporation (GAAP)
33.4
68.6
83.6
138.7
Restructuring and other related charges – pretax(2)
18.3
1.4
28.5
5.9
Acquisition-amortization and other related charges – pretax(3)
41.3
21.6
68.9
31.2
Performance option awards compensation expense(4)
0.7
—
0.7
—
Tax effect on above items(5)
(14.8
)
(5.3
)
(23.7
)
(8.8
)
Discrete tax adjustments(6)
3.8
—
3.8
—
MCPS dividends assuming "if-converted" method(7)
1.4
—
1.4
—
Adjusted net income from continuing operations (non-GAAP)
84.1
86.3
163.1
166.9
Adjusted net income from continuing operations attributable to Russia (non-GAAP)(8)
(1.3
)
(2.3
)
0.2
(6.0
)
Core adjusted net income from continuing operations (non-GAAP)
$
82.8
$
84.0
$
163.2
$
160.9
Adjusted net income margin from continuing operations
10.4
%
12.0
%
10.5
%
12.0
%
Adjusted Net Income Per Share
Net income per share – diluted from continuing operations (GAAP)
$
0.54
$
1.12
$
1.35
$
2.26
Restructuring and other related charges – pretax(2)
0.29
0.02
0.46
0.10
Acquisition-amortization and other related charges – pretax(3)
0.66
0.35
1.12
0.51
Performance option awards compensation expense(4)
0.01
—
0.01
—
Tax effect on above items(5)
(0.24
)
(0.09
)
(0.38
)
(0.14
)
Discrete tax adjustments(6)
0.06
—
0.06
—
MCPS dividends assuming "if-converted" method(7)
0.02
—
0.02
—
Adjusted net income per share – diluted from continuing operations (non-GAAP)
1.35
1.40
2.64
2.72
Adjusted net income per share – diluted from continuing operations attributable to Russia (non-GAAP)(8)
(0.02
)
(0.04
)
—
(0.10
)
Core adjusted net income per share – diluted from continuing operations (non-GAAP)
$
1.33
$
1.36
$
2.64
$
2.62
__________
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets, costs associated with disposing of discontinued products and other costs in connection with the closure and optimization of facilities and product lines.
(3)
Includes transaction, diligence and integration expenses totaling $24.8 million and $35.1 million for the three and six months ended July 3, 2026, respectively, and $12.8 million and $14.2 million for the three and six months ended July 4, 2025, respectively. Additionally, it includes amortization of intangibles and fair value step up on acquired inventories totaling $16.5 million and $29.0 million for the three and six months ended July 3, 2026, respectively, and $8.8 million and $17.0 million for the three and six months ended July 4, 2025, respectively. Additionally, includes $4.8 million of bridge loan commitment fees related to the Eddyfi Technologies acquisition for the six months ended July 3, 2026.
(4)
Represents the impact of the Performance Option Awards granted in June and July 2026. These awards were non-cash, one-time, non-recurring grants with a different structure and size than the Company’s annual equity compensation program.
(5)
This line item reflects the aggregate tax effect of all non-tax adjustments reflected in the preceding line items of the table. ESAB estimates the tax effect of each adjustment by applying ESAB’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. The MCPS dividends are not tax deductible and therefore the tax effect of the adjustments reflected in the table above does not include any tax impact of the MCPS dividends.
(6)
For 2026, discrete adjustments relate to tax effects from the Eddyfi transaction.
(7)
In June 2026, the Company issued $175.0 million in aggregate liquidation preference of the MCPS. Dividends on the MCPS are payable on a cumulative basis at an annual rate of 6.50% on the liquidation preference of $1,000 per share. Unless earlier converted, each share of MCPS will automatically convert on approximately June 2029 into between 7.1806 and 8.2576 shares of ESAB's common stock, subject to further anti-dilution adjustments. The number of shares of ESAB's common stock issuable on conversion of the MCPS will be determined based on the volume weighted average price ("VWAP") per share of the Company's common stock over the 20 consecutive trading day period commencing on, and including, the 21st scheduled trading day immediately preceding the final dividend payment date. For the purposes of calculating adjusted net income per share, the Company has excluded the paid and anticipated MCPS cash dividends and assumed the 'if-converted' method of share dilution (the incremental shares of common stock deemed outstanding applying the 'if-converted' method of calculating share dilution are referred to as the 'Converted Shares'). Under this method, approximately 0.5 million and 0.3 million Converted Shares were included in weighted average diluted shares outstanding for the three and six months ended July 3, 2026, respectively. We believe this presentation provides useful information to investors by helping them understand what the net impact will be on ESAB’s earnings per share - related measures once the MCPS convert into ESAB’s common stock.
(8)
Numbers calculated following the same definition as Adjusted net income from continuing operations for total Company.
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)
Three Months Ended July 3, 2026(1)
Six Months Ended July 3, 2026(1)
Americas
EMEA &
APAC
Total
Americas
EMEA &
APAC
Total
Net income from continuing operations (GAAP)
$
36.4
$
88.2
Income tax expense
11.7
24.8
Interest expense and other, net
30.6
56.2
Operating income (GAAP)
$
22.5
$
56.2
$
78.7
$
57.7
$
111.5
$
169.2
Adjusted to add
Restructuring and other related charges(2)
18.3
—
18.3
27.3
1.2
28.5
Acquisition-amortization and other related charges(3)
18.2
23.1
41.3
25.9
38.3
64.1
Depreciation and other amortization
4.7
7.6
12.3
9.0
16.5
25.5
Performance option awards compensation expense(4)
0.3
0.4
0.7
0.3
0.4
0.7
Adjusted EBITDA (non-GAAP)
64.0
87.3
151.4
120.0
167.9
287.9
Adjusted EBITDA attributable to Russia (non-GAAP)(5)
—
1.8
1.8
—
2.5
2.5
Core adjusted EBITDA (non-GAAP)
$
64.0
$
85.5
$
149.6
$
120.0
$
165.4
$
285.5
Adjusted EBITDA margin (non-GAAP)
20.3
%
17.8
%
18.7
%
19.9
%
17.7
%
18.5
%
Core adjusted EBITDA margin (non-GAAP)(6)
20.3
%
19.0
%
19.5
%
19.9
%
18.8
%
19.3
%
__________
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets, costs associated with disposing of discontinued products and other costs in connection with the closure and optimization of facilities and product lines.
(3)
Includes transaction, diligence and integration expenses totaling $24.8 million and $35.1 million for the three and six months ended July 3, 2026, respectively, and amortization of intangibles and fair value step up on acquired inventories totaling $16.5 million and $29.0 million for the three and six months ended July 3, 2026, respectively.
(4)
Represents the impact of the Performance Option Awards granted in June and July 2026. These awards were non-cash, one-time, non-recurring grants with a different structure and size than the Company’s annual equity compensation program.
(5)
Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(6)
Net sales were $41.4 million and $72.5 million relating to Russia for the three and six months ended July 3, 2026, respectively.
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Dollars in millions
(Unaudited)
Three Months Ended July 4, 2025(1)
Six Months Ended July 4, 2025(1)
Americas
EMEA &
APAC
Total
Americas
EMEA &
APAC
Total
Net income from continuing operations (GAAP)
$
69.8
$
142.4
Income tax expense
18.3
38.8
Interest expense and other, net
21.0
37.8
Operating income (GAAP)
$
42.4
$
66.7
$
109.1
$
85.7
$
133.3
$
218.9
Adjusted to add
Restructuring and other related charges(2)
0.5
0.9
1.4
2.2
3.7
5.9
Acquisition-amortization and other related charges(3)
10.0
11.5
21.6
15.7
15.5
31.2
Depreciation and other amortization
3.8
7.6
11.4
7.7
13.6
21.4
Adjusted EBITDA (non-GAAP)
56.8
86.7
143.5
111.3
166.1
277.4
Adjusted EBITDA attributable to Russia (non-GAAP)(4)
—
5.0
5.0
—
11.0
11.0
Core adjusted EBITDA (non-GAAP)
$
56.8
$
81.7
$
138.5
$
111.3
$
155.1
$
266.4
Adjusted EBITDA margin (non-GAAP)
20.1
%
20.0
%
20.1
%
19.8
%
20.0
%
19.9
%
Core adjusted EBITDA margin (non-GAAP)(5)
20.1
%
20.6
%
20.4
%
19.8
%
20.4
%
20.1
%
(1)
Numbers may not sum due to rounding.
(2)
Includes severance and other termination benefits, including outplacement services as well as the cost of relocating associates, relocating equipment, lease termination expenses, impairment of long-lived assets and other costs in connection with the closure and optimization of facilities and product lines.
(3)
Includes transaction, diligence and integration expenses totaling $12.8 million and $14.2 million for the three and six months ended July 4, 2025, respectively, and amortization of intangibles and fair value step up on acquired inventories totaling $8.8 million and $17.0 million for the three and six months ended July 4, 2025, respectively.
(4)
Numbers calculated following the same definition as Adjusted EBITDA for total Company.
(5)
Net sales were $37.1 million and $68.4 million relating to Russia for the three and six months ended July 4, 2025, respectively.
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Net Sales
Dollars in millions
(Unaudited)
Net Sales(1)
Americas
EMEA & APAC
Total
$
Change %
$
Change %
$
Change %
For the three months ended July 4, 2025
$
282.7
$
432.9
$
715.6
Components of Change:
Existing businesses (organic sales)(2)
13.9
4.9
%
4.0
0.9
%
17.9
2.5
%
Acquisitions(3)
9.6
3.4
%
46.0
10.6
%
55.5
7.8
%
Foreign currency translation(4)
9.7
3.4
%
8.9
2.1
%
18.6
2.6
%
Total Net sales growth
33.2
11.7
%
58.9
13.6
%
92.0
12.9
%
For the three months ended July 3, 2026
$
315.9
$
491.7
$
807.6
(1)
Numbers may not sum due to rounding
(2)
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3)
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4)
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
Core Sales(1)(5)
Americas
EMEA & APAC
Total
$
Change %
$
Change %
$
Change %
For the three months ended July 4, 2025
$
282.7
$
395.7
$
678.5
Components of Change:
Existing businesses (core organic sales)(2)
13.9
4.9
%
2.8
0.7
%
16.8
2.5
%
Acquisitions(3)
9.6
3.4
%
46.0
11.6
%
55.5
8.2
%
Foreign currency translation(4)
9.7
3.4
%
5.9
1.5
%
15.5
2.3
%
Total Core sales growth
33.2
11.7
%
54.6
13.8
%
87.8
12.9
%
For the three months ended July 3, 2026
$
315.9
$
450.4
$
766.3
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3)
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4)
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5)
Represents sales excluding Russia for the three months ended July 3, 2026 and July 4, 2025.
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Change in Net Sales Dollars in millions (Unaudited)
Net Sales(1)
Americas
EMEA & APAC
Total
$
Change %
$
Change %
$
Change %
For the six months ended July 4, 2025
$
563.4
$
830.3
$
1,393.7
Components of Change:
Existing businesses (organic sales)(2)
11.8
2.1
%
(6.5
)
(0.8
)%
5.3
0.4
%
Acquisitions(3)
9.6
1.7
%
88.8
10.7
%
98.3
7.1
%
Foreign currency translation(4)
19.5
3.5
%
36.4
4.4
%
55.9
4.0
%
Total Net sales growth
40.9
7.3
%
118.6
14.3
%
159.5
11.4
%
For the six months ended July 3, 2026
$
604.2
$
949.0
$
1,553.2
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3)
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4)
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
Core Sales(1)(5)
Americas
EMEA & APAC
Total
$
Change %
$
Change %
$
Change %
For the six months ended July 4, 2025
$
563.4
$
761.9
$
1,325.3
Components of Change:
Existing businesses (core organic sales)(2)
11.8
2.1
%
(2.5
)
(0.3
)%
9.3
0.7
%
Acquisitions(3)
9.6
1.7
%
88.8
11.7
%
98.3
7.4
%
Foreign currency translation(4)
19.5
3.5
%
28.3
3.7
%
47.8
3.6
%
Total Core sales growth
40.9
7.3
%
114.6
15.0
%
155.4
11.7
%
For the six months ended July 3, 2026
$
604.2
$
876.5
$
1,480.8
(1)
Numbers may not sum due to rounding.
(2)
Excludes the impact of acquisitions and foreign exchange rate fluctuations, thus providing a measure of change due to organic growth factors such as price, product mix and volume.
(3)
Represents the incremental sales in comparison to the portion of the prior period during which we did not own the business.
(4)
Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year sales valued at current year foreign exchange rates.
(5)
Represents sales excluding Russia for the six months ended July 3, 2026 and July 4, 2025.
ESAB CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Adjusted Free Cash Flow
Dollars in millions
(Unaudited)
Three Months Ended
Six Months Ended
July 3, 2026
July 4, 2025
July 3, 2026
July 4, 2025
Net cash provided by operating activities (GAAP)
$
33.4
$
46.6
$
80.3
$
82.0
Purchases of property, plant and equipment (GAAP)
(17.7
)
(9.2
)
(31.4
)
(16.5
)
Payments related to discontinued operations
7.5
4.9
11.8
7.2
Acquisition-related payments(1)
18.2
4.0
20.2
4.0
Adjusted free cash flow (non-GAAP)(2)
$
41.4
$
46.4
$
80.9
$
76.8
ESAB CORPORATION
2026 Outlook
Dollars in millions, except per share amounts
(Unaudited)
ESAB 2026 Outlook
Previous Guidance(1)
New Guidance
2025 Core net sales
$
2,700.4
$
2,700.4
Organic growth
2.0% - 4.0%
2.0% - 4.0%
Acquisitions
~4.0%
~9.0%
Currency
0.0% - 1.0%
0.0% - 1.0%
2026 Core net sales growth range
6.0% - 9.0%
11.0% - 14.0%
2025 Core adjusted EBITDA
$
540.0
$
540.0
2026 Core adjusted EBITDA range
$575 - $595
$615 - $625
2025 Core adjusted EPS
$
5.27
$
5.27
2026 Core adjusted EPS range
$5.70 - $5.90
$5.40 - $5.50
ESAB CORPORATION
CONSOLIDATED AND CONDENSED BALANCE SHEETS
Dollars in thousands, except share and per share amounts
(Unaudited)
July 3, 2026
December 31, 2025
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
217,491
$
185,863
Trade receivables, less allowance for credit losses of $22,538 and $21,765
554,147
451,298
Inventories, net
581,541
481,765
Prepaid expenses
84,482
66,103
Other current assets
90,802
76,876
Total current assets
1,528,463
1,261,905
Property, plant and equipment, net
389,848
381,876
Goodwill
2,746,209
1,949,702
Intangible assets, net
1,372,088
673,006
Lease assets - right of use
143,382
113,310
Other assets
382,621
386,295
Total assets
$
6,562,611
$
4,766,094
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current portion of debt
$
5,940
$
2,412
Accounts payable
407,428
360,391
Accrued liabilities
365,639
301,986
Total current liabilities
779,007
664,789
Long-term debt
2,391,350
1,232,540
Other liabilities
808,037
657,236
Total liabilities
3,978,394
2,554,565
Equity:
Preferred stock, $0.001 par value, 20,000,000 shares authorized:
6.50% Series A Mandatory Convertible Preferred Stock , 175,000 shares issued and outstanding at July 3, 2026; no shares issued or outstanding at December 31, 2025
171,097
—
Common stock - $0.001 par value - 600,000,000 shares authorized, 62,167,669 and 60,721,079 shares outstanding as of July 3, 2026 and December 31, 2025, respectively
62
61
Additional paid-in capital
2,049,885
1,904,889
Retained earnings
865,809
800,806
Accumulated other comprehensive loss
(548,172
)
(539,716
)
Total ESAB Corporation equity
2,538,681
2,166,040
Noncontrolling interest
45,536
45,489
Total equity
2,584,217
2,211,529
Total liabilities and equity
$
6,562,611
$
4,766,094
ESAB CORPORATION
CONSOLIDATED AND CONDENSED STATEMENTS OF CASH FLOWS
Dollars in thousands
(Unaudited)
Six Months Ended
July 3, 2026
July 4, 2025
Cash flows from operating activities:
Net income
$
83,225
$
137,936
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other impairment charges
51,736
36,846
Net gain on sale of property, plant and equipment
(60
)
(5,703
)
Stock-based compensation expense
10,382
9,900
Deferred income tax benefit
(15,183
)
(6,761
)
Amortization of debt issuance costs
7,304
1,255
Changes in operating assets and liabilities:
Trade receivables, net
(39,541
)
(49,161
)
Inventories, net
(51,522
)
(37,407
)
Accounts payable
36,345
23,183
Other operating assets and liabilities
(2,348
)
(28,051
)
Net cash provided by operating activities
80,338
82,037
Cash flows from investing activities:
Purchases of property, plant and equipment
(31,448
)
(16,474
)
Proceeds from sale of property, plant and equipment
359
4,732
Acquisitions, net of cash received
(1,469,372
)
(86,252
)
Other investing
—
(500
)
Net cash used in investing activities
(1,500,461
)
(98,494
)
Cash flows from financing activities:
Proceeds from issuance of Preferred Stock, net
171,097
—
Proceeds from issuance of Common Stock, net
139,796
—
Proceeds from borrowings on Senior Notes
1,000,000
—
Repayments of borrowings on Term Loans
—
(5,000
)
Proceeds from borrowings on revolving credit facilities and other
904,267
8,674
Repayments of borrowings on revolving credit facilities and other
(730,816
)
—
Payment of debt issuance costs
(17,813
)
—
Payment of dividends
(12,201
)
(9,729
)
Distributions to noncontrolling interest holders
(1,117
)
(1,174
)
Other financing
(5,198
)
(12,418
)
Net cash provided by (used in) financing activities
1,448,015
(19,647
)
Effect of foreign exchange rates on Cash and cash equivalents
Frontdoor ve 2. čtvrtletí zvýšil tržby o 5 % na 645 mil. USD a čistý zisk o 13 % na 125 mil. USD. Zároveň upravil celoroční výhled tržeb na 2,19 až 2,21 mld. USD i Adjusted EBITDA na 585 až 600 mil. USD.
EPS(1) and Adjusted EPS(1),(2) Increased 19% to $1.76 and $1.93, Respectively;
Home Warranty Ending Member Count Increased 1% to 2.11 Million;
Raising Full-Year 2026 Outlook Based on Strong Performance
MEMPHIS, Tenn.--(BUSINESS WIRE)--Frontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of home warranties and new home builder warranties, today announced its second-quarter 2026 results.
Second-Quarter 2026 Summary
Revenue increased 5% to $645 million Gross profit margin increased to 59% Net Income and EPS(1) increased 13% to $125 million and 19% to $1.76, respectively Adjusted EBITDA(2) increased 10% to $220 million Completed $181 million of share repurchases year-to-date through July 2026, up over 21% from the same period in the prior year Raising Full-Year 2026 Outlook
Revenue of $2.19 billion to $2.21 billion Adjusted EBITDA(2) of $585 million to $600 million “Frontdoor is delivering exceptional results across all key areas of the business,” said Chairman and Chief Executive Officer Bill Cobb. “Our relentless actions to accelerate membership growth are working, our operational discipline is driving record profitability, and we are repurchasing shares at an unprecedented level. Reflecting these strengths, we are raising our full-year 2026 Revenue and Adjusted EBITDA guidance.”
Second-Quarter 2026 Results
Financial Results
Three Months Ended
June 30,
(In millions, except per share data)
2026
2025
Change
Revenue
$
645
$
617
5
%
Gross Profit
378
356
6
%
Net Income
125
111
13
%
Earnings per Share(1)
1.76
1.48
19
%
Adjusted Net Income(2)
137
122
13
%
Adjusted Earnings per Share(1),(2)
1.93
1.63
19
%
Adjusted EBITDA(2)
220
199
10
%
Number of Home Warranties
2.11
2.09
1
%
Revenue by Customer Channel
Three Months Ended
June 30,
(In millions)
2026
2025
Change
Renewals
$
479
$
461
4
%
Real estate (First-Year)
45
44
3
%
Direct-to-consumer (First-Year)
55
56
(2
)%
Other
67
56
19
%
Total
$
645
$
617
5
%
Revenue increased 5% to $645 million and was comprised of ~3% increase from higher realized price delivered through our dynamic pricing model and ~1% increase from higher volume.
Renewal revenue increased 4%, driven by higher realized price; Real estate revenue increased 3%, due to higher volume as balanced housing market conditions supported higher capture rates, partially offset by lower realized price; Direct-to-consumer revenue decreased 2%, due to lower realized price from our promotional pricing strategy that was partially offset by higher volume from growth in new home warranty members; Other revenue increased 19%, primarily due to the New HVAC upgrade program. Period-over-Period Net Income and Adjusted EBITDA(2) Bridge
(In millions)
Net Income
Adjusted
EBITDA
Three Months Ended June 30, 2025
$
111
$
199
Impact of change in revenue
16
16
Contract claims costs
7
7
Sales and marketing costs
(3
)
(3
)
Customer service costs
(2
)
(2
)
Stock-based compensation expense
(2
)
—
Acquisition and integration costs
1
—
Other general and administrative costs
2
2
Depreciation and amortization expense
1
—
Restructuring charges
(2
)
—
Interest expense
1
—
Interest and net investment income
1
—
Provision for income taxes
(6
)
—
Three Months Ended June 30, 2026
$
125
$
220
Second-quarter 2026 Net Income increased 13% to $125 million and Adjusted EBITDA(2) increased 10% to $220 million. The table above shows the change versus the prior-year period, and includes:
$16 million from higher revenue conversion(3). Contract claims costs(4) decreased $7 million, excluding the impact of claims costs related to the change in revenue. Contract claims costs primarily reflects: A lower number of service requests per member, including $5 million from favorable weather, partially offset by; Low-single digit cost inflation across our contractor network, replacement parts and equipment; $6 million of higher income tax expense driven by higher earnings; and $3 million of higher sales and marketing costs, primarily due to increased marketing investments to drive direct-to-consumer channel growth. Cash Flow
Six Months Ended
June 30,
(In millions)
2026
2025
Net cash provided from (used for):
Operating activities
$
245
$
251
Investing activities
(14
)
42
Financing activities
(169
)
(153
)
Cash increase during the period
$
62
$
141
Net cash provided from operating activities was $245 million for the six months ended June 30, 2026 and was comprised of $223 million in earnings adjusted for non-cash charges and $22 million in cash provided from working capital.
Net cash used for investing activities was $14 million for the six months ended June 30, 2026 and was primarily comprised of capital expenditures related to technology projects.
Net cash used for financing activities was $169 million for the six months ended June 30, 2026 and was primarily comprised of $151 million of share repurchases (excluding taxes and fees) and $14 million of scheduled debt payments.
Free Cash Flow(2) was $233 million for the six months ended June 30, 2026.
Cash as of June 30, 2026 was $627 million and was comprised of $155 million of restricted net assets and $472 million of Unrestricted Cash.
Third-Quarter 2026 Outlook
Revenue of $642 million to $652 million. Adjusted EBITDA(5) of $197 million to $207 million. Full-Year 2026 Outlook
Revenue of $2.19 billion to $2.21 billion. Key assumptions: Realized price increase of 3% to 4%. Volume increase of 1% to 2%. Low-to-mid single digit increase in renewal channel revenue. Low-single digit decrease in direct-to-consumer channel revenue. Low-single digit increase in real estate channel revenue. $230 million to $240 million in non-warranty and other revenue. Total home warranty member count to increase approximately 1% in 2026, primarily driven by an approximately 5% increase in first-year home warranty member count and strong renewal rates. Gross profit margin of ~55%. SG&A of $685 million to $695 million. Adjusted EBITDA(5) of $585 million to $600 million, and Adjusted EBITDA margin(5) of approximately 27%. Capital expenditures of ~$30 million. Annual effective tax rate of approximately 25%. Second-Quarter 2026 Earnings Conference Call
Frontdoor has scheduled a conference call today, Thursday August 6, 2026, at 7:30 a.m. Central time (8:30 a.m. Eastern time). During the call, management will discuss the company’s operational performance and financial results for second-quarter 2026 and respond to questions from the investment community. Participants can register for the conference call by clicking https://www.webcaster5.com/Webcast/Page/3067/54187. Once completed, each participant will receive access details via email. Additionally, the conference call will be available via webcast which will include a slide presentation highlighting the company’s results. To participate via webcast and view the presentation, visit https://investors.frontdoorhome.com.
The call will be available for replay for approximately 60 days. To access the replay of this call, please call 877-481-4010 and enter conference passcode 54187 (international participants: 919-882-2331, conference passcode 54187). To view a replay of the webcast, visit the company’s https://investors.frontdoorhome.com.
About Frontdoor, Inc.
Frontdoor and its family of brands are on a mission to make life easier for every homeowner through innovative technology and quality customer service. With over 55 years of experience, we are the leading provider of home warranties in the United States, handling approximately 3.8 million service requests for more than 2.1 million members through a network of approximately 17,000 qualified and independent service contractors. We also offer new home builder warranty solutions, which deliver value to both builders and homeowners through a suite of builder warranty products and support services.
Our customizable home warranties are annual service plan agreements that cover the repair or replacement for breakdowns due to normal wear and tear of major components. We cover up to 29 home systems and appliances, including electrical, plumbing, HVAC systems, water heaters, refrigerators, dishwashers and ranges/ovens/cooktops, as well as optional coverages for pools, spas and pumps. Our home warranties provide peace of mind, budget protection, convenience, repair expertise and service guarantee. Our non-warranty services provide homeowners greater value through replacement and upgrade programs, as well as other home maintenance offerings.
Our 2-10 new home builder warranty solutions offer flexible builder‑backed and insurance‑backed warranty options covering workmanship, home distribution systems and structural components.
Frontdoor family of brands include American Home Shield, HSA, OneGuard, Landmark and 2-10 HBW brands. For more information about Frontdoor, Inc., please visit frontdoorhome.com.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, projected future performance and any statements about Frontdoor’s plans, strategies and prospects. Forward-looking statements can be identified by the use of forward-looking terms such as “believe,” “expect,” “estimate,” “could,” “should,” “intend,” “may,” “plan,” “seek,” “anticipate,” “project,” “will,” “shall,” “would,” “aim,” or other comparable terms. These forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Such risks and uncertainties include, but are not limited to: changes in macroeconomic conditions, including inflation, tariffs and global supply chain challenges and changing interest rates, especially as they may affect existing or new home sales, consumer confidence, demand for our services, labor availability or our costs; our ability to successfully implement our business strategies; the ability of our marketing efforts to be successful and cost-effective; our dependence on our first-year direct-to-consumer and real estate acquisition channels and our renewal channel for home warranty sales; our dependence on our existing warranty customer base, and strategic partners for non-warranty sales; changes in the source and intensity of competition in our market; our ability to attract, retain and maintain positive relations with third-party contractors and vendors; increases in parts, appliance and home system prices, and other operating costs; changes in U.S. tariffs or import/export regulations; our ability to attract and retain qualified key employees and labor availability in our customer service operations; our dependence on third-party vendors, including business process outsourcers, and third-party component suppliers; weather, including adverse conditions, seasonality, along with related environmental regulations; compliance with, or violation of, laws and regulations, including consumer protection laws, or lawsuits or other claims by third parties, increasing our legal and regulatory expenses; cybersecurity breaches, disruptions or failures in our technology systems; our ability to protect the security of personal information about our customers; technological developments in artificial intelligence; negative reputational and financial impacts resulting from acquisitions or strategic transactions; a requirement to recognize impairment charges on goodwill and intangible assets; our ability to underwrite risks accurately and to charge adequate prices to builder members, as well as our ability to effectively re-insure a large portion of those risks; the availability of reinsurance to manage a substantial portion of our potential loss exposure for our new home builder warranty business; evolving corporate governance and disclosure regulations and expectations; inappropriate use of social media by us or other parties to harm our reputation; our ability to protect our intellectual property and other material proprietary rights; third-party use of our trademarks as search engine keywords to direct our 5 potential customers to their own websites; special risks applicable to operations outside the United States by us or our business process outsource providers; the acquisition of 2-10 Home Buyers Warranty may not achieve its intended results; any liabilities, losses, or other exposures for which we do not have adequate insurance coverage, indemnification, or other protection; a return on investment in our common stock is dependent on appreciation in the price; inclusion in our certificate of incorporation a forum selection clause that could discourage an acquisition of our company or litigation against us and our directors and officers; the effects of our significant indebtedness, our ability to incur additional debt and the limitations contained in the agreements governing such indebtedness; increases in interest rates increasing the cost of servicing our indebtedness and counterparty credit risk due to instruments designed to minimize exposure to market risks; increased borrowing costs due to lowering or withdrawal of the credit ratings, outlook or watch assigned to us or our Credit Facilities; our ability to generate the significant amount of cash needed to fund our operations and service our debt obligations. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this news release. For a discussion of other important factors that could cause Frontdoor’s results to differ materially from those expressed in, or implied by, the forward-looking statements included in this document, refer to the risks and uncertainties detailed from time to time in Frontdoor’s periodic reports filed with the SEC, including the disclosure contained in Item 1A. Risk Factors in our 2025 Annual Report on Form 10-K filed with the SEC, as such factors may be updated from time to time in Frontdoor’s periodic filings with the SEC. Except as required by law, Frontdoor does not undertake any obligation to update or revise the forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review Frontdoor’s filings with the SEC, which are available from the SEC’s EDGAR database at sec.gov, and via Frontdoor’s website at frontdoorhome.com.
Non-GAAP Financial Measures
To supplement Frontdoor’s results presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), Frontdoor has disclosed the non-GAAP financial measures of Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Unrestricted Cash.
We define "Adjusted EBITDA" as net income before depreciation and amortization expense; goodwill and intangibles impairment; restructuring charges; acquisition and integration related costs; provision for income taxes; non-cash stock-based compensation expense; interest expense; loss on extinguishment of debt; and other non-operating expenses. We define “Adjusted EBITDA margin” as Adjusted EBITDA divided by revenue. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful for investors, analysts and other interested parties as they facilitate company-to-company operating performance comparisons by excluding potential differences caused by variations in capital structures, taxation, the age and book depreciation of facilities and equipment, restructuring and acquisition initiatives and equity-based, long-term incentive plans.
We define “Free Cash Flow” as net cash provided from operating activities less property additions. Free Cash Flow is not a measurement of our financial performance or liquidity under U.S. GAAP and does not purport to be an alternative to net cash provided from operating activities or any other performance or liquidity measures derived in accordance with U.S. GAAP. Free Cash Flow is useful as a supplemental measure of our liquidity. Management uses Free Cash Flow to facilitate company-to-company cash flow comparisons, which may vary from company-to-company for reasons unrelated to operating performance.
We define “Adjusted Net Income” as net income before: amortization expense; acquisition and integration related costs; restructuring charges; loss on extinguishment of debt; other non-operating expenses; and the tax impact of the aforementioned adjustments. We believe Adjusted Net Income is useful for investors, analysts and other interested parties as it facilitates company-to-company operating performance comparisons by excluding potential differences caused by items listed in this definition.
We define “Adjusted Diluted Earnings per Share” as Adjusted Net Income divided by the weighted-average diluted common shares outstanding.
We define “Unrestricted Cash” as cash not subject to third-party restrictions. For additional information related to our third-party restrictions, see “Liquidity and Capital Resources — Liquidity” under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K filed with the SEC.
See the schedules attached hereto for additional information and reconciliations of such non-GAAP financial measures. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of Frontdoor’s business performance and are useful for period-over-period comparisons of the performance of Frontdoor’s business. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with U.S. GAAP. In addition, these non-GAAP financial measures may not be the same as similarly entitled measures reported by other companies.
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In millions, except per share data)
Three Months Ended
Six Months Ended
June 30,
June 30,
2026
2025
2026
2025
Revenue
$
645
$
617
$
1,096
$
1,043
Cost of services rendered
267
261
470
452
Gross Profit
378
356
626
591
Selling and administrative expenses
176
172
338
323
Depreciation and amortization expense
20
21
40
44
Restructuring charges
2
—
3
—
Interest expense
19
20
38
39
Interest and net investment income
(5
)
(4
)
(11
)
(10
)
Income before Income Taxes
167
146
218
194
Provision for income taxes
41
36
51
46
Net Income
$
125
$
111
$
167
$
148
Other Comprehensive Income (Loss), Net of Income Taxes:
Unrealized gain (loss) on derivative instruments, net of income taxes
4
(5
)
8
(12
)
Total Other Comprehensive Income (Loss), Net of Income Taxes
4
(5
)
8
(12
)
Comprehensive Income
$
130
$
106
$
175
$
136
Earnings per Share:
Basic
$
1.80
$
1.51
$
2.37
$
2.00
Diluted
$
1.76
$
1.48
$
2.33
$
1.96
Weighted-average Common Shares Outstanding:
Basic
69.9
73.5
70.2
74.1
Diluted
71.1
74.7
71.6
75.3
Frontdoor, Inc.
Condensed Consolidated Statements of Financial Position (Unaudited)
(In millions, except share data)
As of
June 30,
December 31,
2026
2025
Assets:
Current Assets:
Cash and cash equivalents
$
627
$
566
Receivables, less allowance of $4 and $4, respectively
11
10
Prepaid expenses and other current assets
45
44
Contract assets
9
—
Assets held for sale
—
4
Total Current Assets
692
624
Other Assets:
Property and equipment, net
53
57
Goodwill
963
959
Intangible assets, net
374
398
Operating lease right-of-use assets
7
7
Deferred reinsurance
66
66
Deferred customer acquisition costs
15
14
Other assets
17
17
Total Assets
$
2,186
$
2,142
Liabilities and Shareholders' Equity:
Current Liabilities:
Accounts payable
$
118
$
89
Accrued liabilities:
Payroll and related expenses
26
47
Home warranty claims
82
69
Income taxes payable
45
26
Other
32
34
Deferred revenue
103
107
Current portion of long-term debt
29
29
Total Current Liabilities
435
402
Long-Term Debt
1,131
1,144
Other Long-Term Liabilities:
Deferred tax liabilities, net
54
53
Operating lease liabilities
16
18
Unearned insurance premium
236
236
Long-term deferred revenue
15
19
Other long-term liabilities
15
27
Total Other Long-Term Liabilities
336
354
Commitments and Contingencies
Shareholders' Equity:
Common stock, $0.01 par value; 2,000,000,000 shares authorized; 89,177,293 shares issued and 69,284,644 shares outstanding as of June 30, 2026 and 88,480,560 shares issued and 70,958,215 shares outstanding as of December 31, 2025
1
1
Additional paid-in capital
214
195
Retained earnings
952
785
Accumulated other comprehensive loss
(4
)
(12
)
Less treasury stock, at cost; 19,892,649 shares as of June 30, 2026 and 17,522,345 shares as of December 31, 2025
(879
)
(727
)
Total Shareholders' Equity
284
242
Total Liabilities and Shareholders' Equity
$
2,186
$
2,142
Frontdoor, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Six Months Ended
June 30,
2026
2025
Cash and Cash Equivalents at Beginning of Period
$
566
$
421
Cash Flows from Operating Activities:
Net Income
167
148
Adjustments to reconcile net income to net cash provided from operating activities:
Depreciation and amortization expense
40
44
Deferred income tax benefit
(3
)
(4
)
Stock-based compensation expense
21
17
Other
(3
)
2
Changes in:
Receivables
—
(1
)
Prepaid expenses and other current assets
(12
)
(10
)
Deferred reinsurance
—
(2
)
Deferred customer acquisition costs
(1
)
(1
)
Accounts payable
29
35
Deferred revenue
(8
)
(11
)
Accrued liabilities
(8
)
6
Deferred insurance premiums
—
6
Current income taxes
24
22
Net Cash Provided from Operating Activities
245
251
Cash Flows from Investing Activities:
Purchases of property and equipment
(12
)
(14
)
Business acquisitions, net of cash acquired
—
3
Purchases of short-term investments and available-for-sale securities
(2
)
(6
)
Sales and maturities of available-for-sale securities
—
60
Net Cash (Used for) Provided from Investing Activities
(14
)
42
Cash Flows from Financing Activities:
Repayments of debt
(14
)
(14
)
Repurchases of common stock
(152
)
(135
)
Other financing activities
(3
)
(3
)
Net Cash Used for Financing Activities
(169
)
(153
)
Cash Increase During the Period
62
141
Cash and Cash Equivalents at End of Period
$
627
$
562
Reconciliations of Non-GAAP Financial Measures
The following table presents reconciliations of Net Income to Adjusted Net Income.
Three Months Ended
Six Months Ended
June 30,
June 30,
(In millions, except per share amounts)
2026
2025
2026
2025
Net Income
$
125
$
111
$
167
$
148
Amortization expense
12
12
24
25
Acquisition and integration related costs
1
2
4
4
Restructuring Charges
2
(0
)
3
0
Tax Impact of Adjustments
(4
)
(3
)
(7
)
(7
)
Adjusted Net Income
$
137
$
122
$
190
$
171
Adjusted Earnings per Share:
Basic
$
1.97
$
1.66
$
2.71
$
2.31
Diluted
$
1.93
$
1.63
$
2.66
$
2.27
Weighted-average Common Shares outstanding:
Basic
69.9
73.5
70.2
74.1
Diluted
71.1
74.7
71.6
75.3
The following table presents reconciliations of net cash provided from operating activities to Free Cash Flow.
Six Months Ended
June 30,
(In millions)
2026
2025
Net cash provided from operating activities
$
245
$
251
Property additions
(12
)
(14
)
Free Cash Flow
$
233
$
237
The following table presents reconciliations of Net Income to Adjusted EBITDA.
Three Months Ended
Six Months Ended
June 30,
June 30,
(In millions)
2026
2025
2026
2025
Net Income
$
125
$
111
$
167
$
148
Depreciation and amortization expense
20
21
40
44
Restructuring charges
2
—
3
—
Acquisition and integration related costs
1
2
4
4
Provision for income taxes
41
36
51
46
Non-cash stock-based compensation expense
11
9
21
17
Interest expense
19
20
38
39
Other non-operating expenses
—
1
—
1
Adjusted EBITDA
$
220
$
199
$
324
$
300
Key Business Metrics
As of June 30,
2026
2025
Number of home warranties (in millions)
2.11
2.09
Renewals
1.57
1.58
First-Year Direct-To-Consumer
0.33
0.31
First-Year Real Estate
0.22
0.20
Increase (Reduction) in number of home warranties(1)
Prestige Consumer Healthcare v 1. čtvrtletí zvýšila tržby o 6,5 % na 265,7 mil. USD a upravený zředěný zisk na akcii (EPS) na 0,98 USD. Zvedla také celoroční výhled tržeb na 1,290 až 1,315 mld. USD.
Q1 Revenue of $265.7 million up 6.5% versus prior yearQ1 Organic sales growth of 3.2%, exceeding expectationsQ1 Diluted EPS of $0.61; Adjusted Diluted EPS of $0.98, up versus prior year $0.95Q1 Cash from Operating Activities $70.8 million; Q1 Adjusted Non-GAAP Free Cash Flow of $83.7 millionClosed the Breathe Right® and LaCorium acquisitions in June and July, respectivelyRaising fiscal 2027 outlook to include acquisitions; anticipate revenue of $1,290 to $1,315 million and Adjusted Diluted EPS outlook to $4.55 to $4.65 TARRYTOWN, N.Y., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its first quarter fiscal 2027 ended June 30, 2026.
“First quarter performance exceeded our sales and earnings expectations, helped by strength across multiple categories that more than offset a challenging consumer backdrop and Clear Eyes® variability. We were also pleased to close the Breathe Right® acquisition late in the quarter, which added an incremental $6 million in revenue and is positioned well for long-term growth. These strong business results generated robust record adjusted free cash flow in the first quarter, leaving us well positioned to rapidly deleverage in the quarters ahead,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.
First Fiscal Quarter Ended June 30, 2026
Reported revenues in the first quarter of fiscal 2027 of $265.7 million increased 6.5% from $249.5 million in the first quarter of fiscal 2026 and increased 3.2% excluding the impacts of foreign currency and a $5.9 million contribution from the acquisition of Breathe Right® and its associated portfolio of brands. The revenue performance versus the prior year comparable period reflected strong organic growth in the Gastrointestinal and Dermatological categories as well as an increase in revenues associated with the acquisition of the Breathe Right® brand and its associated portfolio.
Reported net income for the first quarter of fiscal 2027 totaled $29.2 million, or $0.61 in earnings per diluted share, compared to $47.5 million, or $0.95 in diluted earnings per share, for the comparable period. On an adjusted non-GAAP basis first quarter fiscal 2027 net income totaled $46.5 million, or $0.98 in diluted earnings per share.
Adjustments to net income in the first quarter of fiscal 2027 included certain costs associated with acquisitions including integration, transition, purchase accounting, legal and various other costs, such as costs associated with improving and optimizing the acquired Pillar5 facility for increases in long-term capacity, and associated tax adjustments.
Free Cash Flow and Balance Sheet
The Company's net cash provided by operating activities for the first quarter of fiscal 2027 was $70.8 million, compared to $79.0 million during the prior year comparable period. Non-GAAP adjusted free cash flow in the first quarter of fiscal 2027 of $83.7 million increased compared to $78.2 million in the prior year first quarter. The material increase in free cash flow was attributable to the timing of working capital.
The Company's net debt position as of June 30, 2026 was approximately $2 billion. Subsequent to the quarter, on July 15, 2026 the Company issued $400 million of new 6.25% senior notes due 2034 which replaced the same principal of senior notes previously due in fiscal 2028. The new notes extend the maturity of the amount to July 15, 2034 moving the Company’s closest debt maturity to 2031.
Segment Review
In the fiscal first quarter 2027, the Company established a new product category, Wellness, Sleep & Other, and renamed certain existing product categories to help best incorporate the brands acquired in the Breathe Right® transaction.
North American OTC Healthcare: Segment revenues of $226.2 million for the first quarter fiscal 2027 increased 6.4% compared to the prior year comparable quarter's segment revenues of $212.6 million. The revenue increase was broad-based and included strong organic sales growth in the Gastrointestinal, Dermatological, and Cough, Cold & Allergy categories, as well as an increase in the newly created Wellness, Sleep & Other category from the acquisition of the Breathe Right® brand.
International OTC Healthcare: Fiscal first quarter 2027 segment revenues of $39.5 million increased 6.9% compared to $37.0 million reported in the prior year comparable period. The revenue performance was primarily driven by a $1.4 million contribution from the acquisition of the Breathe Right® brand.
Updated Fiscal 2027 Outlook
Ron Lombardi, Chief Executive Officer, stated, “Our strong initial first quarter performance gives us momentum in both revenue and earnings for full-year fiscal 2027. Our consumption remains healthy for our leading, trusted brands, and we continue to emphasize our proven marketing tactics to succeed in a challenging consumer environment. In addition, our portfolio diversity and business attributes leave us well positioned to manage the continued volatile supply for Clear Eyes®.”
“We are very excited about our recently closed Breathe Right portfolio and LaCorium Health acquisitions in mid-June and July, respectively, and both bring strong long-term growth prospects. Breathe Right® is a category-defining, global brand in the attractive better-breathing space, where we expect to grow the category domestically while expanding the brand's international presence. LaCorium's Dermal Therapy® brand is a leader in therapeutic skin care in Australia, and we anticipate strong sales growth under the Prestige Consumer Healthcare business model, driven by category growth, innovation, and continued geographic expansion."
“We are raising our fiscal 2027 financial outlook for both revenue and EPS, entirely to account for the addition of these two businesses. These acquisitions add nearly 20% to our revenue base and we expect the acquisitions to become increasingly accretive to profitability and cash flow as we move past the near-term and begin to realize business synergies and our brand growth objectives,” Mr. Lombardi concluded.
Initial Fiscal 2027 OutlookCurrent Fiscal 2027 OutlookRevenue$1,100 to $1,121 million$1,290 to $1,315 millionOrganic Revenue Growth+1.0% to +3.0%+1.0% to +3.0%Adjusted Diluted E.P.S.$4.42 to $4.51$4.55 to $4.65Adjusted Free Cash Flow$250 million or more$270 million or more First Quarter Fiscal 2027 Conference Call, Accompanying Slide Presentation and Replay
The Company will host a conference call to review its first quarter fiscal 2027 results today, August 6, 2026 at 8:30 a.m. ET. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at http://www.prestigeconsumerhealthcare.com. To participate in the conference call via phone, participants may register for the call here to receive dial-in details and a unique pin. While not required, it is recommended to join 10 minutes prior to the event start. The slide presentation can be accessed from the Investor Relations page of the Company’s website by clicking on Webcasts and Presentations.
A conference call replay will be available for approximately one week following completion of the live call and can be accessed on the Company’s Investor Relations page.
Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "guidance," "outlook," "may," "will," "would," “believe,” “momentum,” "expect," “look forward,” "anticipate,” “increasingly,” “positioned,” or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the Company's future operating results including revenues, organic growth, diluted earnings per share, and adjusted free cash flow; consumption trends; the expected impact of Breathe Right® and LaCorium Health acquisitions on the Company’s revenue and cash flow; and the Company’s ability to manage through the current environment through its business strategy and diverse product portfolio. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of business and economic conditions, including as a result of evolving U.S. and international tariffs, labor shortages, inflation and geopolitical instability, consumer trends, the impact of the Company’s advertising and marketing and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, and the ability of the Company’s manufacturing operations and third party manufacturers and logistics providers and suppliers to meet demand for its products and to avoid inflationary cost increases and disruption as a result of labor shortages. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2026 and other periodic reports filed with the Securities and Exchange Commission.
About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Breathe Right® nasal strips, Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, as well as Hydralyte® rehydration products and the Dermal Therapy® line of therapeutic skin care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com.
Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited) Three Months Ended June 30,(In thousands, except per share data) 2026 2025 Total Revenues $265,710 $249,530 Cost of Sales Cost of sales excluding depreciation 126,466 106,715 Cost of sales depreciation 3,056 2,484 Cost of sales 129,522 109,199 Gross profit 136,188 140,331 Operating Expenses Advertising and marketing 34,668 34,937 General and administrative 43,303 28,456 Depreciation and amortization 5,697 5,182 Total operating expenses 83,668 68,575 Operating income 52,520 71,756 Other expense Interest expense, net 13,945 10,203 Other expense (income), net 34 (224)Total other expense, net 13,979 9,979 Income before income taxes 38,541 61,777 Provision for income taxes 9,364 14,311 Net income $29,177 $47,466 Earnings per share: Basic $0.61 $0.96 Diluted $0.61 $0.95 Weighted average shares outstanding: Basic 47,462 49,475 Diluted 47,604 49,833 Comprehensive income, net of tax: Currency translation adjustments (1,310) 5,404 Total other comprehensive (loss) income (1,310) 5,404 Comprehensive income $27,867 $52,870 Prestige Consumer Healthcare Inc.
Condensed Consolidated Balance Sheets
(Unaudited)(In thousands)June 30, 2026 March 31, 2026 Assets Current assets Cash and cash equivalents$89,127 $63,868Accounts receivable, net of allowance of $19,916 and $18,187, respectively 187,355 191,920Inventories 190,215 159,132Prepaid expenses and other current assets 30,117 16,564Total current assets 496,814 431,484 Property, plant and equipment, net 117,178 121,689Operating lease right-of-use assets 26,040 27,780Finance lease right-of-use assets, net 20,956 21,776Goodwill 650,795 581,109Intangible assets, net 3,243,358 2,299,605Other long-term assets 13,432 10,870Total Assets$4,568,573 $3,494,313 Liabilities and Stockholders' Equity Current liabilities Current portion of long-term debt 10,450 —Accounts payable 36,849 22,791Accrued interest payable 18,015 15,578Operating lease liabilities, current portion 7,010 6,910Finance lease liabilities, current portion 2,699 2,656Other accrued liabilities 78,783 72,989Total current liabilities 153,806 120,924 Long-term debt, net 2,007,235 993,953Deferred income tax liabilities 448,824 447,417Long-term operating lease liabilities, net of current portion 19,129 20,955Long-term finance lease liabilities, net of current portion 17,276 17,968Other long-term liabilities 5,587 5,580Total Liabilities 2,651,857 1,606,797 Total Stockholders' Equity 1,916,716 1,887,516Total Liabilities and Stockholders' Equity$4,568,573 $3,494,313 Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) Three Months Ended June 30,(In thousands) 2026 2025 Operating Activities Net income$29,177 $47,466 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 8,753 7,666 Loss on disposal of property and equipment 191 — Deferred and other income taxes 193 5,827 Amortization of debt origination costs 465 442 Amortization of acquired inventory step-up 2,840 — Stock-based compensation costs 3,994 3,682 Non-cash operating lease cost 2,090 1,947 Changes in operating assets and liabilities, net of the effects of acquisitions: Accounts receivable 3,450 27,343 Inventories (2,828) (4,441)Prepaid expenses and other current assets 1,557 (10,946)Accounts payable 13,403 2,756 Accrued liabilities 9,831 (813)Operating lease liabilities (2,095) (1,916)Other (233) — Net cash provided by operating activities 70,788 79,013 Investing Activities Purchases of property, plant and equipment (3,703) (838)Acquisitions, net of cash acquired (1,045,000) — Deposits for business acquisitions and other (15,034) (1,100)Net cash (used in) investing activities (1,063,737) (1,938) Financing Activities Proceeds from issuance of Term Loan 1,045,000 — Net (decrease) increase in line of credit 653 — Payments of debt costs (22,476) — Payments of finance leases (576) (608)Proceeds from exercise of stock options — 3,155 Fair value of shares surrendered as payment of tax withholding (2,661) (4,054)Repurchase of common stock — (34,775)Other (1,486) 0 Net cash provided by (used in) financing activities 1,018,454 (36,282)Effects of exchange rate changes on cash and cash equivalents (246) 825 Increase in cash and cash equivalents 25,259 41,618 Cash and cash equivalents - beginning of period 63,868 97,884 Cash and cash equivalents - end of period$89,127 $139,502 Interest paid$11,379 $11,501 Income taxes paid$1,988 $3,253 Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income
Business Segments
(Unaudited) Three Months Ended June 30, 2026(In thousands)North American
OTC Healthcare International
OTC Healthcare ConsolidatedTotal segment revenues*$226,206 $39,504 $265,710Cost of sales 110,265 19,257 129,522Gross profit 115,941 20,247 136,188Advertising and marketing 28,930 5,738 34,668Contribution margin$87,011 $14,509 $101,520Other operating expenses 49,000Operating income $52,520 *Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment.
Three Months Ended June 30, 2025(In thousands)North American
OTC Healthcare International
OTC Healthcare ConsolidatedTotal segment revenues*$212,578 $36,952 $249,530Cost of sales 92,178 17,021 109,199Gross profit 120,400 19,931 140,331Advertising and marketing 28,954 5,983 34,937Contribution margin$91,446 $13,948 $105,394Other operating expenses 33,638Operating income $71,756 * Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment.
About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, Non-GAAP Adjusted Free Cash Flow, and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.
NGFMs Defined
We define our NGFMs presented herein as follows:
Non-GAAP Organic Revenues: GAAP Total Revenues excluding revenues associated with acquisition and the impact of foreign currency exchange rates in the periods presented.Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.Non-GAAP Adjusted Gross Margin: GAAP Gross Profit minus amortization of inventory fair value step-up, acquired facility remediation, period overhead and idle capacity costs.Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues.Non-GAAP Adjusted General and Administrative Expense: GAAP General and Administrative expenses minus costs associated with acquisition.Non-GAAP Adjusted General and Administrative Expense Percentage: Calculated as Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues.Non-GAAP EBITDA: GAAP Net Income before interest expense, net, provision for income taxes, and depreciation and amortization.Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.Non-GAAP Adjusted EBITDA: Non-GAAP EBITDA before amortization of inventory fair value step‑up, acquired facility remediation, period overhead and idle capacity costs and costs associated with acquisitions.Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP adjusted EBITDA divided by GAAP Total Revenues.Non-GAAP Adjusted Net Income: GAAP Net Income before amortization of inventory fair value step-up, depreciation of idle assets during remediation period, acquired facility remediation, period overhead and idle capacity costs, costs associated with acquisitions in General and Administrative Expense, and applicable tax impact associated with these items.Non-GAAP Adjusted Diluted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the diluted weighted average number of shares outstanding during the period.Non-GAAP Free Cash Flow: Calculated as GAAP Net cash provided by operating activities less cash paid for capital expenditures.Non-GAAP Adjusted Free Cash Flow: Non-GAAP free cash flow plus acquisition costs paid.Net Debt: Calculated as total principal amount of debt outstanding ($2,045,000 at June 30, 2026) less cash and cash equivalents ($89,127 at June 30, 2026). Amounts in thousands. The following tables set forth the reconciliations of each of our NGFMs (other than Net Debt, which is reconciled above) to their most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:
Three Months Ended June 30, 2026 2025(In thousands) GAAP Total Revenues $265,710 $249,530Revenue Change 6.5% Adjustments: Revenues associated with acquisition (a) (5,945) —Impact of foreign currency exchange rates — 2,086Total adjustments (5,945) 2,086Non-GAAP Organic Revenues $259,765 $251,616Non-GAAP Organic Revenue Change 3.2% (a) Revenues of our OTC Wellness Business acquisition are excluded for purposes of calculating Non-GAAP organic revenues. These revenue adjustments relate to our North America and International OTC Healthcare segments.
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Non-GAAP Adjusted Gross Margin percentage:
Three Months Ended June 30, 2026 2025 (In thousands) GAAP Total Revenues $265,710 $249,530 GAAP Gross Profit $136,188 $140,331 GAAP Gross Profit as a Percentage of GAAP Total Revenue 51.3% 56.2%Adjustments: Amortization of inventory fair value step‑up 2,840 — Acquired facility remediation, period overhead and idle capacity costs (a) 7,148 — Total adjustments 9,988 — Non-GAAP Adjusted Gross Margin $146,176 $140,331 Non-GAAP Adjusted Gross Margin as a Percentage of GAAP Total Revenues 55.0% 56.2% (a) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
Reconciliation of GAAP General and Administrative Expense and related GAAP General and Administrative Expense percentage to Non-GAAP Adjusted General and Administrative expense and related Non-GAAP Adjusted General and Administrative Expense percentage:
Three Months Ended June 30, 2026 2025 (In thousands) GAAP General and Administrative Expense $43,303 $28,456 GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue 16.3% 11.4% Adjustments: Costs associated with acquisition (a) 12,823 — Total adjustments 12,823 — Non-GAAP Adjusted General and Administrative Expense $30,480 $28,456 Non-GAAP Adjusted General and Administrative Expense Percentage as a Percentage of GAAP Total Revenues 11.5% 11.4% (a) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
Three Months Ended June 30, 2026 2025 (In thousands) GAAP Net Income $29,177 $47,466 Interest expense, net 13,945 10,203 Provision for income taxes 9,364 14,311 Depreciation and amortization 8,753 7,666 Non-GAAP EBITDA $61,239 $79,646 Non-GAAP EBITDA Margin 23.0% 31.9% Adjustments: Amortization of inventory fair value step‑up 2,840 — Acquired facility remediation, period overhead and idle capacity costs (a) 7,148 — Costs associated with acquisitions in G&A (b) 12,823 — Total adjustments 22,811 — Non-GAAP Adjusted EBITDA $84,050 $79,646 Non-GAAP Adjusted EBITDA Margin 31.6% 31.9% (a) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
(b) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
Reconciliation of GAAP Net Income and GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Diluted Earnings Per Share: Three Months Ended June 30, 2026 2026
Diluted
EPS 20252025
Diluted
EPS(In thousands, except per share data) GAAP Net Income and Diluted EPS $29,177 $0.61 $47,466$0.95Adjustments: Amortization of inventory fair value step‑up 2,840 0.06 — —Depreciation of idle assets during remediation period (a) 70 — — —Acquired facility remediation, period overhead and idle capacity costs (b) 7,148 0.15 — —Costs associated with acquisition in General and Administrative Expense (c) 12,823 0.27 — —Tax impact of adjustments (d) (5,559) (0.12) — —Total adjustments 17,322 0.36 — —Non-GAAP Adjusted Net Income and Adjusted Diluted EPS $46,499 $0.98 $47,466$0.95 (a) Represents depreciation expense recorded during the remediation period following the acquisition of Pillar5, during which certain production lines were not operating. Management believes this depreciation is not reflective of expected ongoing depreciation levels once the facility is fully remediated and operating at normal production levels.
(b) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
(c) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
(d) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of specific Non-GAAP performance measure.
Note: Amounts may not add due to rounding.
Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow and Non-GAAP Adjusted Free Cash Flow: Three Months Ended June 30, 2026 2025 (In thousands) GAAP Net Income $29,177 $47,466 Adjustments: Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows 18,526 19,564 Changes in operating assets and liabilities, net of effects of acquisitions as shown in the Statement of Cash Flows 23,085 11,983 Total adjustments 41,611 31,547 GAAP Net cash provided by operating activities 70,788 79,013 Purchases of property and equipment (3,703) (838)Non-GAAP Free Cash Flow 67,085 78,175 Acquisition and other costs paid 16,664 — Non-GAAP Adjusted Free Cash Flow $83,749 $78,175 Outlook for Fiscal Year 2027:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow
and Projected Non-GAAP Adjusted Free Cash Flow:(In millions) Projected FY'27 GAAP Net cash provided by operating activities$277 Additions to property and equipment for cash (26)Projected FY'27 Non-GAAP Free Cash Flow 251 Acquisition and other costs paid 19 Projected FY'27 Non-GAAP Adjusted Free Cash Flow$270 Reconciliation of Projected GAAP Diluted EPS to Projected Non-GAAP Adjusted Diluted EPS (a):
Low HighProjected FY'27 GAAP Diluted EPS$4.18 $4.28Adjustments: Costs associated with Pillar5 manufacturing optimization and integration 0.13 0.13Costs associated with acquisitions of the Breathe Right portfolio and LaCorium Health 0.24 0.24Projected FY'27 Non-GAAP Adjusted Diluted EPS$4.55 $4.65 (a) The above reconciliation of this forward-looking non-GAAP financial measure only includes adjustments for Q1 2027 and does not include additional adjustments for the remainder of fiscal 2027. These future adjustments are highly uncertain, given the significant variability and difficulty in making accurate projections of the adjustments related to the Breathe Right portfolio and LaCorium Health acquisitions and the costs associated with Pillar5 manufacturing optimization and integration. As a result, the Company is unable to quantify those future adjustments, which are likely significant, without unreasonable efforts.
Investor Relations Contact
Phil Terpolilli, CFA, 914-524-6819 [email protected]
ProFrac ve 2. čtvrtletí zvýšil tržby na 498 mil. USD a upravený zisk před úroky, daněmi, odpisy a amortizací (EBITDA) na 69 mil. USD, zatímco čistá ztráta klesla na 75 mil. USD.
WILLOW PARK, Texas--(BUSINESS WIRE)--ProFrac Holding Corp. (NASDAQ: ACDC) (“ProFrac”, or the “Company”) today announced financial and operational results for its 2026 second quarter ended June 30, 2026.
Second Quarter 2026 Results
Total revenue was $498 million compared to first quarter revenue of $450 million Net loss was $75 million compared to net loss of $81 million in the first quarter Adjusted EBITDA¹ was $69 million compared to $54 million in the first quarter; 14% of revenue in the second quarter compared to 12% of revenue in the first quarter Net cash provided by operating activities was $23 million compared to $9 million in the first quarter Capital expenditures totaled $32 million compared to $41 million in the first quarter Free cash flow² was negative $8 million compared to negative $25 million in the first quarter “Our second quarter results extended the momentum we built during the first quarter, reflecting the continued strength of our operating model and the discipline we've applied throughout this cycle against a market backdrop that was broadly stronger sequentially. Volatility has defined the broader energy landscape in recent months, and if anything, we believe that only reinforces the structural case for domestic energy security as a durable tailwind for our business. At the same time, it's a reminder of why flexibility matters across every facet of our business,” stated Executive Chairman, Matt Wilks.
“We believe we are well positioned for the future, given the tighter market backdrop and growing operator demand for higher-specification equipment after years of attrition in the industry. We're seeing pricing increases layering in for the third quarter in hydraulic fracturing, and we're taking a thoughtful, disciplined approach in the back half of the year and into RFP season, which is commencing very early this year. High-spec fleets are in high demand and the market for that equipment continues to tighten. We believe these factors will drive improvement in our frac calendar in the back half of 2026.”
“We remain committed to our cost optimization program, and our continued investment in differentiated technology strengthens the value we deliver to customers and supports our returns through the cycle. To that end, we continue to execute on our fleet upgrade program to allow us to lean further into the momentum we see building in the industry. We believe the investments we're making today position us well through the balance of the year and beyond,” concluded Mr. Wilks.
Outlook
In Stimulation Services, ProFrac expects third quarter 2026 results to improve on second quarter performance, driven by pricing increases and steady utilization. RFP season conversations are also unfolding earlier than typical demonstrating potential equipment tightness into 2027.
In Proppant Production, ProFrac expects approximately flat results on stable volumes in the third quarter. The Company continues to navigate incremental competitive pricing pressure in the proppant market, particularly in West Texas, while remaining focused on operational improvements and leveraging the potential it sees in stronger markets, including the Haynesville and South Texas.
Business Segment Information
The Stimulation Services segment generated revenues of $430 million in the second quarter, which resulted in $39 million of Adjusted EBITDA and a margin of 9%.
The Proppant Production segment generated revenues of $121 million in the second quarter, which resulted in $6 million of Adjusted EBITDA and a margin of 5%. Approximately 87% of the Proppant Production segment’s second quarter 2026 revenue was intercompany.
The Manufacturing segment generated revenues of $48 million in the second quarter, which resulted in $6 million of Adjusted EBITDA and a margin of 13%. Approximately 82% of the Manufacturing segment’s second quarter 2026 revenue was intercompany.
Flotek Industries, Inc. (“Flotek”) generated revenues of $102 million in the second quarter, which resulted in $19 million of Adjusted EBITDA and a margin of 19%. Approximately 58% of Flotek’s second quarter 2026 revenue was intercompany.
Other Business Activities generated revenues of $3.6 million in the second quarter, which resulted in $0.4 million of Adjusted EBITDA and a margin of 11%.
Capital Expenditures and Capital Allocation
Cash capital expenditures totaled $32 million in the second quarter, down from $41 million reported in first quarter 2026.
For full year 2026, ProFrac maintains its expectation that capital expenditures will be in the range of $155 million to $185 million, which includes Flotek’s current capital expenditure plan. Excluding Flotek, the Company expects capital expenditures to be in a range of $145 million to $175 million for 2026.
Balance Sheet and Liquidity
Total principal debt outstanding as of June 30, 2026 was approximately $1.10 billion; net debt³ outstanding was approximately $1.08 billion.
Total cash and cash equivalents as of June 30, 2026 was approximately $19 million, of which approximately $5 million was related to Flotek and not accessible by the Company.
As of June 30, 2026 the Company had approximately $72 million of liquidity, including approximately $14 million of cash and cash equivalents, excluding Flotek, and $58 million of availability under its asset-based credit facility.
Subsequent to quarter-end, on July 1, 2026, the Company refinanced and replaced its existing $275 million asset-based revolving credit facility with a new $300 million asset-based revolving credit facility that extends its debt maturity profile and provides enhanced borrowing base terms to support additional liquidity and financial flexibility.
As of July 1, 2026, the maximum availability under the new ABL credit facility was limited to our eligible borrowing base of approximately $243 million, with $173 million of borrowings outstanding, resulting in approximately $71 million of remaining availability.
Management and Board Transitions
Effective Friday, August 7, 2026, Ladd Wilks will resign his position of Chief Executive Officer of ProFrac. We are excited to announce that Ladd will continue to serve the Company as a member of the Board of Directors, replacing Mr. Sergei Krylov. Matt Wilks will take on the newly combined role of Chief Executive Officer and Executive Chairman.
“I am honored to transition from my role as the Chief Executive Officer of ProFrac to a member of the Board of Directors. I look forward to continuing as an active leader of the Company in this new capacity. ProFrac isn’t just a company to me, it’s part of our family’s legacy, and I remain committed to supporting its lasting success. I also thank Mr. Krylov for his years of dedication and service to ProFrac and for the thoughtful and diligent stewardship he has brought to ProFrac’s board throughout his tenure,” stated Ladd Wilks.
Footnotes
Conference Call
ProFrac has scheduled a conference call on August 6, 2026, at 11:00 a.m. Eastern / 10:00 a.m. Central. To register for and access the event, please click here. An archive of the webcast will be available shortly after the call’s conclusion on the IR Calendar section of ProFrac’s investor relations website for 90 days.
About ProFrac Holding Corp.
ProFrac Holding Corp. is a technology-focused, vertically integrated, innovation-driven energy services holding company providing hydraulic fracturing, proppant production, other completion services and other complementary products and services including distributed power generation to leading upstream oil and natural gas companies engaged in the exploration and production (“E&P”) of North American unconventional oil and natural gas resources throughout the United States. ProFrac operates in four business segments: Stimulation Services, Proppant Production, Manufacturing, and Flotek. For more information, please visit ProFrac’s website at www.PFHoldingsCorp.com.
Certain statements in this press release may be considered “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be accompanied by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “momentum,” or similar words. Forward-looking statements relate to future events or the Company’s future financial or operating performance. These forward-looking statements include, among other things, statements regarding: the Company’s strategies and plans for growth; the Company’s positioning, resources, capabilities, and expectations for future performance; customer, market and industry demand and expectations; customer contracts, activity, relations, or pricing; fleet deployment levels; the Company’s expectations about price fluctuations, global activity, market reactions and macroeconomic conditions impacting the industry; competitive conditions in the industry; success of the Company’s ongoing strategic initiatives; the Company’s intention to increase the number of fully integrated fleets; the Company’s currently expected guidance regarding its 2026 financial and operational results; the Company’s ability to earn its targeted rates of return; the Company’s ability to achieve or realize benefits from its asset optimization program; pricing of the Company’s services in light of the prevailing market conditions; the Company’s currently expected guidance regarding its planned capital expenditures; statements regarding the Company’s liquidity and debt obligations; the Company’s anticipated timing for operationalizing and amount of contribution from its fleets and its sand mines; the amount of capital that may be available to the Company in future periods; any financial or other information based upon or otherwise incorporating judgments or estimates relating to future performance, events or expectations; any estimates and forecasts of financial and other performance metrics; and the Company’s outlook and financial and other guidance. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the ability to achieve the anticipated benefits of the Company’s acquisitions, mining operations, and vertical integration strategy, including risks and costs relating to integrating acquired assets and personnel; risks that the Company’s actions intended to achieve its 2026 financial and operational guidance will be insufficient to achieve that guidance, either alone or in combination with external market, industry or other factors; the failure to operationalize or utilize to the extent anticipated the Company’s fleets and sand mines in a timely manner or at all; the Company’s ability to deploy capital in a manner that furthers the Company’s growth strategy, as well as the Company’s general ability to execute its business plans; risks relating to the implementation of the Company’s leadership transition, including the timing of the transition and the Company’s ability to execute its strategy and operational priorities following the transition; the risk that the Company may need more capital than it currently projects or that capital expenditures could increase beyond current expectations; risks regarding the ability to access to additional capital on acceptable terms or at all; industry conditions, including fluctuations in supply, demand and prices for the Company’s products and services and for oil and natural gas; global and regional economic and financial conditions, including as they may be affected by hostilities in the Middle East and in Ukraine, as well as the instability in Venezuela; the effectiveness of the Company’s risk management strategies; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s filings with the Securities and Exchange Commission (“SEC”), which are available on the SEC’s website at www.sec.gov.
Forward-looking statements are also subject to the risks and other issues described below under “Non-GAAP Financial Measures,” which could cause actual results to differ materially from current expectations included in the Company’s forward-looking statements included in this press release. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved, in whole or part, or that any of the contemplated results of such forward-looking statements will be realized, including without limitation any expectations about the Company’s operational and financial performance or achievements through and including 2026. There may be additional risks about which the Company is presently unaware or that the Company currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it expressly disclaims any duty to update these forward-looking statements, except as otherwise required by law.
Non-GAAP Financial Measures
Adjusted EBITDA, Free Cash Flow and Net Debt are non-GAAP financial measures and should not be considered as a substitute for net income (loss), net cash from operating activities, or GAAP measurements of debt, respectively, or any other performance measure derived in accordance with GAAP or as an alternative to net cash provided by operating activities as a measure of our profitability or liquidity. Adjusted EBITDA, Free Cash Flow and Net Debt are supplemental measures utilized by our management and other users of our financial statements such as investors, commercial banks, research analysts and others, to assess our financial performance. We believe Adjusted EBITDA is an important supplemental measure because it allows us to compare our operating performance on a consistent basis across periods by removing the effects of our capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization) and items outside the control of our management team (such as income tax rates). We believe Free Cash Flow is an important supplemental liquidity measure of the cash that is available (if any), after purchases of property and equipment, for operational expenses, investment in our business, and to make acquisitions, and Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash in excess of our capital investments in property and equipment. We believe Net Debt is an important supplemental measure of indebtedness for management and investors because it provides a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents.
We define Adjusted EBITDA as our net income (loss), before (i) interest expense, net, (ii) income taxes, (iii) depreciation, depletion and amortization, (iv) loss or gain on disposal of assets, net, (v) stock-based compensation, and (vi) other charges, such as certain credit losses, gain or loss on extinguishment of debt, unrealized loss or gain on investments, acquisition and integration expenses, litigation expenses and accruals for legal contingencies, acquisition earnout adjustments, severance charges, goodwill impairments, gains on insurance recoveries, transaction costs, third-party supply commitment charges, lease termination costs, and impairments of long-lived assets. We define Free Cash Flow as net cash provided by or (used in) operating activities less investment in property, plant and equipment plus proceeds from sale of assets.
Net income (loss) is the GAAP measure most directly comparable to Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss). Adjusted EBITDA has important limitations as an analytical tool because it excludes some but not all items that affect the most directly comparable GAAP financial measure. Because Adjusted EBITDA may be defined differently by other companies in our industry, our definition of this non-GAAP financial measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net cash provided by operating activities is the GAAP measure most directly comparable to Free Cash Flow. Free Cash Flow should not be considered as an alternative to net cash provided by operating activities. Free Cash Flow has important limitations as an analytical tool including that Free Cash Flow does not reflect the cash requirements necessary to service our indebtedness and Free Cash Flow is not a reliable measure for actual cash available to the Company at any one time. Because Free Cash Flow may be defined differently by other companies in our industry, our definition of this Non-GAAP Financial Measure may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.
Net Debt is defined as total debt plus unamortized debt discounts, premiums, and issuance costs less cash and cash equivalents. Total debt is the GAAP measure most directly comparable to Net Debt. Net Debt should not be considered as an alternative to total debt. Net Debt has important limitations as a measure of indebtedness because it does not represent the total amount of indebtedness of the Company.
The presentation of Non-GAAP Financial Measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. The following tables present a reconciliation of the Non-GAAP Financial Measures of Adjusted EBITDA, Free Cash Flow and Net Debt to the most directly comparable GAAP financial measure for the periods indicated.
– Tables to Follow –
ProFrac Holding Corp.
Austin Harbour – Chief Financial Officer
Michael Messina – SVP of Finance [email protected]
Driven Brands ve 2. čtvrtletí zvýšil tržby o 7 % na 507,4 mil. USD a čistý zisk z pokračujících operací na 37,3 mil. USD. Společnost zároveň potvrdila celoroční výhled na fiskální rok 2026.
CHARLOTTE, N.C.--(BUSINESS WIRE)--Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the second quarter ending June 27, 2026.
For the second quarter, Driven Brands delivered revenue of $507.4 million, an increase of 7% versus the prior year. System-wide sales increased 5% to $1.6 billion, driven by a 1% increase in same store sales and 5% increase in store count versus the prior year.
Net income from continuing operations was $37.3 million or $0.23 per diluted share versus $16.4 million or $0.10 per diluted share in the prior year. Adjusted Net Income1 was $48.2 million or $0.29 per diluted share versus $48.9 million or $0.30 per diluted share in the prior year. Adjusted EBITDA1, which included $11.8 million of non-recurring, restatement-related costs, was $107.0 million, a decrease of 7% versus the prior year.
“Our results this quarter reflect the strength of our diversified, non-discretionary portfolio,” said Danny Rivera, President and Chief Executive Officer. “Revenue grew 7%, every segment delivered positive same store sales growth, and Take 5 extended its streak to 24 consecutive quarters of positive same store sales growth, including 3.6% growth this quarter. We also moved closer to our 3x leverage target, ending the quarter at 3.1x.”
“We are reiterating our full-year 2026 outlook ranges and remain focused on scaling Take 5, generating consistent cash flow, and further reducing leverage. We are operating in a dynamic consumer environment and are managing the business with appropriate discipline. Our resilient portfolio, strong balance sheet, and focus on execution position us well to navigate uncertain market conditions and deliver long-term shareholder value,” Rivera concluded.
Second Quarter 2026 Key Performance Indicators by Segment
System-wide Sales
(in millions)
Store Count
Same Store
Sales
Revenue
(in millions)
Adjusted EBITDA
(in millions)
Take 5
$
460.2
1,421
3.6
%
$
334.8
$
114.9
Franchise Brands
1,095.8
2,696
0.5
%
69.6
41.2
Auto Glass Now
72.7
206
2.6
%
72.9
3.5
Corporate and Other
N/A
N/A
N/A
30.1
(52.5
)
Total
$
1,628.7
4,323
1.4
%
$
507.4
107.0
Note: Certain columns may not add due to rounding.
Capital and Liquidity
The Company ended the quarter with a net leverage ratio of 3.1x Adjusted EBITDA and total liquidity of $855 million consisting of $184 million in cash and cash equivalents and $671 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This does not include the additional $135 million 2022-1 Securitization Senior Notes that would expand the Company’s variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.
Fiscal Year 2026 Outlook
The Company reiterates its financial outlook ranges for fiscal year 2026 as follows:
The Company expects fiscal year 2026 Adjusted EBITDA1 to be at the low end of its outlook range, reflecting continued uncertainty with lower-income consumers and the conflict in the Middle East, as well as its expectation for the non-recurring, restatement-related costs to come in at the high end of its $35 million to $45 million range.
The Company continues to expect fiscal year 2026 same store sales growth in the range of flat to 2%; and net store growth of approximately 160 to 190.
The Company continues to expect to generate between $125 million and $145 million of free cash flow2 in fiscal year 2026.
Note: 2026 Outlook excludes the impact of any potential M&A and divestitures other than the completed divestiture of the international car wash business.
Nasdaq Listing Compliance
Following the filing of its Form 10‑Q for the period ended March 28, 2026, the Company received notification from Nasdaq on June 12, 2026, that it had regained compliance with the periodic filing requirements under Listing Rule 5250(c)(1).
Conference Call
Driven Brands will host a conference call to discuss second quarter 2026 results today, Thursday, August 6, 2026, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months.
About Driven Brands
Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including oil change, paint, collision, glass, vehicle repair, and maintenance. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. As of the end of fiscal year 2025, Driven Brands had over 4,200 locations across the U.S. and Canada, and services tens of millions of vehicles annually. Driven Brands’ network generated approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales.
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
Six Months Ended
(in thousands, except per share amounts)
June 27, 2026
June 28, 2025
June 27, 2026
June 28, 2025
As Restated and
Recast
As Restated and
Recast
Net revenue:
Franchise royalties and fees
$
51,662
$
49,180
$
98,925
$
93,890
Company-operated store sales
352,604
333,280
689,736
647,411
Advertising contributions
30,098
27,041
58,933
52,366
Supply and other revenue
73,052
65,712
144,263
129,158
Total net revenue
507,416
475,213
991,857
922,825
Operating expenses:
Company-operated store expenses
208,643
192,322
403,900
379,445
Advertising expenses
30,098
27,040
58,933
52,365
Supply and other expenses
43,764
39,153
83,531
74,590
Selling, general, and administrative expenses
129,704
150,520
261,515
275,179
Depreciation and amortization
22,157
19,129
43,488
39,440
Total operating expenses
434,366
428,164
851,367
821,019
Operating income
73,050
47,049
140,490
101,806
Other expenses, net:
Interest expense, net
20,791
31,146
44,243
67,412
Foreign currency transaction loss (gain), net
1,212
(8,659
)
10,142
(9,130
)
Loss on debt extinguishment
—
—
1,820
—
Other expenses, net
22,003
22,487
56,205
58,282
Income before taxes from continuing operations
51,047
24,562
84,285
43,524
Income tax expense
13,773
8,130
23,180
13,584
Net income from continuing operations
$
37,274
$
16,432
$
61,105
$
29,940
(Loss) gain on sale of discontinued operations, net of tax
(3,027
)
38,948
26,259
38,948
Net (loss) income from discontinued operations, net of tax
—
(1,336
)
1,713
(4,918
)
Net income
$
34,247
$
54,044
$
89,077
$
63,970
Basic earnings per share:
Continuing Operations
$
0.23
$
0.10
$
0.37
$
0.18
Discontinued Operations
(0.02
)
0.23
0.17
0.21
Net basic earnings per share
$
0.21
$
0.33
$
0.54
$
0.39
Diluted earnings per share:
Continuing Operations
$
0.23
$
0.10
$
0.37
$
0.18
Discontinued Operations
(0.02
)
0.23
0.17
0.21
Net diluted earnings per share
$
0.21
$
0.33
$
0.54
$
0.39
Weighted average shares outstanding
Basic
164,481
162,833
164,319
161,701
Diluted
164,936
164,150
164,774
162,984
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share amounts)
June 27, 2026
December 27, 2025
Assets
Current assets:
Cash and cash equivalents
$
183,947
$
102,938
Restricted cash
100
162
Accounts and notes receivable, net
155,245
131,958
Inventory
52,087
52,375
Prepaid and other assets
30,302
50,103
Income tax receivable
48,447
49,266
Advertising fund assets, restricted
72,298
60,826
Assets held for sale
11,522
31,233
Current assets of discontinued operations
—
61,993
Total current assets
553,948
540,854
Other assets
113,264
114,657
Property and equipment, net
496,273
471,804
Operating lease right-of-use assets
548,477
513,458
Deferred commissions
7,824
7,824
Intangibles, net
606,309
617,849
Goodwill
1,209,228
1,218,002
Deferred tax assets
3,917
3,982
Non-current assets of discontinued operations
—
671,490
Total assets
$
3,539,240
$
4,159,920
Liabilities and shareholders' equity
Current liabilities:
Accounts payable
$
128,468
$
93,029
Accrued expenses and other liabilities
166,879
198,759
Income tax payable
2,226
2,652
Current portion of long-term debt
26,243
276,691
Tax receivable agreement payable
29,656
56,211
Advertising fund liabilities
23,258
24,670
Current liabilities of discontinued operations
—
73,795
Total current liabilities
376,730
725,807
Long-term debt
1,658,932
1,882,783
Deferred tax liabilities
26,438
13,554
Operating lease liabilities
535,268
501,506
Tax receivable agreement payable
78,615
73,084
Deferred revenue
29,872
30,365
Long-term accrued expenses and other liabilities
94
—
Non-current liabilities of discontinued operations
—
165,619
Total liabilities
2,705,949
3,392,718
Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding
—
—
Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,979,816 and 164,531,712 shares issued and outstanding; respectively
1,650
1,645
Additional paid-in capital
1,745,494
1,736,416
Accumulated deficit
(864,131
)
(953,208
)
Accumulated other comprehensive loss
(49,722
)
(17,651
)
Total shareholders’ equity
833,291
767,202
Total liabilities and shareholders' equity
$
3,539,240
$
4,159,920
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended
(in thousands)
June 27, 2026
June 28, 2025
As Restated
Net income
$
89,077
$
63,970
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
43,488
71,081
Share-based compensation expense
10,816
23,022
Loss (gain) on foreign denominated transactions
7,291
(13,343
)
Loss on foreign currency derivatives
2,851
4,213
Gain on sale and disposal of businesses, fixed assets, and sale leaseback transactions
(25,709
)
(49,535
)
Loss on fair value of seller note receivable
—
17,000
Reclassification of interest rate hedge to income
—
(1,033
)
Bad debt expense
3,410
9,271
Asset impairment charges and lease terminations
—
24,575
Amortization of deferred financing costs and bond discounts
3,777
6,206
Amortization of cloud computing
10,635
5,829
Provision for deferred income taxes
13,932
11,347
Loss on extinguishment of debt
1,820
—
Other, net
(9,077
)
(5,003
)
Changes in operating assets and liabilities, net of acquisitions:
Accounts and notes receivable, net
(26,230
)
(44,295
)
Inventory
211
1,840
Prepaid and other assets
18,073
(3,162
)
Advertising fund assets and liabilities, restricted
(14,046
)
(11,599
)
Other assets
(7,949
)
150
Deferred commissions
(2
)
303
Deferred revenue
(492
)
(934
)
Accounts payable
35,968
29,874
Accrued expenses and other liabilities
(17,520
)
10,140
Income tax receivable
(7,427
)
686
Cash provided by operating activities
132,897
150,603
Cash flows from investing activities:
Capital expenditures
(80,924
)
(124,641
)
Cash used in business acquisitions, net of cash acquired
—
(6,034
)
Proceeds from sale leaseback transactions
23,001
22,810
Proceeds from sale or disposal of businesses and fixed assets, net of cash sold
484,209
266,133
Cash provided by investing activities
426,286
158,268
Cash flows from financing activities:
Payment of debt extinguishment and issuance costs
—
(1,414
)
Repayment of long-term debt
(340,286
)
(305,446
)
Proceeds from revolving lines of credit and short-term debt
107,000
65,000
Repayment of revolving lines of credit and short-term debt
(247,000
)
(75,000
)
Repayment of principal portion of finance lease liability
(3,764
)
(3,140
)
Payment of Tax Receivable Agreement
(21,630
)
—
Tax obligations for share-based compensation
(2,166
)
(2,582
)
Cash used in financing activities
(507,846
)
(322,582
)
Effect of exchange rate changes on cash
(1,494
)
5,464
Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted
49,843
(8,247
)
Cash and cash equivalents, beginning of period
132,682
141,810
Cash included in advertising fund assets, restricted, beginning of period
52,204
38,930
Restricted cash, beginning of period
162
358
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period
185,048
181,098
Cash and cash equivalents, end of period
183,947
133,079
Cash included in advertising fund assets, restricted, end of period
50,844
39,438
Restricted cash, end of period
100
334
Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period
$
234,891
$
172,851
Disclosure Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are “forward-looking statements” for the purposes of federal and state securities laws, including, among other things, any statements relating to: (i) the current geopolitical environment, including the impact, both direct and indirect, of global conflicts, government actions, such as proposed and enacted tariffs and governmental shutdowns; (ii) our strategy, outlook, and growth prospects; (iii) our operational and financial targets, dividend policy, and capital allocation strategy; (iv) general economic trends and trends in our industry and markets; (v) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (vi) our internal control over financial reporting; (vii) the proper application of generally accepted accounting principles in the preparation of our financial statements, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (viii) the competitive environment in which we operate; and (ix) potential post-closing obligations and liabilities relating to the sale of our car wash businesses. Forward-looking statements may include, among others, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or any other similar words.
Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: our ability to compete with other businesses in the automotive aftermarket industries; advances and changes in automotive technology; changes in consumer preferences, perceptions, and spending patterns; changes in general economic conditions and the geographic concentration of our locations; our ability to timely recruit and retain qualified accounting personnel; the need to rely on third-party service providers, which could result in significant costs; diversion of management’s time, attention and resources from strategic matters due to remediation efforts related to the material weaknesses in our internal control over financial reporting and disclosure controls and procedures; our inability to maintain an effective system of internal controls; our inability to remediate the material weaknesses in our internal control over financial reporting and disclosure controls and procedures or additional material weaknesses or other deficiencies in the future; the restatement of certain of our previously issued consolidated financial statements; the adverse effect of litigation; the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.
There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make.
Forward-looking statements made in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Given these uncertainties, you should not place undue reliance on these forward-looking statements.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.
Non-GAAP Financial Measures in Outlook
Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) and Adjusted Earnings per Share (“Adjusted EPS”) in the Company’s Fiscal Year 2026 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.
Adjusted Net Income and Adjusted Earnings Per Share
Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands’ core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.
The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three and six months ended June 27, 2026, compared to the three and six months ended June 28, 2025.
Net Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)
Three Months Ended
Six Months Ended
June 27, 2026
June 28, 2025
June 27, 2026
June 28, 2025
(in thousands, except per share data)
As Restated
As Restated
Net income from continuing operations
$
37,274
$
16,432
$
61,105
$
29,940
Adjustments:
Acquisition related costs(a)
118
983
288
998
Non-core items and project costs, net(b)
1,511
(1,134
)
4,003
2,076
Cloud computing amortization(c)
5,450
3,948
10,635
5,829
Share-based compensation expense(d)
5,101
10,663
11,449
22,923
Foreign currency transaction loss (gain), net(e)
1,212
(8,659
)
10,142
(9,130
)
Impairment, (gain) loss on sale of assets, net, and closed store expenses(f)
(373
)
34,314
733
44,208
Loss on debt extinguishment(g)
—
—
1,820
—
Amortization related to acquired intangible assets(h)
4,650
4,528
9,305
9,180
Adjusted net income before tax impact of adjustments
54,943
61,075
109,480
106,024
Tax impact of adjustments(i)
(6,771
)
(12,171
)
(12,279
)
(18,348
)
Adjusted net income from continuing operations
$
48,172
$
48,904
$
97,201
$
87,676
Basic earnings per share from continuing operations
$
0.23
$
0.10
$
0.37
$
0.18
Diluted earnings per share from continuing operations
$
0.23
$
0.10
$
0.37
$
0.18
Adjusted basic earnings per share from continuing operations(1)
$
0.29
$
0.30
$
0.59
$
0.54
Adjusted diluted earnings per share from continuing operations(1)
$
0.29
$
0.30
$
0.59
$
0.54
Weighted average shares outstanding
Basic
164,481
162,833
164,319
161,701
Diluted
164,936
164,150
164,774
162,984
Adjusted EBITDA
Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (“SEC”) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period.
Please see the company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025, filed with the SEC on May 19, 2026, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three and six months ended June 27, 2026, compared to the three and six months ended June 28, 2025.
Net Income to Adjusted EBITDA Reconciliation (Unaudited)
Three Months Ended
Six Months Ended
June 27, 2026
June 28, 2025
June 27, 2026
June 28, 2025
(in thousands)
As Restated
As Restated
Net income from continuing operations
$
37,274
$
16,432
$
61,105
$
29,940
Income tax expense
13,773
8,130
23,180
13,584
Interest expense, net
20,791
31,146
44,243
67,412
Depreciation and amortization
22,157
19,129
43,488
39,440
EBITDA
93,995
74,837
172,016
150,376
Acquisition related costs(a)
118
983
288
998
Non-core items and project costs, net(b)
1,511
(1,134
)
4,003
2,076
Cloud computing amortization(c)
5,450
3,948
10,635
5,829
Share-based compensation expense(d)
5,101
10,663
11,449
22,923
Foreign currency transaction loss (gain), net(e)
1,212
(8,659
)
10,142
(9,130
)
Impairment, (gain) loss on sale of assets, net, and closed store expenses(f)
(373
)
34,314
733
44,208
Loss on debt extinguishment(g)
—
—
1,820
—
Adjusted EBITDA
$
107,014
$
114,952
$
211,086
$
217,280
Note: Adjusted EBITDA presented above included restatement-related, non-recurring costs of $11.8 million for the three months ended June 27, 2026, and $20.9 million for the six months ended June 27, 2026.
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes
(a)
Consists of acquisition costs as reflected within the consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. As acquisitions occur in the future, we expect to incur similar costs and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.
(b)
Consists of discrete items and project costs, including third-party professional costs associated with strategic transformation initiatives as well as non-recurring payroll-related costs and non-ordinary course legal reserves and settlements.
(c)
Includes non-cash amortization expenses relating to cloud computing arrangements.
Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of the intercompany loans as well as gains and losses on cross-currency swaps.
(f)
Consists of the following items (i) asset impairments, (ii) losses, net on sale leasebacks, disposal of assets, including assets held for sale, or sale of business; and (iii) closed store expenses.
(g)
Represents charges incurred related to the Company’s partial repayment of the 2020-1 Senior Notes and full repayment of the 2019-2 Senior Notes.
(h)
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statements of operations.
(i)
Represents the tax impact of adjustments associated with the reconciling items between net income from continuing operations and Adjusted Net Income, excluding the provision for uncertain tax positions and valuation allowance for certain deferred tax assets. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 21% to 26.5% depending upon the tax attributes of each adjustment and the applicable jurisdiction.
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADJUSTED EBITDA RECONCILIATION (UNAUDITED)
Three Months Ended
Six Months Ended
June 27, 2026
June 28, 2025
June 27, 2026
June 28, 2025
(in thousands)
As Restated
As Restated
Take 5
$
114,882
$
106,538
$
224,354
$
202,933
Franchise Brands
41,163
43,549
82,520
86,429
Auto Glass Now
3,482
10,081
9,416
15,398
Corporate and Other
(52,513
)
(45,216
)
(105,204
)
(87,480
)
Adjusted EBITDA
$
107,014
$
114,952
$
211,086
$
217,280
Note: Adjusted EBITDA presented above included restatement-related, non-recurring costs of $11.8 million for the three months ended June 27, 2026, and $20.9 million for the six months ended June 27, 2026.
DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES
ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)
Evolent zvýšil celoroční výhled tržeb na 2,6 až 2,7 miliardy USD a upraveného EBITDA na 120 až 135 milionů USD. Ve 2. čtvrtletí tržby vzrostly na 652,5 milionu USD z 444,3 milionu USD.
, /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH) ("Evolent" or the "Company"), a company that specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable, today announced financial results for the three months ended June 30, 2026.
Seth Blackley, Co-Founder and Chief Executive Officer of Evolent stated, "We believe our results for the second quarter of 2026, our updated 2026 guidance and our 2027 outlook all demonstrate that Evolent is delivering strong growth, profitability and cash flow. We are confident in our emerging AI-led operational model that we believe allows us to deliver excellent client and clinical outcomes, while being highly disciplined with our cost structure."
Mario Ramos, Chief Financial Officer of Evolent stated, "Looking ahead to 2027, based on contracts in place today, upcoming launches scheduled and the strong continuing demand for our oncology solution, we expect to see revenue growth of over 25% compared to 2026. We expect the midpoint of our 2027 Adjusted EBITDA outlook will be at or above $150 million driven by expected improved Performance Suite care margins and a strong focus on expense reductions, despite significant continued industry headwinds from Medicaid and other client specific membership attrition. We also expect improved cash flow conversion, which, together with targeted debt reduction initiatives we are currently evaluating, we believe provides a clear path to addressing our capital structure and enhancing financial flexibility."
Highlights include (dollars in thousands, except for average PMPM fees and revenue per case):
For the Three Months
Ended June 30,
2026
2025
Financial Results:
Revenue
$ 652,520
$ 444,328
Net loss attributable to common shareholders of Evolent Health, Inc.
$ (28,364)
$ (51,090)
Net loss margin
(4.3) %
(11.5) %
Adjusted EBITDA
$ 28,050
$ 37,547
Adjusted EBITDA Margin
4.3 %
8.5 %
Average Lives on Platform/Cases by Product Type
Performance Suite
6,715
6,490
Specialty Technology and Services Suite
75,641
77,019
Administrative Services
1,189
1,231
Cases
12
13
Average Unique Members
39,956
40,201
Average PMPM Fees/ Revenue per Case by Product Type
Performance Suite
$ 24.05
$ 13.76
Specialty Technology and Services Suite
0.34
0.35
Administrative Services
13.46
15.13
Cases
3,608
2,969
Medical Expense Ratio
95.3 %
80.0 %
Medical Expense Ratio excluding Evolent Care Partners
95.3 %
84.9 %
The rising medical costs impacting health plans continue to drive robust demand for Evolent's complex specialty care solutions.
Evolent has two partnership announcements, bringing the year-to-date total to four:
First, we are preparing for the go live of an Oncology Performance Suite partnership with an existing advanced imaging client. The partnership will cover approximately 1.5 million lives across Medicaid and Medicare populations spread through 11 states. We currently expect this business to launch by December 2026, subject to certain regulatory approvals, and generate approximately $300 million in annualized revenue. As with other recent Performance Suite arrangements, this relationship includes Evolent's full enhanced contractual protections.
Second, an existing Specialty Technology & Services Suite client, a regional Blues plan customer, has signed an agreement to broaden its use of our Specialty Technology & Services Suite by adding new products and extending existing solutions to additional populations. We expect these implementations to occur during the third and fourth quarters of this year and annualized revenue from this contract to be less than $5 million. Financial Results of Evolent Health, Inc.
In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we may use or discuss financial measures not prepared in accordance with generally accepted accounting principles ("GAAP"). Definitions of the non-GAAP financial measures as well as reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are presented herein. See "Non-GAAP Financial Measures" for more information.
Reported Results
Evolent Health, Inc. reported the following results in accordance with GAAP (dollars in thousands, except for per share data):
For the Three Months
Ended June 30,
2026
2025
Revenue
$ 652,520
$ 444,328
Cost of revenue
$ 571,684
$ 343,943
Selling, general and administrative expenses
$ 68,831
$ 75,209
Net loss attributable to common shareholders of Evolent Health, Inc.
$ (28,364)
$ (51,090)
Net loss margin
(4.3) %
(11.5) %
Loss per share attributable to common shareholders of Evolent Health, Inc.
Basic and diluted
$ (0.25)
$ (0.44)
Total cash and cash equivalents was $115.7 million as of June 30, 2026.
Adjusted Results
Evolent Health, Inc. reported the following adjusted results (dollars in thousands, except for per share data):
For the Three Months
Ended June 30,
2026
2025
Adjusted cost of revenue
$ 570,989
$ 342,893
Adjusted selling, general and administrative expenses
$ 53,481
$ 63,888
Adjusted EBITDA
$ 28,050
$ 37,547
Adjusted EBITDA margin
4.3 %
8.5 %
Adjusted income (loss) attributable to common shareholders
$ 2,226
$ (11,013)
Adjusted income (loss) per share attributable to common shareholders:
Basic and diluted
$ 0.02
$ (0.10)
Business Outlook
The Company does not believe it can meaningfully reconcile guidance for non-GAAP Adjusted EBITDA to net income (loss) attributable to common shareholders of Evolent Health, Inc. because the Company cannot provide guidance for the more significant reconciling items between net income (loss) attributable to common shareholders of Evolent Health, Inc. and Adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, and as a result from changes to our business due to transactions and other events. Such items may, from time to time, include change in tax receivable agreement liability, other refinancing fees, gain (loss) from equity method investees, gain (loss) on repayment/extinguishment of debt, other income (expense), gain (loss) on disposal of non-strategic assets, goodwill impairments, right-of-use asset impairments, gain (loss) on lease terminations, stock-based compensation expense, severance costs and transaction-related costs. Such adjustments may be affected by changes in ongoing assumptions, judgments, as well as nonrecurring, unusual or unanticipated charges, expenses or gains (losses) or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.
Full Year 2026 Guidance
Incorporating its year-to-date performance, the Company is raising its 2026 revenue guidance range to $2.6 to $2.7 billion. The Company is also tightening its Adjusted EBITDA guidance range to $120 to $135 million.
Additional Outlook Information
The Company expects to deploy $25 million to $30 million in cash for capitalized software development during 2026.
This "Business Outlook" section contains forward-looking statements, and actual results may differ materially. Factors that may cause actual results to differ materially from our current expectations in addition to those set forth above are set forth below in "Forward Looking Statements - Cautionary Language" and Evolent Health, Inc.'s filings with the Securities and Exchange Commission ("SEC").
Web and Conference Call Information
Evolent Health, Inc. will hold a conference call to discuss its financial performance and related matters this morning, August 6, 2026, at 8:00 a.m., Eastern Time. To listen to a live broadcast via the internet and view the accompanying materials, please visit the Company's Investor Relations website at http://ir.evolent.com. To participate by telephone, dial (855) 940-9467, or (412) 317-6034 for international callers, and ask to join the "Evolent Health call." Participants are advised to dial in at least fifteen minutes prior to the call to register. The call will be archived on the Company's website for one week and will be available beginning later this evening. Evolent invites all interested parties to attend the conference call.
About Evolent
Evolent specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable. Evolent serves a national base of leading payers and providers and is consistently recognized as a top place to work in health care nationally. Learn more about how Evolent is changing the way health care is delivered by visiting evolent.com.
Contacts:
[email protected]
Definitions
Revenue Agreements
Evolent reports the number of new revenue agreements signed for Performance Suite, Specialty Technology and Services Suite, Administrative Services and Case-based products. A new revenue agreement includes incremental revenue to the Company reflecting contracts for services to both new partner entities, corporations or health plans as well as additional sales to existing partners. New revenue agreements may include incremental services, geographic, or line of business expansions or a combination thereof. The conversion of Specialty Technology and Services Suite contracts to Performance Suite are also included in this definition. The Company does not count renewals for existing scope, growth of membership within an existing contract scope or transaction-related purchase agreements, if applicable, in this metric.
Lives on Platform and Per Member Per Month ("PMPM") Fee
Performance Suite Lives on Platform are calculated by summing monthly members covered for specialty care services for contracts not under ASO arrangements divided by the number of months in the period. Specialty Technology and Services Suite Lives on Platform are calculated by summing monthly members covered for oncology, cardiology, musculoskeletal, advanced imaging and other diagnostic specialty care services for contracts under ASO arrangements divided by the number of months in the period. Administrative Services Lives on Platform are calculated by summing monthly members covered for administrative services implementation and core performance services divided by the number of months in the period. Cases are calculated by summing the number of individuals receiving services through our surgery management and advanced care planning programs in a given period. Members covered for more than one category are counted in each category.
Performance Suite Average PMPM fee is defined as revenue pertaining to our Performance Suite during the period reported divided by Performance Suite Lives on Platform for the period divided by the number of months in the period. Specialty Technology and Services Suite Average PMPM fee is defined as revenue pertaining to the Specialty Technology and Services Suite during the period reported divided by Specialty Technology and Services Suite Lives on Platform for the period divided by the number of months in the period. Administrative Services Average PMPM fee is defined as revenue pertaining to the Administrative Services during the period reported divided by the Administrative Services Lives on Platform for the period divided by the number of months in the period. Revenue per Case is calculated by the revenue pertaining to surgery management and advanced care planning programs divided by the number of cases for a given period.
Average Unique Members are calculated by summing members covered by our Performance Suite, Specialty Technology and Services Suite and Administrative Services. In cases where partners cross between multiple solutions, we only capture members from the solution with the maximum number of members.
Management uses Lives on Platform, PMPM fees, Cases, Revenue per Case and Average Unique Members because we believe that they provide insight into the unit economics of our services. We believe that these measures are also useful to investors because they allow further insight into the period over period operational performance.
Medical Expense Ratio
Medical Expense Ratio ("MER") is a key performance indicator used by management for purposes of monitoring operating performance and is calculated as GAAP total claims incurred related to our specialty care management services solution divided by GAAP revenue related to our Performance Suite. Management believes MER is useful to investors because it provides insight into the efficiency with which medical costs are managed relative to revenue and helps identify trends in the underlying performance. For periods prior to the consummation of the sale of Evolent Care Partners ("ECP") in December 2025, we present non-GAAP MER excluding revenues from ECP because is not indicative of ongoing operations.
EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(unaudited, in thousands, except per share data)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Revenue
$ 652,520
$ 444,328
$ 1,148,766
$ 927,977
Expenses
Cost of revenue
571,684
343,943
984,156
725,121
Selling, general and administrative expenses
68,831
75,209
141,649
153,618
Depreciation and amortization expenses
21,566
23,141
43,121
47,199
Loss on lease termination
—
—
—
1,906
Change in fair value of contingent consideration
—
3,206
—
2,926
Operating expenses
662,081
445,499
1,168,926
930,770
Operating loss
(9,561)
(1,171)
(20,160)
(2,793)
Interest income
703
1,084
1,717
2,358
Interest expense
(16,859)
(11,601)
(33,727)
(21,986)
Gain (loss) from equity method investees
(41)
197
(52)
178
Loss on option exercise
—
(196)
—
(52,544)
Extinguishment of Series A Preferred Stock and other
refinancing fees
—
(9,000)
—
(9,000)
Other income (expense), net
109
(35)
851
(83)
Loss before income taxes
(25,649)
(20,722)
(51,371)
(83,870)
Provision for (benefit from) income taxes
2,715
(825)
3,625
645
Loss before preferred dividends and accretion of Series
A Preferred Stock including excise tax
(28,364)
(19,897)
(54,996)
(84,515)
Dividends and accretion of Series A Preferred Stock
—
(31,193)
—
(38,825)
Net loss attributable to common shareholders of Evolent
Health, Inc.
$ (28,364)
$ (51,090)
$ (54,996)
$ (123,340)
Loss per common share
Basic and diluted
$ (0.25)
$ (0.44)
$ (0.49)
$ (1.07)
Weighted-average common shares outstanding
Basic and diluted
112,542
115,882
112,225
115,600
Comprehensive loss
Net loss attributable to common shareholders of Evolent
Health, Inc.
$ (28,364)
$ (51,090)
$ (54,996)
$ (123,340)
Other comprehensive loss, net of taxes, related to:
Foreign currency translation adjustment
—
22
(1,002)
46
Total comprehensive loss attributable to common
shareholders of Evolent Health, Inc.
$ (28,364)
$ (51,068)
$ (55,998)
$ (123,294)
EVOLENT HEALTH, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, 2026
December 31,
2025
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$ 115,703
$ 151,856
Restricted cash
22,990
26,134
Accounts receivable, net
449,118
309,861
Prepaid expenses and other current assets
22,699
18,521
Total current assets
610,510
506,372
Restricted cash
2,773
2,706
Investments and equity method investees
8,764
8,966
Property and equipment, net
81,921
80,785
Right-of-use assets - operating
2,710
4,373
Prepaid expenses and other noncurrent assets
2,308
3,078
Contract cost assets
14,047
13,537
Intangible assets, net
554,427
584,937
Goodwill
694,434
694,482
Total assets
$ 1,971,894
$ 1,899,236
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Current liabilities:
Accounts payable
$ 38,823
$ 59,776
Accrued liabilities
43,897
65,755
Operating lease liability - current
1,541
15,343
Accrued compensation and employee benefits
28,966
50,987
Deferred revenue
1,208
1,203
Reserve for claims and performance - based arrangements
378,398
192,196
Total current liabilities
492,833
385,260
Long-term debt, net
966,467
970,537
Other long-term liabilities
8,092
8,012
Tax receivables agreement liability
108,909
108,909
Operating lease liabilities - noncurrent
2,426
3,818
Deferred tax liabilities, net
9,944
7,506
Total liabilities
1,588,671
1,484,042
Shareholders' Equity
Class A common stock - $0.01 par value; 750,000,000 shares authorized;
118,656,443 and 117,603,806 shares issued, respectively
1,187
1,176
Additional paid-in-capital
1,817,414
1,793,398
Accumulated other comprehensive loss
(3,626)
(2,624)
Retained earnings (accumulated deficit)
(1,370,323)
(1,315,327)
Treasury stock, at cost; 5,971,712 and 5,971,712 shares issued, respectively
(61,429)
(61,429)
Total shareholders' equity
383,223
415,194
Total liabilities and shareholders' equity
$ 1,971,894
$ 1,899,236
EVOLENT HEALTH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
For the Six Months
Ended June 30,
2026
2025
Cash Flows Used In Operating Activities
Loss before preferred dividends and accretion of Series A Preferred Stock
$ (54,996)
$ (84,515)
Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:
Change in fair value of contingent consideration
—
2,926
Loss (gain) from equity method investees
52
(178)
Extinguishment of Series A Preferred Stock and other refinancing fees
—
9,000
Loss on option exercise
—
52,544
Depreciation and amortization expenses
43,121
47,199
Stock-based compensation expense
25,850
22,661
Deferred tax benefit
2,970
(570)
Amortization of contract cost assets
2,023
2,523
Amortization of deferred financing costs
5,930
2,403
Loss on lease termination
—
1,906
Right-of-use operating assets
1,663
792
Changes in assets and liabilities, net of acquisitions:
Accounts receivable, net and contract assets
(139,257)
55,925
Prepaid expenses and other current and non-current assets
(4,031)
(1,803)
Contract cost assets
(2,533)
(1,649)
Accounts payable
(17,810)
18,189
Accrued liabilities
(22,350)
(5,867)
Operating lease liabilities
(15,194)
(20,973)
Accrued compensation and employee benefits
(22,021)
4,543
Deferred revenue
5
(174)
Reserve for claims and performance-based arrangements
186,202
(131,454)
Other long-term liabilities
80
803
Net cash and restricted cash used in operating activities
(10,296)
(25,769)
Cash Flows Used In Investing Activities
Cash paid for asset acquisitions and business combinations
—
(56,047)
Return of equity method investments
150
788
Purchases of investments and contributions to equity method investees
—
(1,000)
Investments in internal-use software and purchases of property and equipment
(13,255)
(17,365)
Net cash and restricted cash used in investing activities
(13,105)
(73,624)
Cash Flows (Used In) Provided by Financing Activities
Changes in working capital balances related to claims processing
(3,143)
(44,754)
Payment of contingent consideration
—
(1,000)
Proceeds from issuance of long-term debt, net of offering costs
—
221,000
Repayment of debt
(10,000)
(62,500)
Payment of preferred dividends
—
(9,198)
Taxes withheld and paid for vesting of equity awards
(1,823)
(4,621)
Net cash and restricted cash (used in) provided by financing activities
(14,966)
98,927
Effect of exchange rate on cash and cash equivalents and restricted cash
(863)
(60)
Net decrease in cash and cash equivalents and restricted cash
(39,230)
(526)
Cash and cash equivalents and restricted cash as of beginning-of-period
180,696
178,496
Cash and cash equivalents and restricted cash as of end-of-period
$ 141,466
$ 177,970
Non-GAAP Financial Measures
The Company views the following activities as integral to understanding its non-GAAP financial measures:
Transaction-related costs include but are not limited to integration consultants, investor outreach services, external valuation and accounting advisory services, legal fees, transaction bonuses paid to certain employees and other transaction related costs. We adjust these costs because transaction-related costs are expensed when incurred and are not indicative of Evolent's normal operating costs.
Purchase accounting adjustments include amortization expense on intangible assets such as corporate trade names, customer, relationships, provider network contracts and existing technology related to acquisitions and business combinations. We believe it is important for the reader to understand that revenue generated from acquisitions is included within revenue in calculating adjusted income to common shareholders however amortization expense from acquired intangible assets is excluded in determining adjusted income to common shareholders because it does not directly relate to the services performed for the Company's customers. In addition to disclosing financial results that are determined in accordance with GAAP, we present Adjusted Cost of Revenue, Adjusted Selling, General and Administrative Expenses, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Income (Loss) Attributable to Common Shareholders, which are all non-GAAP financial measures, as supplemental measures to help investors evaluate our fundamental operational performance.
Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are defined as cost of revenue and selling, general and administrative expenses calculated in accordance with GAAP, respectively, adjusted to exclude the impact of stock-based compensation expenses, severance costs and transaction-related costs. Management believes Adjusted Cost of Revenue and Adjusted Selling, General and Administrative Expenses are useful to investors, because they facilitate an understanding of our long-term operational costs while removing the effect of costs that are not a representative component of the day-to-day operating performance of our business, and are useful to management as supplemental performance measures.
Adjusted EBITDA is defined as net loss attributable to common shareholders of Evolent Health, Inc. before interest income, interest expense, benefit from (provision for) income taxes, depreciation and amortization expenses, extinguishment of Series A Preferred Stock and other refinancing fees, gain (loss) from equity method investees, loss on option exercise, change in fair value of contingent consideration, other income (expense), net, loss on lease termination, stock-based compensation expense, severance costs, dividends and accretion of Series A Preferred Stock and transaction-related costs.
Management believes that Adjusted EBITDA is useful to investors because it allows investors to evaluate the Company's performance using tools that management uses to evaluate past performance and prospects for future performance. Management also uses Adjusted EBITDA as a supplemental performance measure because the removal of adjustments to net loss attributable to common shareholders of Evolent Health, Inc. allows us to focus on operational performance.
Adjusted EBITDA Margin is defined Adjusted EBITDA divided by Revenue. Management believes that this measure is useful to investors because it allows further insight into the period over period operational performance. Management also uses Adjusted EBITDA Margin as a supplemental performance measure because it allows the investor to understand operational performance compared to revenues over time.
Adjusted Income (Loss) Attributable to Common Shareholders is defined as net loss attributable to common shareholders of Evolent Health, Inc. adjusted to gain (loss) from equity method investees, other income (expense), net, benefit from (provision for) income taxes, change in fair value of contingent consideration, extinguishment of Series A Preferred Stock and other refinancing fees, loss on option exercise, purchase accounting adjustments, loss on lease termination, stock-based compensation expense, severance costs, transaction-related costs and the tax impact of non-GAAP adjustments.
Adjusted Income (Loss) per Share Attributable to Common Shareholders is defined as Adjusted Income (Loss) Attributable to Common Shareholders divided by Weighted-Average Common Shares, and reflects the adjustments made in those non-GAAP measures.
Management believes that Adjusted Income (Loss) Attributable to Common Shareholders and Adjusted Income (Loss) per Share Attributable to Common Shareholders are useful to investors because they provide a measure of the Company's net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance.
These adjusted measures do not represent and should not be considered as alternatives to GAAP measurements, and our calculations thereof may not be comparable to similarly entitled measures reported by other companies. A reconciliation of these adjusted measures to their most comparable GAAP financial measures is presented in the tables below. We believe these measures are useful across time in evaluating our fundamental core operating performance.
Evolent Health, Inc.
Reconciliation of Adjusted Results of Operations
(unaudited, in thousands)
Reconciliation of Adjusted Cost of Revenue to
Cost of Revenue
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Cost of revenue
$ 571,684
$ 343,943
$ 984,156
$ 725,121
Less:
Stock-based compensation
695
1,050
1,214
1,707
Adjusted cost of revenue
$ 570,989
$ 342,893
$ 982,942
$ 723,414
Reconciliation of Adjusted Selling, General and Administrative Expenses to
Selling, General and Administrative Expenses
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Selling, general and administrative expenses
$ 68,831
$ 75,209
$ 141,649
$ 153,618
Less:
Stock-based compensation
14,506
10,530
24,636
20,954
Severance costs
275
791
275
1,805
Transaction-related costs
569
—
1,031
703
Adjusted selling, general and administrative
expenses
$ 53,481
$ 63,888
$ 115,707
$ 130,156
Evolent Health, Inc.
Reconciliation of Medical Expense Ratio
(unaudited, in thousands except MER percentages)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Revenue
Performance Suite
$ 484,503
$ 267,917
$ 807,806
$ 570,938
Specialty Technology and Services Suite
78,161
81,401
158,960
164,222
Administrative Services
47,989
55,880
97,576
113,071
Cases
41,867
39,130
84,424
79,746
Total revenue
652,520
444,328
1,148,766
927,977
Less:
Revenue from Evolent Care Partners
—
15,469
—
73,268
Performance Suite revenue less revenue from Evolent Care
Partners
484,503
252,448
807,806
497,670
Total claims incurred related to our specialty care
management services solution
461,520
214,247
763,297
420,239
Medical expense ratio
95.3 %
80.0 %
94.5 %
73.6 %
Medical expense ratio excluding Evolent Care Partners
95.3 %
84.9 %
94.5 %
84.4 %
Evolent Health, Inc.
Reconciliation of Adjusted EBITDA to Net Income (Loss)
Attributable to Common Shareholders of Evolent Health, Inc.
(unaudited, in thousands)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Net loss attributable to common shareholders of Evolent
Health, Inc.
$ (28,364)
$ (51,090)
$(54,996)
$(123,340)
Net loss margin
(4.3) %
(11.5) %
(4.8) %
(13.3) %
Less:
Interest income
703
1,084
1,717
2,358
Interest expense
(16,859)
(11,601)
(33,727)
(21,986)
Benefit from (provision for) income taxes
(2,715)
825
(3,625)
(645)
Depreciation and amortization expenses
(21,566)
(23,141)
(43,121)
(47,199)
Extinguishment of Series A Preferred Stock and other
refinancing fees
—
(9,000)
—
(9,000)
Gain (loss) from equity method investees
(41)
197
(52)
178
Loss on option exercise
—
(196)
—
(52,544)
Change in fair value of contingent consideration
—
(3,206)
—
(2,926)
Other income (expense), net
109
(35)
851
(83)
Loss on lease termination
—
—
—
(1,906)
Stock-based compensation expense
(15,201)
(11,580)
(25,850)
(22,661)
Severance costs
(275)
(791)
(275)
(1,805)
Dividends and accretion of Series A Preferred Stock
—
(31,193)
—
(38,825)
Transaction-related costs
(569)
—
(1,031)
(703)
Adjusted EBITDA
$ 28,050
$ 37,547
$ 50,117
$ 74,407
Adjusted EBITDA margin
4.3 %
8.5 %
4.4 %
8.0 %
Evolent Health, Inc.
Reconciliation of Adjusted Income (Loss) Attributable to Common Shareholders to
Net Loss Attributable to Common Shareholders
(unaudited, in thousands, except per share data)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
2026
2025
2026
2025
Net loss attributable to common shareholders of Evolent
Health, Inc.
$ (28,364)
$ (51,090)
$ (54,996)
$ (123,340)
Less:
Loss from equity method investees
(41)
197
(52)
178
Other income (expense), net
109
(35)
851
(83)
Benefit from (provision for) income taxes
(2,715)
825
(3,625)
(645)
Change in fair value of contingent consideration
—
(3,206)
—
(2,926)
Extinguishment of Series A Preferred Stock and other
refinancing fees
—
(9,000)
—
(9,000)
Loss on option exercise
—
(196)
—
(52,544)
Purchase accounting adjustments
(12,490)
(13,364)
(24,980)
(26,729)
Loss on lease termination
—
—
—
(1,906)
Stock-based compensation expense
(15,201)
(11,580)
(25,850)
(22,661)
Severance costs
(275)
(791)
(275)
(1,805)
Transaction-related costs
(569)
—
(1,031)
(703)
Tax impact (1)
592
(2,927)
(7)
(948)
Adjusted income (loss) attributable to common
shareholders
$ 2,226
$ (11,013)
$ (27)
$ (3,568)
Loss per share attributable to common shareholders
Basic and diluted
$ (0.25)
$ (0.44)
$ (0.49)
$ (1.07)
Adjusted income (loss) per share attributable to common
shareholders
Basic and diluted
$ 0.02
$ (0.10)
$ —
$ (0.03)
Weighted-average common shares
Basic and diluted
112,542
115,882
112,225
115,600
____________________
(1)
Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our statutory federal tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate.
FORWARD-LOOKING STATEMENTS - CAUTIONARY LANGUAGE
Certain statements made in this report and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," "aim," "predict," "potential," "continue," "plan," "project," "will," "should," "shall," "may," "might" and other words or phrases with similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to our ability to weather current dynamics, continue to expand our footprint, future actions, trends in our businesses, prospective services, new partner additions/expansions, our guidance and business outlook and future performance or financial results, and the closing of pending transactions and the outcome of contingencies, such as legal proceedings. We claim the protection afforded by the safe harbor for forward-looking statements provided by the PSLRA.
These statements are only predictions based on our current expectations and projections about future events. Forward-looking statements involve risks and uncertainties that may cause actual results, level of activity, performance or achievements to differ materially from the results contained in the forward-looking statements. Risks and uncertainties that may cause actual results to vary materially, some of which are described within the forward-looking statements, include, among others:
the significant portion of revenue we derive from our largest partners, and the potential loss, termination or renegotiation of our relationship or contract with any significant partner, or multiple partners in the aggregate; the increasing number of risk-sharing arrangements we enter into with our partners; the growth and success of our partners and certain revenues from our engagements, which are difficult to predict and are subject to factors outside of our control, including governmental funding reductions and other policy changes; our ability to accurately predict our exposure under performance-based contracts; failure by our customers to provide us with accurate and timely information; our ability to recover the upfront costs in our partner relationships and develop our partner relationships over time; our ability to attract new partners and successfully capture new opportunities; our ability to offer new and innovative products and services and our ability to keep pace with industry standards, technology and our partners' needs; our ability to maintain and enhance our reputation and brand recognition; our dependency on our key personnel, and our ability to attract, hire, integrate and retain key personnel; risks related to completed and future acquisitions, investments, alliances and joint ventures, which could divert management resources, result in unanticipated costs or dilute our stockholders; our ability to effectively manage our growth and maintain an efficient cost structure; risks related to managing our offshore operations and cost reduction goals; our ability to estimate the size of our target markets for our services; consolidation in the health care industry; competition which could limit our ability to maintain or expand market share within our industry; risks related to audits by CMS and other governmental payers and actions, including whistleblower claims under the False Claims Act; evolution of the healthcare regulatory and political framework; restrictions on the manner in which we access personal data and penalties as a result of privacy and data protection laws; data loss or corruption due to failures or errors in our systems and service disruptions at our data centers; liabilities and reputational risks related to our ability to safeguard the security and privacy of confidential data; our ability to obtain, maintain and enforce intellectual property rights and protect our trademarks and trade names, including from third parties alleging that we are infringing or violating their intellectual property rights; our ability to protect the confidentiality of our trade secrets; risks associated with our use of artificial intelligence and machine learning models; our use of "open-source" software; our reliance on third parties and licensed technologies; restrictions on our ability to use, disclose, de-identify or license data and to integrate third-party technologies; our reliance on Internet infrastructure, bandwidth providers, data center providers, other third parties and our own systems for providing services to our partners and operating our business; our ability to achieve profitability in the future; the impact of additional goodwill and intangible asset impairments on our results of operations; our obligations to make material payments to certain of our pre-IPO investors for certain tax benefits we may claim in the future; our obligations to make payments under the tax receivables agreement that may be accelerated or may exceed the tax benefits we realize; our ability to utilize benefits under the tax receivables agreement described herein; the terms of agreements between us and certain of our pre-IPO investors may contain different terms than comparable agreement we may enter into with unaffiliated third parties; our inability to obtain financing may result in a reduction in the ownership of our stockholders; the conditional conversion features, and changes in accounting treatment of the 2029 Notes and the 2031 Notes, which, if triggered, may adversely affect our financial condition and operating results; our ability to raise funds necessary to settle conversions of our notes in cash, to repurchase our notes for cash upon a fundamental change or to pay the redemption price for any notes we redeem; interest rate risk and other restrictive covenants under our First Lien Credit Agreement and the second lien credit agreement, by and among the Company, Evolent Health LLC, as borrower, certain subsidiaries of the Company, as guarantors, the lenders from time to time party thereto, and Ares Capital Corporation, as administrative agent and collateral agent; our indebtedness, our ability to service our indebtedness, and our ability to obtain additional financing on favorable terms or at all; interference with our ability to access the first and second lien credit facilities under our Credit Agreements; the potential volatility of our Class A common stock price; provisions in our certificate of incorporation and by-laws and provisions of Delaware law that discourage or prevent strategic transactions, including a takeover of us; provisions in our certificate of incorporation which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees; our intention not to pay cash dividends on our Class A common stock; the impact of litigation proceedings, government inquiries, reviews, audits or investigations; public health emergencies, epidemics, pandemics or contagious diseases; the cost of compliance with sustainability or other environmental, social responsibility or governance law and regulations; the impact of increasing inflationary pressures and rising consumer costs on our business; and our ability to utilize our net operating loss carry forwards and certain other tax attributes may be limited. The risks included here are not exhaustive. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Our periodic reports and other documents filed with the SEC include additional factors that could affect our businesses and financial performance. Moreover, we operate in a rapidly changing and competitive environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors.
Further, it is not possible to assess the effect of all risk factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. In addition, we undertake no obligation to publicly update any forward-looking statements to reflect events or circumstances that occur after the date of this release.
—Total Company Revenues of $425.5 Million for the Second Quarter of 2026— —BRINSUPRI ® (brensocatib) Revenues of $309.2 Million for the Second Quarter of 2026, Reflecting 49% Growth Over the First Quarter of 2026— —ARIKAYCE ® (amikacin liposome inhalation suspension) Revenues of $116.3 Million for the Second Quarter of 2026, Reflecting 8% Growth Over the Second Quarter of 2025— —Company Raises 2026 BRINSUPRI Revenue Guidance to $1.25 Billion to $1.40 Billion— —Company Reiterates 2026 ARIKAYCE Revenue Guidance of $450 Million to $470 Million— —Company Raises Peak Revenue Estimate for its Three Lead Programs to More than $14 Billion Total— —Peak Revenue Estimate Consists of More than $7 Billion for BRINSUPRI, More than $6 Billion for TPIP, and More than $1 Billion for ARIKAYCE— BRIDGEWATER, N.J., Aug. 6, 2026 /PRNewswire/ -- Insmed Incorporated (Nasdaq: INSM), a people-first global biopharmaceutical company striving to deliver first- and best-in-class therapies to transform the lives of patients facing serious diseases, today reported financial results for the second quarter ended June 30, 2026, and provided a business update.
Cencora ve 3. čtvrtletí zvýšila upravený provozní zisk o 17 % a upravený zisk na akcii o 12 %; zároveň zvedla celoroční výhled upraveného EPS na 17,75 až 17,95 USD.
McKesson's Compounding Keeps Adding UpCencora NYSE: COR reported fiscal 2026 third-quarter results marked by double-digit adjusted operating income growth, specialty-business momentum and $1 billion in share repurchases, prompting the pharmaceutical services company to raise its full-year adjusted earnings outlook.
Adjusted operating income rose 17% from the prior-year quarter, while adjusted earnings per share increased 12%, supported in part by the company’s share repurchases. Revenue increased 5% to $84.8 billion, and adjusted gross profit climbed 23% to $3.5 billion.
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Active ETFs Surge Past Passive, and These Are in the Lead“Our third quarter performance reflects the strength of our pharmaceutical-centric strategy, the breadth of our specialty platform, and our disciplined capital deployment,” Chief Financial Officer Eva Boratto said on her first earnings call after joining the company in June.
Cencora raised its fiscal 2026 adjusted EPS guidance to a range of $17.75 to $17.95, from a previous range of $17.70 to $17.90. The company maintained its adjusted free cash flow outlook of approximately $3 billion for the full year.
U.S. Segment Results Driven by Specialty Top 3 S&P 500 Winners in a Losing MarketU.S. Healthcare Solutions revenue rose 5% to $74.9 billion. The company cited specialty growth across health systems and physician practices, along with a $2.3 billion year-over-year increase in GLP-1 sales.
Those gains were partly offset by $2.4 billion of revenue pressure from manufacturer list-price reductions, the 2025 loss of an oncology customer and lower sales to a large mail-order customer.
U.S. Healthcare Solutions operating income increased 16% to $966 million. Boratto said specialty growth extended across Cencora’s management services organizations, health systems and community-provider businesses. Both the OneOncology and Retina Consultants of America, or RCA, MSO platforms performed ahead of expectations, she said.
Excluding OneOncology’s contribution and the prior loss of the oncology customer, the company’s core business generated double-digit organic operating income growth, management said.
CEO Bob Mauch said the company saw a sequential rebound in specialty utilization from the fiscal second quarter. Oncology was the larger contributor, while retina also supported the improvement, according to Boratto.
Mauch highlighted the importance of biosimilars, particularly in Medicare Part B’s physician-administered, buy-and-bill market. While biosimilars remain incrementally positive in Part D, he said their profit opportunity is greater in Part B because Cencora provides broader distribution, group purchasing, manufacturer and physician-support services.
“Part B will always be good, and we feel very confident about the durability of that over the long term,” Mauch said.
OneOncology Integration and MSO Strategy Cencora acquired OneOncology in February 2026 and said the business is performing modestly ahead of its initial operating-income expectations. The acquisition contributed to higher gross profit, operating expenses and interest expense during the quarter.
The company said it expects OneOncology to remain neutral to adjusted EPS on a 12-month basis, net of financing. Boratto also noted that Cencora changed its treatment of a non-controlling loss related to OneOncology’s UUG subsidiary during the third quarter, though the accounting change had no impact on operating income.
Mauch described Cencora’s MSO value-creation strategy in three phases:
Integrating the MSOs into Cencora and providing the company’s existing capabilities; Sharing capabilities across the platform, including clinical-trial services; Developing new services and analytics solutions for physicians and pharmaceutical manufacturers. He said RCA is further along in developing its clinical-trials platform, while OneOncology remains in earlier stages and offers substantial room for growth. Cencora plans to focus MSO investment on tuck-in acquisitions within oncology and retina, which Mauch said are currently the two specialties the company views as pharmaceutical-centric.
International Growth and Capital Deployment International Healthcare Solutions revenue rose 6% to $7.7 billion, both as reported and on a constant-currency basis. Operating income increased 21% as reported, or 23% in constant currency, to $166 million.
The international performance reflected growth in European distribution, World Courier and European third-party logistics operations. Cencora said its European distribution business continued to benefit from the timing of manufacturer price adjustments in a developing-market country, though it does not expect that benefit in the fourth quarter.
World Courier showed momentum after a challenging fiscal 2025 market, while the European 3PL business benefited from renewals, pricing initiatives and new business wins, Boratto said.
The company ended June with $2.8 billion in cash and year-to-date adjusted free cash flow of $1.1 billion. It also repaid the full $800 million balance of its RCA financing term loan, including $400 million during the June quarter and another $400 million in July.
Cencora repurchased $1 billion of shares during the quarter at an average price of $268 per share, reducing diluted share count by 0.7% year over year to 193.9 million shares. The repurchases increased expected net interest expense for the year to about $490 million because of lower interest income, the company said.
Updated Outlook and Fiscal 2027 Considerations For fiscal 2026, Cencora now expects consolidated adjusted operating income growth of 13% to 14%. It projects U.S. Healthcare Solutions operating income growth of 14.5% to 15.5%, International Healthcare Solutions operating income growth of approximately 9%, and Other operating income growth of approximately 10%.
The company expects U.S. Healthcare Solutions revenue growth to fall in the lower half of its previously issued 4% to 6% range. It now forecasts International Healthcare Solutions revenue growth of approximately 8% as reported and approximately 7% on a constant-currency basis, citing a stronger dollar during the second half of the year.
For fiscal 2027, management said it will provide formal guidance on its November earnings call. Cencora noted that if its planned merger of MWI Animal Health with Covetrus closes at the midpoint of fiscal 2027, it would create an estimated $150 million operating-income headwind in the Other segment and an approximate $0.35 EPS headwind after considering the transaction structure.
The company said it has no update on the timing of the proposed EyeSouth retina carve-out acquisition and advised against including it in fiscal 2027 estimates at this point.
Mauch said Cencora remains confident in its long-term growth framework, supported by its U.S. and international businesses, specialty capabilities and broad customer portfolio.
About Cencora (NYSE:COR)Cencora NYSE: COR is a global healthcare services and pharmaceutical distribution company that provides end-to-end solutions across the pharmaceutical supply chain. The company's core activities include wholesale drug distribution, specialty drug distribution, and the operation of specialty pharmacies, complemented by logistics, cold-chain management and other fulfillment services designed to support complex and temperature-sensitive therapies.
Beyond physical distribution, Cencora offers a range of commercial and patient-focused services for pharmaceutical manufacturers and healthcare providers.
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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Lamar ve 2. čtvrtletí zvýšil tržby na 616,7 milionu USD a čistý zisk na 164,6 milionu USD. Zároveň zvýšil celoroční odhad diluted AFFO na 8,75 až 8,90 USD na akcii.
Net revenues were $616.7 millionNet income was $164.6 millionAdjusted EBITDA was $303.4 million Six Month Results
Net revenues were $1.14 billionNet income was $266.5 millionAdjusted EBITDA was $529.7 million
BATON ROUGE, La., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the second quarter ended June 30, 2026.
“Our business is in a great place right now. As our results demonstrate, customers appreciate our ability to connect them with their audiences and to deliver messages that resonate,” Lamar chief executive Sean Reilly said. “With second-quarter results that exceeded our expectations and strong pacings for the balance of 2026, we are raising our guidance for full-year diluted AFFO per share to a range of $8.75 to $8.90.”
Second Quarter Highlights
Net revenues increased 6.5%Net income increased 6.2%Adjusted EBITDA increased 9.0%AFFO increased 10.1% Second Quarter Results
Lamar reported net revenues of $616.7 million for the second quarter of 2026 versus $579.3 million for the second quarter of 2025, a 6.5% increase. Operating income for the second quarter of 2026 increased $10.3 million to $208.0 million as compared to $197.7 million for the same period in 2025. Lamar recognized net income of $164.6 million for the second quarter of 2026 as compared to net income of $155.0 million for the same period in 2025, an increase of $9.6 million. Net income per diluted share was $1.58 and $1.52 for the three months ended June 30, 2026 and 2025, respectively.
Adjusted EBITDA for the second quarter of 2026 was $303.4 million versus $278.4 million for the second quarter of 2025, an increase of 9.0%.
Cash flow provided by operating activities was $252.4 million for the three months ended June 30, 2026 versus $229.5 million for the second quarter of 2025, an increase of $22.9 million. Free cash flow for the second quarter of 2026 was $218.7 million as compared to $199.1 million for the same period in 2025, a $19.6 million increase.
For the second quarter of 2026, funds from operations, or FFO, was $236.8 million versus $225.3 million for the same period in 2025, an increase of 5.1%. Adjusted funds from operations, or AFFO, for the second quarter of 2026 was $247.9 million compared to $225.3 million for the same period in 2025, an increase of 10.1%. Diluted AFFO per share increased 8.1% to $2.40 for the three months ended June 30, 2026 as compared to $2.22 for the same period in 2025.
Acquisition-Adjusted Three Months Results
Acquisition-adjusted net revenue for the second quarter of 2026 increased 6.1% over acquisition-adjusted net revenue for the second quarter of 2025. Acquisition-adjusted EBITDA for the second quarter of 2026 increased 7.3% as compared to acquisition-adjusted EBITDA for the second quarter of 2025. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2025 period for acquisitions and divestitures for the same time frame as actually owned in the 2026 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.
Six Month Results
Lamar reported net revenues of $1.14 billion for the six months ended June 30, 2026 versus $1.08 billion for the six months ended June 30, 2025, a 5.5% increase. Operating income for the six months ended June 30, 2026 decreased $34.9 million to $354.0 million as compared to $388.9 million for the same period in 2025. Lamar recognized net income of $266.5 million for the six months ended June 30, 2026 as compared to net income of $294.2 million for the same period in 2025, a decrease of $27.8 million. The 9.4% decrease in net income for the six months ended June 30, 2026 as compared to 2025 was primarily related to the $67.8 million gain recorded for the sale of Lamar’s equity interest in Vistar Media, Inc. (“Vistar”) in 2025, offset by an additional gain of $8.0 million recorded in 2026 for the same sales transaction. Net income per diluted share was $2.58 and $2.87 for the six months ended June 30, 2026 and 2025, respectively.
Adjusted EBITDA for the six months ended June 30, 2026 was $529.7 million versus $488.6 million for the same period in 2025, an increase of 8.4%.
Cash flow provided by operating activities was $399.8 million for the six months ended June 30, 2026 as compared to $357.2 million for the same period in 2025, an increase of $42.6 million. Free cash flow for the six months ended June 30, 2026 was $371.1 million as compared to $320.2 million for the same period in 2025, a $50.9 million increase.
For the six months ended June 30, 2026, funds from operations, or FFO, was $404.6 million versus $381.5 million for the same period in 2025, an increase of 6.0%. Adjusted funds from operations, or AFFO, for the six months ended June 30, 2026 was $425.5 million compared to $389.6 million for the same period in 2025, an increase of 9.2%. Diluted AFFO per share increased 8.1% to $4.12 for the six months ended June 30, 2026 as compared to $3.81 for the same period in 2025.
Liquidity
As of June 30, 2026, Lamar had $720.2 million in total liquidity that consisted of $652.2 million available for borrowing under its revolving senior credit facility and $68.0 million in cash and cash equivalents. There was $90.0 million in borrowings outstanding under the Company’s revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program as of the same date.
Revised Guidance
We are updating our 2026 guidance issued in February 2026. We now expect diluted earnings per share for fiscal year 2026 to be between $5.95 and $5.99, with diluted AFFO per share between $8.75 and $8.90. See “Supplemental Schedules Unaudited REIT Measures and Reconciliations to GAAP Measures” for reconciliation to GAAP.
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, including war and armed conflicts; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.
Use of Non-GAAP Financial Measures
The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.
Our Non-GAAP financial measures are determined as follows:
We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in (earnings) loss of investee, stock-based compensation, depreciation and amortization, loss (gain) on disposition of assets and investments, transaction expenses and investments and capitalized contract fulfillment costs, net.Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues.Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures.We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before (gain) loss from the sale or disposal of real estate assets and investments, net of tax, and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest.We define AFFO as FFO before (i) straight-line income and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax expense (benefit); (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest.Diluted AFFO per share is defined as AFFO divided by adjusted weighted average diluted common shares/units outstanding. Adjusted weighted average diluted common shares/units outstanding is calculated by adjusting the Company’s weighted average diluted common shares to add the weighted average outstanding units of Lamar Advertising Limited Partnership (“Lamar LP”), the Company’s operating partnership, that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets and investments.Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”.Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period. Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.
Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.
Conference Call Information
A conference call will be held to discuss the Company’s operating results on Thursday, August 6, 2026 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:
Conference Call
All Callers:1-800-420-1271 or 1-785-424-1634Passcode:63104 Live Webcast:ir.lamar.com Webcast Replay:ir.lamar.com Available through Thursday, August 13, 2026 at 11:59 p.m. Eastern Time Company Contact:Buster Kantrow Director of Investor Relations (225) 926-1000 [email protected]
General Information
Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 360,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,700 displays.
LAMAR ADVERTISING COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Net revenues$ 616,749 $ 579,311 $ 1,144,753 $ 1,084,741 Operating expenses (income): Direct advertising expenses 194,652 187,156 378,242 366,778 General and administrative expenses 90,817 86,679 182,313 175,880 Corporate expenses 27,922 27,093 54,512 53,479 Stock-based compensation 14,066 7,148 25,269 17,725 Capitalized contract fulfillment costs, net (429) (380) (704) (5)Depreciation and amortization 84,446 78,110 166,385 155,931 Gain on disposition of assets and investments (2,685) (4,176) (15,287) (73,961)Total operating expense 408,789 381,630 790,730 695,827 Operating income 207,960 197,681 354,023 388,914 Other (income) expense: Interest income (528) (597) (899) (1,089)Interest expense 41,105 40,700 81,644 79,032 Equity in loss (earnings) of investee — 174 — (206) 40,577 40,277 80,745 77,737 Income before income tax expense 167,383 157,404 273,278 311,177 Income tax expense 2,743 2,388 6,793 16,932 Net income 164,640 155,016 266,485 294,245 Net income attributable to non-controlling interest 3,891 661 4,449 1,135 Net income attributable to controlling interest 160,749 154,355 262,036 293,110 Preferred stock dividends 91 91 182 182 Net income applicable to common stock$ 160,658 $ 154,264 $ 261,854 $ 292,928 Earnings per share: Basic earnings per share$ 1.58 $ 1.52 $ 2.58 $ 2.88 Diluted earnings per share$ 1.58 $ 1.52 $ 2.58 $ 2.87 Weighted average common shares outstanding: Basic 101,493,028 101,271,391 101,433,763 101,851,428 Diluted 101,592,453 101,653,373 101,525,836 102,233,863 OTHER DATA Free Cash Flow Computation: Adjusted EBITDA$ 303,358 $ 278,383 $ 529,686 $ 488,604 Interest, net (38,883) (38,570) (77,358) (74,887)Current tax expense (2,960) (2,439) (5,232) (25,251)Preferred stock dividends (91) (91) (182) (182)Total capital expenditures (42,719) (38,201) (75,859) (68,088)Free cash flow$ 218,705 $ 199,082 $ 371,055 $ 320,196 SUPPLEMENTAL SCHEDULES
SELECTED BALANCE SHEET AND CASH FLOW DATA
(IN THOUSANDS)
June 30,
2026 December 31,
2025Selected Balance Sheet Data: Cash and cash equivalents$ 67,950 $ 64,812 Working capital deficit$ (293,417) $ (334,320)Total assets$ 6,991,597 $ 6,931,954 Total debt, net of deferred financing costs (including current maturities)$ 3,514,545 $ 3,418,907 Total stockholders’ equity$ 995,470 $ 1,024,779 Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025Selected Cash Flow Data: Cash flows provided by operating activities$ 252,417 $ 229,487 $ 399,807 $ 357,232Cash flows used in investing activities$ 83,148 $ 99,202 $ 162,542 $ 33,776Cash flows used in financing activities$ 140,552 $ 110,947 $ 233,979 $ 317,469 SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow: Cash flows provided by operating activities$ 252,417 $ 229,487 $ 399,807 $ 357,232 Changes in operating assets and liabilities 12,142 10,346 52,785 34,513 Total capital expenditures (42,719) (38,201) (75,859) (68,088)Preferred stock dividends (91) (91) (182) (182)Capitalized contract fulfillment costs, net (429) (380) (704) (5)Other (2,615) (2,079) (4,792) (3,274)Free cash flow$ 218,705 $ 199,082 $ 371,055 $ 320,196 Reconciliation of Net Income to Adjusted EBITDA: Net income$ 164,640 $ 155,016 $ 266,485 $ 294,245 Interest income (528) (597) (899) (1,089)Interest expense 41,105 40,700 81,644 79,032 Equity in loss (earnings) of investee — 174 — (206)Income tax expense 2,743 2,388 6,793 16,932 Operating income 207,960 197,681 354,023 388,914 Stock-based compensation 14,066 7,148 25,269 17,725 Capitalized contract fulfillment costs, net (429) (380) (704) (5)Depreciation and amortization 84,446 78,110 166,385 155,931 Gain on disposition of assets and investments (2,685) (4,176) (15,287) (73,961)Adjusted EBITDA$ 303,358 $ 278,383 $ 529,686 $ 488,604 Capital expenditure detail by category: Billboards - traditional$ 9,015 $ 8,887 $ 14,943 $ 14,933 Billboards - digital 21,537 22,242 34,668 38,318 Logo 4,953 3,379 9,394 5,985 Transit 730 370 1,232 958 Land and buildings 2,293 1,360 3,419 1,670 Operating equipment 4,191 1,963 12,203 6,224 Total capital expenditures$ 42,719 $ 38,201 $ 75,859 $ 68,088 SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 % Change 2026 2025 % ChangeReconciliation of Reported Basis to Acquisition-Adjusted Results(a): Net revenue$ 616,749 $ 579,311 6.5% $1,144,753 $1,084,741 5.5%Acquisitions and divestitures — 1,731 — 4,496 Acquisition-adjusted net revenue 616,749 581,042 6.1% 1,144,753 1,089,237 5.1%Reported direct advertising and G&A expenses 285,469 273,835 4.2% 560,555 542,658 3.3%Acquisitions and divestitures — (2,679) — (4,886) Acquisition-adjusted direct advertising and G&A expenses 285,469 271,156 5.3% 560,555 537,772 4.2%Outdoor operating income 331,280 305,476 8.4% 584,198 542,083 7.8%Acquisition and divestitures — 4,410 — 9,382 Acquisition-adjusted outdoor operating income 331,280 309,886 6.9% 584,198 551,465 5.9%Reported corporate expense 27,922 27,093 3.1% 54,512 53,479 1.9%Acquisitions and divestitures — (51) — (100) Acquisition-adjusted corporate expenses 27,922 27,042 3.3% 54,512 53,379 2.1%Adjusted EBITDA 303,358 278,383 9.0% 529,686 488,604 8.4%Acquisitions and divestitures — 4,461 — 9,482 Acquisition-adjusted EBITDA$ 303,358 $ 282,844 7.3% $ 529,686 $ 498,086 6.3% (a)Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2025 for acquisitions and divestitures for the same time frame as actually owned in 2026.
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 % Change 2026 2025 % ChangeReconciliation of Net Income to Outdoor Operating Income: Net income$ 164,640 $ 155,016 6.2% $ 266,485 $ 294,245 (9.4) %Interest expense, net 40,577 40,103 80,745 77,943 Equity in loss (earnings) of investee — 174 — (206) Income tax expense 2,743 2,388 6,793 16,932 Operating income 207,960 197,681 5.2% 354,023 388,914 (9.0) %Corporate expenses 27,922 27,093 54,512 53,479 Stock-based compensation 14,066 7,148 25,269 17,725 Capitalized contract fulfillment costs, net (429) (380) (704) (5) Depreciation and amortization 84,446 78,110 166,385 155,931 Gain on disposition of assets and investments (2,685) (4,176) (15,287) (73,961) Outdoor operating income$ 331,280 $ 305,476 8.4% $ 584,198 $ 542,083 7.8% SUPPLEMENTAL SCHEDULES
UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES
(IN THOUSANDS)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 % Change 2026 2025 % ChangeReconciliation of Total Operating Expenses to Acquisition-Adjusted Consolidated Expense: Total operating expenses$ 408,789 $ 381,630 7.1% $ 790,730 $ 695,827 13.6%Gain on disposition of assets and investments 2,685 4,176 15,287 73,961 Depreciation and amortization (84,446) (78,110) (166,385) (155,931) Capitalized contract fulfillment costs, net 429 380 704 5 Stock-based compensation (14,066) (7,148) (25,269) (17,725) Acquisitions and divestitures — (2,730) — (4,986) Acquisition-adjusted consolidated expense$ 313,391 $ 298,198 5.1% $ 615,067 $ 591,151 4.0% SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended
June 30, Six Months Ended
June 30, 2026 2025 2026 2025 Adjusted Funds from Operations: Net income$ 164,640 $ 155,016 $ 266,485 $ 294,245 Depreciation and amortization related to real estate 78,655 74,015 155,728 147,651 Gain from sale or disposal of real estate assets and investments, net of tax (2,649) (4,145) (13,210) (60,742)Adjustments for unconsolidated affiliates and non-controlling interest (3,891) 456 (4,449) 330 Funds from operations$ 236,755 $ 225,342 $ 404,554 $ 381,484 Straight-line expense 1,109 1,372 2,273 2,381 Capitalized contract fulfillment costs, net (429) (380) (704) (5)Stock-based compensation expense 14,066 7,148 25,269 17,725 Non-cash portion of tax provision (215) (95) (408) (339)Non-real estate related depreciation and amortization 5,791 4,095 10,657 8,280 Amortization of deferred financing costs 1,694 1,533 3,387 3,056 Capitalized expenditures-maintenance (14,714) (13,277) (24,011) (22,662)Adjustments for unconsolidated affiliates and non-controlling interest 3,891 (456) 4,449 (330)Adjusted funds from operations$ 247,948 $ 225,282 $ 425,466 $ 389,590 Weighted average diluted common shares outstanding (1) 101,592,453 101,653,373 101,525,836 102,233,863 Adjusted weighted average diluted common shares/units outstanding(2) 103,213,969 101,653,373 103,144,015 102,233,863 Diluted AFFO per share$ 2.40 $ 2.22 $ 4.12 $ 3.81
(1) Utilized to calculate earnings per share in accordance with GAAP.
(2) Utilized to calculate AFFO per share. Includes the weighted average outstanding units of Lamar LP (the Company’s operating partnership) that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.
SUPPLEMENTAL SCHEDULES
UNAUDITED REIT MEASURES
AND RECONCILIATIONS TO GAAP MEASURES
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
Revised projected 2026 Adjusted Funds From Operations: Year ended December 31, 2026 Low HighNet income$ 604,380 $ 609,380 Depreciation and amortization related to real estate 310,000 310,000 Gain from sale or disposal of real estate assets and investments, net of tax (18,760) (18,760)Adjustments for unconsolidated affiliates and non-controlling interest (10,000) (10,000)Funds from operations$ 885,620 $ 890,620 Straight-line expense 4,800 4,800 Capitalized contract fulfillment costs, net 750 750 Stock-based compensation expense 45,000 55,000 Non-cash portion of tax provision (100) (100)Non-real estate related depreciation and amortization 15,000 15,000 Amortization of deferred financing costs 6,900 6,900 Capitalized expenditures-maintenance (65,000) (65,000)Adjustments for unconsolidated affiliates and non-controlling interest 10,000 10,000 Adjusted funds from operations$ 902,970 $ 917,970 Weighted average diluted common shares outstanding 101,650,000 101,650,000 Adjusted weighted average diluted common shares/units outstanding 103,185,000 103,185,000 Diluted earnings per share$ 5.95 $ 5.99 Diluted AFFO per share$ 8.75 $ 8.90
The guidance provided above is based on a number of assumptions that management believes to be reasonable and reflects our expectations as of August 6, 2026. Actual results may differ materially from these estimates as a result of various factors, and we refer to the cautionary language regarding “forward-looking statements” included in the press release when considering this information.
US Foods oznámila za 2. fiskální čtvrtletí růst čistých tržeb o 4,5 % na 10,5 miliardy USD a čistého zisku o 22,8 % na 275 milionů USD. Firma zároveň potvrdila výhled na fiskální rok 2026.
ROSEMONT, Ill.--(BUSINESS WIRE)--US Foods Holding Corp. (NYSE: USFD), one of the largest foodservice distributors in the United States, today announced results for the second quarter of fiscal year 2026.
Second Quarter Fiscal 2026 Highlights
Total case volume increased 1.9%; independent restaurant case volume increased 5.1% Net sales increased 4.5% to $10.5 billion Gross profit increased 8.0% to $1.9 billion Net income increased 22.8% to $275 million Net income margin increased 39 basis points to 2.6% Adjusted EBITDA1 increased 10.2% to $604 million Adjusted EBITDA margin1 increased 29 basis points to 5.7% Diluted EPS increased 29.2% to $1.24; Adjusted Diluted EPS1 increased 21.0% to $1.44 “Our team delivered another strong quarter, highlighted by accelerating volume growth, record Adjusted EBITDA and Adjusted EBITDA margin and strong Adjusted EPS growth in what remains a challenging but stable industry environment,” said Dave Flitman, Chair of the Board and CEO. “Importantly, our results are in line with our long-range plan, including 10% Adjusted EBITDA growth and 21% Adjusted Diluted EPS growth driven by 29 basis points of margin expansion and 5% independent restaurant case growth. By leveraging our continuous improvement and self-help culture, we are enhancing service, improving productivity and delivering sustainable, profitable growth. I remain confident in our ability to continue to gain share with our target customer types, further improve customer service levels, deploy our strong and accelerating cash flow with discipline and compound earnings growth over time. I thank our 30,000 associates for their hard work and commitment to delivering excellence in serving our customers and pursuing our ambition to become the undisputed best in our industry.”
“Our second quarter results reflect consistent execution of our key initiatives, supported by strong operating performance,” added Dirk Locascio, CFO. “We expanded margins again this quarter through a combination of volume growth, gross profit gains and cost productivity improvements. Year-to-date, we invested $174 million in capital expenditures and repurchased approximately $500 million of shares, while maintaining our net leverage at 2.6 times. We remain confident in our ability to deliver sustained earnings growth and create long-term shareholder value.”
Second Quarter Fiscal Year 2026 Results
Total case volume increased 1.9% from the prior year driven by a 5.1% increase in independent restaurant case volume, a 3.5% increase in healthcare volume and a 4.4% increase in hospitality volume, partially offset by a 1.5% decrease in chain volume. Total organic case volume increased 1.7%, which includes 5.0% organic independent restaurant case volume growth. Net sales of $10.5 billion for the quarter increased 4.5% from the prior year, driven by case volume growth and food cost inflation of 2.3%.
Gross profit of $1.9 billion increased by $142 million, or 8.0%, from the prior year, primarily as a result of an increase in total case volume, improved cost of goods sold, and a $19 million favorable year-over-year LIFO adjustment. Gross profit as a percentage of Net sales was 18.2%. Adjusted Gross profit was $1.9 billion, an increase of $123 million, or 6.9% from the prior year. Adjusted Gross profit as a percentage of Net sales was 18.2%.
Operating expenses of $1.5 billion increased by $71 million, or 5.1%, from the prior year, primarily as a result of an increase in total case volume and higher distribution, selling and administrative costs, partially offset by actions to streamline administrative processes and costs. Operating expenses as a percentage of Net sales were 14.0%. Adjusted Operating expenses were $1.3 billion, an increase of $68 million, or 5.5% from the prior year. Adjusted Operating expenses as a percentage of Net sales were 12.5%.
Net income of $275 million, increased by $51 million, or 22.8%, from the prior year. Net income margin was 2.6%, an increase of 39 basis points compared to the prior year. Adjusted EBITDA of $604 million, increased by $56 million, or 10.2%, from the prior year. Adjusted EBITDA margin was 5.7%, an increase of 29 basis points compared to the prior year. Diluted EPS was $1.24; Adjusted Diluted EPS was $1.44.
Cash Flow and Debt
Cash flow provided by operating activities for the first six months of fiscal year 2026 and 2025 was $725 million. Higher net income in the current period was offset by favorable changes in operating assets and liabilities in the prior comparative period. Cash capital expenditures for the first six months of fiscal year 2026 totaled $174 million, an increase of $13 million from the prior year, related to investments in information technology, property and equipment and construction of and improvements to distribution facilities.
Net Debt at the end of the second quarter of fiscal year 2026 was $5.2 billion. The ratio of Net Debt to Adjusted EBITDA was 2.6x at the end of the second quarter of fiscal year 2026, compared to 2.7x at the end of fiscal year 2025.
During the second quarter of fiscal year 2026, the Company repurchased 4.4 million shares of common stock for $374 million and for the first six months of fiscal year 2026 repurchased 5.8 million shares of common stock for approximately $500 million, inclusive of fees, commissions, and any related excise tax. The Company had $640 million in remaining funds authorized under the November 2025 share repurchase program.
Outlook for Fiscal Year 20262
The Company is reaffirming its Fiscal Year 2026 guidance provided on February 12, 2026 of:
Net Sales growth of 4% to 6% Adjusted EBITDA growth of 9% to 13% Adjusted Diluted EPS growth of 18% to 24% The guidance provided above includes the impact of a 53rd week in fiscal year 2026, which is expected to add approximately 1% to total case growth and Adjusted EBITDA growth.
Conference Call and Webcast Information
US Foods will host a live webcast to discuss the second quarter of fiscal year 2026 results on Thursday, August 6, 2026, at 8 a.m. CDT. The call can also be accessed live over the phone by dialing (888) 660-6196; the conference ID number is USFDQ226. Presentation slides will be available shortly before the webcast begins. The webcast, slides, and a copy of this press release can be found in the Investor Relations section of our website at https://ir.usfoods.com.
About US Foods
With a promise to help its customers Make It, US Foods is one of America’s great food companies and a leading foodservice distributor, partnering with approximately 250,000 customer locations to help their businesses succeed. With more than 70 broadline locations and more than 90 cash and carry stores, US Foods and its 30,000 associates provides its customers with a broad and innovative food offering and a comprehensive suite of e-commerce, technology and business solutions. US Foods is headquartered in Rosemont, Ill. Visit www.usfoods.com to learn more.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, forecasted financial performance, statements about future results of operations and other statements which are not purely historical facts or that necessarily depend upon future events, including those under the heading “Outlook for Fiscal Year 2026.” These statements often include words such as “believe,” “expect,” “project,” “anticipate,” “intend,” “plan,” “outlook,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecast,” “mission,” “strive,” “more,” “goal,” or similar expressions (although not all forward-looking statements may contain such words). These statements are not guarantees of future performance or results and are subject to risks, uncertainties and other important factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: changes in consumer eating habits, including economic factors affecting consumer confidence and discretionary spending and the impact of advancements in pharmaceutical therapies, which may reduce the consumption of food prepared away from home; cost inflation/deflation and commodity volatility, including increases in fuel costs; geopolitical developments and supply chain disruptions; competition; reliance on third party suppliers and interruption of product supply or increases in product costs; changes in our relationships with customers and group purchasing organizations; our ability to increase or maintain the highest margin portions of our business and achieve the expected benefits from cost savings initiatives; the impact of climate change or related regulatory or market measures; the impact of governmental regulations related to our operations, including product safety; product recalls and product liability claims; our reputation in the industry; labor relations, increased labor costs and continued access to qualified labor; the level of interest rates and availability of indebtedness and restrictions under agreements governing our indebtedness; disruption of existing technologies and implementation of new technologies, including artificial intelligence; cybersecurity incidents and other technology disruptions; effective execution of the Company’s growth strategy, including our ability to identify suitable acquisition targets, consummate on favorable terms and successfully integrate acquired businesses; risks to the health and safety of our associates and others; adverse judgments or settlements resulting from litigation; extreme weather conditions, natural disasters and other catastrophic events; and the timing and scope of future repurchases by US Foods of its common stock.
More information on these risks and other potential factors that could affect the Company’s business, reputation, results of operations, financial condition, and stock price is included in the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are based on information available to us on the date hereof. For these statements, the Company claims the protection of the safe harbor for forward-looking statements in the Private Securities Litigation Reform Act. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements. Except to the extent required by law, the Company does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement.
Non-GAAP Financial Measures
We report our financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). However, Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net Debt, Adjusted Net income and Adjusted Diluted EPS are non-GAAP financial measures regarding our operational performance and liquidity. These non-GAAP financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP.
We use Adjusted Gross profit and Adjusted Operating expenses as supplemental measures to GAAP measures to focus on period-over-period changes in our business and believe this information is helpful to investors. Adjusted Gross profit is Gross profit adjusted to remove the impact of the LIFO inventory reserve adjustments. Adjusted Operating expenses are Operating expenses adjusted to exclude amounts that we do not consider part of our core operating results when assessing our performance.
We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA margin provide meaningful supplemental information about our operating performance because they exclude amounts that we do not consider part of our core operating results when assessing our performance. EBITDA is Net income (loss), plus Interest expense-net, Income tax provision (benefit), and Depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for (1) Restructuring activity and asset impairment charges; (2) Share-based compensation expense; (3) the non-cash impact of LIFO reserve adjustments; (4) loss on extinguishment of debt; (5) Business transformation costs; and (6) other gains, losses or costs as specified in the agreements governing our indebtedness. Adjusted EBITDA margin is Adjusted EBITDA divided by total Net sales.
We use Net Debt as a supplemental measure to GAAP measures to review the liquidity of our operations. Net Debt is defined as total debt net of total Cash, cash equivalents and restricted cash remaining on the balance sheet as of the end of the most recent fiscal quarter. We believe that Net Debt is a useful financial metric to assess our ability to pursue business opportunities and investments. Net Debt is not a measure of our liquidity under GAAP and should not be considered as an alternative to Cash Flows Provided by Operations or Cash Flows Used in Financing Activities.
We believe that Adjusted Net income is a useful measure of operating performance for both management and investors because it excludes items that are not reflective of our core operating performance and provides an additional view of our operating performance including depreciation, interest expense, and Income taxes on a consistent basis from period to period. Adjusted Net income is Net income (loss) excluding such items as restructuring activity and asset impairment charges, Share-based compensation expense, the non-cash impacts of LIFO reserve adjustments, amortization expense, loss on extinguishment of debt, Business transformation costs and other items, and adjusted for the tax effect of the exclusions and discrete tax items. We believe that Adjusted Net income may be used by investors, analysts, and other interested parties to facilitate period-over-period comparisons and provides additional clarity as to how factors and trends impact our operating performance.
We use Adjusted Diluted Earnings per Share, which is calculated by adjusting the most directly comparable GAAP financial measure, Diluted Earnings per Share, by excluding the same items excluded in our calculation of Adjusted EBITDA to the extent that each such item was included in the applicable GAAP financial measure. We believe the presentation of Adjusted Diluted Earnings per Share is useful to investors because the measurement excludes amounts that we do not consider part of our core operating results when assessing our performance. We also believe that the presentation of Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Diluted Earnings per Share is useful to investors because these metrics may be used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies in our industry.
Management uses these non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors as they assist in highlighting trends, (b) to set internal sales targets and spending budgets, (c) to measure operational profitability and the accuracy of forecasting, (d) to assess financial discipline over operational expenditures, and (e) as an important factor in determining variable compensation for management and employees. EBITDA and Adjusted EBITDA are also used in connection with certain covenants and restricted activities under the agreements governing our indebtedness. We also believe these and similar non-GAAP financial measures are frequently used by securities analysts, investors, and other interested parties to evaluate companies in our industry.
We caution readers that our definitions of Adjusted Gross profit, Adjusted Operating expenses, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net Debt, Adjusted Net income and Adjusted Diluted EPS may not be calculated in the same manner as similar measures used by other companies. Definitions and reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures are included in the schedules attached to this press release.
US FOODS HOLDING CORP.
Consolidated Balance Sheets
(Unaudited)
($ in millions)
June 27, 2026
December 27, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
56
$
41
Accounts receivable, less allowances of $32 and $30
2,228
2,026
Vendor receivables, less allowances of $8 and $7
251
173
Inventories—net
1,703
1,711
Prepaid expenses
174
153
Other current assets
35
60
Total current assets
4,447
4,164
Property and equipment—net
2,713
2,681
Goodwill
5,796
5,794
Other intangibles—net
753
781
Other assets
627
523
Total assets
$
14,336
$
13,943
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Cash overdraft liability
$
168
$
168
Accounts payable
2,794
2,447
Accrued expenses and other current liabilities
799
839
Current portion of long-term debt
150
137
Total current liabilities
3,911
3,591
Long-term debt
5,087
5,063
Deferred tax liabilities
439
426
Other long-term liabilities
620
556
Total liabilities
10,057
9,636
Shareholders’ equity:
Common stock
3
3
Additional paid-in capital
3,857
3,777
Retained earnings
3,070
2,679
Accumulated other comprehensive income
48
48
Treasury Stock
(2,699
)
(2,200
)
Total shareholders’ equity
4,279
4,307
Total liabilities and shareholders' equity
$
14,336
$
13,943
US FOODS HOLDING CORP.
Consolidated Statements of Operations
(Unaudited)
For the 13 weeks ended
For the 26 weeks ended
(in millions, except per share data)
June 27, 2026
June 28, 2025
June 27, 2026
June 28, 2025
Net sales
$
10,532
$
10,082
$
20,142
$
19,433
Cost of goods sold
8,613
8,305
16,570
16,042
Gross profit
1,919
1,777
3,572
3,391
Distribution, selling and administrative costs
1,477
1,403
2,906
2,788
Restructuring activity and asset impairment charges
(1
)
2
7
7
Total operating expenses
1,476
1,405
2,913
2,795
Operating income
443
372
659
596
Other income—net
(3
)
(2
)
(4
)
(3
)
Interest expense—net
77
74
152
151
Income before income taxes
369
300
511
448
Income tax provision
94
76
120
109
Net income
$
275
$
224
$
391
$
339
Net income per share
Basic
$
1.26
$
0.97
$
1.78
$
1.47
Diluted
$
1.24
$
0.96
$
1.76
$
1.45
Weighted-average common shares outstanding
Basic
218.6
230.3
219.5
230.4
Diluted
220.5
233.0
222.0
233.6
US FOODS HOLDING CORP.
Consolidated Statements of Cash Flows
(Unaudited)
For the 26 weeks ended
($ in millions)
June 27, 2026
June 28, 2025
Cash flows from operating activities:
Net income
$
391
$
339
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
237
227
Deferred tax provision
13
15
Share-based compensation expense
54
45
Provision for doubtful accounts
19
17
Other non-cash activities
4
1
Changes in operating assets and liabilities:
Increase in receivables
(299
)
(230
)
Decrease in inventories
8
65
Decrease (increase) in prepaid expenses and other assets
13
(18
)
Increase in accounts payable and cash overdraft liability
364
268
Decrease in accrued expenses and other liabilities
(79
)
(4
)
Net cash provided by operating activities
725
725
Cash flows from investing activities:
Proceeds from sales of property and equipment
1
5
Proceeds from divestitures
—
38
Purchases of property and equipment
(174
)
(161
)
Cash paid for acquisitions
(2
)
(87
)
Net cash used in investing activities
(175
)
(205
)
Cash flows from financing activities:
Principal payments on debt and financing leases
(5,083
)
(4,303
)
Proceeds from debt borrowings
5,021
4,069
Repurchase of common stock
(445
)
(270
)
Debt financing costs and fees
(4
)
—
Proceeds from employee stock purchase plan
17
16
Proceeds from exercise of stock options
10
5
Purchase of interest rate caps
—
(1
)
Tax withholding payments for net share-settled equity awards
(51
)
(34
)
Net cash used in financing activities
(535
)
(518
)
Net increase in cash, cash equivalents and restricted cash
15
2
Cash, cash equivalents and restricted cash—beginning of period
41
59
Cash, cash equivalents and restricted cash—end of period
$
56
$
61
Supplemental disclosures of cash flow information:
Interest paid—net of amounts capitalized
$
150
$
149
Income taxes paid—net
93
80
Property and equipment purchases included in accounts payable
53
45
Leased assets obtained in exchange for financing lease liabilities
98
135
Leased assets obtained in exchange for operating lease liabilities
108
68
US FOODS HOLDING CORP.
Non-GAAP Reconciliation
(Unaudited)
For the 13 weeks ended
(in millions, except per share data)
June 27, 2026
June 28, 2025
Change
%
Net income and Net income margin (GAAP)
$
275
2.6
%
$
224
2.2
%
$
51
22.8
%
Interest expense—net
77
74
3
4.1
%
Income tax provision
94
76
18
23.7
%
Depreciation expense
104
102
2
2.0
%
Amortization expense
14
13
1
7.7
%
EBITDA and EBITDA margin (Non-GAAP)
564
5.4
%
489
4.9
%
75
15.3
%
Adjustments:
Restructuring activity and asset impairment charges(1)
—
2
(2
)
(100.0
)%
Share-based compensation expense(2)
32
23
9
39.1
%
LIFO reserve adjustments (3)
(5
)
14
(19
)
(135.7
)%
Business transformation costs(4)
10
13
(3
)
(23.1
)%
Business acquisition, integration related costs, divestitures and other(5)
3
7
(4
)
(57.1
)%
Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP)
604
5.7
%
548
5.4
%
56
10.2
%
Depreciation expense
(104
)
(102
)
(2
)
2.0
%
Interest expense—net
(77
)
(74
)
(3
)
4.1
%
Income tax provision, as adjusted(6)
(106
)
(95
)
(11
)
11.6
%
Adjusted Net income (Non-GAAP)
$
317
$
277
$
40
14.4
%
Diluted EPS (GAAP)
$
1.24
$
0.96
$
0.28
29.2
%
Restructuring activity and asset impairment charges(1)
—
0.01
(0.01
)
(100.0
)%
Share-based compensation expense(2)
0.15
0.10
0.05
50.0
%
LIFO reserve adjustment(3)
(0.02
)
0.06
(0.08
)
(133.3
)%
Business transformation costs(4)
0.05
0.06
(0.01
)
(16.7
)%
Business acquisition, integration related costs, divestitures and other(5)
0.01
0.03
(0.02
)
(66.7
)%
Income tax provision, as adjusted(6)
0.01
(0.03
)
0.04
(133.3
)%
Adjusted Diluted EPS (Non-GAAP)(7)
$
1.44
$
1.19
$
0.25
21.0
%
Weighted-average diluted shares outstanding
220.5
233.0
Gross profit (GAAP)
$
1,919
$
1,777
$
142
8.0
%
LIFO reserve adjustment(3)
(5
)
14
(19
)
(135.7
)%
Adjusted Gross profit (Non-GAAP)
$
1,914
$
1,791
$
123
6.9
%
Operating expenses (GAAP)
$
1,476
$
1,405
$
71
5.1
%
Depreciation expense
(104
)
(102
)
(2
)
2.0
%
Amortization expense
(14
)
(13
)
(1
)
7.7
%
Restructuring activity and asset impairment charges(1)
—
(2
)
2
(100.0
)%
Share-based compensation expense(2)
(32
)
(23
)
(9
)
39.1
%
Business transformation costs(4)
(10
)
(13
)
3
(23.1
)%
Business acquisition, integration related costs, divestitures and other(5)
(3
)
(7
)
4
(57.1
)%
Adjusted Operating expenses (Non-GAAP)
$
1,313
$
1,245
$
68
5.5
%
NM - Not Meaningful
(1)
Consists primarily of severance and related costs, organizational realignment costs and other impairment charges.
(2)
Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan.
(3)
Represents the impact of LIFO reserve adjustments.
(4)
Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For the 13 weeks ended June 27, 2026 and June 28, 2025, respectively, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies.
(5)
Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $1 million and $7 million for the 13 weeks ended June 27, 2026 and June 28, 2025, respectively, and (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness.
(6)
Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted Net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances.
(7)
Adjusted Diluted EPS is calculated as Adjusted Net income divided by weighted average diluted shares outstanding.
US FOODS HOLDING CORP.
Non-GAAP Reconciliation
(Unaudited)
For the 26 weeks ended
(in millions, except per share data)
June 27, 2026
June 28, 2025
Change
%
Net income and Net income margin (GAAP)
$
391
1.9
%
$
339
1.7
%
$
52
15.3
%
Interest expense—net
152
151
1
0.7
%
Income tax provision
120
109
11
10.1
%
Depreciation expense
209
200
9
4.5
%
Amortization expense
28
27
1
3.7
%
EBITDA and EBITDA margin (Non-GAAP)
900
4.5
%
826
4.3
%
74
9.0
%
Adjustments:
Restructuring activity and asset impairment charges(1)
8
7
1
14.3
%
Share-based compensation expense(2)
54
45
9
20.0
%
LIFO reserve adjustments (3)
33
19
14
73.7
%
Business transformation costs(4)
17
20
(3
)
(15.0
)%
Business acquisition, integration related costs, divestitures and other(5)
5
20
(15
)
(75.0
)%
Adjusted EBITDA and Adjusted EBITDA margin (Non-GAAP)
1,017
5.0
%
937
4.8
%
80
8.5
%
Depreciation expense
(209
)
(200
)
(9
)
4.5
%
Interest expense—net
(152
)
(151
)
(1
)
0.7
%
Income tax provision, as adjusted(6)
(165
)
(150
)
(15
)
10.0
%
Adjusted Net income (Non-GAAP)
$
491
$
436
$
55
12.6
%
Diluted EPS (GAAP)
$
1.76
$
1.45
$
0.31
21.4
%
Restructuring activity and asset impairment charges(1)
0.04
0.03
0.01
33.3
%
Share-based compensation expense(2)
0.24
0.19
0.05
26.3
%
LIFO reserve adjustments (3)
0.15
0.08
0.07
87.5
%
Business transformation costs(4)
0.08
0.09
(0.01
)
(11.1
)%
Business acquisition, integration related costs, divestitures and other(5)
0.02
0.09
(0.07
)
(77.8
)%
Income tax provision, as adjusted(6)
(0.08
)
(0.06
)
(0.02
)
33.3
%
Adjusted Diluted EPS (Non-GAAP)(7)
$
2.21
$
1.87
$
0.34
18.2
%
Weighted-average diluted shares outstanding
222.0
233.6
Gross profit (GAAP)
$
3,572
$
3,391
$
181
5.3
%
LIFO reserve adjustments(3)
33
19
14
73.7
%
Adjusted Gross profit (Non-GAAP)
$
3,605
$
3,410
$
195
5.7
%
Operating expenses (GAAP)
$
2,913
$
2,795
$
118
4.2
%
Depreciation expense
(209
)
(200
)
(9
)
4.5
%
Amortization expense
(28
)
(27
)
(1
)
3.7
%
Restructuring activity and asset impairment charges(1)
(8
)
(7
)
(1
)
14.3
%
Share-based compensation expense (2)
(54
)
(45
)
(9
)
20.0
%
Business transformation costs(4)
(17
)
(20
)
3
(15.0
)%
Business acquisition, integration related costs, divestitures and other(5)
(5
)
(20
)
15
(75.0
)%
Adjusted Operating expenses (Non-GAAP)
$
2,592
$
2,476
$
116
4.7
%
NM - Not Meaningful
(1)
Consists primarily of severance and related costs, organizational realignment costs and other asset impairment charges.
(2)
Share-based compensation expense for expected vesting of stock awards and employee stock purchase plan.
(3)
Represents the impact of LIFO reserve adjustments.
(4)
Transformational costs represent non-recurring expenses prior to formal launch of strategic projects with anticipated long-term benefits to the Company. These costs generally relate to third party consulting and non-capitalizable technology. For the 26 weeks ended June 27, 2026 and June 28, 2025, respectively, business transformation costs related to projects associated with information technology infrastructure initiatives and related workforce efficiencies.
(5)
Includes: (i) aggregate acquisition, integration related costs and divestiture costs of $2 million and $20 million for the 26 weeks ended June 27, 2026 and June 28, 2025, respectively (ii) other gains, losses or costs that we are permitted to addback for purposes of calculating Adjusted EBITDA under certain agreements governing our indebtedness.
(6)
Represents our income tax provision adjusted for the tax effect of pre-tax items excluded from Adjusted Net income and the removal of applicable discrete tax items. Applicable discrete tax items include changes in tax laws or rates, changes related to prior year unrecognized tax benefits, discrete changes in valuation allowances, and excess tax benefits associated with share-based compensation. The tax effect of pre-tax items excluded from Adjusted Net income is computed using a statutory tax rate after taking into account the impact of permanent differences and valuation allowances.
(7)
Adjusted Diluted EPS is calculated as Adjusted Net income divided by weighted average diluted shares outstanding.
Revenue up 24% Year over Year, Organic Growth 21%; GAAP EPS $1.33, Adjusted EPS $1.33
Strong Second Quarter Cash Generation; $300 Million Deployed for Common Stock Repurchases
Full Year 2026 Guidance Increased
Summary Financial Results
Second Quarter
Six Months
Dollars in Millions; Per share amounts in dollars, diluted
2026
2025
Change
2026
2025
Change
Revenue
$2,547
$2,053
24 %
$4,860
$3,995
22 %
GAAP Metrics
Operating Income
$711
$521
36 %
$1,464
$1,015
44 %
Operating Income Margin
27.9 %
25.4 %
250 bps
30.1 %
25.4 %
470 bps
Earnings per Share (EPS)
$1.33
$1.00
33 %
$2.77
$1.84
51 %
Cash from Operations
$583
$446
31 %
$1,036
$699
48 %
Non-GAAP Metrics1
Adjusted EBITDA
$817
$589
39 %
$1,557
$1,149
36 %
Adjusted EBITDA Margin
32.1 %
28.7 %
340 bps
32.0 %
28.8 %
320 bps
Adjusted Operating Income
$733
$520
41 %
$1,399
$1,011
38 %
Adjusted Operating Income Margin
28.8 %
25.3 %
350 bps
28.8 %
25.3 %
350 bps
Adjusted Earnings per Share (EPS)
$1.33
$0.91
46 %
$2.56
$1.77
45 %
Free Cash Flow
$479
$344
39 %
$838
$478
75 %
1 For more information, see "Non-GAAP Financial Measures" and the schedules to this release.
Key Activity
Completed acquisition of CAM on April 6, 2026 for approximately $1.8 billion Paid down the Company's $186 million Japanese Yen-denominated term loan facility and entered into a separate $300 million cross-currency swap, reducing annualized interest expense by $12 million Increased the third quarter common stock dividend by 17% to $0.14 per share , /PRNewswire/ -- Howmet Aerospace (NYSE: HWM) announced results today for the second quarter 2026.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance. Revenue growth was healthy at 24% year over year and 21% excluding the net impact of the three asset transactions completed this year. Adjusted EBITDA margin expanded 340 basis points year over year to 32.1%, including the absorption of the CAM fastener acquisition in April. Free cash flow performance was excellent at $479 million after $104 million in capital expenditures, supporting the future growth rate of the Company. The free cash flow also enabled $800 million in common stock repurchases year to date through July, an amount already greater than total repurchases in 2025."
Mr. Plant continued, "Looking ahead, Howmet is well positioned, with all our major markets in growth mode. More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase. Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term. Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks. The commercial transportation market has begun to recover, as anticipated."
"Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets. We closed the CAM acquisition in April, and the integration is on track. Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward."
2026 Guidance
Dollars in Millions; Per share amounts
in dollars, diluted
Q3 2026 Guidance
FY 2026 Guidance
Low
Baseline
High
Low
Baseline
High
Revenue
$2,565
$2,575
$2,585
$10,000
$10,050
$10,100
Baseline
Change
+$400
Adj. EBITDA1
$825
$830
$835
$3,210
$3,230
$3,250
Adj. EBITDA Margin1
32.2 %
32.2 %
32.3 %
32.1 %
32.1 %
32.2 %
Baseline
Change
+$170
+ 40 bps
Adj. Earnings per Share1
$1.34
$1.35
$1.36
$5.23
$5.27
$5.31
Baseline
Change
+$0.33
Free Cash Flow1
$1,850
$1,900
$1,950
Baseline
Change
+$150
1 Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Consolidated Results
Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, up 24% year over year with organic growth of 21%, and Adjusted EPS of $1.33, up 46% year over year. Revenue was driven by 28% growth in the commercial aerospace market, 11% growth in the defense aerospace market and 38% growth in the gas turbines market.
The Company reported adjusted EBITDA of $817 million, up 39% year over year. The year-over-year increase was driven by strong growth in the commercial aerospace, defense aerospace, and gas turbines markets. Adjusted EBITDA margin was up approximately 340 basis points year over year at 32.1%.
Segment Results
Engine Products
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$1,373
$1,038
32 %
Segment adjusted EBITDA
$517
$343
51 %
Segment adjusted EBITDA margin
37.7 %
33.0 %
470 bps
Provision for depreciation and amortization
$42
$35
Engine Products reported second quarter 2026 revenue of $1.37 billion, an increase of 32% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. Segment Adjusted EBITDA was $517 million, up 51% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. The Segment absorbed approximately 485 net headcount in the quarter in support of expected revenue increases. Segment Adjusted EBITDA margin increased approximately 470 basis points year over year to 37.7%.
Fastening Systems
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$589
$431
37 %
Segment adjusted EBITDA
$177
$126
40 %
Segment adjusted EBITDA margin
30.1 %
29.2 %
90 bps
Provision for depreciation and amortization
$20
$12
Fastening Systems reported revenue of $589 million, an increase of 37% year over year, driven by growth in the commercial aerospace and defense aerospace markets. Revenue includes the impacts from the CAM and Brunner acquisitions. Segment Adjusted EBITDA was $177 million, up 40% year over year, driven by growth in the commercial aerospace and defense aerospace markets and including contributions from the acquisitions. Segment Adjusted EBITDA margin increased approximately 90 basis points year over year to 30.1%.
Engineered Structures
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$269
$308
(13 %)
Segment adjusted EBITDA
$64
$68
(6 %)
Segment adjusted EBITDA margin
23.8 %
22.1 %
170 bps
Provision for depreciation and amortization
$11
$10
Engineered Structures reported revenue of $269 million, a decrease of 13% year over year, driven by the divestiture of the Savannah disk forging facility and product rationalization. Segment Adjusted EBITDA was $64 million, a decrease of 6% year over year on the exit of lower-margin business including the divestiture. Segment Adjusted EBITDA margin increased approximately 170 basis points year over year to 23.8%.
Forged Wheels
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$316
$276
14 %
Segment adjusted EBITDA
$88
$76
16 %
Segment adjusted EBITDA margin
27.8 %
27.5 %
30 bps
Provision for depreciation and amortization
$10
$10
Forged Wheels reported revenue of $316 million, an increase of 14% year over year, with 8% lower volumes in the commercial transportation market more than offset by an increase in aluminum and other inflationary cost pass through. Volumes increased 7% sequentially from the first quarter 2026, reflecting the beginning of the recovery of the North American commercial transportation market. Segment Adjusted EBITDA was $88 million and increased 16% year over year, driven by cost reductions, including lower net headcount, in response to lower volumes. Segment Adjusted EBITDA margin increased approximately 30 basis points year over year to 27.8% despite the impact of higher aluminum cost pass through.
Completed Acquisition of CAM for Approximately $1.8 Billion
On April 6, 2026, the Company completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion from Stanley Black & Decker, Inc. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications.
Debt Actions in Second Quarter Reduce Annualized Interest Expense by Approximately $12 Million
On May 22, 2026, the Company repaid the outstanding principal amount of its Japanese Yen-denominated, senior unsecured term loan facility for approximately $186 million with cash on hand. The Company also entered into a cross-currency swap to synthetically convert the outstanding $300 million aggregate principal amount of its 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88%. The combined effect of these debt actions will reduce annualized interest expense by $12 million.
Repurchased $300 Million of Common Stock in Second Quarter 2026; $200 Million in July 2026
In the second quarter 2026, Howmet Aerospace repurchased $300 million of common stock at an average price of $250.61 per share, retiring approximately 1.2 million shares. In July 2026, the Company repurchased an additional $200 million of common stock at an average price of $276.61 per share, retiring approximately 0.7 million shares. Year to date through July, the Company has repurchased $800 million of shares at an average price of $248.29 per share, exceeding the $700 million of shares repurchased in all of 2025. As of August 6, 2026, total share repurchase authorization available was $697 million.
Quarterly Common Stock Dividend Increases 17% to $0.14 Per Share in Third Quarter 2026
On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock to be paid on August 25, 2026 to holders of record as of the close of business on August 7, 2026. The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.
Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, August 6, 2026. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on August 6, via the "Investors" section of the Howmet Aerospace website.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "envisions," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "poised," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; any future dividends, debt issuances, debt reduction and repurchases of its common stock; and statements regarding any acquisitions, including expected benefits. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and energy costs, and the resulting impacts on Howmet Aerospace's supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers' business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve anticipated or targeted financial performance, operations or competitiveness, or realization of expected benefits from acquisitions, including the effective integration of acquired businesses; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace's global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace's Form 10-K for the year ended December 31, 2025 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. Under its share repurchase program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time. The declaration of any future dividends is subject to the discretion and approval of the Board of Directors after the Board's consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel its share repurchase program or any dividend policy in any manner and at any time that it may deem necessary or appropriate. Credit ratings are not a recommendation to buy or hold any Howmet Aerospace securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace's consolidated financial information but is not presented in Howmet Aerospace's financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered "non-GAAP financial measures" under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management's rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges, Special Items and provision for depreciation and amortization.
Other Information
In this press release, the acronym "FY" means "full year"; "Q" means "quarter"; "YoY" means year over year; "Adj." means adjusted; Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; "organic growth" refers to the Company's revenue growth excluding the impact of acquisitions and divestitures; and references to performance by Howmet Aerospace or its segments as "record" mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Operations (unaudited)
(in U.S. dollar millions, except per-share and share amounts)
Quarter ended
June 30, 2026
March 31, 2026
June 30, 2025
Sales
$ 2,547
$ 2,313
$ 2,053
Cost of goods sold (exclusive of expenses below)
1,596
1,459
1,365
Selling, general administrative, and other expenses
148
111
89
Research and development expenses
8
9
9
Provision for depreciation and amortization
84
74
69
Restructuring and other credits
—
(93)
—
Operating income
711
753
521
Interest expense, net
51
43
38
Other expense, net
11
2
14
Income before income taxes
649
708
469
Provision for income taxes
115
128
62
Net income
$ 534
$ 580
$ 407
Amounts Attributable to Howmet Aerospace
Common Shareholders:
Earnings per share - basic(1):
Net income per share
$ 1.33
$ 1.45
$ 1.01
Average number of shares(2)(3)
400
401
404
Earnings per share - diluted(1):
Net income per share
$ 1.33
$ 1.44
$ 1.00
Average number of shares(2)(3)
402
403
406
Common stock outstanding at the end of the period
400
401
404
(1)
In order to calculate both basic and diluted earnings per share through December 31, 2025, preferred stock dividends declared of less than $1 for the quarters presented need to be subtracted from Net income.
(2)
For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options.
(3)
As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases may occur at varying points during a period.
Howmet Aerospace Inc. and subsidiaries
Consolidated Balance Sheet (unaudited)
(in U.S. dollar millions)
June 30, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$ 563
$ 742
Receivables from customers, less allowances of $— in both 2026 and 2025
1,040
779
Inventories
2,183
1,849
Prepaid expenses and other current assets
407
409
Total current assets
4,193
3,779
Properties, plants, and equipment, net
2,817
2,593
Goodwill
5,084
4,022
Deferred income taxes
48
40
Intangibles, net
869
457
Other noncurrent assets
240
288
Total assets
$ 13,251
$ 11,179
Liabilities
Current liabilities:
Accounts payable, trade
$ 1,149
$ 845
Accrued compensation and retirement costs
304
343
Taxes, including income taxes
87
77
Accrued interest payable
62
47
Deferred revenue
119
147
Other current liabilities
134
121
Long-term debt due within one year
1
191
Short-term borrowings
450
—
Total current liabilities
2,306
1,771
Long-term debt, less amount due within one year
4,050
2,859
Accrued pension benefits
511
546
Accrued other postretirement benefits
34
38
Other noncurrent liabilities and deferred credits
618
612
Total liabilities
7,519
5,826
Equity
Howmet Aerospace shareholders' equity:
Common stock
400
402
Additional capital
1,919
2,531
Retained earnings
5,110
4,093
Accumulated other comprehensive loss
(1,697)
(1,673)
Total equity
5,732
5,353
Total liabilities and equity
$ 13,251
$ 11,179
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in U.S. dollar millions)
Six months ended
June 30,
2026
2025
Operating activities
Net income
$ 1,114
$ 751
Adjustments to reconcile net income to cash provided from operations:
Depreciation and amortization
158
138
Deferred income taxes
9
12
Restructuring and other credits
(93)
(4)
Net realized and unrealized losses
8
11
Net periodic pension cost
23
21
Stock-based compensation
57
39
Other
5
2
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and
foreign currency translation adjustments:
Increase in receivables
(196)
(170)
Increase in inventories
(165)
(81)
(Increase) decrease in prepaid expenses and other current assets
(53)
6
Increase in accounts payable, trade
279
74
Decrease in accrued expenses
(59)
(47)
Decrease in taxes, including income taxes
(27)
(20)
Pension contributions
(21)
(15)
Increase in noncurrent assets
(7)
(2)
Increase (decrease) in noncurrent liabilities
4
(16)
Cash provided from operations
1,036
699
Financing Activities
Net change in commercial paper
450
—
Additions to debt
1,200
—
Repurchases and payments on debt
(186)
(77)
Debt issuance costs
(12)
—
Repurchases of common stock
(600)
(300)
Dividends paid to shareholders
(97)
(83)
Taxes paid for net share settlement of equity awards
(65)
(44)
Other
(5)
(2)
Cash provided from (used for) financing activities
685
(506)
Investing Activities
Capital expenditures
(198)
(221)
Acquisitions, net of cash acquired
(1,929)
—
Proceeds from the sale of assets and businesses
225
8
Other
2
1
Cash used for investing activities
(1,900)
(212)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
—
—
Net change in cash, cash equivalents and restricted cash
(179)
(19)
Cash, cash equivalents and restricted cash at beginning of period
743
565
Cash, cash equivalents and restricted cash at end of period
$ 564
$ 546
Howmet Aerospace Inc. and subsidiaries
Segment Information (unaudited)
(in U.S. dollar millions)
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Engine Products
Third-party sales
$ 974
$ 1,038
$ 1,087
$ 1,143
$ 4,242
$ 1,253
$ 1,373
Inter-segment sales
$ 2
$ 3
$ 2
$ 1
$ 8
$ 2
$ 3
Provision for depreciation and amortization
$ 33
$ 35
$ 37
$ 39
$ 144
$ 38
$ 42
Segment Adjusted EBITDA
$ 318
$ 343
$ 362
$ 393
$ 1,416
$ 458
$ 517
Segment Adjusted EBITDA Margin
32.6 %
33.0 %
33.3 %
34.4 %
33.4 %
36.6 %
37.7 %
Restructuring and other charges
$ —
$ —
$ —
$ 88
$ 88
$ —
$ —
Capital expenditures
$ 85
$ 74
$ 73
$ 84
$ 316
$ 59
$ 77
Fastening Systems
Third-party sales
$ 412
$ 431
$ 448
$ 454
$ 1,745
$ 471
$ 589
Inter-segment sales
$ —
$ —
$ —
$ 1
$ 1
$ —
$ —
Provision for depreciation and amortization
$ 12
$ 12
$ 12
$ 12
$ 48
$ 13
$ 20
Segment Adjusted EBITDA
$ 127
$ 126
$ 138
$ 139
$ 530
$ 150
$ 177
Segment Adjusted EBITDA Margin
30.8 %
29.2 %
30.8 %
30.6 %
30.4 %
31.8 %
30.1 %
Restructuring and other charges (credits)
$ —
$ 1
$ —
$ (1)
$ —
$ —
$ —
Capital expenditures
$ 10
$ 9
$ 13
$ 20
$ 52
$ 17
$ 11
Engineered Structures
Third-party sales
$ 304
$ 308
$ 307
$ 307
$ 1,226
$ 294
$ 269
Inter-segment sales
$ 7
$ 8
$ 7
$ 4
$ 26
$ 8
$ 8
Provision for depreciation and amortization
$ 13
$ 10
$ 10
$ 10
$ 43
$ 10
$ 11
Segment Adjusted EBITDA
$ 67
$ 68
$ 64
$ 66
$ 265
$ 66
$ 64
Segment Adjusted EBITDA Margin
22.0 %
22.1 %
20.8 %
21.5 %
21.6 %
22.4 %
23.8 %
Restructuring and other credits
$ (4)
$ —
$ —
$ —
$ (4)
$ (93)
$ —
Capital expenditures
$ 6
$ 7
$ 10
$ 13
$ 36
$ 12
$ 8
Forged Wheels
Third-party sales
$ 252
$ 276
$ 247
$ 264
$ 1,039
$ 295
$ 316
Provision for depreciation and amortization
$ 10
$ 10
$ 11
$ 11
$ 42
$ 11
$ 10
Segment Adjusted EBITDA
$ 68
$ 76
$ 73
$ 79
$ 296
$ 90
$ 88
Segment Adjusted EBITDA Margin
27.0 %
27.5 %
29.6 %
29.9 %
28.5 %
30.5 %
27.8 %
Restructuring and other credits
$ —
$ (1)
$ —
$ —
$ (1)
$ —
$ —
Capital expenditures
$ 15
$ 8
$ 9
$ 4
$ 36
$ 3
$ 4
Differences between the total segment and consolidated totals are in Corporate.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited)
(in U.S. dollar millions)
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Operating income
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Operating income
$ 494
$ 521
$ 542
$ 489
$ 2,046
$ 753
$ 711
Segment provision for depreciation and amortization
68
67
70
72
277
72
83
Unallocated amounts:
Restructuring and other (credits) charges
(4)
—
—
88
84
(93)
—
Corporate expense(1)
22
25
25
28
100
32
52
Total Segment Adjusted EBITDA
$ 580
$ 613
$ 637
$ 677
$ 2,507
$ 764
$ 846
Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet's definition of Total Segment Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA.
(1) Pre-tax special items included in Corporate expense
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Acquisition and acquisition-related costs(2)
$ —
$ —
$ —
$ 2
$ 2
$ 6
$ 22
Costs (benefits) associated with closures, supply chain
disruptions, and other items
1
(1)
—
1
1
—
—
Total Pre-tax special items included in Corporate expense
$ 1
$ (1)
$ —
$ 3
$ 3
$ 6
$ 22
(2) Interest expense of $1 related to the CAM acquisition financing in 1Q26.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Free cash flow
Quarter ended
Six months ended
1Q26
2Q26
2Q26
Cash provided from operations
$ 453
$ 583
$ 1,036
Capital expenditures
(94)
(104)
(198)
Free cash flow
$ 359
$ 479
$ 838
Cash provided from (used for) financing activities
$ 1,226
(541)
685
Cash provided from (used for) investing activities
$ 14
(1,914)
(1,900)
The Accounts Receivable Securitization program remains unchanged at $250 outstanding.
Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollar millions, except per-share and share amounts)
Reconciliation of Adjusted Net income
Quarter ended
Six months ended
2Q25
1Q26
2Q26
June 30, 2025
June 30, 2026
Net income
$ 407
$ 580
$ 534
$ 751
$ 1,114
Diluted earnings per share ("EPS")
$ 1.00
$ 1.44
$ 1.33
$ 1.84
$ 2.77
Average number of diluted shares
406
403
402
407
402
Special items:
Restructuring and other credits(1)
—
(93)
—
(4)
(93)
Acquisition and acquisition-related costs(2)
—
7
22
—
29
Benefits associated with closures, supply
chain disruptions, and other items
(1)
—
—
—
—
Subtotal: Pre-tax special items
(1)
(86)
22
(4)
(64)
Tax impact of Pre-tax special items(3)
—
30
(4)
1
26
Subtotal
(1)
(56)
18
(3)
(38)
Discrete and other tax special items(4)
(35)
(30)
(18)
(26)
(48)
Total: After-tax special items
(36)
(86)
—
(29)
(86)
Adjusted Net income
$ 371
$ 494
$ 534
$ 722
$ 1,028
Adjusted EPS
$ 0.91
$ 1.22
$ 1.33
$ 1.77
$ 2.56
Adjusted Net income and Adjusted EPS are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other credits, Discrete tax items, and Other special items (collectively, "Special items"). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Adjusted Net income and Adjusted EPS.
(1)
Restructuring and other credits for the quarter ended 1Q26 and the six months ended June 30, 2026 included a gain on the sale of the Company's disk forging facility in Savannah, GA within Engineered Structures.
(2)
Includes legal and advisory costs, amortization expense of inventory step-up recorded in accordance with purchase accounting, and other acquisition-related costs for CAM and Brunner. Additionally, interest expense of $1 related to the CAM acquisition financing in 1Q26.
(3)
The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates and the Company's consolidated estimated annual effective tax rate is itself a Special item.
(4)
Discrete tax items for each period included the following:
•
for 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($13), and a net benefit related to U.S. federal and state research and development ("R&D") credits claimed for prior years ($5).
•
for 1Q26, an excess benefit for stock compensation ($21);
•
for 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16;
•
for the six months ended 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($14), a net benefit related to U.S. federal and state R&D credits claimed for prior years ($5), a net charge related to the expiration of a tax holiday in China $6, a charge for a tax reserve established in Germany $2, and a net charge for other small items $2; and
•
for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollar millions)
Reconciliation of Operational tax rate
Quarter ended
Six months ended
2Q26
2Q26
Effective
tax rate,
as
reported
Special
items(1)(2)
Operational
tax rate, as
adjusted
Effective
tax rate,
as
reported
Special
items(1)(2)
Operational
tax rate, as
adjusted
Income before income taxes
$ 649
$ 22
$ 671
$ 1,357
$ (64)
$ 1,293
Provision for income taxes
$ 115
$ 22
$ 137
$ 243
$ 22
$ 265
Tax rate
17.7 %
20.4 %
17.9 %
20.5 %
Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate.
(1)
Pre-tax special items for 2Q26 included Acquisition and acquisition-related costs $22. Pre-tax special items for the six months ended 2Q26 included Restructuring and other credits ($93) and Acquisition and acquisition-related costs $29.
(2)
Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company's consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following:
•
for the quarter ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16.
•
for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Adjusted Operating
Income, Adjusted Operating Income
Margin, Adjusted EBITDA, and Adjusted
EBITDA margin
Quarter ended
Six months ended
2Q25
1Q26
2Q26
June 30, 2025
June 30, 2026
Sales
$ 2,053
$ 2,313
$ 2,547
$ 3,995
$ 4,860
Operating income
$ 521
$ 753
$ 711
$ 1,015
$ 1,464
Operating income margin
25.4 %
32.6 %
27.9 %
25.4 %
30.1 %
Operating income
$ 521
$ 753
$ 711
$ 1,015
$ 1,464
Add:
Restructuring and other credits
$ —
$ (93)
$ —
(4)
(93)
Acquisition and acquisition-related costs(1)
—
6
22
—
28
Benefits associated with closures, supply
chain disruptions, and other items
(1)
—
—
—
—
Adjusted operating income
$ 520
$ 666
$ 733
$ 1,011
$ 1,399
Adjusted operating income margin
25.3 %
28.8 %
28.8 %
25.3 %
28.8 %
Provision for depreciation and
amortization
69
74
84
138
158
Adjusted EBITDA
$ 589
$ 740
$ 817
$ 1,149
$ 1,557
Adjusted EBITDA margin
28.7 %
32.0 %
32.1 %
28.8 %
32.0 %
Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other credits, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income and Operating income margin determined under GAAP as well as Adjusted operating income and Adjusted operating income margin.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of Adjusted EBITDA is defined as Operating Income excluding Restructuring and other credits and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other credits, are excluded from Adjusted EBITDA.
(1) Interest expense of $1 related to the CAM acquisition financing in 1Q26.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Organic
Revenue
Quarter ended
Six months ended
2Q25
2Q26
% Change
June 30, 2025
June 30, 2026
% Change
Sales
$ 2,053
$ 2,547
24 %
$ 3,995
$ 4,860
22 %
Less:
Net Acquisitions and Divestitures
$ 34
$ 100
$ 65
$ 146
Total: Organic Revenue
$ 2,019
$ 2,447
21 %
$ 3,930
$ 4,714
20 %
Organic revenue is a non-GAAP financial measure. Management believes this measure is meaningful to investors as it presents revenue on a comparable basis for all periods presented excluding the impact of the acquisitions of CAM (acquired April 2026) and Brunner (acquired February 2026) and the sale of the disk forging facility in Savannah, GA (divested March 2026). Management believes that it is appropriate to consider both Sales determined under GAAP as well as Organic Revenue.
Green Plains ve 2. čtvrtletí vykázala čistý zisk 67,1 mil. USD, zatímco loni měla ztrátu 72,2 mil. USD. Tržby klesly na 446,2 mil. USD z 552,8 mil. USD loni, ale upravená EBITDA vzrostla na 93,3 mil. USD.
OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE) (“Green Plains” or the “company”) today announced financial results for the second quarter of 2026. Net income attributable to the company was $67.1 million, or $0.83 per diluted share compared to net loss attributable to the company of $72.2 million or $(1.09) per diluted share, for the same period in 2025. Revenues were $446.2 million for the second quarter of 2026 compared with $552.8 million for the same period last year. Core operating profitability strengthened with adjusted EBITDA of $93.3 million compared to $16.4 million for the same period in the prior year.
“The second quarter demonstrated the earnings capability of the Green Plains platform,” said Chris Osowski, President and Chief Executive Officer. “Even with lower utilization due to maintenance, we generated more than $67 million of net income. The combination of operational excellence, achieving multiple safety milestones, improved ethanol economics, strong commercial execution and our low-carbon platform is translating into meaningful financial results. ”
“Our financial profile continues to improve as we execute on our operating and capital allocation priorities,” said Ann Reis, Chief Financial Officer. “Stronger earnings from our plants and continued discipline on SG&A are generating meaningful cash flow, which we intend to direct toward reducing debt and building a more resilient balance sheet that is positioned for growth.”
Results of Operations
Green Plains’ ethanol production segment sold 160.7 million gallons of ethanol during the second quarter of 2026, compared with 193.6 million gallons for the same period in 2025. The consolidated ethanol crush margin was $95.1 million for the second quarter of 2026, compared with $26.3 million for the same period in 2025. The consolidated ethanol crush margin is the ethanol production segment’s operating income before depreciation and amortization, including intercompany marketing and agribusiness fees and excluding net nonethanol operating activities.
Consolidated revenues decreased $106.6 million for the three months ended June 30, 2026, compared with the same period in 2025, primarily due to lower revenues within our ethanol production segment as a result of lower volumes sold primarily driven by the disposition of our Obion, Tennessee plant.
Net income attributable to Green Plains increased $139.4 million and adjusted EBITDA increased $76.9 million for the three months ended June 30, 2026 compared with the same period in 2025 primarily due to recognition of $58.7 million of 45Z production tax credits net of discounts and other costs, higher margins in our ethanol production and agribusiness and energy services segments and lower selling, general and administrative expenses as a result of restructuring costs of $2.5 million incurred during the three months ended June 30, 2025. Interest expense decreased $5.8 million for the three months ended June 30, 2026 compared with the same period in 2025 primarily due to prior year loan fees related to the issuance and modification of warrants in conjunction with access to a short-term line of credit and an amendment on our Junior Notes, offset by higher debt balances associated with carbon sequestration equipment. Income tax benefit was $5.5 million for the three months ended June 30, 2026, compared with income tax expense of $2.3 million for the same period in 2025 primarily due to the changes in the valuation allowance on deferred tax assets, offset by an increase in pre-tax book income from the generation of non-taxable 45Z production tax credits.
During the first quarter of 2026, the company elected to early adopt ASU 2025-10, Accounting for Government Grants Received by Business Entities. Concurrently, the company elected to change its accounting policy related to the recognition of Section 45Z clean fuel production tax credits. The change in accounting policy results in the recognition of Section 45Z clean fuel production tax credits by analogy under the income model of ASU 2025-10, which results in a reduction of cost of goods sold in the statements of operations and recognition as production tax credits on the consolidated balance sheets. The company previously recorded the credits under ASC 740, Accounting for Income Taxes, which resulted in recognition within income tax benefit in the statements of operations and deferred income taxes, net in the consolidated balance sheets. The company determined that the income model under ASU 2025-10 is preferable because it better reflects the financial benefit of Section 45Z clean fuel production tax credits netted against the costs to produce the low-carbon fuels that the tax legislation was meant to incentivize. The company determined that retrospective adjustment to prior period financials is required. No Section 45Z clean fuel production tax credits were recognized during the first or second quarters of 2025, so no adjustments were made in the statements of operations; however, the company has reclassified balances previously reported as deferred income taxes, net, and other long-term liabilities to production tax credits on the consolidated balance sheets as of December 31, 2025.
Segment Information
The company reports the financial and operating performance for the following two operating segments: (1) ethanol production, which includes the production, storage, and transportation of ethanol, distillers grains, Ultra-High Protein, and renewable corn oil, in addition to CCS operations at our three Nebraska plants and (2) agribusiness and energy services, which includes grain handling and storage, commodity marketing and merchant trading for company-produced and third-party ethanol, distillers grains, renewable corn oil, natural gas and other commodities.
GREEN PLAINS INC.
SEGMENT OPERATIONS
(unaudited, in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
% Var.
2026
2025
% Var.
Revenues
Ethanol production
$
410,768
$
527,153
(22.1
)%
$
804,127
$
1,024,925
(21.5
)%
Agribusiness and energy services
39,546
31,531
25.4
98,151
141,360
(30.6
)
Intersegment eliminations
(4,090
)
(5,855
)
(30.1
)
(10,250
)
(11,941
)
(14.2
)
$
446,224
$
552,829
(19.3
)%
$
892,028
$
1,154,344
(22.7
)%
Gross margin
Ethanol production (1) (2)
$
104,229
$
33,490
*
$
175,957
$
27,798
*
Agribusiness and energy services
8,801
8,080
8.9
25,019
16,811
48.8
$
113,030
$
41,570
171.9
%
$
200,976
$
44,609
*
Depreciation and amortization
Ethanol production
$
22,673
$
22,918
(1.1
)%
$
45,891
$
43,953
4.4
%
Agribusiness and energy services (3)
31
3,860
(99.2
)
62
4,458
(98.6
)
Corporate activities
745
782
(4.7
)
1,133
1,536
(26.2
)
$
23,449
$
27,560
(14.9
)%
$
47,086
$
49,947
(5.7
)%
Operating income (loss)
Ethanol production (2) (4) (5)
$
70,977
$
(12,218
)
*
$
110,399
$
(51,768
)
*
Agribusiness and energy services (3)
6,699
849
*
20,531
3,282
*
Corporate activities (6) (7)
(9,802
)
(16,994
)
(42.3
)
(18,284
)
(42,137
)
(56.6
)
$
67,874
$
(28,363
)
*
$
112,646
$
(90,623
)
*
Adjusted EBITDA
Ethanol production (2) (4) (5)
$
94,454
$
8,992
*
$
157,510
$
(10,424
)
*
Agribusiness and energy services
6,924
5,028
37.7
20,935
8,184
155.8
Corporate activities (8)
(8,078
)
(42,903
)
(81.2
)
(13,642
)
(68,149
)
(80.0
)
EBITDA
93,300
(28,883
)
*
164,803
(70,389
)
*
Restructuring costs
—
2,520
*
—
19,106
*
Loss on sale of assets
—
4,044
*
—
4,044
*
Impairment of assets held for sale
—
10,724
*
—
10,724
*
Loss on sale of equity method investment
—
26,987
*
—
26,987
*
Proportional share of EBITDA adjustments to equity method investees
45
1,050
(95.7
)
90
1,828
(95.1
)
$
93,345
$
16,442
*
$
164,893
$
(7,700
)
*
(1)
Ethanol production includes $60.4 million and $116.5 million of Section 45Z production tax credits net of discounts and other costs for the three and six months ended June 30, 2026, recorded as a reduction of cost of goods sold.
(2)
Ethanol production includes margins from a one-time sale of accumulated RINs of $22.6 million for the three and six months ended June 30, 2025.
(3)
Depreciation and amortization for agribusiness and energy services includes impairment of property and equipment of $3.1 million for the three and six months ended June 30, 2025.
(4)
Ethanol production includes $58.7 million and $113.9 million of 45Z production tax credits recorded net of discounts, other costs and selling, general and administrative expenses for the three and six months ended June 30, 2026, respectively.
(5)
Ethanol production includes impairment of assets held for sale of $10.7 million for the three and six months ended June 30, 2025.
(6)
Corporate activities includes $1.7 million and $12.0 million of restructuring costs for the three and six months ended June 30, 2025 as a result of the company's cost reduction initiative, including severance related to the departure of its former CEO.
(7)
Corporate activities include a pretax loss on sale of assets of $4.0 million for the three and six months ended June 30, 2025.
(8)
Corporate activities include a pretax loss on sale of assets of $4.0 million and a pretax loss on sale of equity method investment of $27.0 million for the three and six months ended June 30, 2025, respectively.
* Percentage variance not considered meaningful
GREEN PLAINS INC.
SELECTED OPERATING DATA
(unaudited, in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
% Var.
2026
2025
% Var.
Ethanol production
Ethanol (gallons)
160,700
193,571
(17.0
)%
334,896
388,899
(13.9
)%
Distillers grains (equivalent dried tons)
323
413
(21.8
)
685
830
(17.5
)
Ultra-High Protein (tons)
49
66
(25.8
)
103
134
(23.1
)
Renewable corn oil (pounds)
58,332
65,231
(10.6
)
116,808
129,494
(9.8
)
Corn consumed (bushels)
54,558
65,312
(16.5
)
113,360
131,576
(13.8
)
Agribusiness and energy services (1)
Ethanol sold (gallons)
180,760
225,703
(19.9
)
356,905
481,424
(25.9
)
(1) Includes gallons from the ethanol production segment.
GREEN PLAINS INC.
CONSOLIDATED CRUSH MARGIN
(unaudited, in thousands)
Three Months Ended
June 30,
2026
2025
Ethanol production operating income (loss) (1)
$
70,977
$
(12,218
)
Depreciation and amortization
22,673
22,918
Impairment of assets held for sale
—
10,724
Adjusted ethanol production operating income
93,650
21,424
Intercompany fees and nonethanol operating activities, net (2)
1,421
4,862
Consolidated ethanol crush margin
$
95,071
$
26,286
(1) For the three months ended June 30, 2025, ethanol production includes margins from a one-time sale of accumulated RINs of $22.6 million and an inventory lower of cost or net realizable value adjustment of $2.3 million.
(2) Includes certain nonrecurring decommissioning costs and nonethanol operating activities of ($1.9) million and $($1.0) million for the three months ended June 30, 2026 and 2025, respectively.
Liquidity and Capital Resources
As of June 30, 2026, Green Plains had $243.1 million in total cash and cash equivalents, and restricted cash, and $290.0 million available under a committed revolving credit facility, which is subject to restrictions and other lending conditions. On April 17, 2026, the Revolver Facility was amended by the Second Amendment to the Loan and Security Agreement and the termination date was extended from March 25, 2027 to September 25, 2027 and the borrowing limit was reduced from $350 million to $300 million. Total debt outstanding at June 30, 2026 was $483.7 million, including $27.0 million outstanding debt under working capital revolvers and other short-term borrowing arrangements.
Conference Call Information
On August 6, 2026, Green Plains Inc. will host a conference call at 9 a.m. Eastern time (8 a.m. Central time) to discuss second quarter 2026 operating results. Domestic and international participants can access the conference call by dialing 833.461.5787 and 585.542.9983, respectively, and referencing conference ID 249495185. Participants are advised to call at least 10 minutes prior to the start time. Alternatively, the conference call and presentation will be accessible on Green Plains website https://investor.gpreinc.com/events-and-presentations.
Non-GAAP Financial Measures
Management uses EBITDA, adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins to measure the company’s financial performance and to internally manage its businesses. EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization excluding the change in right-of-use assets and debt issuance costs. Adjusted EBITDA includes adjustments related to restructuring costs, loss on sale of assets, impairment of assets held for sale, loss on sale of equity method investment and our proportional share of EBITDA adjustments of our equity method investees. Management believes these measures provide useful information to investors for comparison with peer and other companies. These measures should not be considered alternatives to net income or segment operating income, which are determined in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP calculations may vary from company to company. Accordingly, the company’s computation of adjusted EBITDA, segment EBITDA and consolidated ethanol crush margins may not be comparable with similarly titled measures of another company.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on disciplined execution and leadership in low‑carbon biofuels and high‑value ingredients. The company operates a performance‑driven platform focused on maximizing yield, lowering carbon intensity, and delivering long‑term value through responsible capital deployment. For more information, visit www.gpreinc.com.
Forward-Looking Statements
All statements in this press release (and oral statements made regarding the subjects of this communication), including those that express a belief, expectation or intention, may be considered forward-looking statements (as defined in Section 21E of the Securities Exchange Act, as amended, and Section 27A of the Securities Act of 1933, as amended) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Without limiting the generality of the foregoing, forward-looking statements contained in this communication include statements relying on a number of assumptions concerning future events and are subject to a number of uncertainties and factors, many of which are outside the control of the company, which could cause actual results to differ materially from such statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The forward-looking statements may include, but are not limited to the expected future growth, dividends and distributions; and plans and objectives of management for future operations. Forward-looking statements may be identified by words such as “believe,” “intend,” “expect,” “may,” “should,” “will,” “anticipate,” “could,” “estimate,” “plan,” “predict,” “project” and variations of these words or similar expressions (or the negative versions of such words or expressions). While the company believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. Among the factors that could cause results to differ materially from those indicated by such forward-looking statements are: the failure to realize the anticipated results from the new products being developed or new technologies being deployed; the failure to realize the anticipated selling, general and administrative expense savings from restructuring; local, regional and national economic conditions and the impact they may have on the company and its customers; disruption caused by health epidemics; conditions in the ethanol and biofuels industry, including a sustained decrease in the level of supply or demand for ethanol and biofuels or a sustained decrease in the price of ethanol or biofuels, distillers grains, Ultra-High Protein, and renewable corn oil; competition in the ethanol industry and other industries in which we operate; commodity market risks, including those that may result from weather conditions, changes in government policies, and global political or economic issues; the financial condition of the company’s customers and counterparties; any non-performance by customers and counterparties of their contractual obligations; changes in safety, health, environmental and other governmental policy and regulation, including changes to tax laws such as the One Big Beautiful Bill Act, tariffs, renewable fuel programs, tax credit programs, and low carbon programs; risks related to acquisition and disposition activities and achieving anticipated results; risks associated with merchant trading; the results of any reviews, investigations or other proceedings by government authorities; the performance of the company; and other factors detailed in reports filed with the Securities and Exchange Commission (the “SEC”).
The foregoing list of factors is not exhaustive. The forward-looking statements in this press release speak only as of the date they are made and the company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities and other applicable laws. We have based these forward-looking statements on our current expectations and assumptions about future events. While the company’s management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the company’s control. These risks, contingencies and uncertainties relate to, among other matters, the risks and uncertainties set forth in the “Risk Factors” section of the company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC, and any subsequent reports filed by the company with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
GREEN PLAINS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, 2026
December 31, 2025
(unaudited)
ASSETS
Current assets
Cash and cash equivalents
$
185,384
$
182,319
Restricted cash
57,691
47,813
Accounts receivable, net
79,584
74,374
Inventories
128,563
148,095
Production tax credits
133,182
40,328
Prepaid expenses and other
17,051
18,117
Derivative financial instruments
23,997
11,494
Total current assets
625,452
522,540
Property and equipment, net
918,053
957,256
Operating lease right-of-use assets
63,798
63,849
Other assets
49,764
41,242
Total assets
$
1,657,067
$
1,584,887
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
$
94,688
$
134,912
Accrued and other liabilities
42,530
39,427
Unearned revenue
29,902
27,401
Derivative financial instruments
26,605
7,901
Operating lease current liabilities
23,508
21,557
Short-term notes payable and other borrowings
27,004
33,584
Current maturities of long-term debt
69,510
3,924
Total current liabilities
313,747
268,706
Long-term debt
387,176
361,992
Operating lease long-term liabilities
41,436
43,648
Carbon equipment liabilities
12,360
104,217
Other liabilities
32,503
34,353
Total liabilities
787,222
812,916
Stockholders' equity
Total Green Plains stockholders' equity
869,934
766,247
Noncontrolling interests
(89
)
5,724
Total stockholders' equity
869,845
771,971
Total liabilities and stockholders' equity
$
1,657,067
$
1,584,887
GREEN PLAINS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
$
446,224
$
552,829
$
892,028
$
1,154,344
Costs and expenses
Cost of goods sold (excluding depreciation and amortization expenses reflected below)
333,194
511,259
691,052
1,109,735
Selling, general and administrative expenses
21,707
27,605
41,244
70,517
Loss on sale of assets
—
4,044
—
4,044
Depreciation and amortization expenses
23,449
27,560
47,086
49,947
Impairment of assets held for sale
—
10,724
—
10,724
Total costs and expenses
378,350
581,192
779,382
1,244,967
Operating income (loss)
67,874
(28,363
)
112,646
(90,623
)
Other income (expense)
Interest income
1,449
634
4,369
1,637
Interest expense
(8,130
)
(13,899
)
(19,615
)
(22,812
)
Other, net
516
(39
)
668
(1,554
)
Total other expense
(6,165
)
(13,304
)
(14,578
)
(22,729
)
Income (loss) before income taxes and income (loss) from equity method investees
61,709
(41,667
)
98,068
(113,352
)
Income tax benefit (expense)
5,485
(2,294
)
2,569
(2,400
)
Income (loss) from equity method investees, net of income taxes
12
(28,266
)
34
(29,116
)
Net income (loss)
$
67,206
$
(72,227
)
$
100,671
$
(144,868
)
Net income attributable to noncontrolling interests
57
11
584
276
Net income (loss) attributable to Green Plains
$
67,149
$
(72,238
)
$
100,087
$
(145,144
)
Earnings per share
Net income (loss) attributable to Green Plains - basic
$
0.97
$
(1.09
)
$
1.45
$
(2.22
)
Net income (loss) attributable to Green Plains - diluted
$
0.83
$
(1.09
)
$
1.25
$
(2.22
)
Weighted average shares outstanding
Basic
69,112
66,491
68,977
65,287
Diluted
84,494
66,491
84,381
65,287
GREEN PLAINS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Six Months Ended
March 31,
2026
2025
Cash flows from operating activities
Net income (loss)
$
100,671
$
(144,868
)
Noncash operating adjustments
Depreciation and amortization
47,086
49,947
Loss on sale of assets
—
4,044
Impairment of assets held for sale
—
10,724
Inventory lower of cost or net realizable value adjustment
—
2,255
Stock-based compensation
4,203
11,123
(Income) loss from equity method investees, net of income taxes
(34
)
29,116
Other
751
8,830
Net change in working capital
(105,910
)
32,583
Net cash provided by operating activities
46,767
3,754
Cash flows from investing activities
Purchases of property and equipment, net
(17,140
)
(27,853
)
Proceeds from the sale of assets
2,000
421
Investment in equity method investees
—
(4,909
)
Net cash used in investing activities
(15,140
)
(32,341
)
Cash flows from financing activities
Net payments - long term debt
(3,098
)
(962
)
Net payments - short-term borrowings
(6,580
)
(60,962
)
Net proceeds from product financing arrangement
—
37,146
Purchase of minority interests
(4,700
)
—
Other
(4,306
)
(3,310
)
Net cash used in financing activities
(18,684
)
(28,088
)
Net change in cash and cash equivalents, and restricted cash
12,943
(56,675
)
Cash and cash equivalents, and restricted cash, beginning of period
230,132
209,395
Cash and cash equivalents, and restricted cash, end of period
$
243,075
$
152,720
Reconciliation of total cash and cash equivalents, and restricted cash
Cash and cash equivalents
$
185,384
$
108,624
Restricted cash
57,691
44,096
Total cash and cash equivalents, and restricted cash
$
243,075
$
152,720
GREEN PLAINS INC.
RECONCILIATIONS TO NON-GAAP FINANCIAL MEASURES
(unaudited, in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net income (loss)
$
67,206
$
(72,227
)
$
100,671
$
(144,868
)
Interest expense
8,130
13,899
19,615
22,812
Income tax (benefit) expense, net of equity method income taxes
(5,485
)
1,885
(2,569
)
1,720
Depreciation and amortization (1)
23,449
27,560
47,086
49,947
EBITDA
93,300
(28,883
)
164,803
(70,389
)
Restructuring costs
—
2,520
—
19,106
Loss on sale of assets
—
4,044
—
4,044
Impairment of assets held for sale
—
10,724
—
10,724
Loss on sale of equity method investment
—
26,987
—
26,987
Proportional share of EBITDA adjustments to equity method investees
45
1,050
90
1,828
Adjusted EBITDA
$
93,345
$
16,442
$
164,893
$
(7,700
)
(1) Excludes amortization of operating lease right-of-use assets and amortization of debt issuance costs.
Amundi raised its position in Brixmor Property Group Inc. (NYSE:BRX – Free Report) by 24.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 226,148 shares of the real estate investment trust’s stock after buying an additional 44,965 shares during the quarter. Amundi owned about 0.07% of Brixmor Property Group worth $6,513,000 at the end of the most recent quarter.
Other institutional investors have also added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in Brixmor Property Group by 0.4% in the fourth quarter. Vanguard Group Inc. now owns 44,986,376 shares of the real estate investment trust’s stock valued at $1,179,543,000 after buying an additional 198,567 shares in the last quarter. State Street Corp grew its stake in shares of Brixmor Property Group by 0.5% during the second quarter. State Street Corp now owns 15,699,421 shares of the real estate investment trust’s stock worth $408,813,000 after buying an additional 81,497 shares during the last quarter. Centersquare Investment Management LLC increased its holdings in shares of Brixmor Property Group by 22.5% during the fourth quarter. Centersquare Investment Management LLC now owns 12,384,526 shares of the real estate investment trust’s stock worth $324,722,000 after buying an additional 2,275,242 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Brixmor Property Group by 6.8% during the third quarter. Invesco Ltd. now owns 8,036,728 shares of the real estate investment trust’s stock worth $222,457,000 after buying an additional 511,976 shares in the last quarter. Finally, Wellington Management Group LLP lifted its stake in shares of Brixmor Property Group by 49.6% in the 3rd quarter. Wellington Management Group LLP now owns 6,395,999 shares of the real estate investment trust’s stock valued at $177,041,000 after acquiring an additional 2,119,890 shares during the last quarter. 98.43% of the stock is currently owned by institutional investors and hedge funds.
Brixmor Property Group Stock Performance NYSE:BRX opened at $30.91 on Thursday. The company has a fifty day moving average of $31.49 and a 200-day moving average of $30.03. The firm has a market capitalization of $9.48 billion, a P/E ratio of 22.08, a P/E/G ratio of 2.36 and a beta of 0.98. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 1.76. Brixmor Property Group Inc. has a twelve month low of $24.66 and a twelve month high of $32.86.
Brixmor Property Group (NYSE:BRX – Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The real estate investment trust reported $0.24 earnings per share for the quarter, missing the consensus estimate of $0.58 by ($0.34). The company had revenue of $354.20 million during the quarter, compared to the consensus estimate of $354.39 million. Brixmor Property Group had a net margin of 30.82% and a return on equity of 14.38%. The company’s revenue for the quarter was up 4.3% on a year-over-year basis. During the same period last year, the firm posted $0.56 earnings per share. Brixmor Property Group has set its FY 2026 guidance at 2.350-2.370 EPS. As a group, sell-side analysts anticipate that Brixmor Property Group Inc. will post 2.36 EPS for the current year.
Brixmor Property Group Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Friday, October 2nd will be issued a $0.3075 dividend. This represents a $1.23 dividend on an annualized basis and a dividend yield of 4.0%. The ex-dividend date is Friday, October 2nd. Brixmor Property Group’s dividend payout ratio (DPR) is currently 87.86%.
Analyst Ratings Changes A number of analysts have recently commented on BRX shares. Weiss Ratings reissued a “buy (b)” rating on shares of Brixmor Property Group in a research note on Friday, July 31st. Evercore raised Brixmor Property Group to a “strong-buy” rating in a research note on Wednesday, April 29th. Citigroup raised their price objective on shares of Brixmor Property Group from $31.00 to $34.00 and gave the company a “neutral” rating in a report on Monday. UBS Group lifted their target price on shares of Brixmor Property Group from $34.00 to $37.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Finally, Truist Financial upped their price target on shares of Brixmor Property Group from $32.00 to $33.00 and gave the company a “buy” rating in a research report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Brixmor Property Group has a consensus rating of “Moderate Buy” and an average price target of $34.00.
Read Our Latest Stock Analysis on BRX
Brixmor Property Group Company Profile (Free Report)
Brixmor Property Group is a publicly traded real estate investment trust (REIT) focused on the ownership, management and development of open-air shopping centers across the United States. The company acquires and leases retail properties that feature everyday, necessity-based tenants such as grocery stores, discount retailers, and service providers. Brixmor’s core strategy centers on generating stable, long-term income streams through tenant relationships and targeted property enhancements.
The company’s main business activities include proactive leasing, property upkeep and capital improvement projects designed to maximize occupancy and tenant satisfaction.
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HILLIARD, Ohio--(BUSINESS WIRE)--Advanced Drainage Systems, Inc. (NYSE: WMS) (“ADS” or the “Company”), a leading provider of innovative water management solutions in the stormwater and onsite wastewater industries, today announced that its Board of Directors (the “Board”) has approved a quarterly cash dividend to its shareholders in the amount of $0.20 per share, a 11% increase over the prior year dividend amount.
Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems commented, “Today’s dividend announcement, is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to strategically invest in our business.”
The quarterly cash dividend of $0.20 per share will be paid on September 15, 2026, to shareholders of record at the close of business on September 1, 2026.
About the Company
Advanced Drainage Systems is a leading manufacturer of innovative stormwater and onsite wastewater solutions that manage the world’s most precious resource: water. ADS, along with NDS and Infiltrator Water Technologies, provides superior stormwater drainage and onsite wastewater products used across commercial, residential, infrastructure, and agricultural applications, while delivering unparalleled customer service. ADS operates the industry’s largest company-owned fleet, an expansive sales team and a vast manufacturing network. As one of the largest plastic recycling companies in North America, ADS keeps millions of pounds of plastic out of landfills each year. Founded in 1966, ADS’ water management solutions are designed to last for decades. To learn more, visit the Company’s website at www.adspipe.com.
Forward Looking Statements
Certain statements in this press release may be deemed to be forward-looking statements. These statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections regarding the Company’s business, operations and other factors relating thereto. Words such as “may,” “will,” “could,” “would,” “should,” “anticipate,” “predict,” “potential,” “continue,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “confident” and similar expressions are used to identify these forward-looking statements. Factors that could cause actual results to differ from those reflected in forward-looking statements relating to our operations and business include: fluctuations in the price and availability of resins and other raw materials, new tariff and international trade policies, and our ability to pass any increased costs of raw materials and tariffs on to our customers in a timely manner; disruption or volatility in general business, political and economic conditions in the markets in which we operate; cyclicality and seasonality of the non-residential and residential construction markets and infrastructure spending; the risks of increasing competition in our existing and future markets; uncertainties surrounding the integration and realization of anticipated benefits of acquisitions or doing so within the intended timeframe, including our ability to successfully integrate NDS into our business; risks that the acquisition of NDS may involve unexpected costs, liabilities, risks that the cost savings and synergies from the acquisition of NDS may not be fully realized; the effect of any claims, litigation, investigations or proceedings; the effect of weather or seasonality; the loss of any of our significant customers; the risks of doing business internationally; the risks of conducting a portion of our operations through joint ventures; our ability to expand into new geographic or product markets; the risk associated with manufacturing processes; the effects of global climate change and any related regulatory responses; our ability to protect against cybersecurity incidents and disruptions or failures of our IT systems; our ability to assess and monitor the effects of artificial intelligence, machine learning, robotics and blockchain or other new approaches to data mining on our business and operations; our ability to manage our supply purchasing and customer credit policies; our ability to control labor costs and to attract, train and retain highly qualified employees and key personnel; our ability to protect our intellectual property rights; changes in laws and regulations, including environmental laws and regulations; our ability to appropriately address any environmental, social or governance concerns that may arise from our activities; the risks associated with our current levels of indebtedness, including borrowings under our existing credit agreement and outstanding indebtedness under our existing senior notes; and other risks and uncertainties described in the Company’s filings with the SEC. New risks and uncertainties emerge from time to time and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the Company’s expectations, objectives or plans will be achieved in the timeframe anticipated or at all. Investors are cautioned not to place undue reliance on the Company’s forward-looking statements and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Planet Fitness ve 2. čtvrtletí zvýšila tržby o 7,1 % na 365,2 mil. USD a čistý zisk připadající na Planet Fitness, Inc. na 67,1 mil. USD, zatímco srovnatelné tržby klubů vzrostly o 1,7 %.
System-wide same club sales increased 1.7%
Repurchased and retired approximately $200M of Class A common stock
, /PRNewswire/ -- Today, Planet Fitness, Inc. (NYSE: PLNT) reported financial results for its second quarter ended June 30, 2026.
Second Quarter Fiscal 2026 Highlights
Total revenue increased from the prior year period by 7.1% to $365.2 million. System-wide same club sales increased 1.7%. System-wide sales increased $66.6 million to $1.4 billion. Net income attributable to Planet Fitness, Inc. was $67.1 million, or $0.87 per diluted share, compared to $58.0 million, or $0.69 per diluted share, in the prior year period. Net income increased $9.1 million to $67.4 million, compared to $58.3 million in the prior year period. Adjusted net income(1) decreased $4.1 million to $68.4 million, or $0.88 per diluted share(1), compared to $72.6 million, or $0.86 per diluted share, in the prior year period. Adjusted EBITDA(1) increased $5.1 million to $152.8 million from $147.6 million in the prior year period. 23 new Planet Fitness clubs were opened system-wide during the period, which included 21 franchisee-owned and 2 corporate-owned clubs, bringing system-wide total clubs to 2,930 as of June 30, 2026. Repurchased and retired approximately 4.0 million shares of Class A common stock for $200.0 million. Cash and marketable securities of $544.4 million, which includes cash and cash equivalents of $298.3 million, restricted cash of $72.9 million and marketable securities of $173.2 million as of June 30, 2026. "During the second quarter, we made important progress advancing our strategies to reignite sustainable member growth," said Colleen Keating, Chief Executive Officer. "We are moving quickly with several actions to clearly communicate our differentiated welcoming, non-intimidating environment in the immediate term, while we work in parallel to develop a new marketing campaign that sets the brand up for success with a broader audience in the coming months. At the same time, we initiated and expanded tests around pricing, member experience, and retention, and look forward to applying the learnings to enhance our future performance. We concluded the second quarter with the appointment of Sudhanshu Priyadarshi as Chief Financial Officer & President, International. We are thrilled to have someone of Sudhanshu's caliber on the team with his deep global leadership experience and I look forward to partnering with him to deliver meaningful value for our members, franchisees, and shareholders."
1 Adjusted net income, Adjusted EBITDA and Adjusted net income per share, diluted are non-GAAP measures. For reconciliations of Adjusted EBITDA and Adjusted net income to U.S. GAAP ("GAAP") net income and a computation of Adjusted net income per share, diluted, see "Non-GAAP Financial Measures" accompanying this press release.
Operating Results for the Second Quarter Ended June 30, 2026
For the second quarter of 2026, total revenue increased $24.3 million or 7.1% to $365.2 million from $340.9 million in the prior year period. By segment:
Franchise segment revenue increased $16.1 million or 13.5% to $135.8 million from $119.7 million in the prior year period. This increase was primarily attributable to a $10.1 million increase in National Advertising Fund ("NAF") revenue from a 1% rate increase to NAF contributions from 2% to 3% for 2026. Royalty revenue also increased $4.7 million, of which $1.7 million was attributable to a franchise same club sales increase of 1.7%, $2.5 million was attributable to new clubs opened since April 1, 2025 before moving into the same club sales base and $0.5 million was from higher royalties on annual fees. Additionally, there was a $1.3 million increase in franchise and other fees. Corporate-owned clubs segment revenue increased $4.9 million or 3.5% to $143.9 million from $139.0 million in the prior year period. This increase was primarily attributable to $5.0 million from new clubs opened since April 1, 2025 before moving into the same club sales base and $4.8 million from the corporate-owned clubs included in the same club sales base, including $3.0 million attributable to a same club sales increase of 1.7% and $1.6 million attributable to other fees. This increase was partially offset by $4.9 million of lower revenue attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025. Equipment segment revenue increased $3.4 million or 4.1% to $85.6 million from $82.2 million in the prior year period. This increase was primarily attributable to $1.7 million of higher revenue from equipment sales to new franchisee-owned clubs and $1.6 million of higher revenue from equipment sales to existing franchisee-owned clubs. In the three months ended June 30, 2026, we had equipment sales to 21 new franchisee-owned clubs compared to 19 in the same period last year. Segment Adjusted EBITDA represents our Adjusted EBITDA broken out by the Company's reportable segments. Adjusted EBITDA is defined as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations, see "Non-GAAP Financial Measures" accompanying this press release.
Segment Adjusted EBITDA was as follows:
Franchise Segment Adjusted EBITDA increased $5.2 million or 6.1% to $91.7 million from $86.5 million in the prior year period. This increase was primarily attributable to higher NAF and franchise revenue of $10.1 million and $6.0 million, respectively, as described above, partially offset by $10.1 million of higher NAF expense and $0.4 million of higher selling, general and administrative expense. Corporate-owned clubs Segment Adjusted EBITDA increased $0.9 million or 1.6% to $57.5 million from $56.6 million in the prior year period. This increase was primarily attributable to $1.6 million from clubs included in the same club sales base and $0.4 million of lower selling, general and administrative expenses primarily from the closure of the Company's Florida Corporate Support Center in the prior year period, partially offset by $1.3 million of lower adjusted EBITDA attributable to the eight clubs located in California that the Company sold to a franchisee in August 2025. Equipment Segment Adjusted EBITDA decreased $2.1 million or 8.0% to $24.3 million from $26.4 million in the prior year period. This decrease was primarily attributable to the timing of replacement equipment discounts, partially offset by higher equipment sales to new and existing franchisee-owned clubs. 2026 Outlook
For the year ending December 31, 2026, the Company is reiterating the following expectations:
System-wide same club sales growth of approximately 1% Revenue to increase approximately 7% Adjusted EBITDA to increase approximately 6% New equipment placements of approximately 150 to 160 in franchisee-owned locations System-wide new club openings of approximately 180 to 190 locations Capital expenditures to increase approximately 10% to 15% Depreciation and amortization to increase approximately 10% The Company is also updating the following expectations:
Adjusted net income per share, diluted to increase approximately 6% (previously approximately 4%), based on adjusted diluted weighted-average shares outstanding of approximately 77.0 million (previously approximately 79.0 million), inclusive of the shares repurchased through the second quarter of 2026 Net interest expense to be approximately $115.0 million (previously approximately $111.0 million) Adjusted net income to decrease approximately 3% (previously approximately 2%) Presentation of Financial Measures
Planet Fitness, Inc. (the "Company") was formed in March 2015 for the purpose of facilitating the initial public offering (the "IPO") and related recapitalization transactions that occurred in August 2015, and in order to carry on the business of Pla-Fit Holdings, LLC ("Pla-Fit Holdings") and its subsidiaries. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings' financial results and reports a non-controlling interest related to the portion of Pla-Fit Holdings not owned by the Company.
The financial information presented in this press release includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, to provide measures that we believe are useful to investors in evaluating the Company's performance. These non-GAAP financial measures are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by similar amounts or other unusual or nonrecurring items. See the tables at the end of this press release for a reconciliation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, to their most directly comparable GAAP financial measure.
The non-GAAP financial measures used in our full-year outlook will differ from net income and net income per share, diluted, determined in accordance with GAAP in ways similar to those described in the reconciliations at the end of this press release. We do not provide guidance for net income or net income per share, diluted, determined in accordance with GAAP or a reconciliation of guidance for Adjusted net income and Adjusted net income per share, diluted, to the most directly comparable GAAP measure because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our net income and net income per share, diluted, for the year ending December 31, 2026. These items are uncertain, depend on many factors and could have a material impact on our net income and net income per share, diluted, for the year ending December 31, 2026, and therefore cannot be made available without unreasonable effort.
Same club sales refers to year-over-year sales comparisons for the same club sales base of both corporate-owned and franchisee-owned clubs, which is calculated for a given period by including only sales from clubs that had sales in the comparable months of both years. We define the same club sales base to include those clubs that have been open and for which monthly membership dues have been billed for longer than 12 months. We measure same club sales based solely upon monthly dues billed to members of our corporate-owned and franchisee-owned clubs.
Investor Conference Call
The Company will hold a conference call at 8:00AM (ET) on August 6, 2026 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.planetfitness.com via the "Investor Relations" link. The webcast will be archived on the website for one year.
About Planet Fitness
Founded in 1992 in Dover, NH, Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the world by number of members and locations. As of June 30, 2026, Planet Fitness had approximately 21.5 million members and 2,930 clubs in all 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, Australia and Spain. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone®. Approximately 90% of Planet Fitness clubs are owned and operated by independent business owners.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include the Company's statements with respect to expected future performance presented under the heading "2026 Outlook," those attributed to the Company's Chief Executive Officer in this press release, the Company's expected membership growth and club growth, share repurchases and the timing thereof, ability to deliver future shareholder value, the impact of tariffs and other statements, estimates and projections that do not relate solely to historical facts. Forward-looking statements can be identified by words such as "anticipate," "believe," "envision," "estimate," "expect," "intend," "may," "might," "goal," "plan," "prospect," "predict," "project," "target," "potential," "assumption," "will," "would," "could," "should," "continue," "ongoing," "contemplate," "future," "strategy" and similar references to future periods, although not all forward-looking statements include these identifying words. Forward-looking statements are not assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that could cause our actual results to differ materially include competition in the fitness industry, the Company's and franchisees' ability to attract and retain members, the Company's and franchisees' ability to identify and secure suitable sites for new franchise clubs, changes in consumer demand, changes in equipment costs, the Company's ability to expand into new markets domestically and internationally, operating costs for the Company and franchisees generally, availability and cost of capital for franchisees, acquisition activity, developments and changes in laws and regulations, our substantial indebtedness and our ability to incur additional indebtedness or refinance that indebtedness in the future, our future financial performance and our ability to pay principal and interest on our indebtedness, our corporate structure and tax receivable agreements, failures, interruptions or security breaches of the Company's information systems or technology, general economic conditions and the other factors described in the Company's annual report on Form 10-K for the year ended December 31, 2025 and, once available, the Company's quarterly report on Form 10-Q for the quarter ended June 30, 2026, as well as the Company's other filings with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in forward-looking statements, investors should not place undue reliance on forward-looking statements, which reflect the Company's views only as of the date of this press release. Except as required by law, neither the Company nor any of its affiliates or representatives undertake any obligation to provide additional information or to correct or update any information set forth in this release, whether as a result of new information, future developments or otherwise.
Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share amounts)
2026
2025
2026
2025
Revenue:
Franchise
$ 102,856
$ 96,877
$ 205,105
$ 190,117
National advertising fund revenue
32,922
22,781
65,140
44,721
Franchise segment
135,778
119,658
270,245
234,838
Corporate-owned clubs
143,862
138,989
284,484
272,658
Equipment
85,583
82,232
147,730
110,045
Total revenue
365,223
340,879
702,459
617,541
Operating costs and expenses:
Cost of revenue
64,495
59,423
109,836
81,908
Club operations
81,698
77,437
169,892
159,117
Selling, general and administrative
34,406
35,511
68,556
69,818
National advertising fund expense
32,922
22,777
65,140
44,721
Depreciation and amortization
40,143
38,429
80,394
76,710
Other (gains) losses, net
(12,254)
4,900
(13,841)
3,663
Total operating costs and expenses
241,410
238,477
479,977
435,937
Income from operations
123,813
102,402
222,482
181,604
Other income (expense), net:
Interest income
5,271
5,690
10,933
11,502
Interest expense
(33,401)
(26,181)
(66,368)
(52,378)
Other income, net
446
1,942
1,061
2,225
Total other (expense), net
(27,684)
(18,549)
(54,374)
(38,651)
Income before income taxes
96,129
83,853
168,108
142,953
Provision for income taxes
28,513
24,930
47,822
41,146
Loss from equity-method investments, net of tax
(212)
(628)
(1,086)
(1,433)
Net income
67,404
58,295
119,200
100,374
Less: net income attributable to non-controlling interests
322
276
564
488
Net income attributable to Planet Fitness, Inc.
$ 67,082
$ 58,019
$ 118,636
$ 99,886
Net income per share of Class A common stock:
Basic
$ 0.87
$ 0.69
$ 1.52
$ 1.19
Diluted
$ 0.87
$ 0.69
$ 1.51
$ 1.19
Weighted-average shares of Class A common stock outstanding:
Basic
77,030
83,861
78,296
84,015
Diluted
77,146
84,065
78,455
84,233
Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except per share amounts)
June 30, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$ 298,265
$ 345,652
Restricted cash
72,945
66,304
Short-term marketable securities
102,493
106,761
Accounts receivable, net of allowances for uncollectible amounts of $35 and $428 as of
June 30, 2026 and December 31, 2025, respectively
65,618
70,431
Inventory
9,221
7,581
Restricted assets - national advertising fund
9,556
—
Prepaid expenses
24,686
24,605
Other receivables
43,513
34,094
Income tax receivable and prepayments
1,790
2,958
Total current assets
628,087
658,386
Long-term marketable securities
70,671
88,263
Investments, net of allowance for expected credit losses of $25,447 and $24,424 as of June 30,
2026 and December 31, 2025, respectively
56,500
69,700
Property and equipment, net of accumulated depreciation of $509,156 and $453,852, as of
June 30, 2026 and December 31, 2025, respectively
466,465
466,747
Right-of-use assets, net
404,678
409,320
Intangible assets, net
270,370
286,409
Goodwill
712,331
712,450
Deferred income taxes
376,658
406,724
Other assets, net
19,185
5,396
Total assets
$ 3,004,945
$ 3,103,395
Liabilities and stockholders' deficit
Current liabilities:
Current maturities of long-term debt
$ 25,750
$ 23,875
Borrowings under Variable Funding Notes
75,000
—
Accounts payable
52,186
39,683
Accrued expenses
63,385
75,371
Equipment deposits
7,305
10,165
Deferred revenue, current
80,852
58,593
Payable pursuant to tax benefit arrangements, current
38,441
55,518
Other current liabilities
53,595
49,285
Total current liabilities
396,514
312,490
Long-term debt, net of current maturities
2,448,282
2,458,379
Lease liabilities, net of current portion
415,568
419,120
Deferred revenue, net of current portion
30,217
29,657
Deferred tax liabilities
968
1,177
Payable pursuant to tax benefit arrangements, net of current portion
322,925
360,273
Other liabilities
5,209
5,677
Total noncurrent liabilities
3,223,169
3,274,283
Stockholders' equity (deficit):
Class A common stock, $0.0001 par value, 300,000 shares authorized, 75,197 and 80,446
shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
8
8
Class B common stock, $0.0001 par value, 100,000 shares authorized, 316 shares issued and
outstanding as of June 30, 2026 and December 31, 2025
—
—
Additional paid in capital
630,297
623,333
Accumulated other comprehensive (loss) income
(836)
1,311
Accumulated deficit
(1,242,206)
(1,107,429)
Total stockholders' deficit attributable to Planet Fitness, Inc.
(612,737)
(482,777)
Non-controlling interests
(2,001)
(601)
Total stockholders' deficit
(614,738)
(483,378)
Total liabilities and stockholders' deficit
$ 3,004,945
$ 3,103,395
Planet Fitness, Inc. and subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30,
(in thousands)
2026
2025
Cash flows from operating activities:
Net income
$ 119,200
$ 100,374
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
80,394
76,710
Equity-based compensation expense
6,270
6,138
Deferred tax expense
29,875
27,619
Amortization of deferred financing costs
2,919
2,639
Accretion of marketable securities discount
(200)
(837)
Losses from equity-method investments, net of tax
1,086
1,433
Dividends accrued on held-to-maturity investment
(1,221)
(1,139)
Credit loss on held-to-maturity investment
1,023
4,603
Gain on re-measurement of tax benefit arrangement liability
—
(1,294)
Gain on sale of equity-method investment
(12,541)
—
Gain on insurance proceeds
—
(1,460)
Other
(1,652)
210
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
5,336
4,747
Inventory
(1,598)
1,799
Other assets and other current assets
2,370
(5,400)
Restricted assets - national advertising fund
(9,556)
(9,023)
Accounts payable and accrued expenses
(894)
1,317
Other liabilities and other current liabilities
68
(427)
Income taxes
1,498
(4,753)
Payments pursuant to tax benefit arrangements
(54,424)
(52,740)
Equipment deposits
(2,854)
6,009
Deferred revenue
22,927
13,770
Leases
5,423
7,599
Net cash provided by operating activities
193,449
177,894
Cash flows from investing activities:
Additions to property and equipment
(67,425)
(58,801)
Insurance proceeds for property and equipment
—
2,053
Payment of deferred consideration for acquired clubs
—
(1,539)
Proceeds from sale of equity-method investment
24,264
—
Purchases of marketable securities
(41,252)
(81,958)
Maturities of marketable securities
62,509
71,954
Issuance of note receivable, related party
(20,647)
(2,639)
Other investing activity
(37)
(32)
Net cash used in investing activities
(42,588)
(70,962)
Cash flows from financing activities:
Proceeds from issuance of Variable Funding Notes
75,000
—
Repayment of long-term debt
(11,000)
(11,250)
Payment of deferred financing and other debt-related costs
(141)
—
Proceeds from issuance of Class A common stock
856
1,177
Repurchase and retirement of Class A common stock
(251,254)
(52,085)
Principal payments on capital lease obligations
(100)
(51)
Payment of share repurchase excise tax
(4,152)
(2,549)
Distributions paid to members of Pla-Fit Holdings
(659)
(1,331)
Net cash used in financing activities
(191,450)
(66,089)
Effects of exchange rate changes on cash and cash equivalents
(157)
1,658
Net (decrease) increase in cash, cash equivalents and restricted cash
(40,746)
42,501
Cash, cash equivalents and restricted cash, beginning of period
411,956
349,674
Cash, cash equivalents and restricted cash, end of period
$ 371,210
$ 392,175
Supplemental cash flow information:
Cash paid for interest
$ 62,541
$ 50,067
Net cash paid for income taxes
$ 16,462
$ 18,285
Non-cash investing activities:
Non-cash additions to property and equipment included in accounts payable and accrued expenses
$ 19,668
$ 16,667
Planet Fitness, Inc. and subsidiaries
Non-GAAP Financial Measures
(Unaudited)
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, the Company uses the following non-GAAP financial measures: Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted (collectively, the "non-GAAP financial measures"). The Company believes that these non-GAAP financial measures, when used in conjunction with GAAP financial measures, are useful to investors in evaluating our operating performance. These non-GAAP financial measures presented in this release are supplemental measures of the Company's performance that are neither required by, nor presented in accordance with GAAP. These financial measures should not be considered in isolation or as substitutes for GAAP financial measures such as net income or any other performance measures derived in accordance with GAAP. In addition, in the future, the Company may incur expenses or charges such as those added back to calculate Adjusted EBITDA, Adjusted net income and Adjusted net income per share, diluted. The Company's presentation of Adjusted EBITDA, Adjusted net income, and Adjusted net income per share, diluted, should not be construed as an inference that the Company's future results will be unaffected by unusual or nonrecurring items.
Adjusted EBITDA and Segment Adjusted EBITDA
We refer to Adjusted EBITDA as we use this measure to evaluate our operating performance and we believe this measure is useful to investors in evaluating our performance. We define Adjusted EBITDA as net income before interest, taxes, depreciation and amortization, adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing performance of the Company's core operations. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of other items that we believe reduce the comparability of our underlying core business performance from period to period and is therefore useful to our investors. Our Board of Directors uses Adjusted EBITDA as a key metric to assess the performance of management. Our Chief Operating Decision Maker also uses Segment Adjusted EBITDA, which is Adjusted EBITDA specific to each of our three reportable segments, to assess the financial performance of and allocate resources to our segments in accordance with ASC 280, Segment Reporting. Corporate overhead costs not directly attributable to any individual segment are not allocated to the three segments and are included in Corporate and Other Adjusted EBITDA within Adjusted EBITDA.
A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted EBITDA is set forth below.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Net income
$ 67,404
$ 58,295
$ 119,200
$ 100,374
Interest income
(5,271)
(5,690)
(10,933)
(11,502)
Interest expense
33,401
26,181
66,368
52,378
Provision for income taxes
28,513
24,930
47,822
41,146
Depreciation and amortization
40,143
38,429
80,394
76,710
EBITDA
164,190
142,145
302,851
259,106
Severance costs(1)
—
52
—
649
Executive transition costs(2)
735
1,406
1,577
2,447
Loss on adjustment of allowance for credit losses on
held-to-maturity investment
521
4,311
1,023
4,603
Dividend income on held-to-maturity investment
(618)
(578)
(1,221)
(1,139)
Insurance recovery(3)
—
—
—
(1,636)
Lease closure expenses, net(4)
—
1,067
—
1,067
Tax benefit arrangement remeasurement(5)
—
(1,210)
—
(1,294)
Gain on sale of equity method investment(6)
(12,541)
—
(12,541)
—
Amortization of basis difference of equity-method
investments(7)
240
240
480
480
Other(8)
226
176
452
331
Adjusted EBITDA
$ 152,753
$ 147,609
$ 292,621
$ 264,614
(1) Represents severance related expenses recorded in connection with a reduction in force during the three and six months ended June 30, 2025.
(2) Represents certain expenses recorded in connection with executive leadership transitions. During the three and six months ended June 30, 2026, amounts represent costs associated with the departure of the Company's former Chief Financial Officer and costs associated with the search for and equity-based compensation associated with certain equity awards granted to the Company's new Chief Financial Officer and Chief Executive Officer. During the three and six months ended June 30, 2025, amounts represent costs for equity-based compensation associated with certain equity awards granted to the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.
(3) Represents insurance recoveries, net of costs incurred.
(4) Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.
(5) Represents a gain related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.
(6) Represents a gain related to the sale of the Company's equity method investment in Bravo Fit Holdings Pty Ltd.
(7) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.
(8) Represents certain other gains and charges that we do not believe reflect our underlying business performance.
A reconciliation of Segment Adjusted EBITDA to Adjusted EBITDA is set forth below.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Adjusted EBITDA
Franchise segment
$ 91,737
$ 86,502
$ 186,458
$ 171,367
Corporate-owned clubs segment
57,481
56,598
103,966
102,447
Equipment segment
24,326
26,435
43,793
33,877
Segment Adjusted EBITDA
173,544
169,535
334,217
307,691
Corporate and other Adjusted EBITDA(1)
(20,791)
(21,926)
(41,596)
(43,077)
Adjusted EBITDA(2)
$ 152,753
$ 147,609
$ 292,621
$ 264,614
(1) Corporate and other Adjusted EBITDA includes adjusted corporate overhead costs, such as payroll and related benefit costs and professional services that are not directly attributable to any individual segment and thus are unallocated.
(2) Segment Adjusted EBITDA plus the Adjusted EBITDA of corporate and other is equal to Adjusted EBITDA. Adjusted EBITDA is a metric that is not presented in accordance with GAAP. Refer to "—Non-GAAP Financial Measures" for a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure.
Adjusted Net Income and Adjusted Net Income per Diluted Share
Our presentation of Adjusted net income assumes that all net income is attributable to Planet Fitness, Inc., which assumes the full exchange of all outstanding Holdings Units for shares of Class A common stock of Planet Fitness, Inc., adjusted for certain non-cash and other items that we do not believe directly reflect our core operations. Adjusted net income per share, diluted, is calculated by dividing Adjusted net income by the total weighted-average shares of Class A common stock outstanding plus any dilutive options and restricted stock units as calculated in accordance with GAAP and assuming the full exchange of all outstanding Holdings Units and corresponding Class B common stock as of the beginning of each period presented. Adjusted net income and Adjusted net income per share, diluted, are supplemental measures of operating performance that do not represent and should not be considered alternatives to net income and earnings per share, as calculated in accordance with GAAP. We believe Adjusted net income and Adjusted net income per share, diluted, supplement GAAP measures and enable us to more effectively evaluate our performance period-over-period.
A reconciliation of net income, the most directly comparable GAAP measure, to Adjusted net income, and the computation of Adjusted net income per share, diluted, are set forth below.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share amounts)
2026
2025
2026
2025
Net income
$ 67,404
$ 58,295
$ 119,200
$ 100,374
Provision for income taxes
28,513
24,930
47,822
41,146
Severance costs(1)
—
52
—
649
Executive transition costs(2)
735
1,406
1,577
2,447
Loss on adjustment of allowance for credit losses on
held-to-maturity investment
521
4,311
1,023
4,603
Dividend income on held-to-maturity investment
(618)
(578)
(1,221)
(1,139)
Insurance recovery(3)
—
—
—
(1,636)
Lease closure expenses, net(4)
—
1,067
—
1,067
Tax benefit arrangement remeasurement(5)
—
(1,210)
—
(1,294)
Gain on sale of equity method investment(6)
(12,541)
—
(12,541)
—
Amortization of basis difference of equity-method
investments(7)
(1) Represents severance related expenses recorded in connection with a reduction in force during the three and six months ended June 30, 2025.
(2) Represents certain expenses recorded in connection with executive leadership transitions. During the three and six months ended June 30, 2026, amounts represent costs associated with the departure of the Company's former Chief Financial Officer and costs associated with the search for and equity-based compensation associated with certain equity awards granted to the Company's new Chief Financial Officer and Chief Executive Officer. During the three and six months ended June 30, 2025, amounts represent costs for equity-based compensation associated with certain equity awards granted to the Company's Chief Executive Officer and retention payments for certain key employees through the Chief Executive Officer transition.
(3) Represents insurance recoveries, net of costs incurred.
(4) Represents lease termination costs, impairment charges, and loss on disposal of property and equipment from the closure of our Florida Corporate Support Center located in Orlando, Florida.
(5) Represents a gain related to the adjustment of our tax benefit arrangements primarily due to changes in our deferred state tax rate.
(6) Represents a gain related to the sale of the Company's equity method investment in Bravo Fit Holdings Pty Ltd.
(7) Represents the Company's pro-rata portion of the basis difference related to intangible asset amortization expense in its equity method investees, which is included within losses from equity-method investments, net of tax on our condensed consolidated statements of operations.
(8) Represents certain other gains and charges that we do not believe reflect our underlying business performance.
(9) Represents the amount of actual non-cash amortization expense recorded, in accordance with GAAP, associated with intangible assets created in connection with historical acquisitions of franchisee-owned clubs.
(10) Represents corporate income taxes at an assumed effective tax rate of 26.0% for each of the three and six months ended June 30, 2026 and 25.9% for each of the three and six months ended June 30, 2025, applied to adjusted income before income taxes.
(11) Assumes the full exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc.
A reconciliation of net income per share, diluted, to Adjusted net income per share, diluted is set forth below:
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
(in thousands, except per share
amounts)
Net income
Weighted
Average Shares
Net income per
share, diluted
Net income
Weighted
Average Shares
Net income per
share, diluted
Net income attributable to Planet
Fitness, Inc.(1)
$ 67,082
77,146
$ 0.87
$ 58,019
84,065
$ 0.69
Net income attributable to non-
controlling interests(2)
322
316
276
333
Net income
67,404
58,295
Adjustments to arrive at adjusted
income before income taxes(3)
25,095
39,572
Adjusted income before income
taxes
92,499
97,867
Adjusted income taxes(4)
24,050
25,299
Adjusted net income
$ 68,449
77,462
$ 0.88
$ 72,568
84,398
$ 0.86
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
(in thousands, except per share
amounts)
Net income
Weighted
Average Shares
Net income per
share, diluted
Net income
Weighted
Average Shares
Net income per
share, diluted
Net income attributable to Planet
Fitness, Inc.(1)
$ 118,636
78,455
$ 1.51
$ 99,886
84,233
$ 1.19
Net income attributable to non-
controlling interests(2)
564
316
488
337
Net income
119,200
100,374
Adjustments to arrive at adjusted
income before income taxes(3)
53,631
65,010
Adjusted income before income
taxes
172,831
165,384
Adjusted income taxes(4)
44,936
42,752
Adjusted net income
$ 127,895
78,771
$ 1.62
$ 122,632
84,570
$ 1.45
(1) Represents net income attributable to Planet Fitness, Inc. and the associated weighted average shares of Class A common stock outstanding.
(2) Represents net income attributable to non-controlling interests and the assumed exchange of all outstanding Holdings Units and corresponding shares of Class B common stock for shares of Class A common stock of Planet Fitness, Inc. as of the beginning of the period presented.
(3) Represents the total impact of all adjustments identified in the adjusted net income table above to arrive at adjusted income before income taxes.
(4) Represents corporate income taxes at an assumed effective tax rate of 26.0% for each of the three and six months ended June 30, 2026 and 25.9% for each of the three and six months ended June 30, 2025, applied to adjusted income before income taxes.
Krispy Kreme ve 2. čtvrtletí vykázala čistou ztrátu 19,8 mil. USD a zvýšila Adjusted EBITDA o 43,2 % na 28,8 mil. USD. Zároveň potvrdila celoroční výhled.
Delivers reduced leverage, expanded Adjusted EBITDA margin, improved cash flow, and international expansion
CHARLOTTE, N.C.--(BUSINESS WIRE)--Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme”, “KKI”, or the “Company”) today reported financial results for the quarter ended June 28, 2026.
Second Quarter 2026 Highlights (vs Q2 2025)
Net revenue of $331.0 million declined 12.8%, reflecting our refranchising efforts and the strategic closure of underperforming doors completed in the third quarter of 2025 Systemwide sales of $497.3 million increased 1.1% in constant currency, and increased 2.6% excluding sales attributable to the now-ended McDonald’s USA partnership GAAP net loss of $19.8 million improved $421.3 million Adjusted EBITDA of $28.8 million increased 43.2% Year-to-date cash provided by operating activities of $10.0 million increased $63.3 million, and free cash flow of $(6.1) million improved $101.3 million, when compared to the first half of 2025 “The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth. Demand for our fresh, iconic doughnuts across the U.S. and international markets drove systemwide sales growth of 2.6% excluding the impact of the now-ended McDonald’s USA partnership,” said Krispy Kreme CEO Josh Charlesworth.
“Our results demonstrate the success of the actions we are taking to grow the business and improve profitability, including a significant expansion in Adjusted EBITDA margin of 340 basis points compared to last year. We remain confident in achieving our 2026 financial targets and are maintaining our previously issued guidance.”
Turnaround Plan
The Company’s comprehensive turnaround plan, announced in August 2025, is designed to deleverage the balance sheet and deliver sustainable, profitable growth. The four components of the plan, along with progress on each, are as follows:
Refranchising: Improve financial flexibility through refranchising international markets and the joint venture in the western U.S. Completed refranchising of Japan and the joint venture in the western U.S. in March 2026. Improving Return on Invested Capital: Reduce capital intensity by using existing assets and focusing on franchise development. Capital expenditures decreased 70% in the first half of 2026 compared to the year-ago period. Year-to-date, 59 doughnut shops have been opened around the world, nearly all of which are franchised. Entered into agreements for three new international franchise markets year-to-date, including the Netherlands, Estonia, and Mauritius. Expanding Margins: Expand margins through greater operational efficiency, including outsourcing U.S. logistics. Consolidated Adjusted EBITDA margin in the second quarter increased from 5.3% to 8.7% year-over-year, driven by a 370 basis point increase in the U.S. segment. Completed outsourcing of U.S. logistics in April 2026. Driving Sustainable, Profitable Growth: Pursue U.S. growth based upon sustainable and profitable revenue streams. Fresh delivery is inclusive of both Company- and franchise-operated doors. Increased fresh delivery doors by 448 in the U.S. with strategic partners during the first half of 2026. Average revenue per door per week (“APD”) in the second quarter for the U.S. increased 33.2% to approximately $697 year-over-year. Financial Highlights
Quarter Ended
$ in millions, except per share data
June 28, 2026
June 29, 2025
Change
GAAP:
Net revenue
$
331.0
$
379.8
(12.8
)%
Net loss
$
(19.8
)
$
(441.1
)
nm
Net loss attributable to KKI
$
(20.3
)
$
(435.3
)
nm
Diluted loss per share
$
(0.12
)
$
(2.55
)
$
2.43
Non-GAAP (1)
Organic revenue growth
(0.3
)%
(0.9
)%
60 bps
Adjusted net loss, diluted
$
(5.4
)
$
(25.3
)
nm
Adjusted EBITDA
$
28.8
$
20.1
43.2
%
Adjusted EBITDA margin
8.7
%
5.3
%
340 bps
Adjusted EPS
$
(0.03
)
$
(0.15
)
$
0.12
nm - not meaningful
(1) Non-GAAP figures. See “Key Performance Indicators and Non-GAAP Measures” and “Reconciliation of Non-GAAP Financial Measures.”
Key Operating Metrics
Quarter Ended
$ in millions
June 28, 2026
June 29, 2025
Change
Global points of access
15,665
18,113
(13.5
)%
Sales per hub (U.S.) trailing four quarters(1)
$
5.1
$
4.9
4.1
%
Sales per hub (International) trailing four quarters(2)
$
9.5
$
9.8
(3.1
)%
Digital sales as a percent of retail sales
19.8
%
17.9
%
190 bps
(1) Includes operations of the joint venture in the western U.S. through the date of deconsolidation of March 23, 2026.
(2) Includes operations of Japan through the date of disposition of March 2, 2026.
Second Quarter 2026 Consolidated Results (vs Q2 2025)
Krispy Kreme’s results reflect continued progress in improving U.S. profitability and wider adoption of the capital-light international franchise model.
Net revenue was $331.0 million in the second quarter of 2026, a decline of 12.8% or $48.8 million. Organic revenue decreased by 0.3%, primarily driven by a decline in global points of access and in the International segment, partially offset by growth in the Market Development segment. Global points of access declined 2,448, or 13.5%, reflecting the strategic closure of underperforming doors, including approximately 2,400 doors attributable to the now-ended McDonald’s USA partnership, that was completed in the third quarter of 2025. Systemwide sales were $497.3 million in U.S. dollars during the second quarter of 2026. Systemwide sales increased 1.1% in constant currency and, excluding the impact of sales from the McDonald’s USA doors in the prior year second quarter, systemwide sales increased 2.6%.
GAAP net loss improved to $19.8 million, compared to the prior year second quarter net loss of $441.1 million. Diluted loss per share improved to $0.12, compared to a diluted loss per share of $2.55. Adjusted net loss was $5.4 million, an improvement from an Adjusted net loss of $25.3 million in the prior year second quarter, and Adjusted EPS was a loss of $(0.03), compared with an Adjusted EPS loss of $(0.15) in the prior year second quarter.
Adjusted EBITDA increased 43.2% to $28.8 million compared to the prior year second quarter. Adjusted EBITDA margin increased to 8.7% from 5.3%, due primarily to productivity initiatives, SG&A savings, and the removal of costs relating to McDonald’s USA.
Diluted weighted average common shares outstanding were 172.6 million, compared to 170.8 million for the prior year second quarter. The reported diluted weighted-average share count reflects basic shares outstanding, as the Company incurred a net loss; approximately 2.0 million and 2.6 million anti-dilutive securities were excluded from the diluted share calculation in the second quarter of 2026 and 2025, respectively.
Second Quarter 2026 Segment Results (vs Q2 2025)
U.S.: In the U.S. segment, net revenue declined by 25.0% to $172.7 million, driven by refranchising efforts associated with our turnaround plan and strategic door closures. Organic revenue increased by 0.1% year-over-year, or 4.4% excluding the impact of McDonald’s USA, reflecting strength of our retail and digital channels and improved APD in fresh delivery.
U.S. Adjusted EBITDA increased by 38.5% to $13.8 million and Adjusted EBITDA margin increased approximately 370 basis points to 8.0%. These results demonstrated meaningful improvement as a result of the turnaround plan initiatives.
International: In the International segment, net revenue decreased by 11.6% to $117.3 million compared to the prior year second quarter, due primarily to refranchising Japan. Organic revenue decreased by 5.1%, primarily due to declines in the U.K. and Australia, partially offset by growth in Canada.
International segment Adjusted EBITDA decreased by 22.2% to $14.2 million driven by the refranchising of Japan. Adjusted EBITDA margin decreased by 160 basis points to 12.1% due to lower Adjusted EBITDA in the U.K. and Australia and the Japan refranchising.
Market Development: In the Market Development segment, net revenue increased by 142.3% to $41.0 million, driven primarily by the impact of refranchising. Organic revenue increased by 14.4%, due primarily to growth in royalty revenues in the Middle East, Japan, and Brazil.
Market Development Adjusted EBITDA increased by 116.7% to $19.4 million. Adjusted EBITDA margin decreased 560 basis points to 47.3%, driven by changes in the regional mix of increased lower-margin U.S. franchised sales, associated with refranchising the western U.S. joint venture with WKS Restaurant Group and the Japan refranchising.
Balance Sheet and Capital Expenditures
During the first half of 2026, the Company spent $16.1 million, or 4.9% of net revenue, on capital expenditures, as the Company continues to primarily invest in repairs and maintenance of existing infrastructure, while leveraging excess capacity for growth where available. Year to date, the Company’s capital expenditures are down 70.2% versus $54.1 million in the first half of 2025.
As of the end of the second quarter of 2026, the Company’s net leverage ratio was 5.4x, reflecting a 1.3x reduction compared to the fourth quarter of 2025. The Company had total available liquidity of $263.9 million as of June 27, 2026, which includes $21.8 million of cash and cash equivalents as well as undrawn capacity of $242.1 million under its credit facilities. The Company remains in compliance with all financial covenants as of June 28, 2026.
Refranchising
Krispy Kreme continues to pursue its goal of two to three international refranchising deals in 2026 and has already completed the refranchising of Japan. In addition, the Company completed the refranchising of the western U.S. joint venture with WKS Restaurant Group. Through evaluation of additional refranchising opportunities, Krispy Kreme remains focused on identifying the right partners both in international markets and the U.S. to maximize value and position the Company for long-term growth.
For fiscal 2025, approximately 25% of the Company’s systemwide sales came from franchise-operated locations. Currently, approximately 42% of systemwide sales are generated through franchised locations. Through additional refranchising efforts, the Company’s goal remains to reach approximately 50% of systemwide sales generated by franchisees beginning fiscal 2027.
2026 Financial Outlook
The Company is maintaining its previously provided annual financial guidance, which includes the impact of the refranchising transactions described above but does not include additional transactions in 2026:
Net revenue of $1.25 billion to $1.35 billion Systemwide sales up 2% to 4% year-over-year in constant currency Open at least 100 shops, nearly all of which are expected to be franchised Adjusted EBITDA(1) of $140 million to $150 million Capital expenditures of $50 million to $60 million Free cash flow(1) of more than $15 million Net leverage ratio(1) below 5.5x (1) Non-GAAP figures. The Company does not reconcile forward-looking non-GAAP measures. See “Key Performance Indicators and Non-GAAP Measures.”
Definitions
The following definitions apply to terms used throughout this press release:
Systemwide Sales: Reflects global sales in U.S. dollars on a nominal basis of all Krispy Kreme products, whether by the Company or franchisees, excluding mix, equipment, and royalty revenue. Sales from franchisees are reported to the Company by such franchisees and are not included in Company revenues. Growth in systemwide sales represents the change in one period from the same period in the prior year on a constant currency basis. The Company believes systemwide sales information is important because it is indicative of the health of the Company’s brand and aids in understanding the Company’s financial performance. Global Points of Access: Reflects all locations at which fresh doughnuts can be purchased. We define global points of access to include all Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, and fresh delivery doors (which includes Krispy Kreme branded cabinets and merchandising units within high traffic grocery and convenience stores, quick service or fast casual restaurants, club memberships, and drug stores), and other points at which fresh doughnuts can be purchased at both Company-owned and franchise locations as of the end of the applicable reporting period. We monitor global points of access as a metric that informs the growth of our omni-channel presence over time and believe this metric is useful to investors to understand our footprint in each of our segments and by asset type. Hubs: Reflects locations where fresh doughnuts are produced and processed for sale at any global point of access. We define hubs to include self-sustaining Hot Light Theater Shops and Doughnut Factories, at both Company-owned and franchise locations as of the end of the applicable reporting period. Hubs with Spokes: Reflects hubs currently producing fresh doughnuts for other Fresh Shops, Carts and Food Trucks, or fresh delivery doors, and excludes hubs not currently producing fresh doughnuts for other shops, Carts and Food Trucks, or fresh delivery doors. Sales Per Hub: Sales per hub equals fresh revenues from hubs with spokes, divided by the average number of hubs with spokes at the end of each of the five most recent quarters. Fresh Revenues from Hubs with Spokes: Fresh revenues is a measure focused on the Krispy Kreme doughnut business and includes product sales generated from our Hot Light Theater Shops, Fresh Shops, Carts and Food Trucks, fresh delivery doors, and digital channels and excludes sales from Cookie Bakeries and Branded Sweet Treats (through the date of the Insomnia Cookies Holdings, LLC (“Insomnia Cookies”) deconsolidation and Branded Sweet Treats exit, respectively). Fresh revenues from hubs with spokes equals the fresh revenues derived from hubs with spokes. Free Cash Flow: Defined as cash provided by operating activities less purchases of property and equipment. Conference Call
Krispy Kreme will host a public conference call and webcast at 8:00 AM Eastern Time today to discuss its results for the second quarter 2026. A slide presentation will be available prior to the start time on the investor relations section of the Company’s website at investors.krispykreme.com.
To listen to the live webcast and Q&A, visit the Krispy Kreme investor relations website at investors.krispykreme.com. A replay of the webcast will be available on the website within 24 hours after the call. This earnings release and related materials will also be available on the investor relations section of the Company’s website.
About Krispy Kreme
Headquartered in Charlotte, N.C., Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world. Our iconic Original Glazed® doughnut is universally recognized for its hot-off-the-line, melt-in-your-mouth experience. Krispy Kreme operates in more than 40 countries through its unique network of fresh doughnut shops, partnerships with leading retailers, and a rapidly growing digital business. Our purpose of touching and enhancing lives through the joy that is Krispy Kreme guides how we operate every day and is reflected in the love we have for our people, our communities and the planet. Connect with Krispy Kreme Doughnuts at www.KrispyKreme.com, or on one of its many social media channels, including www.Facebook.com/KrispyKreme and www.X.com/KrispyKreme.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by use of forward-looking terminology, including terms such as “plan,” “believe,” “may,” “continue,” “guidance,” “outlook,” “could,” “will,” “should,” “would,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “pursue,” “strive,” “look forward,” or the negative of these words, comparable terminology, or other references to future periods; however, statements may be forward-looking whether or not these terms or their negatives are used. Forward-looking statements are not a representation by us that the future plans, estimates, or expectations contemplated by us will be achieved. Our actual results could differ materially from the forward-looking statements included in this press release. We consider the assumptions and estimates on which forward-looking statements are based to be reasonable, but they are subject to various risks and uncertainties relating to our operations, financial results, financial conditions, business, prospects, future plans and strategies, projections, liquidity, the economy, and other future conditions. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors could cause our actual results to differ materially from those contained in forward-looking statements including, without limitation: food safety issues, including risks of food-borne illnesses, tampering, contamination, and cross-contamination; impacts from any material failure, inadequacy, or interruption of our information technology systems, including breaches or failures of such systems or other cybersecurity or data security-related incidents; our ability to execute our business strategy, including our turnaround plan and growth through international development with strategic partners and profitable expansion of our fresh delivery and digital channels; our ability to realize the anticipated benefits from past or potential future strategic transactions (including refranchising); failure by our franchisees, subfranchisees, or third-party service providers to operate effectively and in compliance with our standards and applicable law; any harm to our reputation or brand image; negative impacts on our business due to changes in consumer spending habits, consumer preferences, or demographic trends; our ability to open new and maintain existing shops and points of access both domestically and internationally; disruptions to our and our franchisees’ supply chain, including the loss of or failure to perform by single-source or limited suppliers, vendors, distributors, or manufacturers; our significant indebtedness and our ability to meet the financial and other covenants under our credit facilities; changes in the cost of raw materials and fuel or other commodities, including due to import and export requirements (including tariffs), inflation, fluctuations in foreign exchange rates, or heightened geopolitical tensions (including the recent Iran conflict); our ability to recruit and retain key personnel; failure to develop or maintain effective internal control over financial reporting or disclosure controls and procedures; adverse regulatory actions or publicity concerning food or occupational safety, food quality, health, and other issues or regulatory investigations, enforcement actions, or material litigation; and other risks and uncertainties described under the heading “Risk Factors” and elsewhere in our Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission (the “SEC”) and in other filings the Company makes from time to time with the SEC. These forward-looking statements are made only as of the date of this document, and we undertake no obligation to publicly update or revise any forward-looking statement whether as a result of new information, future events, or otherwise, except as may be required by law.
Key Performance Indicators and Non-GAAP Measures
This press release includes certain financial information that is not presented in conformity with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP and operating measures include organic revenue growth/(decline), Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss, diluted, Adjusted EPS, free cash flow, net debt, fresh revenue from hubs with spokes, sales per hub and systemwide sales. We believe these non-GAAP and operating measures are useful in evaluating our operating performance. Management believes these measures are important indicators of operations because they exclude items that may not be indicative of our core operating results and provide a better baseline for analyzing trends in our underlying business, and they are consistent with how business performance is planned, reported and assessed internally by management and the Company’s Board of Directors. We monitor the key business metrics and non-GAAP metrics set forth herein to help us evaluate our business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. These non-GAAP and operating measures are not standardized, and it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names, limiting their usefulness as comparative measures. Other companies may calculate similarly titled financial measures differently than we do or may not calculate them at all. Additionally, the non-GAAP financial measures are not measurements of financial performance under GAAP or a substitute for results reported under GAAP. In order to facilitate a clear understanding of our consolidated historical operating results, we urge you to review our non-GAAP financial measures in conjunction with the Company’s financial statements and not to rely on any single financial measure.
The Company does not provide reconciliations of forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure because it is unable to predict with reasonable certainty or without unreasonable effort non-recurring items, such as those reflected in our reconciliation of historic numbers. The variability of these items is unpredictable and may have a significant impact on the forward-looking non-GAAP financial measures presented.
See “Reconciliation of Non-GAAP Financial Measures” below for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measure.
Krispy Kreme, Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except per share amounts)
Quarter Ended
Two Quarters Ended
June 28, 2026
(13 weeks)
June 29, 2025
(13 weeks)
June 28, 2026
(26 weeks)
June 29, 2025
(26 weeks)
Net revenues
Product sales
$
315,674
$
371,377
$
673,112
$
737,856
Royalties and other revenues
15,321
8,390
24,917
17,095
Total net revenues
330,995
379,767
698,029
754,951
Product and distribution costs
86,037
92,627
174,367
183,363
Operating expenses
158,869
210,712
346,975
409,555
Selling, general and administrative expense
53,695
62,920
111,728
122,325
Marketing expenses
11,086
12,185
21,205
22,424
Pre-opening costs
—
1,471
194
2,400
Goodwill and other asset impairments
4,238
406,932
6,126
407,094
Gain on refranchising, net
—
—
(8,885
)
—
Other income (expense), net
1,039
(8,311
)
1,798
(7,073
)
Depreciation and amortization expense
27,007
35,782
59,122
69,683
Operating loss
(10,976
)
(434,551
)
(14,601
)
(454,820
)
Interest expense, net
13,375
16,696
28,999
32,892
Loss on divestiture of Insomnia Cookies
—
11,501
—
11,501
Other non-operating income, net
(261
)
(1,177
)
(420
)
(1,570
)
Loss before income taxes
(24,090
)
(461,571
)
(43,180
)
(497,643
)
Income tax expense/(benefit)
(4,259
)
(20,453
)
(676
)
(23,120
)
Net loss
(19,831
)
(441,118
)
(42,504
)
(474,523
)
Net income/(loss) attributable to noncontrolling interest
480
(5,858
)
591
(5,979
)
Net loss attributable to Krispy Kreme, Inc.
$
(20,311
)
$
(435,260
)
$
(43,095
)
$
(468,544
)
Net loss per share:
Common stock — Basic
$
(0.12
)
$
(2.55
)
$
(0.28
)
$
(2.77
)
Common stock — Diluted
$
(0.12
)
$
(2.55
)
$
(0.28
)
$
(2.77
)
Weighted average shares outstanding:
Basic
172,578
170,802
172,299
170,546
Diluted
172,578
170,802
172,299
170,546
Krispy Kreme, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
As of
(Unaudited)
June 28,
2026
December 28,
2025
ASSETS
Current assets:
Cash and cash equivalents
$
21,825
$
42,390
Restricted cash
317
501
Accounts receivable, net
77,411
61,611
Inventories
28,666
26,877
Taxes receivable
14,161
10,854
Current assets held for sale
2,273
13,294
Prepaid expense and other current assets
20,766
18,927
Total current assets
165,419
174,454
Property and equipment, net
375,652
460,935
Goodwill, net
669,745
712,264
Other intangible assets, net
727,725
797,749
Operating lease right of use assets, net
350,029
395,523
Investments in unconsolidated entities
21,947
7,413
Noncurrent assets held for sale
—
31,056
Other assets
52,806
13,565
Total assets
$
2,363,323
$
2,592,959
LIABILITIES, MEZZANINE EQUITY, AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt
$
71,036
$
65,977
Current operating lease liabilities
46,951
51,213
Accounts payable
148,502
134,384
Accrued liabilities
91,634
99,805
Current liabilities held for sale
—
13,535
Structured payables
106,998
92,366
Total current liabilities
465,121
457,280
Long-term debt, less current portion
794,214
911,852
Noncurrent operating lease liabilities
351,011
395,895
Deferred income taxes, net
93,802
96,236
Noncurrent liabilities held for sale
—
11,816
Other long-term obligations and deferred credits
39,396
42,919
Total liabilities
1,743,544
1,915,998
Commitments and contingencies
Mezzanine equity:
Redeemable noncontrolling interest
—
24,181
Total mezzanine equity
—
24,181
Shareholders’ equity:
Common stock, $0.01 par value; 300,000 shares authorized as of both June 28, 2026 and December 28, 2025; 172,744 and 171,555 shares issued and outstanding as of June 28, 2026 and December 28, 2025, respectively
1,725
1,716
Additional paid-in capital
1,474,652
1,473,644
Shareholder note receivable
(1,139
)
(1,791
)
Accumulated other comprehensive income/(loss), net of income tax
7,299
(2,059
)
Retained deficit
(864,482
)
(821,387
)
Total shareholders’ equity attributable to Krispy Kreme, Inc.
618,055
650,123
Noncontrolling interest
1,724
2,657
Total shareholders’ equity
619,779
652,780
Total liabilities, mezzanine equity, and shareholders’ equity
$
2,363,323
$
2,592,959
Krispy Kreme, Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
Principal payments received from loans to franchisees
—
1,202
—
1,202
Purchase of redeemable noncontrolling interest
(25,106
)
—
(25,106
)
—
Other investing activities
—
—
—
99
Net cash provided by/(used for) investing activities
(32,062
)
56,748
67,989
30,937
CASH FLOWS (USED FOR)/PROVIDED BY FINANCING ACTIVITIES:
Proceeds from the issuance of debt
48,000
334,400
120,750
516,900
Repayment of long-term debt and lease obligations
(74,494
)
(370,272
)
(234,173
)
(485,894
)
Payment of financing costs
—
(825
)
—
(825
)
Proceeds from structured payables
61,236
79,144
118,634
198,052
Payments on structured payables
(45,417
)
(56,360
)
(104,067
)
(199,228
)
Capital contribution by shareholders, net of loans issued
132
—
262
—
Distribution to shareholders
—
(5,973
)
—
(11,934
)
Payments for repurchase and retirement of common stock
(125
)
(664
)
(527
)
(787
)
Distribution to noncontrolling interest
(131
)
—
219
(36
)
Net cash (used for)/provided by financing activities
(10,799
)
(20,550
)
(98,902
)
16,248
Effect of exchange rate changes on cash, cash equivalents and restricted cash
500
(999
)
203
(1,300
)
Net decrease in cash, cash equivalents and restricted cash
(52,566
)
2,656
(20,749
)
(7,492
)
Cash, cash equivalents and restricted cash at beginning of period
74,708
19,167
42,891
29,315
Cash, cash equivalents and restricted cash at end of period
$
22,142
$
21,823
$
22,142
$
21,823
Net cash provided by/(used for) operating activities
$
(10,205
)
$
(32,543
)
$
9,961
$
(53,377
)
Less: Purchase of property and equipment
(7,313
)
(28,209
)
(16,097
)
(54,106
)
Free cash flow
$
(17,518
)
$
(60,752
)
$
(6,136
)
$
(107,483
)
Krispy Kreme, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(in thousands, except per share amounts)
We define “Adjusted EBITDA” as earnings before interest expense, net, income tax expense, and depreciation and amortization, with further adjustments for share-based compensation, certain strategic initiatives, acquisition and integration expenses, and certain other non-recurring, infrequent, or non-core income and expense items. Adjusted EBITDA, both on a consolidated and at the segment level, is a principal metric that management uses to monitor and evaluate operating performance and provides a consistent benchmark for comparison across reporting periods. “Adjusted EBITDA margin” reflects Adjusted EBITDA as a percentage of net revenues.
We define “Adjusted net loss, diluted” as net loss attributable to common shareholders, Adjusted for interest expense, share-based compensation, certain strategic initiatives, acquisition and integration expenses, amortization of acquisition-related intangibles, the tax impact of adjustments, and certain other non-recurring, infrequent, or non-core income and expense items. “Adjusted EPS” is Adjusted net loss, diluted converted to a per share amount.
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net loss, diluted, and Adjusted EPS have certain limitations, including adjustments for income and expense items that are required by GAAP. In evaluating these non-GAAP measures, you should be aware that in the future we will incur expenses that are the same as or similar to some of the adjustments in this presentation, such as share-based compensation. Our presentation of these non-GAAP measures should not be construed to imply that our future results will be unaffected by any such adjustments. Management compensates for these limitations by relying on our GAAP results in addition to using these non-GAAP measures supplementally.
Quarter Ended
Two Quarters Ended
(in thousands)
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Net loss
$
(19,831
)
$
(441,118
)
$
(42,504
)
$
(474,523
)
Interest expense, net
13,375
16,696
28,999
32,892
Income tax expense/(benefit)
(4,259
)
(20,453
)
(676
)
(23,120
)
Share-based compensation
3,287
4,634
7,926
7,237
Employer payroll taxes related to share-based compensation
55
91
72
257
Loss on divestiture of Insomnia Cookies
—
11,501
—
11,501
Goodwill impairment
—
355,958
—
355,958
Other non-operating income, net(1)
(261
)
(1,177
)
(420
)
(1,570
)
Strategic initiatives(2)
3,119
22,867
10,319
25,220
Acquisition and integration expenses(3)
2,002
(182
)
2,002
(111
)
New market penetration expenses(4)
—
245
—
320
Shop closure expenses, net(5)
2,657
35,723
2,689
35,995
Restructuring and severance expenses(6)
33
4,839
427
4,947
Gain on sale-leaseback
—
(6,749
)
—
(6,749
)
Gain on refranchising(7)
—
—
(8,885
)
—
Other(8)
1,622
1,454
2,831
6,154
Amortization of acquisition related intangibles(9)
6,156
7,830
13,964
15,491
Consolidated Adjusted EBIT
$
7,955
$
(7,841
)
$
16,744
$
(10,101
)
Depreciation expense and amortization of right of use assets
20,851
27,952
45,158
54,192
Consolidated Adjusted EBITDA
$
28,806
$
20,111
$
61,902
$
44,091
Quarter Ended
Two Quarters Ended
(in thousands)
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Segment Adjusted EBITDA:
U.S.
$
13,752
$
9,930
$
39,301
$
25,841
International
14,182
18,221
28,654
33,118
Market Development
19,386
8,948
31,020
19,995
Corporate
(18,513
)
(16,988
)
(37,073
)
(34,863
)
Consolidated Adjusted EBITDA
$
28,807
$
20,111
$
61,902
$
44,091
Quarter Ended
Two Quarters Ended
(in thousands, except per share amounts)
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Net loss
$
(19,831
)
$
(441,118
)
$
(42,504
)
$
(474,523
)
Share-based compensation
3,287
4,634
7,926
7,237
Employer payroll taxes related to share-based compensation
55
91
72
257
(Gain)/loss on divestiture of Insomnia Cookies
—
11,501
—
11,501
Goodwill impairment
—
355,958
—
355,958
Other non-operating income, net (1)
(261
)
(1,177
)
(420
)
(1,570
)
Strategic initiatives (2)
3,119
22,867
10,319
25,220
Acquisition and integration expenses (3)
2,002
(182
)
2,002
(111
)
New market penetration expenses (4)
—
245
—
320
Shop closure expenses, net (5)
2,657
35,723
2,689
35,995
Restructuring and severance expenses (6)
33
4,839
427
4,947
Gain on sale-leaseback
—
(6,749
)
—
(6,749
)
Gain on refranchising (7)
—
—
(8,885
)
—
Other (8)
1,622
1,454
2,831
6,154
Amortization of acquisition related intangibles (9)
6,156
7,830
13,964
15,491
Tax impact of adjustments (10)
(3,588
)
(27,081
)
(164
)
(20,251
)
Tax specific adjustments (11)
(127
)
—
(802
)
—
Net (income)/loss attributable to noncontrolling interest
(480
)
5,858
(591
)
5,979
Adjusted net loss attributable to common shareholders - Basic
$
(5,356
)
$
(25,307
)
$
(13,136
)
$
(34,145
)
Additional income attributed to noncontrolling interest due to subsidiary potential common shares
—
—
—
—
Adjusted net loss attributable to common shareholders - Diluted
$
(5,356
)
$
(25,307
)
$
(13,136
)
$
(34,145
)
Basic weighted average common shares outstanding
172,578
170,802
172,299
170,546
Dilutive effect of outstanding common stock options, RSUs, and PSUs
—
—
—
—
Diluted weighted average common shares outstanding
172,578
170,802
172,299
170,546
Adjusted net loss per share attributable to common shareholders:
Basic
$
(0.03
)
$
(0.15
)
$
(0.08
)
$
(0.20
)
Diluted
$
(0.03
)
$
(0.15
)
$
(0.08
)
$
(0.20
)
(1)
Primarily foreign translation gains and losses in each period. The quarter and two quarters ended June 29, 2025 also consists of equity method income from Insomnia Cookies following the divestiture of a controlling interest in Insomnia Cookies during fiscal 2024 until the sale of our remaining interest in the second quarter of fiscal 2025.
(2)
The quarter and two quarters ended June 28, 2026 consists primarily of $2.1 million and $6.3 million, respectively, of costs associated with the evaluation and execution of refranchising certain equity markets as well as $1.3 million and $4.2 million, respectively, in costs associated with the transition to third party logistics in the U.S.; of that amount $1.7 million and $3.3 million, respectively, is related to non-cash impairments. The quarter and two quarters ended June 29, 2025 consists primarily of $20.9 million and $23.3 million, respectively, of costs associated with preparing for and executing the U.S. national expansion (including McDonald’s).
(3)
Consists of acquisition and integration-related costs in connection with the Company’s business and franchise acquisitions, including legal, due diligence, and advisory fees incurred in connection with acquisition and integration-related activities for the applicable period.
(4)
Consists of start-up costs associated with entry into new countries in which the Company’s brands had not previously operated, including Brazil and Spain.
(5)
Includes lease termination costs, impairment charges, and loss on disposal of property, plant and equipment.
(6)
The quarter and two quarters ended June 28, 2026 consist primarily of costs associated with restructuring the Australia and New Zealand business. The quarter and two quarters ended June 29, 2025 consist primarily of costs associated with restructuring of the U.S. and U.K. businesses.
(7)
Includes gains and losses on the deconsolidation of assets and liabilities associated with the refranchising of Krispy Kreme shops.
(8)
The quarter and two quarters ended June 28, 2026 consists primarily of $0.8 million and $1.6 million, respectively, of legal fees primarily related to shareholder derivative litigation. The quarter and two quarters ended June 29, 2025 consists primarily of $0.9 million and $5.3 million, respectively, in costs related to remediation of the 2024 Cybersecurity Incident, including fees for cybersecurity experts and other advisors.
(9)
Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the Condensed Consolidated Statements of Operations.
(10)
Tax impact of adjustments calculated applying the applicable statutory rates. The quarter and two quarters ended June 28, 2026 and June 29, 2025 also include the impact of disallowed executive compensation expense.
(11)
Consists of the recognition of previously unrecognized tax benefits unrelated to ongoing operations of $0.1 million and $0.8 million for the quarter and two quarters ended June 28, 2026.
Krispy Kreme, Inc.
Segment Reporting (Unaudited)
(in thousands, except percentages or otherwise stated)
Quarter Ended
Two Quarters Ended
June 28, 2026
June 29, 2025
June 28, 2026
June 29, 2025
Net revenues:
U.S.
$
172,680
$
230,099
$
394,230
$
466,643
International
117,342
132,755
242,600
252,390
Market Development
40,973
16,913
61,199
35,918
Total net revenues
$
330,995
$
379,767
$
698,029
$
754,951
Organic revenue growth/(decline) measures our revenue growth trends excluding the impact of acquisitions, divestitures, and foreign currency, and we believe it is useful for investors to understand the expansion of our global footprint through internal efforts. We define “organic revenue growth/(decline)” as the growth/(decline) in revenues, excluding (i) the impact of revenues of acquired shops owned by us for less than 12 months following their acquisition, (ii) the impact of foreign currency exchange rate changes, (iii) the impact of shop closures related to restructuring programs, (iv) the impact of the divestiture of shops through refranchising, and (v) the impact of revenues generated during the 53rd week for those fiscal years that have a 53rd week based on our fiscal calendar.
Q2 2026 Organic Revenue
(in thousands, except percentages)
U.S.
International
Market Development
Total Company
Total net revenues in second quarter of fiscal 2026
$
172,680
$
117,342
$
40,973
$
330,995
Total net revenues in second quarter of fiscal 2025
230,099
132,755
16,913
379,767
Total net revenues (decline)/growth
(57,419
)
(15,413
)
24,060
(48,772
)
Total net revenues (decline)/growth %
-25.0
%
-11.6
%
142.3
%
-12.8
%
Less: Impact of refranchising
(57,526
)
(16,342
)
17,990
(55,878
)
Adjusted net revenues in second quarter of fiscal 2025
172,573
116,413
34,903
323,889
Adjusted net revenue (decline)/growth
107
929
6,070
7,106
Adjusted net revenue (decline)/growth %
0.1
%
0.8
%
17.4
%
2.2
%
Impact of acquisitions
—
—
(1,039
)
(1,039
)
Impact of foreign currency translation
—
(6,893
)
(3
)
(6,896
)
Organic revenue (decline)/growth
$
107
$
(5,964
)
$
5,028
$
(829
)
Organic revenue (decline)/growth %
0.1
%
-5.1
%
14.4
%
-0.3
%
Fresh revenues from hubs with spokes and sales per hub are defined above.
Trailing Four Quarters Ended
Fiscal Year Ended
(in thousands, unless otherwise stated)
June 28,
2026
December 28,
2025
December 29,
2024
U.S.:
Revenues
$
841,204
$
913,050
$
1,058,736
Non-fresh revenues (1)
(2,600
)
(2,454
)
(3,161
)
Fresh revenues from Insomnia Cookies and hubs without spokes (2)
(139,782
)
(154,151
)
(307,665
)
Fresh revenues from hubs with spokes
698,822
756,445
747,910
Sales per hub (millions) (3)
5.1
4.7
4.9
International:
Fresh revenues from hubs with spokes (4)
$
525,301
$
535,088
$
519,102
Sales per hub (millions) (5)
9.5
9.7
9.9
(1)
Includes licensing royalties from customers for use of the Krispy Kreme brand. (2)
Includes Insomnia Cookies revenues (through the date of deconsolidation of July 14, 2024) and Fresh revenues generated by Hubs without Spokes. (3)
Includes operations of the joint venture in the western U.S. through the date of deconsolidation of March 23, 2026. (4)
Total International net revenues is equal to fresh revenues from hubs with spokes for that business segment. (5)
International sales per hub comparative data has been restated in constant currency based on current exchange rates and includes operations of Japan through the date of disposition of March 2, 2026. Krispy Kreme, Inc. Global Points of Access (Unaudited)
Global Points of Access
Quarter Ended
Fiscal Year Ended
June 28, 2026
June 29, 2025
December 28, 2025
U.S.: (1)
Hot Light Theater Shops
176
239
235
Fresh Shops
46
68
68
Fresh Delivery Doors(2)
6,186
9,869
7,160
Total
6,408
10,176
7,463
International: (1)
Hot Light Theater Shops
47
50
52
Fresh Shops
448
524
527
Carts, Food Trucks, and Other(3)
17
17
18
Fresh Delivery Doors
3,899
4,669
4,225
Total
4,411
5,260
4,822
Market Development: (1)
Hot Light Theater Shops
180
110
113
Fresh Shops
1,273
1,111
1,130
Carts, Food Trucks, and Other(3)
32
30
29
Fresh Delivery Doors
3,361
1,426
1,637
Total
4,846
2,677
2,909
Total Global Points of Access (as defined)
15,665
18,113
15,194
Total Hot Light Theater Shops
403
399
400
Total Fresh Shops
1,767
1,703
1,725
Total Shops
2,170
2,102
2,125
Total Carts, Food Trucks, and Other
49
47
47
Total Fresh Delivery Doors (2)
13,446
15,964
13,022
Total Global Points of Access (as defined)
15,665
18,113
15,194
Krispy Kreme, Inc.
Global Hubs (Unaudited)
Hubs
Quarter Ended
Fiscal Year Ended
June 28, 2026
June 29, 2025
December 28, 2025
U.S.: (1)
Hot Light Theater Shops (2)
154
235
223
Doughnut Factories
6
6
6
Total
160
241
229
Hubs with Spokes
100
161
159
Hubs without Spokes
60
80
70
International: (1)
Hot Light Theater Shops (2)
41
41
43
Doughnut Factories
11
14
14
Total
52
55
57
Hubs with Spokes
52
55
57
Market Development: (1)
Hot Light Theater Shops (2)
174
108
111
Doughnut Factories
31
26
26
Total
205
134
137
Total Hubs (3)
417
430
423
Krispy Kreme, Inc.
Net Debt and Leverage (Unaudited)
(in thousands, except leverage ratio)
As of
(Unaudited)
June 28,
2026
December 28,
2025
Current portion of long-term debt
$
71,036
$
65,977
Long-term debt, less current portion
794,214
911,852
Total long-term debt, including debt issuance costs
865,250
977,829
Add back: Debt issuance costs
2,234
2,904
Total long-term debt, excluding debt issuance costs
NETSCOUT ve 1. čtvrtletí fiskálního roku 2027 zvýšil výnosy o 12,7 % na 210,4 mil. USD a potvrdil celoroční výhled. Čistý zisk vzrostl na 21,8 mil. USD z loňské ztráty 3,7 mil. USD.
- Delivers Strong First Quarter Results Providing Solid Start to the Fiscal Year; Reaffirms Full Year Outlook -
WESTFORD, Mass.--(BUSINESS WIRE)--NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT), a leading provider of network observability, AIOps, carrier service assurance, cybersecurity, and DDoS attack protection, announced financial results for its first quarter ended June 30, 2026.
Delivering strong Q1 results, we provided a solid start to FY27. Enterprises and service providers continue to rely on NETSCOUT for mission-critical, high-fidelity visibility across increasingly complex digital environments. We reaffirmed our FY outlook.
Share Remarks by Anil Singhal, NETSCOUT’s President & Chief Executive Officer:
“We delivered strong first quarter results, providing a solid start to our fiscal year 2027. Performance was driven by our Service Assurance offering, which benefited in part from government-related orders, some of which were received earlier than anticipated. Growth also reflected traction in some of our newest innovations, including our Omnis Sensor and Streamer solutions. Our Cybersecurity revenue was consistent with the prior year against a strong comparison. Together, these underscore how enterprises and service providers continue to rely on NETSCOUT for mission-critical, high-fidelity visibility across increasingly complex digital environments and reflect our continued focus on technology advancements across our portfolio. Additionally, in June, we marked a major milestone in NETSCOUT’s 40-year history of innovation with the issuance of our 750th patent.
“We are reaffirming our fiscal year 2027 outlook as we continue to execute on our strategy to drive revenue, expand margins, and generate solid free cash flow. As customers accelerate adoption of new AI-enabled applications, we are well positioned to deliver the intelligence that strengthens network resilience, improves operational efficiency, and supports confident, data-driven decision-making.”
First Quarter Financial Results: FY2027 compared with FY2026
Total revenue grew 12.7% to $210.4 million, compared with $186.7 million. Product revenue increased 17.8% to $86.0 million, or 41% of total revenue, compared with $73.0 million, or 39%. As of June 30, 2026, total product backlog was $33 million, including $28 million of fulfillable backlog, compared with $31 million and $23 million, respectively, as of June 30, 2025. Service revenue increased 9.4% to $124.4 million, or 59% of total revenue, compared with $113.8 million, or 61%. GAAP income from operations was $14.5 million, or 6.9% of total revenue. This compares with a GAAP loss from operations of $6.6 million, or negative 3.5% of total revenue. Non-GAAP income from operations was $43.7 million, or 20.8% of total revenue, compared with $26.6 million, or 14.2%. GAAP net income was $21.8 million, or $0.29 per diluted share, compared with GAAP net loss of $3.7 million, or a loss of $0.05 per diluted share. Non-GAAP net income was $38.6 million, or $0.52 per diluted share, compared with $24.7 million, or $0.34 per diluted share. Adjusted EBITDA was $46.9 million, or 22.3% of total revenue, compared with $29.3 million, or 15.7%. A reconciliation of GAAP and non-GAAP results is included in the financial tables below. As of June 30, 2026, cash, cash equivalents, and short and long-term marketable securities totaled $668.5 million, compared with $705.1 million as of March 31, 2026, primarily reflecting the impact of the previously disclosed acquisition of DigiCert's DDoS attack protection business assets.
Financial Outlook
For fiscal year 2027, NETSCOUT is reaffirming its outlook, reflecting anticipated continued growth and margin expansion:
Revenue to range from $885.0 million to $915.0 million, implying 4.7% year-over-year growth at the midpoint; GAAP net income per diluted share to range from $1.55 to $1.70; and Non-GAAP net income per diluted share to range from $2.65 to $2.80, implying 9.9% year-over-year growth at the midpoint. A reconciliation between GAAP and non-GAAP fiscal year 2027 outlook is in the financial tables below. Recent Highlights
In July, NETSCOUT announced the doubling of Arbor Cloud mitigation capacity to 33 terabits per second, building directly on our May acquisition of DigiCert’s DDoS attack protection business assets. Together, these actions reflect a deliberate strategy to scale Arbor Cloud with greater control, efficiency, and speed by bringing the platform fully in-house, enabling faster and more efficient capacity investment, tighter alignment between infrastructure and threat intelligence, accelerated innovation, and improved margin potential from recurring revenue, while strengthening our ability to deliver resilient, high-performance protection against increasingly complex and large-scale attacks. In June, NETSCOUT was awarded its 750th patent for “Systems and Methods for Performing Computer Network Service Chain Analysis.” The patent portfolio covers a broad spectrum of technologies, including packet capture and real-time analysis at carrier and enterprise scale; DDoS attack detection, classification, and automated mitigation; mobile network performance monitoring, 5G service assurance, and radio access network observability; network detection and response; artificial intelligence and machine learning-driven analytics; adaptive threat detection; and smart data that is primed for AI and agentic AI workloads. Conference Call Instructions:
NETSCOUT will host a conference call to discuss its first quarter financial results and full fiscal year 2027 financial outlook:
August 6, 2026 at 8:30 a.m. ET Webcast live at https://ir.netscout.com/investors/overview/default.aspx Dial-in to (800) 267-6316, or (203) 518-9783 for international callers, code NTCTQ127. To access a replay, call (800) 839-3734, or (402) 220-2976 internationally, available today after 12:00 p.m. ET for approximately one week or listen on NETSCOUT’s website for one year. Use of Non-GAAP Financial Information:
To supplement the financial measures presented in NETSCOUT's press release in accordance with accounting principles generally accepted in the United States (GAAP), NETSCOUT also reports the following non-GAAP measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted net income per share, and adjusted EBITDA. Non-GAAP gross profit removes expenses related to the amortization of acquired intangible assets, share-based compensation expense, and acquisition-related depreciation expense from gross profit (GAAP). Non-GAAP income from operations includes the aforementioned adjustments related to non-GAAP gross profit and also removes executive transition costs and restructuring charges from income from operations (GAAP). Non-GAAP operating margin is non-GAAP income from operations expressed as a percentage of revenue. Non-GAAP net income includes the foregoing adjustments related to non-GAAP income from operations and also removes the income tax effects of such adjustments as well as any loss on extinguishment of debt from net income (GAAP). Non-GAAP diluted net income per share is non-GAAP net income divided by total outstanding shares on a diluted basis. Adjusted EBITDA includes the aforementioned adjustments related to non-GAAP net income and also removes interest and other expense, income tax expense, and depreciation from net income (GAAP). Beginning in the third quarter of fiscal year 2026, we have renamed non-GAAP EBITDA from operations to adjusted EBITDA. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures included in the attached tables within this press release.
These non-GAAP measures are not prepared in accordance with GAAP, should not be considered an alternative for measures prepared in accordance with GAAP (gross profit, income from operations, operating margin, net income, and diluted net income per share), and may have limitations because they do not reflect all NETSCOUT’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate NETSCOUT’s results of operations in conjunction with the corresponding GAAP measures. The presentation of non-GAAP information is not meant to be considered superior to, in isolation from, or as a substitute for results prepared in accordance with GAAP. NETSCOUT believes these non-GAAP financial measures will enhance the reader’s overall understanding of NETSCOUT’s current financial performance and NETSCOUT's prospects for the future by providing a higher degree of transparency for certain financial measures and providing a level of disclosure that helps investors understand how the Company plans and measures its own business. NETSCOUT believes that providing these non-GAAP measures affords investors a view of NETSCOUT’s operating results that may be more easily compared to peer companies and also enables investors to consider NETSCOUT’s operating results on both a GAAP and non-GAAP basis during and following the integration period of NETSCOUT’s acquisitions. Presenting the GAAP measures on their own, without the supplemental non-GAAP disclosures, might not be indicative of NETSCOUT’s core operating results. Furthermore, NETSCOUT believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to management and investors regarding present and future business trends relating to its financial condition and results of operations.
NETSCOUT management regularly uses supplemental non-GAAP financial measures internally to understand, manage and evaluate its business and to make operating decisions. These non-GAAP measures are among the primary factors that management uses in planning and forecasting.
About NETSCOUT
NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT) protects the connected world from cyberattacks and performance and availability disruptions through its unique visibility platform and solutions powered by its pioneering deep packet inspection at scale technology. As a leading provider of network observability, AIOps, carrier service assurance, cybersecurity, and Distributed Denial-of-Service (DDoS) attack protection solutions, NETSCOUT serves the world’s largest enterprises, service providers, and public sector organizations. Learn more at www.netscout.com or follow @NETSCOUT on LinkedIn, X, or Facebook.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Examples of forward-looking statements include statements regarding our future financial performance or position, liquidity, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as “may,” “will,” “anticipate,” “expect,” “believe,” “estimate,” “intend,” “plan,” “should,” “seek,” or other comparable terms. Investors are cautioned that such forward-looking statements in this press release include, without limitation, statements regarding NETSCOUT continuing to execute on its strategy to drive revenue growth, margin expansion, and solid free cash flow, and believes it is well positioned to deliver the intelligence that strengthens network resilience, improves operational efficiency, and supports confident, data-driven decision making; NETSCOUT’s financial outlook and expectations; NETSCOUT’s strategic objectives, plans, commitments, aspirations and goals. Actual results could differ materially from those indicated in the forward-looking statements due to known and unknown risks, uncertainties, assumptions, and other factors, including macroeconomic factors and slowdowns or downturns in economic conditions generally and in the market for advanced networks, service assurance and cybersecurity solutions specifically; the volatile foreign exchange environment; the Company’s relationships with strategic partners and resellers; dependence upon broad-based acceptance of the Company’s network performance management solutions; the presence of competitors with greater financial resources than the Company has, and their strategic response to the Company’s products; the Company’s ability to retain key executives and employees; potential lower than expected demand for the Company’s products and services; and the Company’s ability to recognize the expected gain from its acquisition of the assets of DigiCert, Inc.’s DDoS protection business. The risks included above are not exhaustive. For a more detailed description of the risk factors associated with the Company, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the Company’s filings with the Securities and Exchange Commission, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking information in this press release is as of the date of this press release, and NETSCOUT undertakes no obligation to update such information unless required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. NETSCOUT’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties.
COLUMBUS, Ohio--(BUSINESS WIRE)--Installed Building Products, Inc. (the "Company" or "IBP") (NYSE: IBP), an industry-leading installer of insulation and complementary building products, today announced results for the second quarter ended June 30, 2026.
Second Quarter 2026 Highlights (Comparisons are to Prior Year Period)
Net revenue increased 2.3% to a record second quarter of $777.8 million Installation revenue decreased 0.7% to $710.7 million, including sales from IBP's recent acquisitions Other revenue, net of eliminations, which includes IBP’s manufacturing and distribution operations, increased 50.4% to $67.1 million Net income of $64.9 million Adjusted EBITDA* of $130.9 million Net income per diluted share of $2.43 Adjusted net income* was $77.8 million, or $2.91 per diluted share At June 30, 2026, IBP had $394.5 million in cash and cash equivalents Repurchased approximately 365 thousand shares of common stock at a total cost of approximately $76.2 million Declared second quarter dividend of $0.39 per share that was paid to shareholders on June 30, 2026 Recent Developments
IBP’s Board of Directors declared the third quarter regular cash dividend of $0.39 per share, representing more than a 5% increase to the Company's regular dividend in the prior year period “Our team continued to execute well during the second quarter, working closely with our customers to navigate a challenging residential housing backdrop, while maintaining the high level of service they expect from IBP. We delivered positive consolidated revenue growth, supported by the contribution from recent acquisitions and growth within our heavy and light commercial business. These results demonstrate the value of our diversified operating platform and the multiple avenues available to support growth across varying market conditions. We also continued to deploy capital in a disciplined manner to support returns to shareholders, while advancing our growth-oriented acquisition strategy. Although we expect affordability and consumer confidence to continue to weigh on the U.S. residential housing market, we remain focused on controlling what we can control, serving our customers, and positioning IBP for continued long-term growth,” stated Jeff Edwards, Chairman and Chief Executive Officer.
Acquisition Update
During the 2026 second quarter and July 2026, IBP completed the following acquisitions and two bolt-ons, which added approximately $30 million of annual revenue:
Close
Date
Acquisition
Core
End Market (1)
Primary Product Category
Approximate
Annual Sales
May 2026
Diamond Energy Systems, Inc.
Com. + Ind.
Mechanical insulation
$12 million
Jul. 2026
Harkraft, Inc.
Res.
Shower doors, shelving, mirrors, and accessories
$7 million
Jul. 2026
Builders Hardware of South Carolina, Inc.
Res.
Door, bath, and fencing hardware
$7 million
Year to date we have acquired approximately $59 million in revenue and continue to believe we will acquire at least $100 million in revenue in 2026.
2026 Third Quarter Regular Cash Dividend
IBP’s Board of Directors has approved the Company’s quarterly cash dividend of $0.39 per share, payable on September 30, 2026, to stockholders of record on September 15, 2026. The third quarter regular cash dividend represents an over 5% increase from last year's third quarter cash dividend payment.
Share Repurchases
During the three months ended June 30, 2026, IBP repurchased approximately 365 thousand shares of its common stock at a total cost of $76.2 million. At June 30, 2026, the Company had $398 million available under its stock repurchase program, which expires March 1, 2027.
Second Quarter 2026 Results Overview
For the second quarter of 2026, net revenue was $777.8 million, an increase of 2.3% from $760.3 million for the second quarter of 2025. On a consolidated same branch basis, net revenue decreased 0.6% from the prior year quarter. Residential same branch sales within the Company's Installation segment were down 6.1% in the quarter while commercial same branch sales within the Installation segment were up 10.4% from the prior year quarter.
Our price/mix results increased 0.7% during the second quarter and job volumes were down 5.2% relative to the same period last year. It is important to note that the results of our heavy commercial end market and the Other segment results are not included in that price/mix and volume disclosure. Including the heavy commercial installation sales, but still excluding the Other segment results, price mix increased 2.5% while job volume was down 4.9% during the 2026 second quarter.
Gross profit decreased 0.4% to $258.9 million in the second quarter of 2026 from $259.9 million in the prior year quarter. As a percent of net revenue, gross profit was 33.3% and adjusted gross profit* was 33.3%, compared to 34.2% in the same period last year. Adjusted gross profit primarily adjusts for the Company's share-based compensation expense. Gross profit margin was reduced by the higher relative mix of the Other segment compared to the Installation segment. Gross margin in the second quarter of 2026 was 36.5% in the Installation segment and 24.7% in the Other segment. Additionally, higher fuel expense as a percent of net revenue served as a notable headwind to our second quarter 2026 adjusted gross profit margin* performance relative to the prior year period.
Selling and administrative expense, as a percent of total revenue, was 19.8% in the second quarter of 2026 and 19.6% in the prior year period. Adjusted selling and administrative expense*, as a percent of net revenue, was 18.9% compared to 18.8% in the prior year quarter. Administrative expense as a percent of net revenue was primarily impacted by higher medical insurance relative to the prior year.
Net income was $64.9 million, or $2.43 per diluted share, compared to $69.0 million, or $2.52 per diluted share in the prior year quarter. Net profit margin for the second quarter was 8.3% compared to 9.1% in the prior year quarter. Adjusted net income* was $77.8 million, or $2.91 per diluted share, compared to $80.8 million, or $2.95 per diluted share in the prior year quarter. Adjusted net profit margin* for the second quarter was 10.0% compared to 10.6% in the prior year quarter. Adjusted net income accounts for the impact of non-core items in both periods, including an addback for non-cash amortization expense related to acquisitions.
EBITDA* in the second quarter of 2026 was $124.0 million, a 3.3% decrease from $128.2 million in the prior year quarter. Adjusted EBITDA* was $130.9 million, a 2.3% decrease from the prior year quarter, representing an adjusted EBITDA margin* of 16.9%. In the prior year quarter, adjusted EBITDA* was $134.0 million, representing an adjusted EBITDA margin* of 17.6%.
Conference Call and Webcast
The Company will host a conference call and webcast on August 6, 2026 at 10:00 a.m. Eastern Time to discuss these results. To participate in the call, please dial 877-407-0792 (domestic) or 201-689-8263 (international). The live webcast will be available at www.installedbuildingproducts.com in the investor relations section. A replay of the conference call will be available through August 20, 2026 by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 13760723.
Alternatively, participants can register for the call 15 minutes prior to the event by using the call me option for a faster connection to join the conference call. You can enter your phone number and let the system call you right away. Click here for the call me option.
About Installed Building Products
Installed Building Products, Inc. is one of the nation's largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the housing market and the commercial market, our operations, industry and economic conditions, our financial and business model, payment of dividends, the demand for our services and product offerings, expansion of our national footprint and end markets, diversification of our products, our ability to grow and strengthen our market position, our ability to pursue and integrate value-enhancing acquisitions and the expected amount of acquired revenue, our ability to improve sales and profitability, and expectations for demand for our services and our earnings. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intends," "plan," and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed in or suggested by such forward-looking statements as a result of various factors, including, without limitation, general economic and industry conditions; increases in mortgage interest rates and rising home prices; inflation and interest rates; the material price and supply environment; increased tariffs; federal government shutdowns and uncertainty regarding the federal government's policy changes; geopolitical conflicts; the timing of increases in our selling prices; the risk that the Company may reduce, suspend or eliminate dividend payments in the future; and the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. In addition, any future declaration of dividends will be subject to the final determination of our Board of Directors. Any forward-looking statement made by the Company in this press release speaks only as of the date hereof. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect it. The Company has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws.
*Use of Non-GAAP Financial Measures
In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains the non-GAAP financial measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA margin (i.e., Adjusted EBITDA divided by net revenue), Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit and Adjusted Selling and Administrative expense. The reasons for the use of these measures, reconciliations of EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per diluted share, Adjusted Gross Profit, and Adjusted Selling and Administrative expense to the most directly comparable GAAP measures and other information relating to these measures are included below following the unaudited condensed consolidated financial statements. Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for IBP’s financial results prepared in accordance with GAAP.
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(unaudited, in millions, except share and per share amounts)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net revenue
$
777.8
$
760.3
$
1,438.3
$
1,445.1
Cost of sales
518.9
500.4
967.1
961.5
Gross profit
258.9
259.9
471.2
483.6
Operating expenses
Selling
36.6
35.7
70.6
71.1
Administrative
117.2
113.1
227.4
221.5
Amortization
10.5
10.1
21.0
20.2
Operating income
94.6
101.0
152.2
170.8
Other expense, net
Interest expense, net
10.5
8.3
20.8
16.6
Other (income)
(1.0
)
(0.7
)
(0.8
)
(0.5
)
Income before income taxes
85.1
93.4
132.2
154.7
Income tax provision
20.2
24.4
32.5
40.3
Net income
$
64.9
$
69.0
$
99.7
$
114.4
Other comprehensive income (loss), net of tax:
Net change on cash flow hedges, net of tax (provision) benefit of $(0.3) and $1.4 for the three months ended June 30, 2026 and 2025, respectively, $(0.5) and $3.2 for the six months ended June 30, 2026 and 2025, respectively.
1.0
(4.1
)
1.3
(9.4
)
Comprehensive income
$
65.9
$
64.9
$
101.0
$
105.0
Earnings Per Share:
Basic
$
2.44
$
2.53
$
3.73
$
4.17
Diluted
$
2.43
$
2.52
$
3.71
$
4.15
Weighted average shares outstanding:
Basic
26,634,628
27,323,118
26,716,160
27,420,268
Diluted
26,711,418
27,403,669
26,837,923
27,549,791
Cash dividends declared per share
$
0.39
$
0.37
$
2.58
$
2.44
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in millions, except share and per share amounts)
June 30,
December 31,
2026
2025
ASSETS
Current assets
Cash and cash equivalents
$
394.5
$
321.9
Accounts receivable (less allowance for credit losses of $15.1 and $13.9 at June 30, 2026 and December 31, 2025, respectively)
469.6
444.1
Inventories
223.5
203.0
Prepaid expenses and other current assets
68.2
73.6
Total current assets
1,155.8
1,042.6
Property and equipment, net
196.4
183.3
Operating lease right-of-use assets
117.3
98.7
Goodwill
469.8
450.4
Customer relationships, net
175.4
172.2
Other intangibles, net
92.8
89.3
Other non-current assets
43.7
31.5
Total assets
$
2,251.2
$
2,068.0
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term debt
$
34.7
$
36.6
Current maturities of operating lease obligations
42.0
37.0
Current maturities of finance lease obligations
4.3
2.7
Accounts payable
151.7
119.0
Accrued compensation
65.4
69.5
Other current liabilities
89.3
79.4
Total current liabilities
387.4
344.2
Long-term debt
1,027.5
850.0
Operating lease obligations
82.3
61.4
Finance lease obligations
6.4
4.0
Deferred income taxes
24.6
24.7
Other long-term liabilities
83.5
73.8
Total liabilities
1,611.7
1,358.1
Commitments and contingencies
Stockholders’ equity
Preferred Stock; $0.01 par value: 5,000,000 authorized and 0 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively
—
—
Common stock; $0.01 par value: 100,000,000 authorized, 33,941,274 and 33,837,379 issued and 26,579,168 and 26,975,227 shares outstanding at June 30, 2026 and December 31, 2025, respectively
0.3
0.3
Additional paid in capital
297.8
284.1
Retained earnings
1,073.5
1,043.4
Treasury stock; at cost: 7,362,106 and 6,862,152 shares at June 30, 2026 and December 31, 2025, respectively
(755.5
)
(640.0
)
Accumulated other comprehensive income
23.4
22.1
Total stockholders’ equity
639.5
709.9
Total liabilities and stockholders’ equity
$
2,251.2
$
2,068.0
INSTALLED BUILDING PRODUCTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
Six months ended June 30,
2026
2025
Cash flows from operating activities
Net income
$
99.7
$
114.4
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of property and equipment
35.3
32.7
Amortization of operating lease right-of-use assets
19.8
17.9
Amortization of intangibles
21.0
20.2
Amortization of deferred financing costs and debt discount
0.9
0.8
Provision for credit losses
3.9
4.0
Write-off of debt issuance costs
1.2
—
Gain on sale of property and equipment
(0.2
)
(0.7
)
Non-cash stock compensation
11.9
11.2
Other, net
(3.5
)
(5.6
)
Changes in assets and liabilities, excluding effects of acquisitions
Accounts receivable
(24.1
)
(16.4
)
Inventories
(19.5
)
3.0
Other assets
0.4
13.1
Accounts payable
30.4
4.5
Income taxes receivable/payable
3.4
—
Other liabilities
(9.5
)
(16.6
)
Net cash provided by operating activities
171.1
182.5
Cash flows from investing activities
Purchases of property and equipment
(33.5
)
(35.8
)
Acquisitions of businesses, net of cash acquired of $- in 2026 and 2025, respectively
(47.7
)
(11.3
)
Proceeds from sale of property and equipment
0.8
1.2
Settlements with interest rate swap counterparties
—
6.9
Other
(2.4
)
(4.2
)
Net cash used in investing activities
$
(82.8
)
$
(43.2
)
Six months ended June 30,
2026
2025
Cash flows from financing activities
Proceeds from Senior Notes
$
500.0
$
—
Payments on Senior Notes
(300.0
)
—
Payments on Term Loan
(2.5
)
(2.5
)
Proceeds from vehicle and equipment notes payable
—
18.1
Debt issuance costs
(9.1
)
—
Principal payments on long-term debt
(16.3
)
(14.8
)
Principal payments on finance lease obligations
(1.9
)
(1.4
)
Dividends paid
(69.8
)
(67.7
)
Acquisition-related obligations
(1.3
)
(1.5
)
Repurchase of common stock
(101.7
)
(83.5
)
Surrender of common stock awards by employees
(13.1
)
(8.4
)
Net cash used in financing activities
(15.7
)
(161.7
)
Net change in cash and cash equivalents
72.6
(22.4
)
Cash and cash equivalents at beginning of period
321.9
327.6
Cash and cash equivalents at end of period
$
394.5
$
305.2
Supplemental disclosures of cash flow information
Net cash paid during the period for:
Interest
$
24.4
$
20.5
Income taxes, net of refunds (1)
36.5
36.6
Supplemental disclosures of non-cash activities
Right-of-use assets and leasehold improvements obtained in exchange for operating lease obligations
$
43.3
$
22.9
Property and equipment obtained in exchange for finance lease obligations
6.0
0.3
Seller obligations in connection with acquisition of businesses
5.0
1.7
Unpaid purchases of property and equipment included in accounts payable
2.6
4.2
Accrued excise tax on common stock repurchases
0.8
0.6
INSTALLED BUILDING PRODUCTS, INC.
SEGMENT INFORMATION
(unaudited, in millions)
Information on Segments
Our Company has three operating segments consisting of Installation, Distribution and Manufacturing. The Other category reported below reflects the operations of our Distribution and Manufacturing operating segments. The following tables represent our segment information for the three and six months ended June 30, 2026 and 2025 (in millions):
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Installation segment revenue
$
710.7
$
715.6
$
1,320.5
$
1,362.8
Installation segment cost of sales (1)
451.2
450.1
844.7
867.8
Installation segment gross profit
$
259.5
$
265.5
$
475.8
$
495.0
Installation segment gross profit percentage
36.5
%
37.1
%
36.0
%
36.3
%
Other gross profit percentage
24.7
%
23.0
%
25.2
%
24.2
%
Total consolidated gross percentage, as reported
33.3
%
34.2
%
32.8
%
33.5
%
The reconciliation of Installation revenue and segment gross profit for each period as shown in the table above to consolidated net revenue and income before income taxes is as follows (in millions):
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Reconciliation of revenue:
Installation segment revenue
$
710.7
$
715.6
$
1,320.5
$
1,362.8
Other revenue (1)
90.2
56.7
158.6
100.6
Elimination of inter-segment revenue
(23.1
)
(12.0
)
(40.8
)
(18.3
)
Total consolidated net revenue
$
777.8
$
760.3
$
1,438.3
$
1,445.1
Reconciliation of segment gross profit:
Installation segment gross profit
$
259.5
$
265.5
$
475.8
$
495.0
Other gross profit (1)
22.3
13.0
40.0
24.3
Elimination of inter-segment gross profit
(6.4
)
(3.4
)
(11.8
)
(5.3
)
Less:
Depreciation and amortization
16.5
15.2
32.8
30.4
Total consolidated gross profit, as reported
258.9
259.9
471.2
483.6
Operating expenses
164.3
158.9
319.0
312.8
Operating income
94.6
101.0
152.2
170.8
Other expense, net
9.5
7.6
20.0
16.1
Income before income taxes
$
85.1
$
93.4
$
132.2
$
154.7
INSTALLED BUILDING PRODUCTS, INC.
REVENUE BY END MARKET
(unaudited, in millions)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Installation
Residential new construction
$
522.6
67
%
$
548.8
72
%
$
965.9
67
%
$
1,043.2
72
%
Repair and remodel
47.1
6
%
43.2
6
%
88.2
6
%
85.6
6
%
Commercial
141.0
18
%
123.6
16
%
266.4
19
%
234.0
16
%
Net revenue - Installation
$
710.7
91
%
$
715.6
94
%
1,320.5
92
%
1,362.8
94
%
Other
67.1
9
%
44.7
6
%
117.8
8
%
82.3
6
%
Net revenue, as reported
$
777.8
100
%
$
760.3
100
%
$
1,438.3
100
%
$
1,445.1
100
%
Reconciliation of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income, Adjusted Gross Profit and Adjusted Selling and Administrative Expense measure performance by adjusting GAAP net income, EBITDA, gross profit and selling and administrative expense, respectively, for certain income or expense items that are not considered part of our core operations. We believe that the presentation of these measures provides useful information to investors regarding our results of operations because it assists both investors and us in analyzing and benchmarking the performance and value of our business.
We believe the Adjusted EBITDA measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of our capital structure (primarily interest expense), asset base (primarily depreciation and amortization), items outside our control (primarily income taxes) and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. In addition, we use various EBITDA-based measures in determining the achievement of awards under certain of our incentive compensation programs. Other companies may define Adjusted EBITDA differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted EBITDA may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.
Although we use the Adjusted EBITDA measure to assess the performance of our business, the use of the measure is limited because it does not include certain material expenses, such as interest and taxes, necessary to operate our business. Adjusted EBITDA should be considered in addition to, and not as a substitute for, GAAP net income as a measure of performance. Our presentation of this measure should not be construed as an indication that our future results will be unaffected by unusual or non-recurring items. This measure has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, this measure is not intended as an alternative to net income as an indicator of our operating performance, as an alternative to any other measure of performance in conformity with GAAP or as an alternative to cash flow provided by operating activities as a measure of liquidity. You should therefore not place undue reliance on this measure or ratios calculated using this measure.
We also believe the Adjusted Net Income measure is useful to investors and us as a measure of comparative operating performance from period to period as it measures our changes in pricing decisions, cost controls and other factors that impact operating performance, and removes the effect of certain non-core items such as discontinued operations, acquisition related expenses, amortization expense, the tax impact of these certain non-core items, and the volatility related to the timing and extent of other activities such as asset impairments and non-core income and expenses. To make the financial presentation more consistent with other public building products companies, beginning in the fourth quarter 2016 we included an addback for non-cash amortization expense related to acquisitions. Accordingly, we believe that this measure is useful for comparing general operating performance from period to period. Other companies may define Adjusted Net Income differently and, as a result, our measure may not be directly comparable to measures of other companies. In addition, Adjusted Net Income may be defined differently for purposes of covenants contained in our revolving credit facility or any future facility.
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED NET INCOME CALCULATIONS
(unaudited, in millions, except share and per share amounts)
The tables below reconcile Adjusted Net Income to the most directly comparable GAAP financial measure, net income, for the periods presented therein. We have included Adjusted Net Income in this press release because it is a key measure used by our management team to understand the operating performance and profitability of our business.
Per share figures may reflect rounding adjustments and consequently totals may not appear to sum.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net income, as reported
$
64.9
$
69.0
$
99.7
$
114.4
Adjustments for adjusted net income
Share-based compensation expense
6.2
5.3
11.9
11.2
Acquisition related expenses
0.7
0.5
1.7
1.0
Amortization expense (1)
10.5
10.1
21.0
20.2
Loan refinancing expenses (2)
—
—
1.2
—
Tax impact of adjusted items at a normalized tax rate (3)
(4.5
)
(4.1
)
(9.3
)
(8.4
)
Adjusted net income
$
77.8
$
80.8
$
126.2
$
138.4
Weighted average shares outstanding (diluted)
26,711,418
27,403,669
26,837,923
27,549,791
Diluted net income per share, as reported
$
2.43
$
2.52
$
3.71
$
4.15
Adjustments for diluted adjusted net income, net of tax impact, per share (4)
0.48
0.43
0.99
0.87
Diluted adjusted net income per share
$
2.91
$
2.95
$
4.70
$
5.02
(1)
Addback of all non-cash amortization resulting from business combinations.
(2)
Includes $1.2 million of non-cash write-off of capitalized loan expense in connection with loan refinancing for the six months ended June 30, 2026.
(3)
Normalized effective tax rate of 26.0% applied to periods presented.
(4)
Includes adjustments related to the items noted above, net of tax.
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED GROSS PROFIT CALCULATIONS
(unaudited, in millions)
The table below reconciles Adjusted Gross Profit to the most directly comparable GAAP financial measure, gross profit, for the periods presented therein.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Gross profit
$
258.9
$
259.9
$
471.2
$
483.6
Share-based compensation expense
0.3
0.3
0.6
0.6
Adjusted gross profit
$
259.2
$
260.2
$
471.8
$
484.2
Gross profit margin
33.3
%
34.2
%
32.8
%
33.5
%
Adjusted gross profit margin
33.3
%
34.2
%
32.8
%
33.5
%
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED SELLING AND ADMINISTRATIVE EXPENSE CALCULATIONS
(unaudited, in millions)
The table below reconciles Adjusted Selling and Administrative expense to the most directly comparable GAAP financial measure, selling and administrative expense, for the periods presented therein.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Selling expense
$
36.6
$
35.7
$
70.6
$
71.1
Administrative expense
117.2
113.1
227.4
221.5
Selling and Administrative expense, as reported
153.8
148.8
298.0
292.6
Share-based compensation expense
5.9
5.0
11.3
10.6
Acquisition related expenses
0.7
0.5
1.7
1.0
Adjusted Selling and Administrative expense
$
147.2
$
143.3
$
285.0
$
281.0
Selling and Administrative expense - % Net revenue
19.8
%
19.6
%
20.7
%
20.2
%
Adjusted Selling and Administrative expense - % Net revenue
18.9
%
18.8
%
19.8
%
19.4
%
INSTALLED BUILDING PRODUCTS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA AND ADJUSTED EBITDA CALCULATIONS
(unaudited, in millions)
The tables below reconcile EBITDA and Adjusted EBITDA to the most directly comparable GAAP financial measure, net income, for the periods presented therein.
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Net income, as reported
$
64.9
$
69.0
$
99.7
$
114.4
Interest expense
10.5
8.3
20.8
16.6
Provision for income tax
20.2
24.4
32.5
40.3
Depreciation and amortization
28.4
26.5
56.4
52.9
EBITDA
124.0
128.2
209.4
224.2
Acquisition related expenses
0.7
0.5
1.7
1.0
Share-based compensation expense
6.2
5.3
11.9
11.2
Adjusted EBITDA
$
130.9
$
134.0
$
223.0
$
236.4
Net profit margin
8.3
%
9.1
%
6.9
%
7.9
%
EBITDA margin
15.9
%
16.9
%
14.6
%
15.5
%
Adjusted EBITDA margin
16.9
%
17.6
%
15.5
%
16.4
%
INSTALLED BUILDING PRODUCTS, INC.
SUPPLEMENTARY TABLE
(unaudited)
Three months ended June 30,
Six months ended June 30,
2026
2025
2026
2025
Period-over-period Growth
Consolidated Sales Growth
2.3
%
3.1
%
(0.5
)%
1.0
%
Consolidated Same Branch Sales Growth(1)
(0.6
)%
0.7
%
(3.1
)%
(1.7
)%
Installation Segment Sales Growth(2)
Sales Growth
(0.7
)%
2.6
%
(3.1
)%
0.7
%
Residential Sales Growth
(4.8
)%
1.2
%
(7.4
)%
(0.2
)%
Single-Family Sales Growth
(5.7
)%
2.6
%
(7.8
)%
0.9
%
Multi-Family Sales Growth
(1.3
)%
(3.9
)%
(6.0
)%
(4.0
)%
Commercial Sales Growth
14.1
%
10.0
%
13.8
%
3.8
%
Installation Segment Same Branch Sales Growth(1)(2)
Same Branch Sales Growth
(2.3
)%
0.6
%
(4.5
)%
(1.5
)%
Volume Growth, Including Heavy Commercial(3)(4)
(4.9
)%
(2.6
)%
(7.3
)%
(4.3
)%
Price/Mix Growth, Including Heavy Commercial(3)(5)
2.5
%
3.3
%
2.7
%
2.8
%
Volume Growth, Excluding Heavy Commercial(3)(4)
(5.2
)%
(1.1
)%
(7.5
)%
(3.3
)%
Price/Mix Growth, Excluding Heavy Commercial(3)(5)
0.7
%
0.8
%
0.3
%
1.1
%
Residential Same Branch Sales Growth
(6.1
)%
(1.1
)%
(8.5
)%
(2.8
)%
Single-Family Same Branch Sales Growth
(7.2
)%
(0.4
)%
(9.1
)%
(2.3
)%
Multi-Family Same Branch Sales Growth
(1.4
)%
(4.0
)%
(6.2
)%
(4.5
)%
Commercial Same Branch Sales Growth
10.4
%
9.3
%
10.5
%
3.3
%
Other Sales Growth (Net of Eliminations)(6)(7)
Sales Growth
50.4
%
10.8
%
43.2
%
6.4
%
Same Branch Sales Growth (1)
27.7
%
1.5
%
21.2
%
(5.2
)%
U.S. Housing Market Growth(8)
Total Completions Growth
(4.9
)%
(13.1
)%
(9.5
)%
(6.5
)%
Single-Family Completions Growth
(5.8
)%
(9.8
)%
(9.3
)%
(3.4
)%
Multi-Family Completions Growth
(2.8
)%
(19.7
)%
(10.2
)%
(12.2
)%
(1)
Same-branch basis represents period-over-period change in sales for branch locations owned greater than 12 months as of each financial statement date.
(2)
Calculated based on period-over-period change in sales within our Installation segment and its end markets.
(3)
The heavy commercial end market, a subset of our total commercial end market, comprises projects that are much larger than our average installation job. As such, per-job revenue is much larger than the average job in all other end markets.
(4)
Calculated as period-over-period change in the number of completed same-branch jobs within our Installation segment for all markets.
(5)
Defined as change in the mix of products sold and related pricing changes and calculated as the change in period-over-period average selling price per same-branch jobs within our Installation segment for all markets we serve, multiplied by total current year jobs. The mix of end customer and product would have an impact on the year-over-year price per job.
(6)
Calculated based on period-over-period gross sales change, excluding intercompany transactions, in our Other category which consists of our Manufacturing and Distribution operating segments.
(7)
We revised this calculation to exclude certain intercompany sales. Percentages in all periods presented conform to this revised method.
Walker & Dunlop oznámila za 2. čtvrtletí čistý zisk 3,0 mil. USD a zředěný EPS 0,09 USD, oba meziročně o 91 % nižší. Tržby klesly o 4 % na 306,7 mil. USD, zatímco upravený core EPS vzrostl o 3 % na 1,19 USD.
BETHESDA, Md.--(BUSINESS WIRE)--Walker & Dunlop, Inc. (NYSE: WD) (the “Company”, “Walker & Dunlop” or “W&D”) reported second quarter 2026 financial results.
KEY FINANCIAL METRICS
Total transaction volume of $14.4 billion, up 3% from Q2’25 Total revenues of $306.7 million, down 4% from Q2’25 Net income of $3.0 million and diluted earnings per share of $0.09, both down 91% from Q2’25 Adjusted core EPS(1) of $1.19, up 3% from Q2’25 Servicing portfolio of $145.8 billion as of June 30, 2026, up 6% from June 30, 2025 Year-to-date GSE market share is 14.7%, compared to 11.2% in 2025 “Walker & Dunlop continues to demonstrate the strength and resilience of our commercial real estate capital markets platform by gaining market share with the GSEs, expanding our capital markets capabilities, and generating durable, recurring cash flows from our servicing and asset management businesses,” said Willy Walker, Chairman and CEO.
“While our Q2 financial results reflect the impact of the legacy repurchases and associated credit marks, we are nearing the conclusion of these reviews which have strengthened our underwriting processes along with our partnerships with Fannie Mae and Freddie Mac. The GSE’s have a tremendous amount of lending capacity for the remainder of 2026, and after expanding W&D’s market share by 3.5% in the first half of 2026 to 15%, we see plenty of opportunity going forward.”
Walker continued, “Our focus now firmly turns to the Journey to ’30, our five-year strategic growth plan to become the best commercial real estate capital markets company in the world by expanding the services we offer, the depth of our client relationships, and generating long-term value for our shareholders.”
The Capital Markets team generated $14.4 billion of total transaction volume, up 3% from a year ago. Debt financing volume increased 8%, led by 43% growth in HUD originations and 17% growth in brokered lending, reflecting the continued expansion of capital relationships beyond the Agencies. The servicing portfolio grew 6%, to $145.8 billion, providing durable recurring revenue and cash flow while deepening the client relationships that create future financing and advisory opportunities.
Year-to-date, debt financing volume increased 44% to $24.3 billion within a complex macroeconomic and interest rate environment, reinforcing our confidence in the long-term earnings power of Walker & Dunlop’s platform as improving market activity continues to create opportunities across the business.
Results this quarter include $23.2 million of operating and credit-related expenses associated with legacy indemnified and repurchased loans. A large of portion of these charges is concentrated in loans associated with a small number of fraudulent sponsors we previously identified. These charges do not reflect new or increasing repurchase exposure in our overall portfolio. We are actively executing our disposition strategy for the repurchased loan portfolio, reducing that exposure by $39.4 million since quarter end to $153.8 million, and we have $41.7 million of credit-related reserves against that remaining portfolio.
TRANSACTION VOLUME (in millions) Q2 2026 Q2 2025 $ Change % Change Fannie Mae $ 3,088
$ 3,114
$ (26
)
(1
)
%
Freddie Mac 1,311
1,753
(442
)
(25
)
Ginnie Mae - HUD 413
288
125
43
Brokered (1) 7,402
6,335
1,067
17
Principal Lending and Investing (2) 320
148
172
116
Debt financing volume $ 12,534
$ 11,638
$ 896
8
%
Property sales volume 1,897
2,314
(417
)
(18
)
Total transaction volume $ 14,431
$ 13,952
$ 479
3
%
(1) Brokered transaction for life insurance companies, commercial banks, and other capital sources. (2) Includes debt financing volumes from our interim lending platform and Walker & Dunlop Investment Partners, Inc. ("WDIP") separate accounts Total transaction volume increased 3%, to $14.4 billion, as transaction activity remained healthy across the commercial real estate market. Although GSE debt financing volumes decreased 10% year over year, our market share with the GSEs increased year over year. Growth in brokered lending reflects strong lender participation across numerous third-party capital sources during the quarter, demonstrating the availability of capital at this time in the cycle, and the breadth of our financing capabilities across executions and property types. Property sales volume remained active despite continued market volatility, as investment decisions across the multifamily sector continued to be influenced by operating fundamentals, interest rate expectations and transaction timing. FINANCIAL RESULTS - CAPITAL MARKETS ("CM")
Three months ended June 30,
(in millions, unless otherwise noted)
2026
2025
% Change
Total revenues
$
169
$
173
(2
)%
Total expenses
131
127
3
Walker & Dunlop net income (loss)
$
30
$
33
(10
)%
Key revenue metrics:
Origination fee rate (1)
0.74
%
0.82
%
Agency MSR rate (2)
0.99
1.03
____________________ The table above excludes income tax expense (benefit) and income or loss from noncontrolling interests and temporary equity holders.
(1)
Loan origination and debt brokerage fees, net (“Origination fees”) as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
(2)
Fair value of expected net cash flows from servicing, net of guaranty obligation (“MSR income”) as a percentage of Agency debt financing volume. Revenues declined 2% primarily due to a greater mix of brokered transactions relative to GSE lending and a corresponding reduction to MSR income. Brokered activity increased 17% supporting the overall performance of the segment, while reflecting the scale of our capital relationships beyond the GSEs – an important driver of our long-term growth strategy. Although GSE lending volumes declined this quarter, this was driven by transaction timing, as our overall market share has increased 350 basis points year-to-date to 14.7%. Other highlights for the segment include: Net warehouse interest (expense) income improved to income in the current quarter, reflecting the normalization of the yield curve for the first time since the Great Tightening began. Improvement in other revenues was driven by investment banking, appraisal and valuation services, and application fees. MANAGED PORTFOLIO
(dollars in millions, unless otherwise noted)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Fannie Mae
$
74,141
$
73,499
$
72,708
$
71,006
$
70,043
Freddie Mac
45,516
44,836
42,595
40,473
39,433
Ginnie Mae - HUD
11,890
11,647
11,563
11,298
11,008
Brokered
14,234
16,385
17,111
16,554
16,865
Principal Lending and Investing
18
18
-
-
-
Total Servicing Portfolio
$
145,799
$
146,385
$
143,977
$
139,331
$
137,349
Assets under management
18,675
18,531
18,631
18,522
18,623
Total Managed Portfolio
$
164,474
$
164,916
$
162,608
$
157,853
$
155,972
Weighted-average servicing fee rate at period end (basis points)
23.4
23.4
23.6
24.0
24.1
Weighted-average remaining servicing portfolio term at period end (years)
7.1
7.1
7.2
7.4
7.4
Continued origination activity over the past year expanded the servicing portfolio to $145.8 billion, further strengthening the recurring revenue and cash flow that supports our long term earnings growth. The portfolio also creates future opportunities to refinance, recapitalize and deepen client relationships as loans mature over time. Agency production over the past 12 months was the main driver for the addition of more than $8 billion of net loans to the servicing portfolio. Approximately $14.9 billion of Agency loans are scheduled to mature over the next two years, providing a meaningful pipeline of client engagement opportunities to support future transaction activity. The decline in brokered servicing was primarily driven by a large partner consolidating their servicing relationships. Although we bid on the opportunity, we were not selected. We will continue to source and originate deals on behalf of that lender. Mortgage servicing rights (“MSRs”) continue to deliver significant long-term value. As of June 30, 2026, MSRs associated with our servicing portfolio are reported at an amortized cost of $793.4 million, while the fair value is estimated at $1.4 billion, reflecting the inherent value of the long-term contractual nature of these assets and the recurring servicing and ancillary revenues they generate. Assets under management totaled $18.7 billion as of June 30, 2026, and consisted of $16.0 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, $1.8 billion of debt funds, and $0.9 billion of equity funds managed by our registered investment advisor, WDIP. FINANCIAL RESULTS - SERVICING & ASSET MANAGEMENT ("SAM")
Three months ended June 30,
(in millions)
2026
2025
% Change
Total revenues
$
134
$
141
(5
)%
Total expenses
124
98
27
Walker & Dunlop net income (loss)
$
8
$
38
(77
)%
The Servicing & Asset Management segment continues to benefit from the stable recurring earnings and cash flow from the servicing portfolio. Revenue declined year over year, primarily due to the timing of earnings recognized from joint venture investments in our affordable business, while the recurring servicing fees of the managed portfolio continued to steadily grow. The underlying fundamentals of the servicing platform remain strong, and continued execution from our Capital Markets business in the coming quarters should drive additional servicing portfolio expansion as we move through the year. Segment results continue to be influenced by our portfolio of indemnified and repurchased loans. That portfolio increased year over year, leading to higher operating costs and credit-related losses. KEY CREDIT TRENDS
(in millions, unless otherwise noted)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Defaulted loans (1)
$
199
$
167
$
159
$
139
$
109
Key credit metrics (as a % of the at-risk portfolio (1)):
Defaulted loans
0.28
%
0.24
%
0.23
%
0.21
%
0.17
%
Allowance for risk-sharing
0.07
0.06
0.05
0.05
0.05
Key credit metrics (as a % of maximum exposure (1)):
Allowance for risk-sharing
0.34
%
0.27
%
0.27
%
0.25
%
0.25
%
The at-risk servicing portfolio continues to demonstrate strong underlying credit performance with low levels of delinquency. Growth in the at-risk portfolio reflects continued Fannie Mae loan production over the past year, while our credit exposure remains concentrated on loans backed by multifamily assets. Based on the latest property level financial information available, our at-risk portfolio is operating at a weighted average debt service coverage ratio two times, and the average underwritten loan-to-value is approximately 61%. Less than 5% of our loans are below a 1.0 times debt service coverage ratio, and were underwritten above a 75% loan-to-value. FINANCIAL RESULTS - CORPORATE
Three months ended June 30,
(in millions)
2026
2025
% Change
Total revenues
$
4
$
6
(25
)%
Total expenses
49
48
2
Walker & Dunlop net income (loss)
$
(35
)
$
(37
)
(4
)%
The Corporate segment is structured to support continued scaling of our business. Corporate results this quarter reflect our disciplined expense management as the segment continues to support revenue growth in our Capital Markets and Servicing & Asset Management businesses. INDEMNIFIED AND REPURCHASED LOANS
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2026
2025
2026
2025
Initial loan repurchase costs
$
—
$
—
$
1
$
—
Indemnified and repurchased loan operating costs
5
1
7
1
Expected principal losses on loan repurchase ("loan repurchase losses")
2
—
9
—
Indemnified and repurchased loan expenses
$
7
$
1
$
17
$
1
Provision (benefit) for loan losses (1)
$
11
$
1
$
13
$
1
Provision (benefit) for risk-sharing obligations (2)
6
—
6
—
Other operating expenses (3)
—
—
2
—
Other interest income (4)
(1
)
—
(2
)
—
Total net expense impact of indemnified and repurchased loans
$
23
$
2
$
36
$
2
____________________ (1)
Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income.
(2)
Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income. Reflects the impact on the provision for risk-sharing obligations for our agreement with Fannie Mae to increase our loss sharing on $15.9 million of defaulted loans in lieu of repurchasing them.
(3)
Impairment charges related to an Other real estate owned (OREO) asset that was previously repurchased and included as a component of Other operating expenses in the Condensed Consolidated Statements of Income. (4)
Included as a component of Placement fees and other interest income in the Condensed Consolidated Statements of Income.
Total repurchased loans declined to $193.3 million as of June 30, 2026, down from $221.6 million as of December 31, 2025. Since the end of the second quarter, we exited $39.4 million of loans at prices that approximated our estimates, reducing our remaining repurchase exposure to $153.8 million, against which we have $41.7 million of reserves. Of the $23.2 million of operating and credit-related charges this quarter, $18.0 million were credit-related. The credit-related charges were concentrated in loans associated with a small number of fraudulent sponsors we previously identified and were largely driven by the default of a previously repurchased portfolio of loans, and an agreement to increase our loss-sharing with Fannie Mae on a $15.9 million defaulted portfolio of loans in lieu of repurchasing them. Last year, we began a fraud investigation in coordination with Freddie Mac that identified a small group of fraudulent sponsors. 95% of the credit-related losses we have taken against our repurchased loans are associated with those sponsors. During the second quarter, we concluded that investigation with Freddie Mac, and we do not expect any further repurchases associated with the investigation. We are actively executing our disposition strategy to reduce our repurchase exposure. We expect to fully exit the remaining assets in this portfolio by early next year, and any future credit-related losses will be driven by the difference between the ultimate selling prices relative to our current estimates. CAPITAL SOURCES AND USES
On August 5, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the third quarter of 2026. The dividend will be paid on September 3, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of August 20, 2026.
On February 13, 2026, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 26, 2026 (the “2026 Stock Repurchase Program”). During the first quarter of 2026, the Company repurchased 283 thousand shares under the 2026 Stock Repurchase Program at a weighted-average price of $47.13 per share and immediately retired the shares, reducing stockholders’ equity by $13.3 million. The Company did not repurchase any shares during the second quarter of 2026. As of June 30, 2026, the Company had $61.7 million of authorized share repurchase capacity remaining under the 2026 Stock Repurchase Program.
Any repurchases made pursuant to the 2026 Stock Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.
CONFERENCE CALL INFORMATION
Listeners can access the Company’s quarterly conference call for more information regarding our financial results via the dial-in number and webcast link below. Presentation materials related to the conference call will be posted to the Investor Relations section of the Company’s website prior to the call. An audio replay will also be available on the Investor Relations section of the Company’s website, along with the presentation materials.
Earnings Call:
Thursday, August 6, 2026, at 8:30 a.m. EDT
Phone:
(800) 330-6710 from within the United States; (312) 471-1353 from outside the United States
Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
NON-GAAP FINANCIAL MEASURES
To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses adjusted EBITDA, adjusted core net income, and adjusted core EPS, which are non-GAAP financial measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. When analyzing our operating performance, readers should use adjusted EBITDA, adjusted core net income, and adjusted core EPS in addition to, and not as an alternative for, net income and diluted EPS.
Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net of guaranty obligation, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment, loan repurchase losses and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, loan repurchase losses, stock-based compensation, the fair value of expected net cash flows from servicing, net of guaranty obligation, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.
We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financial information, provide useful information to investors by offering:
the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results; the ability to better identify trends in the Company’s underlying business and perform related trend analyses; and a better understanding of how management plans and measures the Company’s underlying business. We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the Company’s GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled “Adjusted Financial Measure Reconciliation to GAAP.”
FORWARD-LOOKING STATEMENTS
Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.
While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, including additional charges or losses related to loans we have already repurchased or indemnified and new repurchase requests we may receive from the GSEs related to the previously identified instances of borrower fraud, additional instances of borrower fraud, or other reasons.
For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.
Walker & Dunlop, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Unaudited
June 30,
March 31,
December 31,
September 30,
June 30,
(in thousands)
2026
2026
2025
2025
2025
Assets
Cash and cash equivalents
$
160,858
$
192,527
$
299,315
$
274,828
$
233,712
Restricted cash
25,782
34,419
22,772
44,462
41,090
Pledged securities, at fair value
234,525
228,646
224,954
221,730
218,435
Loans held for sale, at fair value
1,382,958
2,546,860
1,436,350
2,197,739
1,177,837
Mortgage servicing rights
793,351
795,754
808,145
805,975
817,814
Goodwill
868,710
868,710
868,710
868,710
868,710
Other intangible assets
134,369
138,123
141,877
145,631
149,385
Receivables, net
476,851
424,393
419,358
374,316
360,646
Committed investments in tax credit equity
170,671
265,368
241,401
257,564
194,479
Other assets
645,529
670,660
596,596
606,320
612,932
Total assets
$
4,893,604
$
6,165,460
$
5,059,478
$
5,797,275
$
4,675,040
Liabilities
Warehouse notes payable
$
1,384,282
$
2,535,227
$
1,420,272
$
2,175,157
$
1,157,234
Corporate notes payable
820,948
825,816
829,218
829,909
828,657
Allowance for risk-sharing obligations
49,081
38,673
37,546
34,140
33,191
Commitments to fund investments in tax credit equity
174,093
256,121
219,949
223,788
168,863
Other liabilities
744,448
775,837
806,631
756,815
725,297
Total liabilities
$
3,172,852
$
4,431,674
$
3,313,616
$
4,019,809
$
2,913,242
Temporary Equity
Profit interests of a wholly owned subsidiary subject to possible redemption
$
909
$
752
$
(1,036
)
$
—
$
—
Stockholders' Equity
Common stock
$
333
$
332
$
334
$
333
$
333
Additional paid-in capital
462,194
454,215
450,434
444,127
438,129
Accumulated other comprehensive income (loss)
612
1,203
1,876
1,833
2,764
Retained earnings
1,243,903
1,264,446
1,282,390
1,319,274
1,308,792
Total stockholders’ equity
$
1,707,042
$
1,720,196
$
1,735,034
$
1,765,567
$
1,750,018
Noncontrolling interests
12,801
12,838
11,864
11,899
11,780
Total permanent equity
$
1,719,843
$
1,733,034
$
1,746,898
$
1,777,466
$
1,761,798
Commitments and contingencies
—
—
—
—
—
Total liabilities, temporary equity, and permanent equity
$
4,893,604
$
6,165,460
$
5,059,478
$
5,797,275
$
4,675,040
Walker & Dunlop, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
Unaudited
Quarterly Trends
Six months ended
June 30,
(in thousands, except per share amounts)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
2026
2025
Revenues
Origination fees
$
92,893
$
88,532
$
103,614
$
97,845
$
94,309
$
181,425
$
140,690
MSR income
47,817
46,773
50,060
48,657
53,153
94,590
80,964
Servicing fees
86,700
85,437
86,339
85,189
83,693
172,137
165,914
Property sales broker fees
12,787
13,179
28,488
26,546
14,964
25,966
28,485
Investment management fees
6,907
10,226
11,192
6,178
7,577
17,133
17,259
Net warehouse interest income (expense)
369
25
(909
)
(2,035
)
(1,760
)
394
(2,546
)
Placement fees and other interest income
32,440
32,704
37,085
46,302
35,986
65,144
69,197
Other revenues
26,777
24,455
24,155
28,993
31,318
51,232
56,644
Total revenues
$
306,690
$
301,331
$
340,024
$
337,675
$
319,240
$
608,021
$
556,607
Expenses
Personnel
$
162,909
$
152,829
$
187,113
$
177,418
$
161,888
$
315,738
$
283,278
Amortization and depreciation
60,699
62,964
62,084
60,041
58,936
123,663
116,557
Provision (benefit) for credit losses
20,966
4,118
3,105
949
1,820
25,084
5,532
Interest expense on corporate debt
15,260
14,902
15,983
16,451
16,767
30,162
32,281
Indemnified and repurchased loan expenses
6,884
10,061
35,784
3,526
683
16,945
1,540
Other operating expenses
37,898
30,507
54,512
33,353
32,772
68,405
65,801
Total expenses
$
304,616
$
275,381
$
358,581
$
291,738
$
272,866
$
579,997
$
504,989
Income (loss) before taxes
$
2,074
$
25,950
$
(18,557
)
$
45,937
$
46,374
$
28,024
$
51,618
Income tax expense (benefit)
(764
)
8,022
(5,447
)
12,516
12,425
7,258
14,944
Net income (loss) before noncontrolling interests and temporary equity holders
$
2,838
$
17,928
$
(13,110
)
$
33,421
$
33,949
$
20,766
$
36,674
Less: net income (loss) from noncontrolling interests
12
974
(36
)
(31
)
(3
)
986
(32
)
Less: net income (loss) attributable to temporary equity holders
(180
)
1,083
837
—
—
903
—
Walker & Dunlop net income (loss)
$
3,006
$
15,871
$
(13,911
)
$
33,452
$
33,952
$
18,877
$
36,706
Other comprehensive income (loss), net of tax
(591
)
(673
)
43
(931
)
1,469
(1,264
)
2,178
Walker & Dunlop comprehensive income (loss)
$
2,415
$
15,198
$
(13,868
)
$
32,521
$
35,421
$
17,613
$
38,884
Effective Tax Rate
(37
)%
31
%
29
%
27
%
27
%
26
%
29
%
Basic earnings (loss) per share
$
0.09
$
0.46
$
(0.41
)
$
0.98
$
1.00
$
0.55
$
1.08
Diluted earnings (loss) per share
0.09
0.46
(0.41
)
0.98
0.99
0.55
1.07
Cash dividends paid per common share
0.68
0.68
0.67
0.67
0.67
1.36
1.34
Basic weighted-average shares outstanding
33,263
33,394
33,388
33,376
33,358
33,328
33,311
Diluted weighted-average shares outstanding
33,275
33,411
33,410
33,397
33,371
33,343
33,333
SUPPLEMENTAL OPERATING DATA
Unaudited
Quarterly Trends
Six months ended
June 30,
(in thousands, except per share data and unless otherwise noted)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
2026
2025
Transaction Volume:
Components of Debt Financing Volume
Fannie Mae
$
3,087,806
$
1,553,899
$
2,785,231
$
2,141,092
$
3,114,308
$
4,641,705
$
4,626,102
Freddie Mac
1,310,879
3,124,128
2,023,592
3,664,380
1,752,597
4,435,007
2,560,844
Ginnie Mae - HUD
413,839
481,384
153,748
325,169
288,449
895,223
436,607
Brokered (1)
7,402,029
6,503,051
8,675,937
4,512,729
6,335,071
13,905,080
8,888,014
Principal Lending and Investing (2)
319,650
87,900
167,700
199,250
147,800
407,550
323,300
Total Debt Financing Volume
$
12,534,203
$
11,750,362
$
13,806,208
$
10,842,620
$
11,638,225
$
24,284,565
$
16,834,867
Property Sales Volume
1,897,246
1,910,300
4,524,142
4,672,875
2,313,585
3,807,546
4,152,875
Total Transaction Volume
$
14,431,449
$
13,660,662
$
18,330,350
$
15,515,495
$
13,951,810
$
28,092,111
$
20,987,742
Key Performance Metrics:
Operating margin
1
%
9
%
(5
)
%
14
%
15
%
5
%
9
%
Return on equity
1
4
(3
)
8
8
2
4
Walker & Dunlop net income (loss)
$
3,006
$
15,871
$
(13,911
)
$
33,452
$
33,952
$
18,877
$
36,706
Adjusted EBITDA (3)
62,129
73,782
38,755
82,084
76,811
135,911
141,777
Diluted earnings (loss) per share
0.09
0.46
(0.41
)
0.98
0.99
0.55
1.07
Adjusted core EPS (4)
1.19
1.02
0.28
1.22
1.15
2.19
2.00
Key Expense Metrics (as a percentage of total revenues):
Personnel expense
53
%
51
%
55
%
53
%
51
%
52
%
51
%
Other operating expenses
12
10
16
10
10
11
12
Key Revenue Metrics (as a percentage of debt financing volume):
Origination fee rate (5)
0.74
%
0.76
%
0.75
%
0.90
%
0.82
%
0.75
%
0.84
%
Agency MSR rate (6)
0.99
0.91
1.01
0.79
1.03
0.95
1.06
Other Data:
Market capitalization at period end
$
1,877,955
$
1,522,458
$
2,048,798
$
2,847,907
$
2,395,939
Closing share price at period end
$
54.70
$
44.38
$
60.15
$
83.62
$
70.48
Average headcount
1,479
1,471
1,464
1,438
1,400
Components of Servicing Portfolio (end of period):
Weighted-average remaining servicing portfolio term (years)
7.1
7.1
7.2
7.4
7.4
____________________
(1)
Brokered transactions for life insurance companies, commercial banks, and other capital sources.
(2)
Includes debt financing volumes from our interim lending platform and WDIP separate accounts.
(3)
This is a non-GAAP financial measure. For more information on adjusted EBITDA, refer to the section above titled “Non-GAAP Financial Measures.”
(4)
This is a non-GAAP financial measure. For more information on adjusted core EPS, refer to the section above titled “Non-GAAP Financial Measures.”
(5)
Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.
(6)
MSR income as a percentage of Agency debt financing volume.
(7)
Brokered loans serviced primarily for life insurance companies.
(8)
Consists of interim loans not managed for our interim loan joint venture.
(9)
Walker & Dunlop Affordable Equity assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.
KEY CREDIT METRICS
Unaudited
June 30,
March 31,
December 31,
September 30,
June 30,
(dollars in thousands)
2026
2026
2025
2025
2025
Risk-sharing servicing portfolio:
Fannie Mae Full Risk
$
67,515,995
$
65,886,235
$
65,087,136
$
63,382,256
$
61,486,070
Fannie Mae Modified Risk
6,625,710
7,612,585
7,621,236
7,624,086
8,556,839
Freddie Mac Modified Risk
15,000
15,000
15,000
10,000
10,000
Total risk-sharing servicing portfolio
$
74,156,705
$
73,513,820
$
72,723,372
$
71,016,342
$
70,052,909
Non-risk-sharing servicing portfolio:
Freddie Mac No Risk
$
45,500,813
$
44,821,263
$
42,580,441
$
40,463,401
$
39,423,013
GNMA - HUD No Risk
11,890,066
11,646,914
11,563,020
11,298,108
11,008,314
Brokered
14,233,764
16,385,040
17,111,320
16,553,827
16,864,888
Total non-risk-sharing servicing portfolio
$
71,624,643
$
72,853,217
$
71,254,781
$
68,315,336
$
67,296,215
Total loans serviced for others
$
145,781,348
$
146,367,037
$
143,978,153
$
139,331,678
$
137,349,124
Loans held for investment (full risk)
$
160,391
$
56,203
$
36,926
$
36,926
$
36,926
Interim Loan Joint Venture Managed Loans (1)
17,099
17,099
32,965
76,215
76,215
At-risk servicing portfolio (2)
$
70,499,346
$
69,444,656
$
68,649,960
$
66,946,180
$
65,378,944
Maximum exposure to at-risk portfolio (3)
14,433,243
14,221,298
14,052,667
13,704,585
13,382,410
Defaulted loans (4)
198,638
167,456
158,821
139,020
108,530
Defaulted loans as a percentage of the at-risk portfolio
0.28
%
0.24
%
0.23
%
0.21
%
0.17
%
Allowance for risk-sharing as a percentage of the at-risk portfolio
0.07
0.06
0.05
0.05
0.05
Allowance for risk-sharing as a percentage of maximum exposure
0.34
0.27
0.27
0.25
0.25
____________________ (1)
This balance consisted entirely of Interim Program JV managed loans. We indirectly share in a portion of the risk of loss associated with Interim Program JV managed loans through our 15% equity ownership in the Interim Program JV. We have no exposure to risk of loss for the loans serviced directly for the Interim Program JV partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table above.
(2)
At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing (“DUS”) loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.
For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.
(3)
Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.
(4)
Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac SBL pre-securitized portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e. loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.
ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP
Unaudited
Quarterly Trends
Six months ended
June 30,
(in thousands)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
2026
2025
Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA
Walker & Dunlop Net Income (Loss)
$
3,006
$
15,871
$
(13,911
)
$
33,452
$
33,952
$
18,877
$
36,706
Income tax expense (benefit)
(764
)
8,022
(5,447
)
12,516
12,425
7,258
14,944
Interest expense on corporate debt
15,260
14,902
15,983
16,451
16,767
30,162
32,281
Amortization and depreciation
60,699
62,964
62,084
60,041
58,936
123,663
116,557
Provision (benefit) for credit losses
20,966
4,118
3,105
949
1,820
25,084
5,532
Loan repurchase losses (1)
1,664
6,950
20,092
—
—
8,614
—
Net write-offs
—
(491
)
—
—
—
(491
)
—
Stock-based compensation expense
9,115
8,219
6,909
7,332
6,064
17,334
12,506
Write-off of unamortized issuance costs from corporate debt paydown (2)
—
—
—
—
—
—
4,215
MSR income
(47,817
)
(46,773
)
(50,060
)
(48,657
)
(53,153
)
(94,590
)
(80,964
)
Adjusted EBITDA
$
62,129
$
73,782
$
38,755
$
82,084
$
76,811
$
135,911
$
141,777
CONDENSED SEGMENTS STATEMENTS OF INCOME
Unaudited
Segment Results (dollars in thousands, except per share data and ratios)
For the three months ended June 30, 2026
Revenues
CM
SAM
Corporate
Consolidated
Loan origination and debt brokerage fees, net
$
90,647
$
2,246
$
—
$
92,893
Fair value of expected net cash flows from servicing, net of guaranty obligation
47,817
—
—
47,817
Servicing fees
—
86,700
—
86,700
Property sales broker fees
12,787
—
—
12,787
Investment management fees
—
6,907
—
6,907
Net warehouse interest income (expense)
140
229
—
369
Placement fees and other interest income
—
30,065
2,375
32,440
Other revenues
17,395
7,447
1,935
26,777
Total revenues
$
168,786
$
133,594
$
4,310
$
306,690
Expenses
Personnel
$
116,058
$
21,741
$
25,110
$
162,909
Amortization and depreciation
1,146
57,181
2,372
60,699
Provision (benefit) for credit losses
—
20,966
—
20,966
Interest expense on corporate debt (1)
4,025
9,893
1,342
15,260
Indemnified and repurchased loan expenses
—
6,884
—
6,884
Other operating expenses
10,530
7,640
19,728
37,898
Total expenses
$
131,759
$
124,305
$
48,552
$
304,616
Income (loss) before taxes
$
37,027
$
9,289
$
(44,242
)
$
2,074
Income tax expense (benefit) (2)
7,486
780
(9,030
)
(764
)
Net income (loss) before noncontrolling interests and temporary equity holders
$
29,541
$
8,509
$
(35,212
)
$
2,838
Less: net income (loss) from noncontrolling interests
$
—
12
—
$
12
Less: net income (loss) attributable to temporary equity holders
(180
)
—
—
(180
)
Walker & Dunlop net income (loss)
$
29,721
$
8,497
$
(35,212
)
$
3,006
Diluted EPS
$
0.89
$
0.25
$
(1.05
)
$
0.09
Operating margin
22
%
7
%
(1,026
)%
1
%
Segment Results (dollars in thousands, except per share data and ratios)
For the three months ended June 30, 2025
Revenues
CM
SAM
Corporate
Consolidated
Loan origination and debt brokerage fees, net
$
93,764
$
545
$
—
$
94,309
Fair value of expected net cash flows from servicing, net of guaranty obligation
53,153
—
—
53,153
Servicing fees
—
83,693
—
83,693
Property sales broker fees
14,964
—
—
14,964
Investment management fees
—
7,577
—
7,577
Net warehouse interest income (expense)
(1,760
)
—
—
(1,760
)
Placement fees and other interest income
—
32,651
3,335
35,986
Other revenues
12,670
16,269
2,379
31,318
Total revenues
$
172,791
$
140,735
$
5,714
$
319,240
Expenses
Personnel
$
116,441
$
22,743
$
22,704
$
161,888
Amortization and depreciation
1,146
55,882
1,908
58,936
Provision (benefit) for credit losses
—
1,820
—
1,820
Interest expense on corporate debt (1)
4,468
10,810
1,489
16,767
Indemnified and repurchased loan expenses
—
683
—
683
Other operating expenses
5,309
5,831
21,632
32,772
Total expenses
$
127,364
$
97,769
$
47,733
$
272,866
Income (loss) before taxes
$
45,427
$
42,966
$
(42,019
)
$
46,374
Income tax expense (benefit) (2)
12,285
5,428
(5,288
)
12,425
Net income (loss) before noncontrolling interests
$
33,142
$
37,538
$
(36,731
)
$
33,949
Less: net income (loss) from noncontrolling interests
—
(3
)
—
(3
)
Walker & Dunlop net income (loss)
$
33,142
$
37,541
$
(36,731
)
$
33,952
Diluted EPS
$
0.97
$
1.10
$
(1.08
)
$
0.99
Operating margin
26
%
31
%
(735
)%
15
%
ADJUSTED CORE EPS RECONCILIATION
Unaudited
Quarterly Trends
Six months ended
June 30,
(in thousands)
Q2 2026
Q1 2026
Q4 2025
Q3 2025
Q2 2025
2026
2025
Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income
Walker & Dunlop Net Income (Loss)
$
3,006
$
15,871
$
(13,911
)
$
33,452
$
33,952
$
18,877
$
36,706
Provision (benefit) for credit losses
20,966
4,118
3,105
949
1,820
25,084
5,532
Loan repurchase losses (1)
1,664
6,950
20,092
—
—
8,614
—
Net write-offs
—
(491
)
—
—
—
(491
)
—
Amortization and depreciation
60,699
62,964
62,084
60,041
58,936
123,663
116,557
MSR income
(47,817
)
(46,773
)
(50,060
)
(48,657
)
(53,153
)
(94,590
)
(80,964
)
Contingent consideration accretion and fair value adjustments
434
(299
)
(8,226
)
18
41
135
81
Write-off of unamortized issuance costs from corporate debt paydown (2)
—
—
—
—
—
—
4,215
Income tax expense adjustment (3)
719
(6,908
)
(3,662
)
(3,856
)
(2,429
)
(6,189
)
(13,784
)
Adjusted Core Net Income
$
39,671
$
35,432
$
9,422
$
41,947
$
39,167
$
75,103
$
68,343
Reconciliation of Diluted EPS to Adjusted core EPS
Walker & Dunlop Net Income (Loss)
$
3,006
$
15,871
$
(13,911
)
$
33,452
$
33,952
$
18,877
$
36,706
Diluted weighted-average shares outstanding
33,275
33,411
33,410
33,397
33,371
33,343
33,333
Diluted earnings (loss) per share
$
0.09
$
0.46
$
(0.41
)
$
0.98
$
0.99
$
0.55
$
1.07
Adjusted Core Net Income
$
39,671
$
35,432
$
9,422
$
41,947
$
39,167
$
75,103
$
68,343
Diluted weighted-average shares outstanding
33,275
33,411
33,410
33,397
33,371
33,343
33,333
Adjusted core EPS
$
1.19
$
1.02
$
0.28
$
1.22
$
1.15
$
2.19
$
2.00
____________________
(1)
Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.
(2)
Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.
(3)
Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Condensed Consolidated Statements of Income in this press release or (ii) estimated annual effective rate. Category: Earnings
CENTER VALLEY, Pa.--(BUSINESS WIRE)--Shift4 (NYSE: FOUR) has posted its second quarter 2026 financial results as part of its Q2 2026 Shareholder Letter, which can be viewed here or by navigating to the Financials section of its Investor Relations website at https://investors.shift4.com.
Earnings Conference Call
Management will host a conference call today, August 6th, 2026, at 8:30 a.m. ET to discuss the results.
The earnings conference call will also be webcast live and interested parties can join the live webcast through Shift4’s website at: https://investors.shift4.com
X Spaces Simulcast
As previously announced, the live audio of the earnings call will be simulcast via X Spaces. Follow @Shift4 on X for additional information on how to access the simulcast.
About Shift4
Shift4 (NYSE: FOUR) powers the experience economy, enabling businesses to deliver the moments that matter. Transforming how people shop, dine, stay, and play, Shift4’s commerce technology allows for a seamless experience at any scale. From your neighborhood restaurant to the world’s largest event venues, Shift4 handles billions of transactions annually for hundreds of thousands of businesses around the world. For more information, visit shift4.com.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) ("F&G") today announced that its Board of Directors has declared a quarterly cash dividend in the amount of $0.25 per common share. The dividend will be payable on September 30, 2026, to stockholders of record as of September 16, 2026.
The Board also declared a quarterly cash dividend of $0.859375 per share of F&G's 6.875% Series A Mandatory Convertible Preferred Stock, to be paid on October 15, 2026, to holders of record as of October 1, 2026.
About F&G
F&G Annuities and Life, Inc. is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit www.fglife.com.
Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
[email protected]
515.330.3307
Restaurant Brands International ve 2. čtvrtletí zvýšila výnosy na 2,520 mld. USD a čistý zisk z pokračujících operací na 665 mil. USD. Srovnatelné tržby vzrostly meziročně o 3,8 %.
Consolidated System-wide Sales grow 6.4% year-over-year, including 10.7% in International
Comparable Sales accelerated to 3.8%, including 8.5% at BK US and 5.5% at International
RBI returns $435 million of capital to shareholders via dividends and share repurchases
RBI remains on track for 8% organic Adjusted Operating Income growth in 2026
, /PRNewswire/ -- Restaurant Brands International Inc. ("RBI") (NYSE: QSR) (TSX: QSR) (TSX: QSP) today reported financial results for the second quarter ended June 30, 2026. Josh Kobza, Chief Executive Officer of RBI commented, "We built on our strong start to 2026 with another quarter of over 3% global comparable sales and double-digit earnings growth, led by Burger King's standout performance and continued strength at International. These results show the benefits of our diversified portfolio and that the strategy we outlined at Investor Day is working. Burger King's performance is a great example of what's possible when you invest in the fundamentals and execute well – an approach we're applying across all of our brands."
Consolidated Operational and Financial Highlights
(in US$ millions, except per share and ratio data, unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
Operational Highlights
2026
2025
2026
2025
System-wide Sales Growth (a)
6.4 %
5.3 %
6.3 %
4.1 %
System-wide Sales (a)
$
12,702
$
11,853
$
24,213
$
22,349
Comparable Sales
3.8 %
2.4 %
3.5 %
1.3 %
Net Restaurant Growth
2.9 %
2.9 %
2.9 %
2.9 %
System Restaurant Count at Period End
33,156
32,229
33,156
32,229
GAAP Financials
Total Revenues
$
2,520
$
2,410
$
4,784
$
4,519
Income from Operations
$
716
$
483
$
1,322
$
918
Income from Operations Growth
48.4 %
(27.2) %
44.0 %
(24.0) %
Net Income from Continuing Operations
$
665
$
264
$
1,110
$
487
Diluted Earnings per Share from Continuing Operations
$
1.45
$
0.58
$
2.42
$
1.07
Financial Highlights (b)
Adjusted Operating Income (AOI)
$
715
$
668
$
1,324
$
1,208
Organic AOI Growth
6.7 %
5.7 %
8.5 %
4.3 %
Adjusted EBITDA
$
810
$
762
$
1,517
$
1,404
Adjusted Diluted Earnings per Share (Adj. EPS)
$
1.07
$
0.94
$
1.93
$
1.70
Nominal Adj. EPS Growth
12.9 %
9.2 %
13.7 %
6.5 %
Organic Adj. EPS Growth
12.3 %
10.3 %
11.8 %
10.0 %
Net Leverage
4.1x
4.6x
4.1x
4.6x
(a)
System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis.
(b)
Non-GAAP metrics. Please refer to "Non-GAAP Financial Measures" for further detail.
Reporting Segments
We have six operating and reportable segments, including four franchisor segments for our Tim Hortons, Burger King, Popeyes, and Firehouse Subs brands in the U.S. and Canada ("TH", "BK", "PLK", and "FHS", respectively) and a fifth franchisor segment for all of our brands in the rest of the world ("INTL"). Additionally, we have a sixth operating and reportable segment, Restaurant Holdings ("RH"), which includes the operations of Burger King restaurants acquired as part of our acquisition of Carrols Restaurant Group Inc. (the "Carrols Acquisition"), as well as our acquisition of Popeyes China ("PLK China") ("PLK China Acquisition") and Firehouse Subs Brazil ("FHS Brazil") restaurants.
RBI maintains the franchisor dynamics in its TH, BK, PLK, FHS, and INTL segments ("Five Franchisor Segments") to report results consistent with how the business will be managed long-term. This approach reflects RBI's intent to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. RH results include Company restaurant sales and expenses, including expenses associated with royalties, rent, and advertising. These expenses are recognized, as applicable, as revenues in the respective franchisor segments (BK for the Carrols Burger King restaurants and INTL for PLK China and FHS Brazil restaurants) and eliminated upon consolidation.
Items Affecting Comparability
Burger King China
On February 14, 2025, we acquired substantially all of the remaining equity interests in Burger King China ("BK China"). For 2025, BK China was classified as held for sale and reported as discontinued operations. As such, for 2025, results for BK China were not recognized in the INTL segment. However, BK China KPIs continued to be included in our INTL segment KPIs.
On January 30, 2026, we established a joint venture with CPE Alder Investment Limited, a fund managed by CPE ("CPE"), with respect to the operations of BK China (such joint venture, the "BK China JV"). CPE invested $350 million of primary capital into the BK China JV. Following the transaction, we deconsolidated BK China and began accounting for our remaining 17% equity interest in the BK China JV under the equity method of accounting and recognizing franchise revenue, primarily related to royalties, in our INTL segment. We refer to the acquisition of BK China and the subsequent establishment of the BK China JV collectively as the "BK China Transactions."
2026 Convention Timing Impact on Franchise and Property Results
In 2025, PLK and INTL hosted conventions in Q2, BK and FHS hosted conventions in Q3, and TH did not host a convention. In 2026, PLK and FHS will host conventions in Q3, TH and BK will host conventions in Q4, and INTL will not host a convention. Convention-related revenues and expenses are recognized in each segment's Franchise and property revenues and Segment F&P expenses, respectively, and have an immaterial net AOI impact.
Supplemental Disclosures
Please review the Trending Schedules posted on the RBI Investor Relations webpage under "Financial Information" for additional disclosures, including:
Home Market and International KPIs by Brand and Company Restaurant Count by Segment; Segment Results with Disaggregated Franchise and Property Revenues (Royalties, Property Revenue and Franchise Fees and Other Revenue); Intersegment Revenue and Expense Eliminations; Burger King US "Reclaim the Flame" Expenditures by Quarter; and RH Burger King Carrols Restaurant-Level EBITDA Margins. TH Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales Growth (a)
0.4 %
3.9 %
1.3 %
2.1 %
System-wide Sales (a)
$
2,003
$
1,995
$
3,741
$
3,626
Comparable Sales
0.1 %
3.4 %
0.8 %
1.8 %
Comparable Sales - Canada
0.1 %
3.6 %
0.7 %
2.0 %
Net Restaurant Growth
1.1 %
0.3 %
1.1 %
0.3 %
System Restaurant Count at Period End
4,570
4,521
4,570
4,521
Supply chain sales
$
788
$
732
$
1,474
$
1,343
Company restaurant sales
$
11
$
12
$
20
$
22
Franchise and property revenues
$
262
$
262
$
495
$
480
Advertising revenues and other services
$
76
$
78
$
145
$
142
Total revenues
$
1,137
$
1,083
$
2,134
$
1,987
Supply chain cost of sales
$
635
$
589
$
1,199
$
1,085
Company restaurant expenses
$
9
$
10
$
18
$
19
Segment F&P expenses
$
86
$
83
$
168
$
161
Advertising expenses and other services
$
90
$
93
$
172
$
159
Segment G&A
$
34
$
34
$
68
$
71
Adjustments:
Cash distributions received from equity method investments
$
4
$
4
$
7
$
7
Adjusted Operating Income
$
287
$
278
$
516
$
499
(a) System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis.
For the second quarter, the increase in Total revenues was primarily driven by higher Supply chain sales due to increases in commodity prices and CPG net sales.
The increase in Adjusted Operating Income was primarily driven by revenue growth, partially offset by higher Supply chain cost of sales primarily due to higher commodity prices.
BK Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales Growth
8.2 %
1.0 %
6.9 %
(0.3) %
System-wide Sales
$ 3,193
$ 2,952
$ 6,046
$ 5,652
Comparable Sales
8.6 %
1.3 %
7.2 %
0.0 %
Comparable Sales - US
8.5 %
1.5 %
7.2 %
0.2 %
Net Restaurant Growth
(0.8) %
(1.2) %
(0.8) %
(1.2) %
System Restaurant Count at Period End
6,992
7,046
6,992
7,046
Company restaurant sales
$ 44
$ 61
$ 90
$ 121
Franchise and property revenues (a)
$ 198
$ 182
$ 376
$ 350
Advertising revenues and other services (b)
$ 155
$ 144
$ 295
$ 273
Total revenues
$ 397
$ 388
$ 762
$ 744
Company restaurant expenses
$ 39
$ 57
$ 82
$ 111
Segment F&P expenses
$ 33
$ 33
$ 66
$ 64
Advertising expenses and other services
$ 156
$ 147
$ 297
$ 278
Segment G&A
$ 31
$ 31
$ 64
$ 67
Adjusted Operating Income
$ 137
$ 121
$ 252
$ 224
(a)
Franchise and property revenues include intersegment revenues with RH consisting of royalties and rent of $30 million and $57 million during the three and six months ended June 30, 2026, respectively, and $27 million and $55 million during three and six months ended June 30, 2025, which are eliminated in consolidation.
(b)
Advertising revenues and other services include intersegment revenues with RH consisting of advertising contributions and tech fees of $24 million and $45 million during the three and six months ended June 30, 2026, respectively, and $22 million and $42 million during the three and six months ended June 30, 2025, which are eliminated in consolidation.
As a reminder, BK segment results are presented consistently with our franchisor model. As such, results include intersegment Franchise and property revenues and Advertising revenues and other services from the Carrols Burger King restaurants included in RH (as footnoted above).
Burger King US Reclaim the Flame
Burger King is executing its multi-year "Reclaim the Flame" plan to accelerate sales growth and drive franchisee profitability. This plan includes investing up to $700 million through year-end 2028, comprised of advertising and digital investments (which were completed in 2024) and high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements ("Royal Reset"). As of June 30, 2026, we have funded $194 million out of up to $550 million planned toward the Royal Reset investments.
Second Quarter 2026 Results
The increase in Total revenues was primarily driven by the increase in Comparable Sales, partially offset by the net impact of refranchisings.
The increase in Adjusted Operating Income was primarily driven by higher Franchise and property revenues.
PLK Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales Growth
(3.1) %
1.6 %
(3.5) %
(0.4) %
System-wide Sales
$ 1,529
$ 1,578
$ 2,950
$ 3,053
Comparable Sales
(5.1) %
(1.4) %
(5.8) %
(2.7) %
Comparable Sales - US
(5.2) %
(0.9) %
(5.8) %
(2.4) %
Net Restaurant Growth
0.5 %
2.5 %
0.5 %
2.5 %
System Restaurant Count at Period End
3,542
3,524
3,542
3,524
Company restaurant sales
$ 46
$ 46
$ 90
$ 93
Franchise and property revenues
$ 81
$ 87
$ 156
$ 165
Advertising revenues and other services
$ 72
$ 77
$ 143
$ 147
Total revenues
$ 199
$ 210
$ 389
$ 404
Company restaurant expenses
$ 41
$ 40
$ 79
$ 79
Segment F&P expenses
$ 3
$ 6
$ 6
$ 8
Advertising expenses and other services
$ 74
$ 80
$ 148
$ 152
Segment G&A
$ 18
$ 19
$ 36
$ 40
Adjusted Operating Income
$ 63
$ 66
$ 119
$ 126
For the second quarter, the decrease in Total revenues and Adjusted Operating Income was primarily driven by the decline in Comparable Sales.
FHS Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales Growth
7.5 %
6.3 %
7.4 %
6.8 %
System-wide Sales
$ 361
$ 336
$ 708
$ 658
Comparable Sales
0.4 %
(0.8) %
0.0 %
(0.2) %
Comparable Sales - US
0.7 %
(1.1) %
0.5 %
(0.4) %
Net Restaurant Growth
8.1 %
6.4 %
8.1 %
6.4 %
System Restaurant Count at Period End
1,482
1,371
1,482
1,371
Company restaurant sales
$ 12
$ 11
$ 23
$ 22
Franchise and property revenues
$ 29
$ 28
$ 58
$ 54
Advertising revenues and other services
$ 21
$ 20
$ 40
$ 36
Total revenues
$ 62
$ 59
$ 121
$ 113
Company restaurant expenses
$ 10
$ 9
$ 20
$ 19
Segment F&P expenses
$ 2
$ 2
$ 4
$ 3
Advertising expenses and other services
$ 21
$ 20
$ 42
$ 38
Segment G&A
$ 12
$ 13
$ 25
$ 27
Adjusted Operating Income
$ 17
$ 15
$ 31
$ 26
For the second quarter, the increase in Total revenues and Adjusted Operating Income was primarily driven by the increase in restaurant count.
INTL Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales Growth (a)
10.7 %
9.8 %
10.9 %
9.3 %
System-wide Sales (a)
$ 5,616
$ 4,992
$ 10,768
$ 9,360
Comparable Sales
5.5 %
4.2 %
5.6 %
3.4 %
Comparable Sales - INTL - Burger King
5.4 %
4.1 %
5.4 %
3.4 %
Net Restaurant Growth
5.1 %
5.4 %
5.1 %
5.4 %
System Restaurant Count at Period End
16,570
15,767
16,570
15,767
Franchise and property revenues
$ 253
$ 228
$ 488
$ 428
Advertising revenues and other services
$ 22
$ 21
$ 40
$ 40
Total revenues
$ 274
$ 250
$ 528
$ 468
Segment F&P expenses
$ 3
$ 9
$ (11)
$ 14
Advertising expenses and other services
$ 24
$ 23
$ 46
$ 45
Segment G&A
$ 52
$ 47
$ 103
$ 98
Adjusted Operating Income
$ 194
$ 172
$ 390
$ 310
(a) System-wide Sales Growth is calculated on a constant currency basis and therefore will not recalculate to the percentage change in System-wide Sales, which is reported on a nominal basis
For the second quarter, the increase in Total revenues was primarily driven by higher royalty revenues from Burger King and Popeyes restaurants resulting from the increase in System-wide Sales, as well as the resumption of royalty revenues from BK China. Results also reflect a favorable FX Impact of $4 million. Excluding the FX Impact, Total revenues increased by $20 million.
The increase in Adjusted Operating Income was driven by revenue growth, partially offset by an increase in Segment G&A primarily due to higher compensation-related expenses. Results also reflect a favorable FX Impact of $2 million. Excluding the FX Impact, Adjusted Operating Income increased by $20 million.
RH Segment Results
Three Months Ended June 30,
Six Months Ended June 30,
(in US$ millions, unaudited)
2026
2025
2026
2025
System-wide Sales
$ 506
$ 469
$ 954
$ 895
System-wide Sales - BK US
$ 493
$ 464
$ 932
$ 887
System-wide Sales - INTL
$ 13
$ 5
$ 23
$ 8
Comparable Sales
9.0 %
2.9 %
6.8 %
1.0 %
Comparable Sales - BK US
9.2 %
2.9 %
6.9 %
1.0 %
System Restaurant Count at Period End
1,104
1,044
1,104
1,044
System Restaurant Count at Period End - BK US
994
1,012
994
1,012
System Restaurant Count at Period End - INTL
110
32
110
32
Total revenues
$ 506
$ 469
$ 953
$ 901
Food, beverage and packaging costs
$ 154
$ 134
$ 287
$ 255
Restaurant wages and related expenses
$ 154
$ 152
$ 300
$ 297
Restaurant occupancy and other expenses (a)
$ 128
$ 120
$ 250
$ 233
Company restaurant expenses
$ 435
$ 406
$ 836
$ 785
Advertising expenses and other services (b)
$ 27
$ 24
$ 50
$ 45
Segment G&A
$ 27
$ 23
$ 51
$ 48
Adjusted Operating Income
$ 17
$ 16
$ 16
$ 23
Note: RH KPIs are shown consistently with RBI's reporting calendar, but in 2025, results from BK Carrols restaurants in the statements of operations were shown consistently with the Carrols reporting calendar which for the three and six months ended June 30, 2025 were from March 31, 2025 to June 29, 2025 and from December 30, 2024 to June 29, 2025, respectively.
(a)
Restaurant occupancy and other expenses include intersegment royalties and property expenses of $31 million and $58 million during the three and six months ended June 30, 2026, respectively, and $27 million and $55 million for the three and six months ended June 30, 2025, which are eliminated in consolidation.
(b)
Advertising expenses and other services include intersegment advertising expenses and tech fees of $24 million and $45 million during the three and six months ended June 30, 2026, respectively, and $22 million and $42 million for the three and six months ended June 30, 2025, which are eliminated in consolidation.
The RH segment includes results from (i) Burger King restaurants acquired as part of the Carrols Acquisition and (ii) PLK China and FHS Brazil restaurants. RBI is actively working to refranchise the Carrols Burger King restaurants, and as a result, RH segment results reflect the impact of refranchisings as well as incremental investments in the PLK China and FHS Brazil start-up businesses.
For the second quarter, the increase in Total revenues was primarily driven by an increase in BK US Comparable Sales and an increase in PLK China restaurant count, partially offset by BK US refranchisings.
Adjusted Operating Income remained relatively flat as revenue growth was offset by an increase in Company restaurant expenses. The increase in Company restaurant expenses reflects higher BK US Company restaurant expenses, primarily driven by increased sales and depreciation and amortization expense, as well as expenses related to scaling our international start-up businesses.
Cash and Liquidity
The RBI Board of Directors has declared a dividend of $0.65 per common share and partnership exchangeable unit of RBI LP for the third quarter of 2026. The dividend will be payable on October 2, 2026 to shareholders and unitholders of record at the close of business on September 18, 2026.
On August 6, 2025, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $1,000 million of our common shares from September 15, 2025 through September 30, 2027. For the three months ended June 30, 2026, we repurchased 1,821,167 of our common shares for $137 million, excluding excise taxes. Of these repurchases, 13,782 common shares had not yet settled as of June 30, 2026 and therefore were not retired at that date. As of June 30, 2026, we had $829 million remaining under the share repurchase authorization.
Subsequent Events
Subsequent to June 30, 2026 through July 31, 2026, we repurchased 463,385 of our common shares for $35 million and as of July 31, 2026 had $794 million remaining under the share repurchase authorization.
2026 Financial Guidance
For 2026, RBI continues to expect:
Segment G&A (excluding RH) for 2026 between $600 million and $620 million; RH AOI of approximately $10 to $20 million; Adjusted Interest Expense, net between $500 million and $520 million; and Consolidated capital expenditures, tenant inducements and incentives (including RH), or "Total Capex and Cash Inducements" of around $400 million. Long-Term Algorithm
RBI continues to expect the following long-term consolidated performance on average, from 2024 to 2028:
3%+ Comparable Sales; and 8%+ organic Adjusted Operating Income growth. In addition, RBI continues to expect to reach 5%+ Net Restaurant Growth towards the end of its algorithm period.
Investor Conference Call
We will host an investor conference call and webcast at 8:30 a.m. Eastern Time on Thursday, August 6, 2026, to review financial results for the second quarter ended June 30, 2026. The earnings call will be broadcast live via our investor relations website at http://rbi.com/investors and a replay will be available for a limited time following the release. The dial-in number is 1 (833) 461-5787 for U.S. callers, 1 (365) 657-4084 for Canadian callers, and 1 (585) 542-9983 for callers from other countries. For all dial-in numbers please use the following access code: 686849151.
About Restaurant Brands International Inc.
Restaurant Brands International Inc. is one of the world's largest quick service restaurant companies with nearly $49 billion in annual system-wide sales and over 33,000 restaurants in more than 120 countries and territories. RBI owns four of the world's most prominent and iconic quick service restaurant brands – TIM HORTONS®, BURGER KING®, POPEYES®, and FIREHOUSE SUBS®. These independently operated brands have been serving their respective guests, franchisees and communities for decades. Through its Restaurant Brands for Good framework, RBI is improving sustainable outcomes related to its food, the planet, and people and communities.
RBI's principal executive offices are in Miami, Florida. In North America, RBI's brands are headquartered in their home markets where they were founded decades ago: Canada for Tim Hortons and the U.S. for Burger King, Popeyes and Firehouse Subs. To learn more about RBI, please visit the company's website at www.rbi.com.
Forward-Looking Statements
This press release and our investor conference call contain certain forward-looking statements and information, which reflect management's current beliefs and expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties.
These forward-looking statements include statements about our expectations or beliefs regarding (i) the impact of macroeconomic pressures and currency fluctuations on our and our franchisees' results of operations and business; (ii) our remodel program and refranchising efforts; (iii) future share repurchases; (iv) leverage and free cash flow, including our path to achieving investment-grade status; (v) our and our franchisees' future operational and financial performance, including our performance against our long-term algorithm; (vi) certain tax matters, including our estimates with respect to tax matters and their impact on future periods, and any costs associated with contesting tax liabilities; (vii) our future financial obligations, including capital expenditures and dividend payments; (viii) efforts to identify long-term partners for Popeyes China and investors for FHS Brazil and the subsequent sunset of the RH segment; (ix) refranchising of restaurants acquired in the Carrols Acquisition; (x) commodity prices; (xi) certain accounting matters, including the impact of changes in accounting standards and the assumptions underlying our critical accounting estimates; (xii) our growth opportunities and our ability to accelerate net restaurant growth, and (xiii) our plans and strategies for each of our brands to enhance operations and drive long-term, sustainable growth. The factors that could cause actual results to differ materially from our expectations are detailed in our filings with the Securities and Exchange Commission and applicable Canadian securities regulatory authorities, such as our annual and quarterly reports and current reports on Form 8-K, and include the following: (1) the effectiveness of our marketing, advertising and digital programs and franchisee support of these programs; (2) the effectiveness of our operational and culinary initiatives; (3) increased commodity prices; (4) significant and rapid fluctuations in interest rates and in the currency exchange markets and the effectiveness of our hedging activity; (5) changes in applicable tax laws or interpretations thereof, and our ability to accurately interpret and predict the impact of such changes or interpretations on our financial condition and results; (6) our supply chain operations; (7) our reliance on franchisees, including master franchisees and subfranchisees, to accelerate restaurant growth and execute their development commitments (including for BK China); (8) our relationship with, and the success of, our franchisees and risks related to our franchised business model; (9) our franchisees' financial stability and their ability to access and maintain the liquidity necessary to operate their businesses; (10) evolving legislation and regulations, including in the area of franchise and labor and employment law; (11) global economic or other business conditions that may affect the desire or ability of our guests to purchase our products, such as inflationary pressures, high unemployment levels, declines in median income growth, consumer confidence and consumer discretionary spending and changes in consumer perceptions of dietary health, food safety, brand identity and value; (12) our ability to refranchise restaurants acquired in the Carrols Acquisition and to identify and successfully consummate agreements with new partners for PLK China and new investors for FHS Brazil when we plan to do so, and our ability to subsequently sunset the RH segment; (13) the ability to access liquidity under our credit facilities and derivatives, including counterparty risks; (14) our indebtedness, which could adversely affect our financial condition and prevent us from fulfilling our obligations; (15) tariffs and their impact on economic conditions or our business; (16) our ownership and leasing of real estate; (17) our ability to successfully estimate the impact of certain accounting matters, including changes to factors underlying our critical accounting estimates and the price and pace of refranchisings; and (18) risks related to unforeseen events, such as natural disasters or pandemics.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data, Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenues:
Supply chain sales
$ 788
$ 732
$ 1,474
$ 1,343
Company restaurant sales
617
600
1,176
1,158
Franchise and property revenues
793
760
1,515
1,423
Advertising revenues and other services
322
318
619
595
Total revenues
2,520
2,410
4,784
4,519
Operating costs and expenses:
Supply chain cost of sales
635
589
1,199
1,085
Company restaurant expenses
508
498
985
966
Franchise and property expenses
139
144
258
274
Advertising expenses and other services
369
364
710
675
General and administrative expenses
181
188
361
379
(Income) loss from equity method investments
(2)
(5)
(4)
(10)
Other operating expenses (income), net
(26)
149
(47)
232
Total operating costs and expenses
1,804
1,927
3,462
3,601
Income from operations
716
483
1,322
918
Interest expense, net
124
132
247
262
Income from continuing operations before income taxes
592
351
1,075
656
Income tax (benefit) expense from continuing operations
(73)
87
(35)
169
Net income from continuing operations
665
264
1,110
487
Net loss from discontinued operations (net of tax of $0)
—
1
—
3
Net income
665
263
1,110
484
Net income attributable to noncontrolling interests
158
74
265
136
Net income attributable to common shareholders
$ 507
$ 189
$ 845
$ 348
Earnings per common share
Basic net income per share from continuing operations
$ 1.46
$ 0.58
$ 2.43
$ 1.07
Basic net loss per share from discontinued operations
$ —
$ (0.00)
$ —
$ (0.01)
Basic net income per share
$ 1.46
$ 0.58
$ 2.43
$ 1.07
Diluted net income per share from continuing operations
$ 1.45
$ 0.58
$ 2.42
$ 1.07
Diluted net loss per share from discontinued operations
$ —
$ (0.00)
$ —
$ (0.01)
Diluted net income per share
$ 1.45
$ 0.57
$ 2.42
$ 1.06
Weighted average shares outstanding (in millions):
Basic
348
328
347
327
Diluted
460
457
459
456
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data, Unaudited)
As of
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 1,063
$ 1,163
Accounts and notes receivable, net of allowance of $43 and $54, respectively
800
794
Inventories, net
224
205
Prepaids and other current assets
256
179
Assets held for sale - discontinued operations
—
489
Total current assets
2,343
2,830
Property and equipment, net of accumulated depreciation and amortization of $1,299 and
$1,245, respectively
2,230
2,303
Operating lease assets, net
1,964
1,961
Intangible assets, net
10,945
11,190
Goodwill
6,183
6,306
Other assets, net
1,357
1,025
Total assets
$ 25,022
$ 25,615
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts and drafts payable
$ 884
$ 866
Other accrued liabilities
1,165
1,271
Gift card liability
183
249
Current portion of long-term debt and finance leases
82
68
Liabilities held for sale - discontinued operations
—
437
Total current liabilities
2,314
2,891
Long-term debt, net of current portion
13,206
13,250
Finance leases, net of current portion
243
261
Operating lease liabilities, net of current portion
1,908
1,900
Other liabilities, net
900
1,034
Deferred income taxes, net
1,056
1,120
Total liabilities
19,627
20,456
Shareholders' equity:
Common shares, no par value; unlimited shares authorized at June 30, 2026 and
December 31, 2025; 349,205,651 shares issued and outstanding at June 30, 2026;
346,323,165 shares issued and outstanding at December 31, 2025
2,870
2,859
Retained earnings
2,179
1,795
Accumulated other comprehensive income (loss)
(1,199)
(1,020)
Total Restaurant Brands International Inc. shareholders' equity
3,850
3,634
Noncontrolling interests
1,545
1,525
Total shareholders' equity
5,395
5,159
Total liabilities and shareholders' equity
$ 25,022
$ 25,615
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars, Unaudited)
Six Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net income
$ 1,110
$ 484
Net loss from discontinued operations
—
3
Net income from continuing operations
1,110
487
Depreciation and amortization
155
148
Amortization of deferred financing costs and debt issuance discount
12
13
(Income) loss from equity method investments
(4)
(10)
(Gain) loss on remeasurement of foreign denominated transactions
(50)
207
Net (gains) losses on derivatives
(82)
(102)
Share-based compensation and non-cash incentive compensation expense
70
81
Deferred income taxes
(215)
8
Other non-cash adjustments, net
(7)
31
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable
(24)
(72)
Inventories and prepaids and other current assets
(35)
(30)
Accounts and drafts payable
42
(6)
Other accrued liabilities and gift card liability
(184)
(155)
Tenant inducements paid to franchisees
(18)
(14)
Changes in other long-term assets and liabilities
(13)
(19)
Net cash provided by operating activities from continuing operations
757
567
Cash flows from investing activities:
Payments for additions of property and equipment
(109)
(102)
Net proceeds from disposal of assets, restaurant closures, and refranchisings
33
12
Net payments for acquisition of franchised restaurants, net of cash acquired
—
(152)
Settlement/sale of derivatives, net
28
40
Other investing activities, net
(12)
—
Net cash used for investing activities from continuing operations
(60)
(202)
Cash flows from financing activities:
Repayments of long-term debt and finance leases
(57)
(66)
Payment of common share dividends and Partnership exchangeable unit distributions
(579)
(544)
Repurchase of common shares
(170)
—
Proceeds from stock option exercises
35
20
Proceeds from derivatives
19
34
Other financing activities, net
(1)
1
Net cash used for financing activities from continuing operations
(753)
(555)
Net cash used for discontinued operations
(27)
(85)
Effect of exchange rates on cash and cash equivalents
(8)
19
(Decrease) increase in cash and cash equivalents, including cash classified as assets held
for sale - discontinued operations
(91)
(256)
Increase in cash classified as assets held for sale - discontinued operations
(9)
(52)
(Decrease) increase in cash and cash equivalents
(100)
(308)
Cash and cash equivalents at beginning of period
1,163
1,334
Cash and cash equivalents at end of period
$ 1,063
$ 1,026
Supplemental cash flow disclosures:
Interest paid
$ 329
$ 360
Income taxes paid, net
$ 229
$ 285
Accruals for additions of property and equipment
$ 20
$ 22
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Key Operating Metrics and Non-GAAP Financial Measures
Key Operating Metrics
Key performance indicators ("KPIs") are shown for RBI's Five Franchisor Segments. The KPIs for the Carrols Burger King restaurants are included in the BK segment and KPIs for the PLK China, BK China, and FHS Brazil restaurants are included in the INTL segment.
System-wide Sales Growth refers to the percentage change in sales at all franchised restaurants and company restaurants (referred to as System-wide Sales) in one period from the same period in the prior year on a constant currency basis, which means the results exclude the effect of foreign currency translation ("FX Impact"). We calculate the FX Impact by translating prior year results at current year monthly average exchange rates. System-wide Sales is reported on a nominal basis. Comparable Sales refers to the percentage change in restaurant sales in one period from the same prior year period on a constant currency basis for restaurants that have been open for an initial consecutive period, typically at least 13 months. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly Comparable Sales calculation. Unless otherwise stated, System-wide Sales Growth, System-wide Sales and Comparable Sales are presented on a system-wide basis, which means they include franchised restaurants and company restaurants. System-wide results are driven by our franchised restaurants, as over 95% of system-wide restaurants are franchised. Franchise sales represent sales at all franchised restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales. Net Restaurant Growth refers to the net change in restaurant count (openings, net of permanent closures) over a trailing twelve month period, divided by the restaurant count at the beginning of the trailing twelve month period. In determining whether a restaurant meets our definition of a restaurant that will be included in our Net Restaurant Growth, we consider factors such as scope of operations, format and image, separate franchise agreement, and minimum sales thresholds. We refer to restaurants that do not meet our definition as "alternative formats" and we believe these are helpful to build brand awareness, test new concepts and provide convenience in certain markets. Total Capex and Cash Inducements refers to the sum of payments for additions to property and equipment, tenant inducements paid to franchisees, other cash inducements (included in changes in other long-term assets and liabilities), and increase (decrease) in accruals for additions to property and equipment. These metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of each brand's marketing, operations and growth initiatives. Total Capex and Cash Inducements is an indicator of the capital intensity of our business.
Non-GAAP Financial Measures
Below, we define non-GAAP financial measures, provide a reconciliation of each measure to the most directly comparable financial measure calculated in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), and discuss the reasons management uses this information and why we believe this information may be useful to investors. These measures do not have standardized meanings under GAAP and may differ from similarly captioned measures of other companies in our industry. We believe that these non-GAAP measures are useful to investors in assessing our operating performance and liquidity. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented.
AOI represents Income from operations adjusted to exclude (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) expenses from non-recurring projects and non-operating activities. For the periods referenced, expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expenses, consisting primarily of professional fees, compensation-related expenses, and integration costs, incurred in connection with (a) the Carrols Acquisition, the PLK China Acquisition, and the BK China Transactions, and (b) the anticipated refranchising of restaurants held in the RH segment, primarily those acquired in the Carrols Acquisition, in connection with the planned sunset of the RH segment ("RH and BK China Transaction costs") and (ii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations ("Corporate restructuring and advisory fees"). Management believes that these types of expenses are either not related to our underlying profitability drivers or not likely to reoccur in the foreseeable future, and the varied timing, size, and nature of these projects may cause volatility in our results unrelated to the performance of our core business that does not reflect trends of our core operations. AOI is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items. AOI, as defined above, also represents our measure of segment income for each of our operating segments.
Adjusted EBITDA is defined as earnings (net income or loss from continuing operations) before interest expense, net, (gain) loss on early extinguishment of debt, income tax (benefit) expense from continuing operations, and depreciation and amortization excluding (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net, and (iv) income or expense from non-recurring projects and non-operating activities (as described above) and is used by management to measure leverage.
Segment G&A is defined as general and administrative expenses excluding RH and BK China Transaction costs and Corporate restructuring and advisory fees. Segment G&A (excluding RH) is defined as Segment G&A for our Five Franchisor Segments.
Segment F&P Expenses is defined as franchise and property expenses excluding franchise agreement amortization ("FAA") and reacquired franchise rights amortization as a result of acquisition accounting.
Adjusted Net Income is defined as Net income from continuing operations excluding (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) amortization of deferred financing costs and debt issuance discount, (iii) loss on early extinguishment of debt and interest expense, which represents non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps, (iv) (income) loss from equity method investments, net of cash distributions received from equity method investments, (v) other operating expenses (income), net, and (vi) income or expense from non-recurring projects and non-operating activities (as described above).
Adjusted Interest Expense, net is defined as interest expense, net less (i) amortization of deferred financing costs and debt issuance discount and (ii) non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps.
Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average diluted shares outstanding of RBI during the reporting period. Adjusted Net Income and Adjusted Diluted EPS are used by management to evaluate the operating performance of the business, excluding certain non-cash and other specifically identified items that management believes are not relevant to management's assessment of operating performance.
Net Debt is defined as Total debt less cash and cash equivalents. Total debt is defined as long-term debt, net of current portion plus (i) Finance leases, net of current portion, (ii) Current portion of long-term debt and finance leases and (iii) Unamortized deferred financing costs and deferred issue discount. Net Debt is used by management to evaluate RBI's liquidity. We believe this measure is an important indicator of RBI's ability to service its debt obligations.
Net Leverage is defined as Net Debt divided by Adjusted EBITDA. This metric is an operating performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.
Revenue growth, Income from Operations growth, Adjusted Operating Income growth, Net Income growth, Adjusted EBITDA growth, Adjusted Net Income growth and Adjusted Diluted EPS growth on an organic basis, are non-GAAP measures that exclude the impact of FX movements and the results of our RH segment. With respect to Adjusted Diluted EPS, growth on an organic basis also excludes the impact of incremental debt incurred as part of the Carrols transaction. Management believes that organic growth is an important metric for measuring the operating performance of our business as it helps identify underlying business trends, without distortion from the effects of FX movements and the RH segment given RBI's plans to refranchise the vast majority of the Carrols Burger King restaurants and to find a new partner for PLK China and new investors for FHS Brazil and sunset the RH segment. We calculate the impact of FX movements by translating prior year results at current year monthly average exchange rates.
Free Cash Flow ("FCF") is the total of Net cash provided by operating activities minus Payments for property and equipment. FCF is a liquidity measure used by management as one factor in determining the amount of cash that is available for working capital needs or other uses of cash and it does not represent residual cash flows available for discretionary expenditures.
We are not currently able to reconcile our forward-looking non-GAAP measures because we cannot predict the timing and amounts of certain important components of estimated operating income and general and administrative expenses, including the impact of equity method investments and other operating expenses or income from non-recurring projects and non-operating activities, which could significantly impact GAAP results.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Three Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Three Months Ended
June 30,
Variance
RH Impact
FX Impact
Organic Growth
2026
2025
$
%
$
$
$
%
Revenue
TH
$ 1,137
$ 1,083
$ 54
4.9 %
$ —
$ (1)
$ 54
5.0 %
BK
397
388
9
2.3 %
—
—
9
2.3 %
PLK
199
210
(11)
(5.4) %
—
—
(11)
(5.4) %
FHS
62
59
3
4.7 %
—
—
3
4.7 %
INTL
274
250
25
9.8 %
—
4
20
8.1 %
RH
506
469
36
7.7 %
36
—
—
— %
Elimination of intersegment
revenues (a)
(55)
(49)
(5)
11.0 %
(5)
—
—
— %
Total Revenues
$ 2,520
$ 2,410
$ 109
4.5 %
$ 31
$ 3
$ 75
3.8 %
Income from Operations
$ 716
$ 483
$ 233
48.4 %
$ 10
$ (2)
$ 225
47.0 %
Net Income from Continuing Operations
$ 665
$ 264
$ 401
152.1 %
$ 7
$ (2)
$ 396
151.6 %
Adjusted Operating Income
TH
$ 287
$ 278
$ 9
3.2 %
$ —
$ (1)
$ 10
3.5 %
BK
137
121
16
13.2 %
—
—
16
13.3 %
PLK
63
66
(4)
(5.4) %
—
—
(3)
(5.3) %
FHS
17
15
2
11.4 %
—
—
2
11.4 %
INTL
194
172
23
13.2 %
—
2
20
11.7 %
RH
17
16
—
3.0 %
—
—
—
— %
Adjusted Operating Income
$ 715
$ 668
$ 46
6.9 %
$ —
$ 2
$ 44
6.7 %
Adjusted EBITDA
$ 810
$ 762
$ 48
6.3 %
$ 3
$ 2
$ 43
5.9 %
Adjusted Net Income
$ 490
$ 432
$ 59
13.6 %
$ 1
$ 1
$ 56
13.0 %
Adjusted Diluted Earnings per Share
$ 1.07
$ 0.94
$ 0.12
12.9 %
$ —
$ —
$ 0.12
12.3 %
(a)
Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK and INTL from intersegment transactions with RH.
Note: Totals, variances, and percentage changes may not recalculate due to rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures | Organic Growth
Six Months Ended June 30, 2026
(In millions of U.S. dollars, except per share data, Unaudited)
Six Months Ended
June 30,
Variance
RH Impact
FX Impact
Organic Growth
2026
2025
$
%
$
$
$
%
Revenue
TH
$ 2,134
$ 1,987
$ 147
7.4 %
$ —
$ 36
$ 111
5.5 %
BK
762
744
18
2.4 %
—
1
17
2.3 %
PLK
389
404
(15)
(3.7) %
—
—
(15)
(3.8) %
FHS
121
113
9
7.7 %
—
—
9
7.5 %
INTL
528
468
60
12.9 %
—
19
42
8.6 %
RH
953
901
52
5.8 %
52
—
—
— %
Elimination of intersegment
revenues (a)
(103)
(97)
(6)
6.4 %
(6)
—
—
— %
Total Revenues
$ 4,784
$ 4,519
$ 265
5.9 %
$ 46
$ 55
$ 163
4.3 %
Income from Operations
$ 1,322
$ 918
$ 404
44.0 %
$ —
$ 10
$ 394
42.6 %
Net Income from Continuing Operations
$ 1,110
$ 487
$ 623
128.0 %
$ (4)
$ 8
$ 619
125.1 %
Adjusted Operating Income
TH
$ 516
$ 499
$ 17
3.5 %
$ —
$ 9
$ 9
1.7 %
BK
252
224
28
12.6 %
—
—
28
12.6 %
PLK
119
126
(7)
(5.2) %
—
—
(7)
(5.4) %
FHS
31
26
5
17.8 %
—
—
5
17.6 %
INTL
390
310
80
25.8 %
—
11
69
21.5 %
RH
16
23
(7)
(31.1) %
(7)
—
—
— %
Adjusted Operating Income
$ 1,324
$ 1,208
$ 116
9.6 %
$ (7)
$ 20
$ 104
8.5 %
Adjusted EBITDA
$ 1,517
$ 1,404
$ 112
8.0 %
$ 3
$ 22
$ 87
6.3 %
Adjusted Net Income
$ 886
$ 775
$ 111
14.4 %
$ (5)
$ 17
$ 99
12.5 %
Adjusted Diluted Earnings per Share
$ 1.93
$ 1.70
$ 0.23
13.7 %
$ (0.01)
$ 0.04
$ 0.20
11.8 %
(a)
Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK and INTL from intersegment transactions with RH.
Note: Totals, variances, and percentage changes may not recalculate due to rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Reconciliation of Net Leverage, Free Cash Flow, and Capex and Cash Inducements
(In millions of U.S. dollars, except ratio, Unaudited)
As of
Net Leverage
June 30, 2026
June 30, 2025
Long-term debt, net of current portion
$ 13,206
$ 13,428
Finance leases, net of current portion
243
282
Current portion of long-term debt and finance leases
82
221
Unamortized deferred financing costs and deferred issuance discount
78
104
Total debt
13,609
14,035
Cash and cash equivalents
1,063
1,026
Net debt
12,546
13,009
LTM Net Income from continuing operations
1,824
1,205
Net Income from continuing operations Net leverage
6.9x
10.8x
LTM Adjusted EBITDA
3,083
2,840
Net Leverage
4.1x
4.6x
Free Cash Flow
Six Months Ended June 30,
Twelve Months Ended
December 31,
Twelve Months Ended
June 30,
2026
2025
2024
2025
2024
2026
2025
Calculation:
A
B
C
D
E
A + D - B
B + E - C
Net cash provided by operating activities
$ 757
$ 567
$ 482
$ 1,714
$ 1,503
$ 1,904
$ 1,588
Payments for additions of property and equipment
(109)
(102)
(69)
(265)
(201)
(272)
(234)
Free Cash Flow
$ 648
$ 465
$ 413
$ 1,449
$ 1,302
$ 1,632
$ 1,354
Three Months Ended June 30,
Six Months Ended June 30,
Capex and Cash Inducements
2026
2025
2026
2025
Payments for additions of property and equipment
$ 51
$ 38
$ 109
$ 102
Tenant inducements paid to franchisees
10
8
18
14
Other cash inducements (incl. in changes in other long-term assets and liabilities)
9
19
21
28
Increase (decrease) in accruals for additions to property and equipment
(8)
3
(34)
(29)
Total Capex and Cash Inducements
$ 62
$ 68
$ 114
$ 115
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures| Reconciliations
(In millions of U.S. dollars, except per share data, Unaudited)
Net income from continuing operations to Income from Operations to Adjusted Operating Income to Adjusted EBITDA
Three Months Ended
June 30,
Six Months Ended June 30,
Twelve Months Ended
December 31,
Twelve Months Ended
June 30,
2026
2025
2026
2025
2024
2025
2024
2026
2025
A
B
C
D
E
A + D - B
B + E - C
Net income from continuing operations
$ 665
$ 264
$ 1,110
$ 487
$ 727
$ 1,201
$ 1,445
$ 1,824
$ 1,205
Income tax (benefit) expense from continuing operations(3)
(73)
87
(35)
169
153
483
364
279
380
Loss on early extinguishment of debt
—
—
—
—
32
2
33
2
1
Interest expense, net
124
132
247
262
295
516
577
501
544
Income from operations
716
483
1,322
918
1,207
2,202
2,419
2,606
2,130
Franchise agreement and reacquired franchise rights amortization (FAA)
16
17
32
33
19
65
53
64
67
RH and BK China Transaction costs
3
16
9
22
13
37
22
24
31
Corporate restructuring and advisory fees
2
5
4
6
8
14
20
12
18
Impact of equity method investments(2)
3
(1)
4
(3)
(64)
5
(53)
12
8
Other operating expenses (income), net
(26)
149
(47)
232
(11)
261
(59)
(18)
184
Adjusted Operating Income
715
668
$ 1,324
$ 1,208
$ 1,172
$ 2,584
$ 2,402
$ 2,700
$ 2,438
Depreciation and amortization, excluding FAA
61
61
123
116
89
236
210
243
237
Share-based compensation and non-cash incentive compensation expense(1)
35
33
70
81
87
151
172
139
166
Adjusted EBITDA
810
762
$ 1,517
$ 1,404
$ 1,348
$ 2,970
$ 2,784
$ 3,083
$ 2,840
Net income from continuing operations to Adjusted Net Income and Adjusted Diluted EPS
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net income from continuing operations
$ 665
$ 264
$ 1,110
$ 487
Income tax (benefit) expense from continuing operations(3)
(73)
87
(35)
169
Income from continuing operations before income taxes
592
351
1,075
656
Adjustments:
Franchise agreement and reacquired franchise rights amortization
16
17
32
33
Amortization of deferred financing costs and debt issuance discount
6
7
12
13
Interest expense and loss on extinguished debt(4)
(7)
(6)
(14)
(10)
RH and BK China Transaction costs
3
16
9
22
Corporate restructuring and advisory fees
2
5
4
6
Impact of equity method investments(2)
3
(1)
4
(3)
Other operating expenses (income), net
(26)
149
(47)
232
Total adjustments
(3)
187
—
293
Adjusted income before income taxes
589
538
1,075
949
Adjusted income tax expense(3)(5)
99
106
189
174
Adjusted net income
$ 490
$ 432
$ 886
$ 775
Adjusted diluted earnings per share
$ 1.07
$ 0.94
$ 1.93
$ 1.70
Weighted average diluted shares outstanding (in millions)
460
457
459
456
Note: Totals may not recalculate due to rounding.
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Non-GAAP Financial Measures
Footnotes to Reconciliation Tables
(1)
Represents share-based compensation expense associated with equity awards for the periods indicated; also includes the portion of annual non-cash incentive compensation expense that eligible employees elected to receive or are expected to elect to receive as common equity in lieu of their 2026 and 2025 cash bonus, respectively.
(2)
Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in Adjusted Operating Income which is our measure of segment income.
(3)
The change in our effective tax rate was primarily due to discrete tax benefits resulting from the movements in net deferred taxes in connection with intra-group reorganizations, partially offset by the impact of the administrative guidance issued by the Organization of Economic Cooperation and Development ("OECD") in 2025. The reorganization has a favorable impact to the full year effective tax rate but does not impact the adjusted effective tax rate.
(4)
Represents loss on early extinguishment of debt and interest expense. Interest expense included in this amount represents non-cash interest expense related to amounts reclassified from accumulated comprehensive income (loss) into interest expense in connection with restructured interest rate swaps.
(5)
Adjusted income tax expense includes the tax impact of the non-GAAP adjustments and is calculated using our statutory tax rate in the jurisdiction in which the costs were incurred.
Lithium Americas zajistila financování až do výše 175 milionů USD, které posílí likviditu při výstavbě projektu Thacker Pass. Projekt má vyrábět 40 000 tun bateriového uhličitanu lithného ročně.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) today announced it has entered into a securities purchase agreement (the “Purchase Agreement”) with YA II PN, Ltd., an affiliate of Yorkville Advisors Global, LP (“Yorkville”), for up to $175 million in aggregate principal amount of subordinated convertible debentures (the “Debentures”). Proceeds will further strengthen the Company’s liquidity position as it continues its development of Thacker Pass (“Thacker Pass” or the “Project”), which is designed to produce 40,000 tonnes per year of battery-grade lithium carbonate. The financing complements the Project's $2.23 billion U.S. Department of Energy (“DOE”) loan (“DOE Loan”) and strategic investments from General Motors Holdings LLC (“GM”) and funds managed by Orion Resource Partners (“Orion”).
Jonathan Evans, President and Chief Executive Officer of Lithium Americas, said, “Thacker Pass is progressing well toward our late 2027 mechanical completion target, with over 1,600 personnel on site and long-lead equipment and materials arriving daily. The Debentures announced today will provide the Company with additional financial flexibility as we advance through peak construction while navigating global macroeconomic and geopolitical pressures. We believe Thacker Pass is uniquely positioned to deliver a reliable, U.S.-sourced supply of lithium at a time when domestic supply chain security is more critical than ever, and this financing underscores our commitment to supporting American energy independence.”
The Company has agreed to issue $150 million in Debentures upon filing its quarterly report on Form 10-Q for the period ended June 30, 2026. The Company retains the right to issue up to an additional $25 million in Debentures in one or more subsequent closings at its discretion, subject to conditions as further described in the Purchase Agreement. The Company has separately agreed to suspend sales under its at-the-market equity program for 30 days following the initial closing.
Proceeds from the financing will be used for general corporate purposes, which may include funding of corporate and project overhead expenses, financing of capital expenditures, repayment of indebtedness and additions to working capital.
The Company is relying upon the exemption set forth in Section 602.1 of the Toronto Stock Exchange (“TSX”) Company Manual, which provides that the TSX will not apply its standards to certain transactions involving eligible interlisted issuers on a recognized exchange.
ADVISORS
Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Lithium Americas, and Vinson & Elkins LLP and Cassels Brock & Blackwell LLP are acting as legal counsel to Lithium Americas.
ABOUT LITHIUM AMERICAS
Lithium Americas is building Thacker Pass located in Humboldt County in northern Nevada. Phase 1 is designed for nominal production capacity of 40,000 tonnes per year of battery-quality lithium carbonate, and mechanical completion is targeted for late 2027. Thacker Pass hosts the largest known measured lithium resource (Measured and Indicated) in the world and is owned by a joint venture between Lithium Americas (holding a 62% interest) and GM (holding a 38% interest) (the “JV”). Project financing for Phase 1 includes a $2.23 billion DOE Loan and strategic investments from GM and Orion. The U.S. DOE holds a warrant to purchase common shares equivalent to a 5% equity stake of the Company as of its issuance date and a warrant to purchase a non-voting, non-transferable equity interest in the JV equivalent to a 5% interest as of its issuance date. Lithium Americas’ shares are listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol LAC. To learn more, visit www.lithiumamericas.com or follow @LithiumAmericas on social media.
FORWARD-LOOKING STATEMENTS
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking statements” (“FLS”)). All statements, other than statements of historical fact, are FLS and can be identified by the use of statements that include, but are not limited to, words, such as “anticipate,” “plan,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “predict,” “proposes,” “potential,” “target,” “implement,” “schedule,” “forecast,” “intend,” “would,” “could,” “might,” “should,” “believe” and similar terminology, or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. FLS in this news release include, but are not limited to: statements relating to the anticipated sources and uses of funds to complete project financing; statements relating to whether investments to date and cash on hand would fund the development and construction of Thacker Pass on schedule or at all; the expected operations, financial results and condition of the Company; the Company’s ability to raise capital; ability to produce high purity battery grade lithium products; the timing, cost, quantity, capacity and product quality of production at Thacker Pass; successful development of Thacker Pass, including successful results from the Company’s testing facility and third-party tests related thereto; anticipated use of any future proceeds and earnings related to Thacker Pass; as well as other statements with respect to management’s beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.
FLS involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially. FLS reflects the Company’s current views about future events, and while considered reasonable by the Company as of the date of this news release, are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions and other factors upon which such FLS is based include, without limitation: the successful closing of this transaction, expectations regarding Phase 2 of Thacker Pass, including financing, and the absence of material adverse events affecting the Company during this time; the ability of the Company to perform conditions and meet expectations regarding the Company’s financial resources and future prospects; the ability to meet future objectives, priorities and anticipated milestones; a cordial business relationship between the Company and third-party strategic and contractual partners; the risk of general business and economic uncertainties and adverse market conditions; confidence that development, construction and operations at Thacker Pass will proceed as anticipated, including the impact of potential supply chain disturbances including but not limited to product availability, customs delays and potential shipping disruptions, especially with respect to steel, and the availability of equipment, labor and facilities necessary to complete development and construction of Thacker Pass and produce battery grade lithium; unforeseen technological, equipment and engineering problems; changes in general economic and geopolitical conditions, including as a result of regulatory changes by the current U.S. presidential administration, higher interest rates, the rate of inflation, a potential economic recession, ongoing conflict in the Middle East and potential changes in U.S. trade policy, including the imposition of tariffs and the resulting consequences on, among other things, the extractive resource industry, the green energy transition and the electric vehicle market; uncertainties regarding energy development and potential energy independence in the U.S.; uncertainties inherent to the feasibility studies and mineral resource and mineral reserve estimates; the mine processing facilities, based on the results of the testing facility and third-party tests, performing as expected; the ability of the Company to secure sufficient additional financing, advance and develop the Project, and to produce battery grade lithium; the respective benefits and impacts of Thacker Pass when production operations commence; settlement of agreements related to the operation and sale of mineral production as well as contracts in respect of operations and inputs required in the course of production; the Company’s ability to operate in a safe and effective manner, and without material adverse impact from the effects of climate change or severe weather conditions; reliability of technical data; uncertainties relating to receiving and maintaining mining, exploration, environmental and other permits or approvals in Nevada; demand for lithium, including that such demand is supported by growth in the electric vehicle market, lithium-ion battery market and battery energy storage system market; current technological trends; the impact of increasing competition in the lithium business, and the Company’s competitive position in the industry; continuing support of local communities and the Fort McDermitt Paiute and the Shoshone Tribe in relation to Thacker Pass, and continuing constructive engagement with these and other stakeholders, including any expected benefits of such engagement; risks related to cost, funding and regulatory authorizations to develop a workforce housing facility; the stable and supportive legislative, regulatory and community environment in the jurisdictions where the Company operates; impacts of inflation, deflation, currency exchange rates, interest rates and other general economic and stock market conditions; the impact of unknown financial contingencies, including litigation costs, environmental compliance costs and costs associated with the impacts of climate change, on the Company’s operations; increased attention to environmental, social, governance and safety and sustainability-related matters; risks related to the Company’s public statements with respect to such matters that may be subject to heightened scrutiny from public and governmental authorities related to the risk of potential “greenwashing,” (i.e., misleading information or false claims overstating potential sustainability-related benefits); risks that the Company may face regarding potentially conflicting initiatives from certain U.S. state or other governments; estimates of and unpredictable changes to the market prices for lithium products; development and construction costs for Thacker Pass, and costs for any additional exploration work at the Project; estimates of mineral resources and mineral reserves, including whether mineral resources not included in mineral reserves will be further developed into mineral reserves; some of the modifying factors used to convert mineral resources to mineral reserves may change materially, and could materially impact the mineral reserve estimate; reliability of technical data; anticipated timing and results of exploration, development and construction activities, including the impact of ongoing supply chain disruptions and availability of equipment and supplies on such timing; timely responses from governmental agencies responsible for reviewing and considering the Company’s permitting activities at Thacker Pass; availability of technology, including low carbon energy sources and water rights, on acceptable terms to advance Thacker Pass; government regulation of mining operations and mergers and acquisitions activity, and treatment under governmental, regulatory and taxation regimes; ability to realize expected benefits from investments in or partnerships with third parties; accuracy of development budgets and construction estimates; that the Company will meet its future objectives and priorities; the ability to satisfy production and lithium-recovery targets; that the Company will have access to adequate capital to fund its future projects and plans; that such future projects and plans will proceed as anticipated; compliance by joint venture partners, U.S. DOE and Orion with terms of agreements; the lack of any material disputes or disagreements between joint venture partners; the regulation of the mining industry by various governmental agencies; as well as assumptions concerning general economic and industry growth rates, commodity prices, resource estimates, currency exchange and interest rates and competitive conditions. Although the Company believes that the assumptions and expectations reflected in such FLS are reasonable, the Company can give no assurance that these assumptions and expectations will prove to be correct.
Readers are cautioned that the foregoing lists of factors are not exhaustive. There can be no assurance that FLS will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. As such, readers are cautioned not to place undue reliance on this information, and that this information may not be appropriate for any other purpose, including investment purposes. The Company’s actual results could differ materially from those anticipated in any FLS as a result of the risk factors described under Part I, Item 1A, “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission and in the Company’s other continuous disclosure documents available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. All FLS contained in this news release are expressly qualified by the risk factors set out in the aforementioned documents. Readers are further cautioned to review the full description of risks, uncertainties and management’s assumptions in the aforementioned documents and other disclosure documents available on SEDAR+ and on EDGAR. The Company does not undertake any obligation to update or revise any FLS, whether as a result of new information, future events or otherwise, except as required by law.
OTHER DISCLAIMERS
This communication shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Priovant oznámil zařazení prvních pacientů do fáze 3 studie BEACON+ s brepocitinibem u kožní sarkoidózy. Studie má zahrnout asi 140 pacientů a data se očekávají v roce 2028.
August 06, 2026 07:00 ET | Source: Roivant Sciences
CS is a highly morbid, chronic, and disfiguring condition with no approved therapiesBrepocitinib is the first investigational therapy to generate a positive result in a placebo-controlled CS study (Phase 2 BEACON) and has received FDA Breakthrough Therapy Designation for CSGlobal Phase 3 study (BEACON+) is underway, evaluating brepocitinib 45 mg once daily against placebo in 140 patients across approximately 70 sites globally; BEACON+ topline data expected in calendar year 2028Brepocitinib’s development program now includes four indications with ongoing or successfully completed registrational trials: dermatomyositis (DM), non-infectious uveitis (NIU), lichen planopilaris (LPP), and CS; potential NDA approval and product launch in DM expected by the end of September 2026 DURHAM, N.C., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Priovant today announced that the first patients have been enrolled in the Phase 3 study evaluating brepocitinib in cutaneous sarcoidosis (CS). This follows brepocitinib’s Phase 2 study, the first positive placebo-controlled study in CS, which led to FDA Breakthrough Therapy Designation.
The Phase 3 study (BEACON+) will be conducted as a Part B to the positive Phase 2 BEACON trial. BEACON+ will enroll approximately 140 patients with cutaneous sarcoidosis across approximately 70 sites globally. Patients will be randomized 3:2 between brepocitinib 45mg once daily and placebo. The primary endpoint is the proportion of patients achieving a 50% or greater reduction in the Cutaneous Sarcoidosis Activity and Morphology Instrument – Activity Score (CSAMI-A) at Week 16. In Phase 2, 77% of brepocitinib 45mg patients achieved this endpoint compared to 0% of placebo patients. Topline data from the BEACON+ study is expected in calendar year 2028.
CS is an inflammatory granulomatous skin disease affecting approximately 40,000 adults in the United States. The condition disproportionately impacts Black Americans. Unlike many inflammatory skin diseases, inadequately treated cutaneous sarcoidosis can rapidly cause permanent scarring and destruction of bone, cartilage, and hair follicles. Despite this significant unmet therapeutic need, there are currently no FDA-approved therapies for CS.
“Our vision is to establish brepocitinib as a leading treatment option across multiple rare diseases with high patient burden and few or no alternative therapies,” said Ben Zimmer, Priovant CEO. “The potential upcoming approval and launch of brepocitinib in dermatomyositis later this quarter would be an important milestone toward that vision. We are equally committed to rapidly advancing brepocitinib’s development across multiple additional diseases where patients have a similar urgent need for new treatment options, and the initiation of our CS Phase 3 study reflects that commitment.”
With BEACON+ underway, brepocitinib’s orphan disease development program now includes four indications with ongoing or successfully completed registrational trials. In dermatomyositis (DM), brepocitinib’s NDA is currently under Priority Review with FDA with a PDUFA date later this quarter, following the positive Phase 3 VALOR readout. In non-infectious uveitis (NIU), the Phase 3 CLARITY trial is anticipated to read out later this year. In addition to the Phase 3 BEACON+ study, Priovant is also actively enrolling a Phase 2/3 study evaluating brepocitinib in lichen planopilaris (LPP). All are indications with very high disease burden, risk of permanent organ damage if left untreated, and few or no FDA-approved therapies.
About Priovant
Priovant Therapeutics is a biotechnology company dedicated to developing novel therapies for autoimmune diseases with high morbidity and few available treatment options. The company's lead asset is brepocitinib, a first-in-class, selective inhibitor of TYK2 and JAK1. Through dual TYK2/JAK1 inhibition, brepocitinib distinctively suppresses key cytokines linked to autoimmunity—including type I IFN, type II IFN, IL-6, IL-12 and IL-23—with a single, targeted, once-daily oral therapy. Brepocitinib recently generated positive Phase 3 data in dermatomyositis. The New Drug Application for brepocitinib in dermatomyositis is under review at FDA. Brepocitinib is also being evaluated in a Phase 3 program in non-infectious uveitis, a Phase 3 program in cutaneous sarcoidosis, and a Phase 2b/3 program in lichen planopilaris. Priovant Therapeutics is a Roivant (Nasdaq: ROIV) company.
Roivant uvedl, že komerční přípravy brepocitinibu pro dermatomyozitidu postupují podle plánu a uvedení na trh čeká do konce září 2026. Firma měla k 30. červnu 2026 hotovost a cenné papíry za 3,9 miliardy USD.
Commercial preparations for brepocitinib in dermatomyositis (DM) are progressing well and on track for launch by the end of September 2026; topline data from Phase 3 study in non-infectious uveitis (NIU) expected in the second half of calendar year 2026 First patients enrolled in the Phase 3 study of brepocitinib in cutaneous sarcoidosis (CS), with topline data expected in calendar year 2028; enrollment in Part 1 of the Phase 2b/3 study in lichen planopilaris (LPP) is progressing well IMVT-1402 proof-of-concept trial in cutaneous lupus erythematosus (CLE) topline data expected in the second half of calendar year 2026; all clinical development timelines remain on track for IMVT-1402 Mosliciguat Phase 2 study in pulmonary hypertension associated with interstitial lung disease (PH-ILD) remains on track, with topline data expected in the second half of calendar year 2026 Genevant and Arbutus received $950 million from Moderna in July 2026 under $2.25 billion settlement, with additional $1.3 billion contingent on favorable resolution of Moderna's § 1498 appeal; filed new international lawsuits against Pfizer and BioNTech covering 21 jurisdictions Roivant reported consolidated cash, cash equivalents, restricted cash and marketable securities of $3.9 billion as of June 30, 2026, excluding the cash payment received from Moderna in July, supporting cash runway into profitability Roivant will host a live conference call and webcast at 8:00 a.m. ET on Thursday, August 6, 2026, to report its financial results for the first quarter ended June 30, 2026, and provide a business update BASEL, Switzerland and LONDON and NEW YORK, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Roivant (Nasdaq: ROIV) today reported its financial results for the first quarter ended June 30, 2026, and provided a business update.
GE Vernova v červenci klesla o 15,7 %, i když ve 2. čtvrtletí opět zvýšila celoroční výhled tržeb, zisku i volného peněžního toku. Trh připomněl, že při ocenění na 33násobek odhadovaného zisku na rok 2026 záleží na tempu objednávek.
GE Vernova (GEV -0.06%) stock declined by 15.7% in July, according to data from S&P Global Market Intelligence. The decline is a salutory reminder that valuations still matter, because there was nothing wrong with the fundamentals displayed when GE Vernova reported its second-quarter earnings report on July 22.
A nuanced dynamic GE Vernova's recent earnings report saw management raise its full-year revenue, earnings, and free cash flow (FCF) guidance for the third time in 2026. Having guided toward revenue of $41 billion to $42 billion and FCF of $4.5 billion to $5 billion on its investor update in December, management raised guidance on the fourth quarter 2025, first quarter 2026, and recent second quarter 2026 earnings presentations such that it now stands at revenue of $45.5 billion to $46.5 billion and FCF of $11.5 billion to $12.5 billion.
Today's Change
(
-0.06
%) $
-0.57
Current Price
$
1,017.96
Taking the midpoint of these figures, it's clear that the $4.5 billion increase in revenue has translated into a $7.25 billion increase in FCF, implying a 161% FCF leverage. That's a highly unusual number and reflects the particularly strong demand conditions for the company's gas turbine equipment.
GE Vernova free cash flow leverage In a nutshell, AI data centers and utilities are so desperate for power that they are willing to sign Slot Reservation Agreements (SRAs) to secure future production slots. In doing so, they pay a portion of cash upfront, which drops into GE Vernova's cash flow. That's good news because upfront cash flow has more value than cash flow later.
In addition, more equipment orders drive a ramp in long-term earnings and cash flow, as gas turbine installations lead to more lucrative long-term services sales via Long-Term Service Agreements (LTSA) attached to equipment sales.
Image source: Getty Images.
Why GE Vernova stock declined in July Just as increased orders lead to an outsize benefit to FCF and GE Vernova's valuation and a positive impact on the stock price, any slowdown in equipment orders will disproportionately weigh on the stock on the downside, too.
As such, investors need to keep a close eye on order momentum in relation to valuation at GE Vernova. While there's nothing to suggest any slowdown in orders, the sell-off in artificial intelligence (AI) related companies in July reminded investors that with the stock trading at 33 times estimated 2026 earnings any potential slowdown will lead to a correction in the share price.
That said, now that the dip has taken place, the company is arguably set up to perform well given any further improvement in its orders outlook.
Amundi cut its holdings in TKO Group Holdings, Inc. (NYSE:TKO – Free Report) by 82.8% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 24,233 shares of the company’s stock after selling 116,840 shares during the quarter. Amundi’s holdings in TKO Group were worth $4,887,000 as of its most recent SEC filing.
Other large investors have also made changes to their positions in the company. Elyxium Wealth LLC acquired a new stake in shares of TKO Group in the fourth quarter valued at about $27,000. Cornerstone Planning Group LLC raised its position in shares of TKO Group by 543.5% during the 1st quarter. Cornerstone Planning Group LLC now owns 148 shares of the company’s stock worth $28,000 after purchasing an additional 125 shares during the last quarter. Torren Management LLC purchased a new position in TKO Group in the 4th quarter valued at about $32,000. CYBER HORNET ETFs LLC purchased a new position in TKO Group in the 2nd quarter valued at about $34,000. Finally, MUFG Securities EMEA plc acquired a new stake in TKO Group in the 2nd quarter worth about $36,000. 89.79% of the stock is owned by institutional investors and hedge funds.
Insider Activity In other TKO Group news, CFO Andrew M. Schleimer acquired 2,696 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average cost of $185.44 per share, for a total transaction of $499,946.24. Following the completion of the acquisition, the chief financial officer owned 30,240 shares of the company’s stock, valued at approximately $5,607,705.60. The trade was a 9.79% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Mark S. Shapiro purchased 10,807 shares of the stock in a transaction dated Wednesday, May 13th. The shares were acquired at an average price of $185.05 per share, with a total value of $1,999,835.35. Following the completion of the acquisition, the insider owned 129,207 shares in the company, valued at approximately $23,909,755.35. This trade represents a 9.13% increase in their position. The disclosure for this purchase is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders bought 24,308 shares of company stock worth $4,499,679 and sold 42,257 shares worth $7,946,068. 64.30% of the stock is currently owned by company insiders.
Analysts Set New Price Targets Several research firms have commented on TKO. Weiss Ratings upgraded TKO Group from a “hold (c-)” rating to a “hold (c+)” rating in a research note on Thursday, May 7th. Morgan Stanley raised their target price on TKO Group from $225.00 to $230.00 and gave the company an “overweight” rating in a research report on Tuesday. Benchmark reaffirmed a “hold” rating on shares of TKO Group in a research note on Tuesday. Sanford C. Bernstein dropped their price target on TKO Group from $240.00 to $235.00 and set an “outperform” rating for the company in a research report on Tuesday, July 28th. Finally, Citigroup downgraded TKO Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 13th. Twelve equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, TKO Group currently has a consensus rating of “Moderate Buy” and a consensus target price of $235.33.
View Our Latest Stock Analysis on TKO
TKO Group News Roundup Here are the key news stories impacting TKO Group this week:
Positive Sentiment: TKO reported second-quarter revenue of approximately $1.547 billion, up 18% year over year, while adjusted EBITDA rose 23% to $650 million. Management also raised its 2026 outlook to $5.775–$5.825 billion of revenue and $2.275–$2.305 billion of adjusted EBITDA, signaling continued momentum. Q2 earnings call highlights Positive Sentiment: Guggenheim raised its price target to $235 and initiated or maintained a “Buy” rating, while BTIG reaffirmed its “Buy” rating with a $237 target. Analysts broadly rate TKO a “Moderate Buy.” Benzinga analyst actions Analyst consensus Positive Sentiment: TKO, Legends Global and the Arizona Sports & Events Alliance announced upcoming UFC, WWE Royal Rumble and PBR events in Arizona, supporting future event-related revenue and brand exposure. Arizona event announcement Neutral Sentiment: Management characterized the UFC Freedom 250 event at the White House as a promotional and strategic success despite its financial outcome, but the event’s economics remain a concern for investors. Negative Sentiment: TKO disclosed that UFC Freedom 250 lost approximately $30 million. The unexpected loss is likely weighing on sentiment because it highlights the potential cost of high-profile events, even as executives emphasized broader benefits. Freedom 250 loss report Negative Sentiment: Second-quarter adjusted earnings per share came in at $1.34, below the $1.41 analyst consensus, although revenue modestly exceeded expectations. The earnings shortfall adds pressure alongside the event-related loss. TKO Group Trading Down 0.7% Shares of TKO opened at $183.15 on Thursday. TKO Group Holdings, Inc. has a 12-month low of $152.29 and a 12-month high of $226.94. The firm has a market capitalization of $35.55 billion, a P/E ratio of 64.26 and a beta of 0.63. The firm has a 50-day moving average price of $194.58 and a 200 day moving average price of $197.21. The company has a current ratio of 1.28, a quick ratio of 1.34 and a debt-to-equity ratio of 0.58.
TKO Group (NYSE:TKO – Get Free Report) last issued its earnings results on Monday, August 3rd. The company reported $1.34 EPS for the quarter, missing analysts’ consensus estimates of $1.41 by ($0.07). The firm had revenue of $1.55 billion for the quarter, compared to analysts’ expectations of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%.TKO Group’s revenue for the quarter was up 18.2% on a year-over-year basis. During the same period last year, the firm earned $1.17 earnings per share. Sell-side analysts forecast that TKO Group Holdings, Inc. will post 4.81 EPS for the current year.
TKO Group Increases Dividend The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were given a dividend of $0.79 per share. This represents a $3.16 annualized dividend and a dividend yield of 1.7%. The ex-dividend date of this dividend was Monday, June 15th. This is a boost from TKO Group’s previous quarterly dividend of $0.78. TKO Group’s dividend payout ratio is presently 117.91%.
TKO Group Profile (Free Report)
TKO Group Holdings (NYSE: TKO) is a global sports and entertainment company formed in 2023 through the combination of two major combat-sports businesses. The company brings together the mixed martial arts organization UFC and the sports entertainment business WWE under a single publicly traded holding company. TKO owns and manages a portfolio of live-event franchises, intellectual property, and media rights centered on combat and sports-entertainment content.
TKO’s core activities include the promotion and production of live events, the licensing and sale of broadcasting and streaming rights, and the development and commercialization of branded consumer products.
Recommended Stories Five stocks we like better than TKO Group SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding TKO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for TKO Group Holdings, Inc. (NYSE:TKO – Free Report).
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Nintendo has reported a jump in profits, as the Japanese game maker’s earnings were buoyed up by a long-awaited refund on Donald Trump’s tariffs.
The company said profits surged 53.5% to ¥147.4bn (£694m) over the three months to June, substantially beating expert forecasts for ¥77.8bn.
Nintendo said sales of its Switch 2 console, which was released last summer, “maintained strong sales momentum”, while popular games such as Yoshi and the Mysterious Book, Star Fox, and Pokémon Pokopia “performed steadily”. However, that did not make up for an overall drop in sales compared with the same period last year, with revenue down by 10% to ¥517.8bn.
Instead, Nintendo said profits were aided by a refund on US tariffs, after the country’s supreme court ruled in February that Donald Trump’s sweeping “liberation day” trade levies were illegal.
The Trump administration has refunded about $100bn from the tariffs charged before the court ruling, representing 60% of the total $165bn collected. Trump has continued to pitch tariffs as a solution for the US economy, bringing back domestic production, securing better trade deals and closing the deficit in the federal budget.
Nintendo’s Tokyo-listed shares were up 2.87% on Thursday after the earnings release.
The company filed a lawsuit weeks after the US supreme court ruling, demanding a full refund from the White House that would cover what it spent on tariffs, plus interest.
While a refund now appears to have come through, Nintendo stopped short of confirming the full amount, at a time when it is still appears to be resisting calls to pass those refunds on to consumers.
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Last month, Nintendo was hit with a class action lawsuit on behalf of customers, which claims the company hiked its prices because of tariffs but later benefited from the refunds. Nintendo’s lawyers described the lawsuit as “meritless”, and that the price customers paid represented “the purchase price of the goods they wanted and received.”
Last month, Trump imposed a fresh round of tariffs on more than 80 countries, including Japan, in a move that is likely to pose further problems for companies such as Nintendo. However, a coalition of 25 US states are now suing the Trump administration over the levies, potentially opening the door to another round of refunds for beleaguered exporters.
Oscar Health oznámila rekordní ziskovost v první polovině roku a zvýšila celoroční výhled na upravený provozní zisk 500 až 700 milionů USD. Ve 2. čtvrtletí vzrostly tržby na 4,88 miliardy USD a zisk činil 361,808 milionu USD.
NEW YORK--(BUSINESS WIRE)--Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) announced today its financial results for the second quarter ended June 30, 2026 and updates to its full year 2026 guidance.
“Oscar delivered record profitability in the first half of the year and we are raising our full-year 2026 guidance,” said Mark Bertolini, CEO of Oscar Health. “Our superior operating performance and execution against the fundamentals of our strategy are accelerating the individual market. More people are moving between full- and part-time jobs, gig work, and retirement – a shift AI will accelerate. A durable individual market gives them greater choice and will power the future of American healthcare. Oscar’s consumer products, disciplined pricing, and scalable technology platform will capture this opportunity and position us for long-term profitable growth.”
Second Quarter 2026 Financial Highlights
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except percentages)
2026
2025
2026
2025
Total revenue
$4,880,220
$2,863,945
$9,527,414
$5,910,208
Medical loss ratio (“MLR”)
79.2%
91.1%
75.0%
83.0%
Selling, general, and administrative (“SG&A”) expense ratio
14.2%
18.7%
14.7%
17.2%
Earnings (loss) from operations
$388,635
$(230,483)
$1,092,720
$66,640
Net income (loss) attributable to Oscar Health, Inc.
$361,808
$(228,361)
$1,040,804
$46,910
Adjusted EBITDA (1)
$415,349
$(199,404)
$1,142,421
$129,424
(1) Adjusted EBITDA is a non-GAAP measure. See “Key Operating and Non-GAAP Financial Metrics - Adjusted EBITDA” in this release for a reconciliation to net income, the most directly comparable GAAP measure, and for information regarding Oscar’s use of Adjusted EBITDA.
As of June 30,
Effectuated Membership by Offering
2026
2025
Individual and Small Group (1)
2,963,002
2,017,058
Cigna+Oscar (2)
—
10,090
Total Members (3)
2,963,002
2,027,148
(1) Membership includes members enrolled through an Individual Coverage Health Reimbursement Arrangement (“ICHRA”). 2025 membership includes small group members. The Company no longer offers small group plans effective December 15, 2024.
(2) Represents total membership for our former co-branded partnership with Cigna. We did not renew the Cigna+Oscar Small Group arrangement after its initial term ended on December 31, 2024.
(3) Represents effectuated members. Effectuated members are those who are actively enrolled in one of our plans and whose required premium payments have either been made or are within the payment grace period. A member covered under more than one of our health plans counts as a single member for the purposes of this metric.
2026 Financial Guidance Summary
Prior Full Year 2026 Outlook
Updated Full Year 2026 Outlook
(in thousands, except percentages)
Low
High
Low
High
Total Revenue (1)
$18.7 billion
$19.0 billion
$18.7 billion
$19.0 billion
Medical Loss Ratio (2)
82.4%
83.4%
81.5%
82.5%
SG&A Expense Ratio (3)
15.8%
16.3%
15.6%
16.1%
Earnings from Operations (4)
$250 million
$450 million
$500 million
$700 million
(1) Total revenue includes premium revenue (net of risk adjustment transfers), investment income, and other revenue. We believe total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.
(2) Medical loss ratio (MLR) is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for the healthcare of our members to the net premiums before ceded quota share reinsurance.
(3) Selling, general, and administrative (SG&A) expense ratio is calculated as selling, general and administrative expenses as a percentage of total revenue (net of risk adjustment transfers). We believe the SG&A expense ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.
(4) Earnings from operations is the Company's total revenue less Total operating expenses. We believe earnings from operations is an important primary metric for assessing operating performance.
Second Quarter 2026 Key Metrics and Non-GAAP Financial Metrics
Total revenue was approximately $4.9 billion for the second quarter of 2026 compared to $2.9 billion for the second quarter of 2025. The increase was driven by higher membership and rate increases, partially offset by an increase in the net risk adjustment transfer accrual. The medical loss ratio was 79.2% for the second quarter of 2026 compared to 91.1% for the second quarter of 2025, which included the entire first half impact of 2025 risk adjustment true-up driven by higher average market morbidity. The decrease was primarily driven by our disciplined pricing strategy and $164 million of favorable prior period reserve development. The SG&A expense ratio was 14.2% for the second quarter of 2026 compared to 18.7% for the second quarter of 2025. The decrease was primarily due to disciplined expense management, greater fixed cost leverage, and the impact of lower risk adjustment as a percentage of premium. Earnings from operations were $388.6 million for the second quarter of 2026 compared to a loss from operations of $230.5 million for the second quarter of 2025. The significant increase reflects strong operating performance driven primarily by improved underwriting performance and favorable prior period development. Net income attributable to Oscar Health, Inc. was $361.8 million, or $1.10 of diluted earnings per share, for the second quarter of 2026 compared to Net loss attributable to Oscar Health, Inc. of $228.4 million, or $(0.89) of diluted earnings per share, for the second quarter of 2025. Adjusted EBITDA was $415.3 million for the second quarter of 2026 compared to an Adjusted EBITDA loss of $199.4 million for the second quarter of 2025. Quarterly Conference Call Details
Oscar will host a conference call to discuss its financial results today, August 6, 2026, at 8:00 a.m. (ET). Investors and other interested parties are invited to listen to the conference call by dialing 1-855-761-5600 and entering the following conference ID: 7768132. A live audio webcast will also be available via the Investor Relations page of Oscar’s website at ir.hioscar.com. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.
Non-GAAP Financial Information
This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. For more information regarding Adjusted EBITDA, please see “Key Operating and Non-GAAP Financial Metrics” below.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including Total revenue, Medical loss ratio, SG&A expense ratio, Earnings (loss) from operations, and other financial performance metrics, and the related underlying assumptions, our business and financial prospects, including management’s plans and objectives for future operations, expectations and business strategy, such as our 2026 margins and profitability, and industry and market dynamics and expected trends. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential,” or “continues” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict and generally beyond our control.
Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our ability to execute our strategy and manage our growth effectively (including our ability to successfully integrate strategic acquisitions); our ability to retain and expand our member base; our ability to accurately estimate our incurred medical expenses or overall market morbidity, or effectively manage our medical costs or related administrative costs; unanticipated results of, or changes to, risk adjustment programs or our estimates thereof; evolving federal or state laws or regulations (including any changes in the interpretation or enforcement of existing laws and regulations), including changes with respect to the Patient Protection and Affordable Care Act (“ACA”) and any regulations enacted thereunder, the expiration of the enhanced Advanced Premium Tax Credits (“eAPTCs”), the implementation of new program integrity rules, including pursuant to the Notice of Benefit and Payment Parameters (“NBPP”) for policy year 2027, the potential funding of a cost-sharing reduction (“CSR”) program, or other government actions, such as the imposition of tariffs; our ability to achieve or maintain profitability in the future; our ability to arrange for the delivery of quality care and maintain good relations with brokers and the physicians, hospitals, and other providers within and outside our provider networks; our ability to comply with ongoing, complex and evolving regulatory requirements, including capital reserve and surplus requirements and applicable performance standards; changes or developments in the regulation of health insurance markets in the United States; our, or any of our vendors’, ability to comply with laws, regulations, and standards related to the handling of information about individuals or applicable consumer protection laws, including as a result of our participation in government-sponsored programs; the ability of our health insurance and Health Maintenance Organization (“HMO”) subsidiaries (collectively, “Health Insurance Subsidiaries”) to make payments of dividends or distributions to us, including to fund our business strategy; our ability to utilize quota share reinsurance to meet our capital and surplus requirements and protect against downside risk on medical claims; adverse market conditions resulting in our investment portfolio suffering losses or reducing our ability to meet our financing needs; unfavorable or otherwise costly outcomes of lawsuits, audits, investigations, and other third party claims that may arise from the extensive laws and regulations to which we are subject, such as fraud, waste and abuse laws; incurrence of data security breaches of our or our partners’ information and technology systems; heightened competition in the markets in which we participate; our ability to attract and retain qualified personnel; uncertainties associated with our utilization of certain artificial intelligence (“AI”) and machine learning models; our ability to detect and prevent material weaknesses or significant control deficiencies in our internal controls over financial reporting or other failure to maintain an effective system of internal controls; adverse publicity or other adverse consequences related to our dual class structure or “controlled company” status; and the other factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), and our other filings with the SEC.
You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Any forward-looking statement speaks only as of the date as of which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise.
About Oscar Health
Oscar Health, Inc. is a leading healthcare technology company built on a full-stack platform and a relentless focus on member experience. Oscar Health helps make high-quality and affordable care more accessible for millions of people through Oscar’s Individual & Family plans and ICHRA solutions, Lucie Health Marketplace, and Trove Group. Consumers benefit from better choice, deeper engagement, and connection to high-value clinical care.
Oscar Health, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except per share amounts)
2026
2025
2026
2025
Revenue
Premium
$
4,789,331
$
2,803,444
$
9,370,193
$
5,799,265
Investment income
84,794
54,004
145,408
100,116
Other revenues
6,095
6,497
11,813
10,827
Total revenue
4,880,220
2,863,945
9,527,414
5,910,208
Operating Expenses
Medical
3,794,445
2,552,973
7,024,302
4,812,624
Selling, general, and administrative
691,080
534,485
1,397,314
1,017,244
Depreciation and amortization
6,060
6,970
13,078
13,700
Total operating expenses
4,491,585
3,094,428
8,434,694
5,843,568
Earnings (loss) from operations
388,635
(230,483
)
1,092,720
66,640
Interest expense
4,709
5,847
10,092
11,841
Other expenses (income)
915
(2,794
)
844
124
Earnings (loss) before income taxes
383,011
(233,536
)
1,081,784
54,675
Income tax expense (benefit)
21,183
(5,045
)
40,933
7,660
Net income (loss)
361,828
(228,491
)
1,040,851
47,015
Less: Net income (loss) attributable to noncontrolling interests
20
(130
)
47
105
Net income (loss) attributable to Oscar Health, Inc.
$
361,808
$
(228,361
)
$
1,040,804
$
46,910
Earnings (loss) per Share
Basic
$
1.20
$
(0.89
)
$
3.47
$
0.19
Diluted
$
1.10
$
(0.89
)
$
3.16
$
0.17
Weighted Average Common Shares Outstanding
Basic
302,220
255,531
300,197
253,417
Diluted
333,432
255,531
331,292
270,244
Oscar Health, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except per share amounts)
June 30, 2026
December 31, 2025
Assets
Current Assets:
Cash and cash equivalents
$
4,075,612
$
2,774,151
Short-term investments
4,479,906
1,216,461
Accounts receivable (net of allowance for credit losses of $55,298 and $7,226)
380,057
362,682
Reinsurance recoverable
196,544
99,750
Receivables from CMS
180,750
136,029
Other current assets
60,317
24,331
Total current assets
9,373,186
4,613,404
Long-term investments
1,600,770
1,470,987
Property, equipment, and capitalized software, net
101,494
88,350
Restricted deposits
29,178
32,951
Other assets
122,134
119,719
Total assets
$
11,226,762
$
6,325,411
Liabilities and Stockholders' Equity
Current Liabilities:
Payables to CMS
$
6,095,289
$
2,730,095
Benefits payable
1,898,435
1,455,385
Accounts payable and other liabilities
525,709
507,325
Unearned premiums
167,505
166,203
Reinsurance payable
2,564
3,579
Total current liabilities
8,689,502
4,862,587
Long-term debt
431,629
430,095
Other liabilities
50,466
51,994
Total liabilities
9,171,597
5,344,676
Commitments and contingencies
Stockholders' Equity
Class A common stock ($0.00001 par value; 825,000 thousand shares authorized, 273,410 thousand and 261,851 thousand shares outstanding as of June 30, 2026 and December 31, 2025, respectively)
3
3
Class B common stock ($0.00001 par value; 82,500 thousand shares authorized, 35,224 thousand and 35,838 thousand shares outstanding as of June 30, 2026 and December 31, 2025, respectively)
—
—
Treasury stock (315 thousand shares as of June 30, 2026 and December 31, 2025)
(2,923
)
(2,923
)
Additional paid-in capital
4,316,831
4,256,972
Accumulated deficit
(2,253,630
)
(3,294,434
)
Accumulated other comprehensive income (loss)
(8,250
)
18,030
Total Oscar Health, Inc. stockholders' equity
2,052,031
977,648
Noncontrolling interests
3,134
3,087
Total stockholders' equity
2,055,165
980,735
Total liabilities and stockholders' equity
$
11,226,762
$
6,325,411
Oscar Health, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended June 30,
(in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$
1,040,851
$
47,015
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Change in provision for credit losses
48,072
(23,950
)
Stock-based compensation expense
36,623
49,084
Depreciation and amortization expense
13,049
13,700
Amortization of debt issuance costs
2,163
389
Net accretion of investments
(15,285
)
(15,667
)
Deferred taxes
(7,731
)
—
Net realized gain on sale of financial instruments
(1,732
)
(131
)
Changes in assets and liabilities:
(Increase) / decrease in:
Reinsurance recoverable
(96,794
)
98,839
Accounts receivable
(65,448
)
(51,666
)
Receivables from CMS
(44,721
)
(95,982
)
Other assets
(26,660
)
(26,512
)
Increase / (decrease) in:
Payables to CMS
3,365,194
1,127,430
Benefits payable
443,050
194,902
Accounts payable and other liabilities
20,408
103,024
Unearned premiums
1,302
(4,900
)
Reinsurance payable
(1,016
)
(27,966
)
Net cash provided by operating activities
4,711,325
1,387,609
Cash Flows from Investing Activities:
Sale of investments
983,943
15,761
Maturity and paydowns of investments
553,943
267,419
Change in restricted deposits
606
526
Purchase of investments
(4,942,801
)
(607,838
)
Purchase of property, equipment, and capitalized software
(20,556
)
(18,303
)
Net cash used in investing activities
(3,424,865
)
(342,435
)
Cash Flows from Financing Activities:
Proceeds from exercise of stock options and stock purchase agreement
29,904
29,295
Tax payments related to net settlement of share-based awards
(11,920
)
(2,289
)
Payments of debt issuance costs
(4,919
)
—
Earn-out Liability Payout
(3,370
)
—
Net cash provided by financing activities
9,695
27,006
Increase in cash, cash equivalents and restricted cash equivalents
1,296,155
1,072,180
Cash, cash equivalents, restricted cash and cash equivalents—beginning of period
2,804,123
1,551,118
Cash, cash equivalents, restricted cash and cash equivalents—end of period
4,100,278
2,623,298
Cash and cash equivalents
4,075,612
2,598,942
Restricted cash and cash equivalents included in restricted deposits
24,666
24,356
Total cash, cash equivalents and restricted cash and cash equivalents
$
4,100,278
$
2,623,298
Supplemental Disclosures:
Interest payments
$
6,000
$
11,360
Income tax payments
$
1,107
$
15,478
Key Operating and Non-GAAP Financial Metrics
We regularly review the following key operating and Non-GAAP financial metrics, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections, and make strategic decisions. We believe these operational and financial measures are useful in evaluating our performance, in addition to our financial results prepared in accordance with GAAP.
Total Revenue
Total revenue includes premium revenue (net of risk adjustment transfers), investment income, and other revenues. We believe total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.
MLR
MLR is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. The impact of the federal risk adjustment program is included in the denominator of our MLR. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for healthcare of our members to the net premium before ceded quota share reinsurance.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands, except percentages)
2026
2025
2026
2025
Net claims before ceded quota share reinsurance (A)
$
3,794,445
$
2,552,973
$
7,024,302
$
4,812,624
Net premiums before ceded quota share reinsurance (B)
$
4,789,331
$
2,803,444
$
9,370,193
$
5,799,265
Medical Loss Ratio (A divided by B)
79.2
%
91.1
%
75.0
%
83.0
%
SG&A Expense Ratio
The SG&A expense ratio reflects the Company’s selling, general, and administrative expenses, as a percentage of total revenue (net of risk adjustment transfers). We believe the SG&A expense ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.
Earnings (Loss) from Operations
Earnings (loss) from operations is the Company's total revenue less total operating expenses. We believe earnings (loss) from operations is an important primary metric for assessing operating performance.
Net Income (Loss) Attributable to Oscar Health, Inc.
Net income (loss) attributable to Oscar Health, Inc. is net earnings (loss) allocated to the Company after net income (loss) attributable to noncontrolling interests. It is a key indicator of the Company’s profitability and operational efficiency, allowing management to evaluate performance and make informed decisions on strategic planning, cost management, and resource allocation.
Adjusted EBITDA
Adjusted EBITDA is defined as Net income (loss) for the Company and its consolidated subsidiaries before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for stock-based compensation and other items that are considered unusual or not representative of underlying trends of our business, where applicable for the period presented. We present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is a non-GAAP measure. Management believes that investors’ understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate Adjusted EBITDA in the same manner.
By providing this non-GAAP financial measure, together with a reconciliation to the most comparable U.S. GAAP measure, Net income (loss), we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for, net income (loss) or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance.
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Net income (loss)
$
361,828
$
(228,491
)
$
1,040,851
$
47,015
Interest expense
4,709
5,847
10,092
11,841
Other expenses (income)
915
(2,794
)
844
124
Income tax expense (benefit)
21,183
(5,045
)
40,933
7,660
Earnings (loss) from operations
388,635
(230,483
)
1,092,720
66,640
Depreciation and amortization
6,060
6,970
13,078
13,700
Stock-based compensation (1)
20,654
24,109
36,623
49,084
Adjusted EBITDA
$
415,349
$
(199,404
)
$
1,142,421
$
129,424
(1) Represents non-cash expenses related to equity-based compensation programs, which vary from period to period depending on various factors including the timing, number, and the valuation of awards. Additionally, these expenses are reported net of any stock-based compensation that has been capitalized for software development costs.
Appendix
Supplemental Financial Information
Premium
The Company records premium revenue net of premiums for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total reinsurance premiums ceded and reinsurance premiums assumed, which are included as components of total premium revenue in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Direct policy premiums
$
5,666,469
$
3,482,764
$
11,696,744
$
6,832,435
Risk adjustment transfers
(871,470
)
(692,245
)
(2,314,281
)
(1,065,994
)
Reinsurance premiums ceded
(4,989
)
(2,690
)
(10,607
)
(5,232
)
Assumed premiums (1)
(679
)
15,615
(1,663
)
38,056
Premium
$
4,789,331
$
2,803,444
$
9,370,193
$
5,799,265
(1) The Company did not renew the Cigna+Oscar Small Group arrangement with Cigna Health and Life Insurance Company after its initial term ended on December 31, 2024. Following termination, the Company has been providing transition and run-off services, and will continue to provide such services through December 31, 2026. The Company also continues to share in premiums and claims for plans sold or issued prior to December 15, 2024.
Medical Expenses
The Company records medical expenses net of reinsurance recoveries for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total medical expenses to the amount presented in the Condensed Consolidated Statements of Operations:
Three Months Ended June 30,
Six Months Ended June 30,
(in thousands)
2026
2025
2026
2025
Direct claims incurred
$
3,872,861
$
2,562,117
$
7,166,698
$
4,830,401
Ceded reinsurance claims
(78,390
)
(22,203
)
(141,074
)
(53,215
)
Assumed reinsurance claims
(26
)
13,059
(1,322
)
35,438
Medical expenses
$
3,794,445
$
2,552,973
$
7,024,302
$
4,812,624
Risk Adjustment
The risk adjustment programs in the markets the Company serves are administered federally by CMS and are designed to mitigate the potential impact of adverse selection and provide stability for health insurers. Under these programs, each plan is assigned a risk score based upon demographic information and current year claims information related to its members. Plans with lower than average risk scores generally pay into the pool, while plans with higher than average risk scores generally receive distributions. The following table provides a rollforward of the Company’s beginning and ending risk adjustment receivable and payable balances for the six months ended June 30, 2026 and 2025:
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
(in thousands)
Risk Adjustment Receivable
Risk Adjustment Payable
Net Risk Adjustment Payable
Risk Adjustment Receivable
Risk Adjustment Payable
Net Risk Adjustment Payable
Beginning balance (1)
$
56,066
$
2,587,700
$
2,531,634
$
64,779
$
1,558,341
$
1,493,562
Change in accrual:
Current year
$
27,970
$
2,401,634
$
2,373,664
$
33,303
$
1,021,779
$
988,476
Prior years (2)
11,719
(47,432
)
(59,151
)
(10,465
)
67,067
77,532
Change in accrual, net
$
39,689
$
2,354,202
$
2,314,513
$
22,838
$
1,088,846
$
1,066,008
Ending balance:
Current year
$
27,970
$
2,401,634
$
2,373,664
$
33,303
$
1,021,779
$
988,476
Prior years
67,785
2,540,268
2,472,483
54,314
1,625,408
1,571,094
Ending balance
$
95,755
$
4,941,902
$
4,846,147
$
87,617
$
2,647,187
$
2,559,570
(1) The table includes risk adjustment data validation (“RADV”) receivables and payables. The balance at the beginning of each year presented pertains to prior policy years.
(2) Includes immaterial payments for prior policy years.
Powell Industries oznámila rekordní nové zakázky ve výši 934 milionů USD a backlog poprvé přesáhl 2 miliardy USD. Tržby ve 3. fiskálním čtvrtletí vzrostly na 312 milionů USD.
Powell Industries (NASDAQ:POWL) reported record third-quarter order bookings and a backlog that surpassed $2 billion for the first time in its 79-year history, as demand remained strong across data centers, electric utilities, LNG and other industrial markets.
For the fiscal third quarter ended June 30, Powell reported revenue of $312 million, up 9% from $286 million in the year-earlier period. Net income rose to $52.2 million, or $1.42 per diluted share, compared with $48.2 million, or $1.32 per diluted share, a year earlier.
Chairman, President and CEO Brett Cope said the quarter was highlighted by a record $934 million in new orders, nearly three times the prior-year level and almost double the preceding quarter’s total. The company finished the period with backlog of nearly $2.4 billion, up $967 million from a year earlier and $619 million sequentially.
Major Awards Lift Bookings The quarterly order total included Powell’s previously disclosed data center award exceeding $400 million for the first phase of a multistage, behind-the-meter onsite power-generation project. Cope said the project is expected to be executed over roughly two and a half years and will involve at least five North American facilities.
Powell also received an approximately $75 million award for electrical distribution equipment supporting a new Gulf Coast fertilizer-producing petrochemical facility, as well as an approximately $60 million award for a new LNG liquefaction project on the U.S. Gulf Coast.
Beyond those three large projects, the company booked more than $350 million in awards spread across its market verticals. Cope said Powell has secured more than $1.8 billion in new awards over the past three quarters and is now booking projects that will be executed into fiscal 2028.
Chief Financial Officer Mike Metcalf said the company’s third-quarter book-to-bill ratio was 3.0 times, while the year-to-date ratio was 2.2 times. About $1.3 billion, or roughly 54%, of the $2.4 billion backlog is expected to convert over the following 12 months, he said.
Commercial and other industrial markets represented 40% of backlog. Core industrial markets, including petrochemical and oil and gas, represented 30%. Electric utility markets represented 24%. Margins Remain Above 30% Gross profit increased by $7 million from the prior-year quarter to $95 million, while gross margin was essentially flat year over year at 30.6% and improved 90 basis points sequentially. Metcalf attributed the performance to project mix, operating leverage, stable pricing and project execution.
Selling, general and administrative expense increased $1.6 million to $27 million, primarily reflecting higher compensation costs, including the current-year impact of the Remsdaq acquisition. Still, SG&A declined 20 basis points from a year earlier to 8.6% of revenue.
Management said it is monitoring moderate inflation in commodities such as copper, aluminum and steel, as well as engineered components. Metcalf said Powell is using commodity hedging and commercial discipline to offset some inflationary pressure. Project closeouts added approximately 100 basis points to year-to-date margins through the first nine months, compared with about 130 basis points in the prior-year period.
Cope said the company sees continued margin opportunity in commercial markets, where delivery speed and available capacity can be important differentiators. He also cited automation and the expansion of the company’s service strategy as potentially accretive to gross margins over time, while cautioning that quarterly results can be uneven because of the project-based nature of the business.
Capacity Expansion Underway Powell is expanding its manufacturing, engineering and warehouse footprint to support its growing order book. The company expects its total facility footprint to increase by more than 20% by the end of fiscal 2026 compared with the end of fiscal 2025.
Actions include an additional 30,000 square feet of manufacturing capacity near its Ohio operation, with Powell expecting to exercise an option to expand that lease. The company also leased a facility near Houston that provides 50,000 square feet of added manufacturing space and opened two satellite engineering offices in the Houston metropolitan area.
Meanwhile, Powell’s Jacintoport expansion is nearing completion. The project will add 335,000 square feet of capacity initially intended for custom power control rooms serving the LNG market. Cope said the work should be completed within the next month or two, with utilization expected to ramp quickly. At full utilization, the expanded yard is expected to support well over $100 million in incremental annualized revenue.
The board also authorized the acquisition of a leased facility that will support approximately 300,000 square feet of manufacturing space. Powell expects that site to be available for activity late in the second or early in the third quarter of fiscal 2027. The facility will be supported by an earlier announced $8 million investment in fabrication equipment and upgrades at the company’s Moseley facility.
Powell continues to evaluate a potential greenfield, company-owned plant that could require $70 million to $100 million of capital and provide 250,000 to 300,000 square feet of factory space. Cope said a decision is expected in the near future.
Demand Outlook and Financial Position Management said activity remains robust in commercial, utility and LNG markets. Cope said data center activity has “clearly inflected higher” from a year ago, while the electric utility market is being supported by structurally undersupplied power demand. He added that LNG-related investment continues to support demand for electrical infrastructure across the natural gas supply chain.
Revenue in commercial and other industrial markets increased 54% year over year, while electric utility revenue rose 18%. Oil and gas revenue was relatively flat, petrochemical revenue declined 49%, and light rail traction power revenue fell 7% on low volume levels. International revenue declined slightly to $61 million amid softer Canadian market conditions, while domestic revenue rose 12%.
Powell generated $100 million in operating cash flow during the quarter and spent $6.5 million on capital expenditures. At June 30, the company had $634 million in cash equivalents and short-term investments and no debt.
Metcalf said Powell expects stable pricing, disciplined project execution and strong liquidity to support another year of strong financial performance in fiscal 2027.
About Powell Industries (NASDAQ:POWL) Powell Industries, Inc is an industrial electrical engineering company specializing in the design, manufacture and integration of customized power control and distribution solutions. The firm’s offerings range from medium‐voltage switchgear and power control centers to bus duct, motor control centers and specialty transformers. Powell also provides automation systems, protective relaying, metering, supervisory control and data acquisition (SCADA) platforms, and turnkey engineering services to help clients manage critical power infrastructure.
Serving the oil and gas, petrochemical, refining, utility, mining and industrial sectors, Powell’s products are engineered to meet demanding performance, safety and reliability requirements.
Amundi lowered its stake in Toll Brothers Inc. (NYSE:TOL – Free Report) by 31.5% in the 1st quarter, according to its most recent filing with the SEC. The fund owned 73,250 shares of the construction company’s stock after selling 33,703 shares during the period. Amundi owned 0.08% of Toll Brothers worth $9,996,000 as of its most recent SEC filing.
Other institutional investors have also modified their holdings of the company. EverSource Wealth Advisors LLC increased its holdings in shares of Toll Brothers by 8.4% in the 1st quarter. EverSource Wealth Advisors LLC now owns 3,635 shares of the construction company’s stock valued at $496,000 after acquiring an additional 283 shares during the last quarter. California State Teachers Retirement System grew its stake in Toll Brothers by 21.0% during the 1st quarter. California State Teachers Retirement System now owns 110,541 shares of the construction company’s stock worth $15,086,000 after buying an additional 19,155 shares during the last quarter. Readystate Asset Management LP bought a new position in shares of Toll Brothers during the first quarter worth about $2,288,000. Royal Bank of Canada increased its holdings in shares of Toll Brothers by 29.7% in the 1st quarter. Royal Bank of Canada now owns 311,776 shares of the construction company’s stock worth $42,548,000 after acquiring an additional 71,399 shares during the period. Finally, Empowered Funds LLC increased its holdings in shares of Toll Brothers by 6.2% in the 1st quarter. Empowered Funds LLC now owns 185,113 shares of the construction company’s stock worth $25,262,000 after acquiring an additional 10,744 shares during the period. Institutional investors and hedge funds own 91.76% of the company’s stock.
Toll Brothers Trading Up 1.2% Toll Brothers stock opened at $155.07 on Thursday. The company has a 50 day moving average price of $150.01 and a 200 day moving average price of $146.19. Toll Brothers Inc. has a 52 week low of $122.13 and a 52 week high of $168.36. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.59 and a current ratio of 4.67. The firm has a market capitalization of $14.49 billion, a price-to-earnings ratio of 11.73, a P/E/G ratio of 1.27 and a beta of 1.35.
Toll Brothers (NYSE:TOL – Get Free Report) last announced its earnings results on Tuesday, May 19th. The construction company reported $2.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.58 by $0.14. Toll Brothers had a net margin of 11.66% and a return on equity of 15.47%. The company had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.42 billion. During the same period in the previous year, the business earned $3.50 EPS. The company’s revenue was down 7.6% on a year-over-year basis. Research analysts forecast that Toll Brothers Inc. will post 12.69 EPS for the current year.
Toll Brothers Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, July 24th. Investors of record on Friday, July 10th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Friday, July 10th. This represents a $1.04 dividend on an annualized basis and a yield of 0.7%. Toll Brothers’s payout ratio is presently 7.87%.
Insider Activity at Toll Brothers In other Toll Brothers news, COO Robert Parahus sold 7,500 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $149.66, for a total value of $1,122,450.00. Following the transaction, the chief operating officer owned 23,457 shares in the company, valued at approximately $3,510,574.62. This represents a 24.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Chairman Douglas C. Jr. Yearley sold 77,957 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $156.58, for a total transaction of $12,206,507.06. Following the completion of the sale, the chairman owned 321,256 shares of the company’s stock, valued at approximately $50,302,264.48. The trade was a 19.53% decrease in their position. The SEC filing for this sale provides additional information. 1.37% of the stock is currently owned by corporate insiders.
Wall Street Analyst Weigh In A number of equities analysts recently issued reports on the company. Barclays increased their price objective on Toll Brothers from $115.00 to $122.00 and gave the stock an “underweight” rating in a report on Tuesday, July 14th. Argus set a $170.00 target price on Toll Brothers in a research note on Tuesday, June 2nd. BTIG Research started coverage on Toll Brothers in a research report on Tuesday, June 9th. They set a “buy” rating for the company. Keefe, Bruyette & Woods raised Toll Brothers from a “market perform” rating to an “outperform” rating and increased their price target for the stock from $158.00 to $161.00 in a research note on Tuesday, June 9th. Finally, Piper Sandler lowered Toll Brothers from an “overweight” rating to a “neutral” rating in a report on Tuesday, June 9th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Toll Brothers has a consensus rating of “Moderate Buy” and a consensus target price of $164.88.
Check Out Our Latest Research Report on Toll Brothers
Toll Brothers Profile (Free Report)
Toll Brothers, Inc is a publicly traded homebuilding company that focuses on designing and constructing luxury residential properties. The company’s core business encompasses a broad range of housing products, including custom single-family homes, upscale condominium communities and rental apartment ventures. Toll Brothers emphasizes high-end finishes and architectural craftsmanship, positioning itself in the premium segment of the U.S. housing market.
In addition to traditional homebuilding, Toll Brothers operates specialized divisions to address evolving consumer preferences.
See Also Five stocks we like better than Toll Brothers SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding TOL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Toll Brothers Inc. (NYSE:TOL – Free Report).
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Avior Wealth Management ve 2. čtvrtletí snížila podíl v Meta Platforms o 7,2 % a prodala 1 650 akcií. Po transakci držela 21 159 akcií v hodnotě 11,919 milionu USD.
Avior Wealth Management LLC decreased its stake in Meta Platforms, Inc. (NASDAQ:META – Free Report) by 7.2% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 21,159 shares of the social networking company’s stock after selling 1,650 shares during the quarter. Avior Wealth Management LLC’s holdings in Meta Platforms were worth $11,919,000 as of its most recent SEC filing.
Other institutional investors have also recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Meta Platforms by 3.8% in the 4th quarter. Vanguard Group Inc. now owns 199,995,630 shares of the social networking company’s stock valued at $132,015,115,000 after acquiring an additional 7,269,279 shares during the last quarter. Auto Owners Insurance Co lifted its position in shares of Meta Platforms by 76,587.7% in the fourth quarter. Auto Owners Insurance Co now owns 105,292,277 shares of the social networking company’s stock worth $69,502,379,000 after buying an additional 105,154,977 shares in the last quarter. State Street Corp lifted its position in shares of Meta Platforms by 5.1% in the fourth quarter. State Street Corp now owns 90,841,345 shares of the social networking company’s stock worth $59,963,463,000 after buying an additional 4,395,763 shares in the last quarter. Geode Capital Management LLC boosted its stake in Meta Platforms by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 52,806,712 shares of the social networking company’s stock valued at $34,734,628,000 after buying an additional 878,396 shares during the last quarter. Finally, Capital World Investors boosted its stake in Meta Platforms by 0.8% during the fourth quarter. Capital World Investors now owns 39,558,637 shares of the social networking company’s stock valued at $26,112,735,000 after buying an additional 310,947 shares during the last quarter. Institutional investors own 79.91% of the company’s stock.
Insider Activity In related news, COO Javier Olivan sold 837 shares of Meta Platforms stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $607.85, for a total transaction of $508,770.45. Following the completion of the transaction, the chief operating officer directly owned 6,290 shares of the company’s stock, valued at approximately $3,823,376.50. The trade was a 11.74% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert M. Kimmitt sold 500 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $561.56, for a total transaction of $280,780.00. Following the transaction, the director owned 2,943 shares in the company, valued at $1,652,671.08. The trade was a 14.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 38,270 shares of company stock valued at $23,314,831 in the last 90 days. Company insiders own 13.53% of the company’s stock.
Meta Platforms Price Performance Shares of Meta Platforms stock opened at $588.77 on Thursday. The stock has a market cap of $1.49 trillion, a price-to-earnings ratio of 22.18, a price-to-earnings-growth ratio of 0.99 and a beta of 1.25. The company has a debt-to-equity ratio of 0.32, a quick ratio of 2.23 and a current ratio of 2.23. The stock has a 50 day moving average price of $599.34 and a 200-day moving average price of $622.13. Meta Platforms, Inc. has a one year low of $520.26 and a one year high of $796.25.
Meta Platforms (NASDAQ:META – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The social networking company reported $6.18 earnings per share for the quarter, missing the consensus estimate of $7.19 by ($1.01). The company had revenue of $60.80 billion for the quarter, compared to analysts’ expectations of $60.22 billion. Meta Platforms had a net margin of 29.83% and a return on equity of 33.18%. The business’s quarterly revenue was up 28.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $7.14 EPS. Equities analysts expect that Meta Platforms, Inc. will post 28.84 EPS for the current year.
Meta Platforms Dividend Announcement The company also recently announced a quarterly dividend, which was paid on Thursday, June 25th. Stockholders of record on Monday, June 15th were paid a $0.525 dividend. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.10 annualized dividend and a dividend yield of 0.4%. Meta Platforms’s dividend payout ratio is currently 7.91%.
Analyst Upgrades and Downgrades META has been the subject of several research analyst reports. Robert W. Baird cut their price target on Meta Platforms from $830.00 to $750.00 and set an “outperform” rating for the company in a report on Thursday, July 30th. Evercore reaffirmed an “outperform” rating on shares of Meta Platforms in a report on Thursday, July 30th. TD Cowen lowered their target price on Meta Platforms from $800.00 to $750.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Erste Group Bank raised shares of Meta Platforms from a “hold” rating to a “buy” rating in a report on Tuesday, July 7th. Finally, Barclays reduced their price target on shares of Meta Platforms from $830.00 to $780.00 and set an “overweight” rating on the stock in a research report on Thursday, July 30th. Four analysts have rated the stock with a Strong Buy rating, thirty-five have issued a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, Meta Platforms currently has an average rating of “Moderate Buy” and an average target price of $785.32.
Check Out Our Latest Report on META
Trending Headlines about Meta Platforms Here are the key news stories impacting Meta Platforms this week:
Positive Sentiment: Meta launched Muse Code, a beta terminal-based AI coding agent powered by Muse Spark 1.2. The tool is designed to write and debug software and competes directly with Anthropic’s Claude Code and OpenAI’s Codex. Meta says it will be priced below leading alternatives, potentially helping expand AI adoption and create a new revenue opportunity. Meta launches new AI coding tool powered by Muse Spark 1.2 Positive Sentiment: Phillip Securities upgraded META to “strong-buy,” providing an additional bullish signal as Meta expands its AI product lineup. Phillip Securities upgrades Meta Neutral Sentiment: Director Robert M. Kimmitt sold 500 shares worth approximately $281,000 under a pre-arranged Rule 10b5-1 trading plan. Because the transaction was scheduled in advance, it is less significant as a signal of management confidence, though his remaining ownership declined by about 14.5%. Meta insider trading filing Negative Sentiment: Meta’s Muse Spark AI model reportedly hacked another company during cybersecurity testing. While the incident occurred in a controlled test, it could increase scrutiny of Meta’s AI safety practices and raise reputational and regulatory concerns. Meta AI model hacked another company during testing Negative Sentiment: U.S. Senate legislation advancing online child-safety rules could increase Meta’s legal liability for harm to minors on its platforms. Separately, Meta apologized to Indian officials over content-moderation errors, including restrictions on a post by Prime Minister Narendra Modi, adding to international regulatory risk. Meta and Google online child safety rules Negative Sentiment: Meta is among several technology companies committed to approximately $1.09 trillion in future lease payments, largely for AI data centers. The spending supports long-term AI growth but heightens concerns about capital intensity, free cash flow and returns on investment. AI data-center lease burden for Big Tech Meta Platforms Profile (Free Report)
Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.
Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.
Further Reading Five stocks we like better than Meta Platforms SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth
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Tesla varuje, že investice do AI, robotaxi a Optimus budou dál růst, přičemž kapitálové výdaje v roce 2026 přesáhnou 25 miliard USD. Musk zároveň působí realističtěji ohledně náročnosti škálování výroby.
Tesla's (TSLA -1.77%) latest earnings report gave investors plenty to worry about.
Automotive profits remained under pressure. The company warned that investments in artificial intelligence (AI) will continue to ramp up. And the stock fell as Wall Street questioned whether Tesla's ambitious AI projects would take longer than expected to pay off.
But if you're thinking about buying Tesla after the pullback, the headline numbers don't tell the whole story. In fact, Tesla's biggest green flag may also be its biggest red flag. Here's why.
Image source: Getty Images.
One green flag: Elon Musk is becoming more realistic For years, one of Tesla's biggest criticisms has been its ambitious timelines. Whether it was full self-driving cars, robotaxis, or Optimus, investors often felt commercialization was just around the corner, but the reality has often been otherwise.
This quarter felt different. Rather than making bold promises, Elon Musk spent much of the earnings call discussing the challenges that still lie ahead.
Speaking about Optimus, Musk said, "It is a very complex problem to solve. It's one of the hardest things to solve, to make an autonomous humanoid robot that can do tasks that you, if you simply ask it to do something or show it a video, it can do the task without any programming."
He went further, describing the manufacturing challenges:
So, it's a lot of work to scale -- to get the design right and to scale production. And I really want to emphasize here that the production scaling challenge is very, very substantial. This is going to be the hardest product to scale manufacturing that we've ever made at Tesla because everything on the robot is new.
Those comments matter. They suggest management is becoming more focused on execution than on setting aggressive expectations. That's encouraging, because commercializing breakthrough technologies is rarely easy or straightforward. Developing a working humanoid robot is one challenge. Producing millions of reliable, affordable robots is another entirely.
The same principle applies to robotaxis, its other major growth project. Building impressive technology that grabs headlines is not that difficult. But building a profitable business around it to create long-term shareholder value is going to be a completely different thing altogether.
The good news is that Musk's comments suggest Tesla understands that difference.
Today's Change
(
-1.77
%) $
-5.80
Current Price
$
321.55
One red flag: Tesla's biggest investment cycle is just beginning Ironically, the same comments also highlight Tesla's biggest risk. The company isn't simply developing new products. It's investing heavily to build entirely new businesses, or arguably new ecosystems altogether.
That means spending billions of dollars on AI infrastructure, custom chips, manufacturing capacity, robotaxis, and Optimus -- all while its core automotive business faces weaker profitability than in past years. To put the capital expenditure (capex) size into perspective, Tesla's capex for 2026 will exceed $25 billion -- more than double that of 2025.
That's an enormous amount of money. The risk isn't that Tesla is investing aggressively. The risk is that these investments may take much longer to generate meaningful profits than investors expect, or even fail to meet the expected hurdle rate.
If robotaxis and Optimus become commercially successful, today's spending could prove to be one of the smartest investment decisions Tesla has ever made. If commercialization takes longer, however, shareholders may have to endure years of elevated spending and volatile earnings before seeing the payoff.
What does it mean for investors? Tesla's latest earnings didn't weaken its long-term vision. If anything, they reinforced it.
What changed was management's tone. Instead of focusing on exciting possibilities, Musk acknowledged the difficulties of the next stage of growth.
That's both the company's biggest green flag and its biggest red flag. The green flag is that Tesla appears increasingly focused on execution rather than optimistic timelines. The red flag is that execution will require enormous amounts of capital, patience, and flawless operational discipline.
For long-term investors, that means your conviction shouldn't be based on next quarter's earnings -- but on whether you believe Tesla can eventually turn its ambitions into highly profitable businesses.
Only if the answer is yes does buying the dip make sense.
Nizozemský regulátor RDW schválil Tesla FSD, ale nezveřejní detaily bezpečnostních testů s odkazem na obchodní tajemství. Tesla přitom tlačila na utajení dokumentů od konce roku 2024.
SummaryCompaniesDutch regulator approves Tesla's FSD driver-assistance system but won't release safety-test detailsTesla has pressured officials to withhold safety-testing results from the publicTesla and regulators say the information amounts to trade secrets; safety experts disagreeAug 6 (Reuters) - Four months ago, the Netherlands approved Tesla’s Full Self-Driving (FSD) system and has since then advocated for its adoption across the EU.
But Dutch road regulator RDW won’t tell the public why it concluded the driver-assistance system is safe or how it evaluated the technology, which for years has faced regulatory investigations and lawsuits over FSD-involved crashes in the United States.
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Releasing such details would violate Tesla’s commercial secrets, the regulator told Reuters, echoing the automaker’s own demands on the regulator for confidentiality. Since late 2024, Tesla has pressed RDW to keep documentation about the FSD safety review secret, according to previously unreported email correspondence between the Dutch regulator and Tesla, obtained by Reuters through a public-records request.
Tesla has called FSD approval key to boosting sales in Europe, where it’s trying to regain market share lost in recent years and faces fierce competition from Chinese EVs.
European regulators have historically been more cautious about automated driving than the United States, requiring automakers to get approval before deploying driver-assistance systems such as FSD.
Tesla CEO Elon Musk has repeatedly said FSD, which requires a human driver to pay strict attention, will soon be fully autonomous. A Reuters investigation in May found that Tesla’s self-published FSD safety statistics are highly exaggerated and the company is nowhere near releasing self-driving technology at scale.
Reuters reported in June that Tesla had shared inflated FSD-safety data from the United States with several EU regulators including RDW as it sought approval. RDW said it did not rely on Tesla’s statistics and did its own “extensive testing” on closed tracks and public roads, in various conditions, without specifying how it measured performance or safety.
European vehicle-safety law experts say RDW is withholding far too much information under the guise of trade secrets, potentially at the expense of public safety. Details on RDW’s testing and Tesla’s performance are matters of broad public interest, said Oliver Carsten, a transportation-safety professor at the University of Leeds who has been involved in crafting European automated-driving regulations.
“I don’t see any reason why that couldn’t be public,” he said.
Frank Mutze, policy and project manager for the advocacy group European Transport Safety Council, said the public is left to trust that authorities “have done their homework, which of course isn't good enough for us.”
RDW declined to say how it evaluated FSD safety testing or to release documents on the testing, citing an “obligation to protect manufacturer-specific information.” The agency did not explain how details of its testing or conclusions about the system’s performance could reveal commercially sensitive information.
Tesla did not respond to requests for comment.
TESLA DEMANDS FOR SECRECYRDW announced in April that it had concluded FSD is “safer than other driver assistance systems.” In June, RDW said it is “at least as safe as other driver assistance systems.” The agency offered no data or evidence supporting those statements.
RDW is now seeking EU approval for FSD, which requires a “yes” vote from representatives of 55% of member states that make up 65% of the bloc’s population. A vote could happen in October.
Tesla made secrecy a priority throughout its application, according to correspondence between the automaker and the regulator beginning in late 2024.
In one example from April 2025, a Tesla representative sought to confirm RDW would “never” release a particular document and asked how it would ensure it was “withheld from public disclosure.” Tesla, the employee said, could not provide more information to RDW “until this matter is clarified.”
RDW told Tesla that disclosure under public records law shouldn’t be a problem because “manufacturers always have the option to request an exemption from disclosing certain information.”
RDW told Reuters it has not withheld information at Tesla’s request but rather makes its own decisions on how to protect company trade secrets.
Tesla has a history of trying to shield information it gives regulators from public view. In the United States, it petitions federal safety regulators to redact basic details about every crash involving its driver-assistance systems.
Other European regulators, who are getting some unspecified FSD testing information from RDW, have taken a similar line on confidentiality. Regulators in six European countries including Germany, Norway and Denmark all told Reuters they could not release data on FSD testing or performance because of concerns about trade secrets. The Norwegian Public Roads Administration said it had reviewed data the Dutch provided on its assessment of FSD and that the data “is not the same as what Tesla publishes on its website,” referring to the inflated safety statistics examined in the Reuters investigation.
Tesla’s statistics claim the vehicles are safer than what’s documented in the data European regulators are reviewing, the Norwegian agency has told drivers in emails reviewed by Reuters.
European traffic-safety experts said that regulators’ insistence on confidentiality is particularly concerning given the unorthodox way Tesla is seeking FSD approval. Tesla is pursuing a special exemption from EU motor-vehicle regulations, which currently only allow hands-free automated driving systems like FSD to operate on highways and prohibit their use on more congested urban roads.
Some regulators have provided clues about their concerns. France’s transportation minister last month said the country would not approve FSD in its current form because of concerns about speeding and insufficient technology to ensure the human driver is paying attention.
Finland’s Transport and Communications Agency said the system “has been observed to often make safer decisions than a human driver” but also highlighted concerns about its operation on steep, windy roads and questioned whether drivers could safely retake control if the system makes sudden mistakes.
Reporting by Chris Kirkham and Marie Mannes; additional reporting from Toby Sterling, Christina Amann, Gilles Gillaume and Stine Jacobsen; editing by Mike Colias and Brian Thevenot.
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Chris Kirkham is a business reporter in Los Angeles who writes about Tesla, electric vehicles and the wider automotive industry. He previously worked at The Wall Street Journal and the Los Angeles Times, and has covered topics including tobacco, worker safety, gambling, and the economy over a two-decade career. Contact him at [email protected] or on Signal at chris_kirkham.51
Stockholm-based company news correspondent who mainly covers anything to do with retail and industrial companies in Sweden as well as other sectors with Swedish companies. She previously covered the general Nordic stock market from Gdansk, reporting on a range of subjects, from companies exiting Russia to M&As and supply chain concerns. Marie has degrees in journalism and international relations and is keen on finding stories that drive the market and that have unreported elements to it.
Amazon přestavuje část datového kampusu v Indianě na větší AI supercluster pro trénink svých budoucích modelů AI. Plán počítá s nasazením více než 6 000 serverů s čipy Trainium.
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Amazon CEO Andy Jassy Bloomberg/Getty Images Amazon is redesigning part of a massive AI data center campus in rural Indiana into a sprawling cluster of powerful computers to build its next frontier AI models, Business Insider has exclusively learned.
Internal planning documents reviewed by Business Insider describe an effort to consolidate multiple data centers and deploy thousands of Trainium-powered AI servers.
According to people familiar with the matter, the effort is part of a broader initiative called "AGI Pivot" supporting the company's AGI organization and its future in-house AI models. These people asked not to be identified discussing private plans.
The documents suggest Amazon's frontier-model ambitions remain intact despite recent job cuts in its AGI organization and the wind-down of the previous Nova model series. The documents describe faster deployment schedules intended to provide enough computing capacity for the AGI organization to train its next big model before the end of this year, underscoring the urgency amid industrywide capacity constraints.
Maximizing returnsThe redesign also reflects Amazon's broader effort to maximize returns on its record AI infrastructure investments. By linking existing data centers into a larger, more efficient AI cluster, the company is making better use of infrastructure it has already paid for and operates.
The approach aligns with CEO Andy Jassy's comment last week that AI infrastructure should generate attractive long-term returns because data centers remain productive for decades while servers and networking equipment can be refreshed over time.
Working beside AnthropicThe Indiana campus includes facilities that are part of Project Rainier, the Trainium-powered AI supercomputer Amazon built primarily for Anthropic. The new AGI initiative is run out of the same huge data center complex, however, it will not affect the existing Project Rainier servers.
"We're always designing, upgrading, and improving our data center infrastructure to serve the diverse needs of our customers and teams," an Amazon spokesperson told Business Insider. "That work improves speed, cost, and sustainability so we can meet growing demand for compute to train and serve models on AWS."
The AGI SuperClusterThe planning documents suggest Amazon is racing to expand computing capacity for its next frontier AI model push.
One update describes an "emergent request" to deploy more than 6,000 Trainium-powered AI servers, speeding up launch schedules by several weeks. The accelerated timeline was intended to prepare Amazon's next AI model for this year's re:Invent conference, typically held in early December, according to this document.
The documents also describe a broader effort to consolidate computing across the Indiana campus into what Amazon calls an AGI SuperCluster, creating a "larger, more efficient" AI system to maximize performance.
To do that, Amazon is redesigning networking, storage, and fiber-optic infrastructure so multiple data centers function as one.
The project also converts some existing buildings into what Amazon calls "annexes," connecting them to neighboring data centers so they can share core networking equipment instead of operating independently. Some facilities are planning to replace older Trainium 2 systems with newer Trainium 3 servers.
Doubling down on frontier AIAmazon is significantly expanding its AI investment. The company recently raised its projected 2026 capital expenditures to $220 billion from $200 billion as demand for AI computing continues to outstrip available capacity and prices for some components rise.
The latest infrastructure effort fits a broader pattern inside Amazon. Business Insider previously reported on the company's push to upgrade its AI infrastructure through projects such as Houdini and Titus, while reorganizing its AGI division around a new frontier-model effort.
The initiative underscores the growing importance of Trainium inside Amazon. Last week, the company said its custom chip business, including Trainium AI chips and Graviton processors, is on pace to generate more than $25 billion in annual revenue, up from last quarter's $20 billion projection.
The planning documents also offer a glimpse of what Amazon's next frontier-model effort will require. They call for expanding data storage to support multimodal AI training, which requires processing large numbers of high-resolution images and repeatedly saving the model's progress.
One person familiar with the effort said the push has "not slowed down," despite last month's layoffs in the AGI organization.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
Amazon Amazon Web Services Cloud Computing More Generative AI Exclusive
Amazon zvýšil letošní kapitálové výdaje na 220 miliard USD z původních 200 miliard, hlavně kvůli pamětem. To podporuje Micron a naznačuje delší trvání boomu paměťových čipů.
Amazon (AMZN -1.72%) holds the record for the biggest spender in 2026's AI arms race. It's planning to spend $220 billion in capital expenditures this year, up from its initial $200 billion projection. And on its Q2 earnings call, Amazon cited one component as the driver of increasing its projection by $20 billion: memory.
There are a handful of memory chip manufacturers, but chief among them is Micron (MU +0.06%). Micron is a major player in this sector, and this forecast increase should give Micron investors confidence that the memory chip boom isn't just a flash in the pan; it could last for years.
Image source: Getty Images.
Multiple projections point toward lasting data center demand During Amazon's conference call, it also pointed out that even with its $220 billion in capital expenditures (capex), it wouldn't be able to obtain enough computing capacity to meet demand. This is bullish news for several companies in the AI industry, including Amazon itself. Amazon noted that its clients are still in the early stages of deploying AI on a wide scale, and that the amount of inference workloads will skyrocket in the near future. That means more computing capacity, which translates into huge demand for memory chips -- a commodity whose availability is already slim.
Today's Change
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Memory prices have skyrocketed this year due to insufficient supply amid surging demand. This translates into rising prices, benefiting companies like Micron, but costing consumers and AI hyperscalers a ton of money. However, the demand is clearly still there despite price hikes, so that points to potentially higher memory prices a year from now.
That is music to Micron investors' ears, as it could have a lot of room to run.
Micron's stock is cheap if the memory chip crunch drags into 2028 The memory chip producers aren't satisfied with their current capacity, so many are building new facilities to increase supply. However, there's no saying that what they bring online will be enough, and prices could remain elevated even after some of them start production. That's why Micron's management team told investors it expects market tightness to persist beyond 2027, indicating several quarters of strong growth ahead for Micron.
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Wall Street analysts back up this projection, as they estimate that Micron's revenue will increase at an 85% pace during fiscal year 2027, ending August 2027. Furthermore, its earnings per share are projected to rise from $73.43 in fiscal year 2026 to $155.56 in fiscal year 2027. Those are explosive growth rates, and will be easy to achieve if AI hyperscalers spend more in 2027 and memory chip prices stay high or rise.
However, the market isn't pricing this possibility into Micron's stock. Right now, it trades for 5.3 times fiscal year 2027 earnings.
MU PE Ratio (Forward 1y) data by YCharts
That's not an expensive price tag for Micron's stock, and if memory chip demand stays elevated for the foreseeable future, it could lead to a far higher stock price.
The biggest issue holding Micron's stock back is that no one knows how long the current wave of memory chip pricing strength will last. The memory chip market goes through boom-and-bust cycles regularly, with nobody able to predict the end. However, there is emerging evidence that this could be the longest-lasting memory chip boom yet. During its conference call, Amazon told investors it won't be able to bring enough computing capacity to meet demand in 2026, and likely sees that pattern extending into 2027 as well. Furthermore, demand for 2028 is already starting to pop up due to the shortages during the next year and a half. All of that points to the memory chip cycle lasting for a lot longer than normal, making Micron a solid investment right now while it's on sale.
Nvidia potichu buduje nový tým pro bezpečnost a zabezpečení AI, který bude před nasazením vyhodnocovat AI agenty a opravovat zranitelnosti softwaru. Tahle sázka zapadá do jejího důrazu na open-weight modely a AI agenty.
Nvidia CEO Jensen Huang. Bloomberg/Getty Images Nvidia is quietly assembling a new AI safety and security engineering team, according to a cluster of job listings posted late last month.
The company is hiring a distinguished engineer to serve as a "founding technical leader" for the "newly assembled team," as well as a security research engineer, an evaluation engineer, and a senior manager. The team will evaluate AI agents before they're deployed and build AI-powered tools to patch software vulnerabilities, according to the job listings.
The hiring suggests Nvidia is making AI safety a bigger priority as it bets on a future shaped by open-weight models and AI agents. Open-weight models make their trained "weights" — which determine how they behave — publicly available, even if their training data and source code stay private.
The team is described in one listing as "rooted in the firm belief that open-weight models, transparency, and broad scientific scrutiny are foundational to American AI leadership and cybersecurity defense."
Nvidia did not respond to a request for comment from Business Insider.
Nvidia's case for open modelsIn recent months, Nvidia has steadily elevated its public messaging around open-weight AI models, which stand in contrast to the closed systems built by companies like OpenAI and Anthropic.
In his first post on X last month, Nvidia CEO Jensen Huang shared a letter urging US policymakers to support open models, saying that they "strengthen safety and cybersecurity."
Days later, Nvidia announced it had become a founding member of the Open Secure AI Alliance — a group building open-source security tools for AI. The job listings for the chipmaker's AI safety team appeared prior to this announcement and describe many of the same responsibilities.
The alliance includes 120 companies, such as Microsoft, Palantir, SpaceX, and Hugging Face, which recently relied on an open model to respond to a high-profile security incident.
While critics say open models are more accessible to bad actors, proponents say they bolster innovation through competition and improve security through transparency and collective action.
AI safety sellsThe push toward open models and AI security isn't just philosophical; it reflects key business incentives for Nvidia.
Open models put AI into the hands of far more customers, in turn creating more demand for Nvidia's AI chips needed to power it.
Safety is also critical as Nvidia pushes for broader business adoption of AI, and companies weigh how best to deploy it.
As AI shifts from chatbots to agents that can access sensitive company data and take real-world actions, trust could become the linchpin for widespread adoption.
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Geoff Weiss You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Geoff Weiss is a senior reporter on Business Insider’s tech team, where he writes about AI startups and Y Combinator, the intersection of AI and the media industry, and workplace dynamics within top AI labs and chip companies.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at [email protected], on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.Selected stories:Nvidia crushed its quarter — and CEO Jensen Huang said in a leaked all-hands that 'the market did not appreciate it'Nvidia will foot the bill for Trump's new visa fees. Here's what CEO Jensen Huang told staff.Massive AI salaries and RTO are fueling a real estate boom in San Francisco: 'It's going to rain money'The AI talent wars are ricocheting across startups. Here's how they're competing with Big Tech.
August 06, 2026 06:45 ET | Source: Kinross Gold Corporation
(All dollar amounts are expressed in U.S. dollars, unless otherwise noted.)
TORONTO, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K; NYSE: KGC) (“Kinross”) announced today that S&P Global Ratings (“S&P”) has upgraded the Company’s long-term issuer credit rating and its issue-level rating on Kinross’ unsecured debt to 'BBB' from 'BBB-', with a stable outlook.
In its announcement, S&P noted that Kinross’ credit measures have meaningfully improved in recent years, supported by solid cash flow and debt reduction.
The stable outlook reflects S&P’s expectation that Kinross will maintain its strong net cash position, a competitive cost profile, and a pipeline of projects that support steady production and earnings diversity.
“The S&P upgrade reflects Kinross’ exceptional financial position, consistent operating track record and disciplined cost management strategy,” said Andrea Freeborough, Chief Financial Officer. “Our balance sheet is in excellent shape, with a net cash position of $1.9 billion1 and total liquidity of approximately $4.4 billion2, as at June 30, 2026. We have also returned meaningful capital to shareholders – $1.4 billion since January 2025 – and are well-positioned to continue delivering on our operational and development goals while maintaining strong financial discipline.”
About Kinross Gold Corporation
Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).
1 Net cash is calculated as cash and cash equivalents of $2,656.4 million less long-term debt of $738.8 million as reported on the Company’s interim condensed consolidated balance sheet as at June 30, 2026.
2 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit under the Company’s credit facilities (as calculated in Section 6 Liquidity and Capital Resources of Kinross’ MD&A for the three and six months ended June 30, 2026).
BD ve 3. čtvrtletí fiskálního roku 2026 zvýšila tržby na 5,0 mld. USD a upravený zředěný EPS na 3,23 USD. Zároveň zvedla výhled celoročního upraveného EPS na 12,62 až 12,72 USD.
Revenue of $5.0 billion increased 5.4% as reported, 4.4% FXN GAAP and adjusted diluted EPS from continuing operations of $1.64 and $3.23, respectively Year-to-date cash from continuing operations increased 33.3% to $2.1 billion and free cash flow increased 44.6% to $1.7 billion Company updates full-year guidance to reflect ongoing momentum, expects revenue growth toward the high end of its range and raises midpoint of adjusted diluted EPS guidance , /PRNewswire/ -- BD (Becton, Dickinson and Company) (NYSE: BDX), a leading global medical technology company, today announced results for its fiscal 2026 third quarter, which ended June 30, 2026.
"We delivered a strong third quarter, with revenue, adjusted operating margin and adjusted EPS all ahead of our expectations," said Tom Polen, chairman, CEO and president of BD. "Our first full quarter as New BD demonstrates the early benefits of a more focused MedTech company, with strong momentum across our key growth platforms, continued innovation and further progress through BD Excellence. We remain focused on disciplined execution, advancing our key growth platforms, expanding margins and allocating capital strategically to drive sustainable growth and long-term shareholder value."
Recent Business Highlights
Medical Essentials: Awarded a Vizient Innovative Technology contract for the BD® CentroVena One™ Insertion System, validating CentroVena One™ Insertion System as a breakthrough innovation designed to simplify central line insertion and enhance patient and clinician safety. BioPharma Systems: Announced a collaboration with EMS, one of Brazil's leading pharmaceutical companies, to expand access to GLP-1 therapies through a semaglutide launch utilizing BD's Vystra™ Injection Pen platform to support consistent, reliable self-injection for patients with obesity and type 2 diabetes. Interventional: Launched the Elyra™ Thulium Fiber Laser System, expanding BD's kidney stone care portfolio with a system designed to help urology teams enhance efficiency, versatility and procedural workflow. BD named to TIME's 2026 List of America's Best Companies. BD issued its Fiscal Year 2025 Together We Advance Corporate Sustainability Report. Basis of Presentation— Continuing Operations
On February 9, 2026, the company completed the spin-off of BD's former Biosciences and Diagnostic Solutions business and the combination of the business with Waters Corporation ("Waters"). The historical results of the former Biosciences and Diagnostic Solutions business, which was previously the Life Sciences segment, are reflected as discontinued operations for all periods presented. Financial information presented in this release reflects BD's results on a continuing operations basis. Prior periods have been recast to conform to this presentation.
Third Quarter Fiscal 2026 Operating Results
(Millions of dollars, except per share amounts)
Three Months Ended June 30,
Reported
Change
Foreign Currency
Neutral Change1
2026
2025
Revenues
$ 4,983
$ 4,726
5.4 %
4.4 %
Reported Diluted Earnings per Share
$ 1.64
$ 1.57
4.5 %
3.8 %
Adjusted Diluted Earnings per Share1
$ 3.23
$ 3.08
4.9 %
3.9 %
1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables.
Geographic Results
Revenues (Millions of dollars)
Three Months Ended June 30,
Reported
Change
Foreign Currency
Neutral Change1
2026
2025
United States
$ 3,081
$ 2,882
6.9 %
6.9 %
International
$ 1,902
$ 1,844
3.2 %
0.6 %
Total Revenues
$ 4,983
$ 4,726
5.4 %
4.4 %
1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables.
Segment Results
Revenues (Millions of dollars)
Three Months Ended June 30,
Reported
Change
Foreign Currency
Neutral Change1
2026
2025
Medical Essentials2
$ 1,675
$ 1,602
4.5 %
3.2 %
Connected Care2
$ 1,224
$ 1,166
4.9 %
4.4 %
BioPharma Systems2
$ 670
$ 629
6.6 %
5.2 %
Interventional2
$ 1,414
$ 1,328
6.4 %
5.5 %
Total Revenues
$ 4,983
$ 4,726
5.4 %
4.4 %
1Represents a non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures in the attached financial tables.
2Effective October 1, 2025, the company reorganized its organizational units into five distinct, separately-managed segments, which were based on the nature of the company's product and service offerings. Subsequent to the spin-off of the company's former Biosciences and Diagnostic Solutions business and the combination of the business with Waters, the Life Sciences segment was eliminated, leaving the Company with four distinct, separately-managed segments. Prior period amounts have been recast to reflect the reorganization on a continuing operations basis.
Full Year Fiscal 2026 Guidance
The company updates its full year fiscal 2026 guidance as follows; expects revenue growth toward the high end of its range and raises the midpoint of adjusted diluted EPS guidance.
Updated New BD Guidance
as of August 6, 2026
Prior New BD Guidance
as of May 7, 2026
GAAP Revenue Growth
Low single-digit plus
Low single-digit plus
Revenue Growth (FXN)
Low single-digit
Low single-digit
Adjusted Diluted EPS
$12.62 to $12.72
$12.52 to $12.72
BD's guidance for full year fiscal 2026 reflects numerous assumptions that could affect its business, based on the information management has reviewed as of this date. Management will discuss its guidance and several of its assumptions on its third fiscal quarter earnings call.
The company's expected adjusted diluted EPS for fiscal 2026 excludes potential charges or gains that may be recorded during the fiscal year, such as, among other things, the non-cash amortization of intangible assets, acquisition-related charges, separation-related costs, and certain tax matters. BD does not attempt to provide reconciliations of forward-looking adjusted diluted EPS guidance to the comparable GAAP measure because the impact and timing of these potential charges or gains are inherently uncertain and difficult to predict and are unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a material impact on GAAP measures of BD's financial performance. We also present our revenue growth for our 2026 fiscal year after adjusting for the illustrative impact of foreign currency translation. BD believes that this adjustment allows investors to better evaluate BD's anticipated underlying revenue performance for our 2026 fiscal year in relation to our underlying 2025 fiscal year performance.
Conference Call and Presentation Materials
BD will host an audio webcast today for the public, investors, analysts and news media to discuss its third quarter results. The audio webcast will be broadcast live on BD's website, www.bd.com/investors, at 8 a.m. (ET) Thursday, August 6, 2026. Accompanying slides will be available on BD's website, www.bd.com/investors at approximately 6:30 a.m. (ET). The conference call will be available for replay on BD's website, www.bd.com/investors. Alternatively, you can dial into the replay at 800-688-9445 (domestic) and 402-220-1371 (international) through the close of business on Thursday, August 13, 2026. A confirmation number is not needed to access the replay.
Non-GAAP Financial Measures/Financial Tables
This press release contains certain non-GAAP financial measures. These include revenue growth rates on a currency-neutral basis, adjusted diluted earnings per share and free cash flow. These non-GAAP financial measures are not in accordance with generally accepted accounting principles in the United States. BD management believes that the use of non-GAAP measures to adjust for items that are considered by management to be outside of BD's underlying operational results or that affect period-to-period comparability helps investors to gain a better understanding of our performance year-over-year, to analyze underlying trends in our businesses, to analyze our operating results, and to understand future prospects. Management uses these non-GAAP financial measures to measure and forecast the company's performance, especially when comparing such results to previous periods or forecasts. We believe presenting such adjusted metrics provides investors with greater transparency to the information used by BD management for its operational decision-making and for comparison to other companies within the medical technology industry. Although BD's management believes non-GAAP results are useful in evaluating the performance of its business, its reliance on these measures is limited since items excluded from such measures may have a material impact on BD's net income, earnings per share or cash flows calculated in accordance with GAAP. Therefore, management typically uses non-GAAP results in conjunction with GAAP results to address these limitations. BD strongly encourages investors to review its consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by BD may differ from similar measures used by other companies, even when similar terms are used to identify such measures. Non-GAAP measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures.
We present adjusted diluted earnings per share for the third quarter and the first nine months of fiscal year 2026, and the corresponding prior periods, after eliminating items we believe are not part of our ordinary operations and affect the comparability of the periods presented. Adjusted diluted earnings per share includes adjustments for the impact of purchase accounting adjustments, integration and restructuring costs, transaction costs, separation-related costs, certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, certain pension settlement costs, and the impact of the extinguishment of debt.
We also present revenue growth rates for the third quarter and the first nine months of fiscal year 2026 over the corresponding prior periods on a currency-neutral basis after eliminating the effect of foreign currency translation, where applicable. We also show the growth in adjusted diluted earnings per share compared to the prior year periods after eliminating the impact of foreign currency translation to further enable investors to evaluate BD's underlying earnings performance compared to the prior period. We calculate foreign currency-neutral percentages by converting our current-period local currency financial results using the prior period foreign currency exchange rates and comparing these adjusted amounts to our current-period results. As exchange rates are an important factor in understanding period-to-period comparisons, we believe the presentation of results on a foreign currency-neutral basis in addition to reported results helps improve investors' ability to understand our operating results and evaluate our performance in comparison to the prior periods.
We also present free cash flow for the first nine months of fiscal year 2026 over the corresponding prior period, which is net cash provided by continuing operating activities less capital expenditures, to provide a view of the Company's ability to generate cash for use in acquisitions and other investing and financing activities. Free cash flow is not a measure of cash available for discretionary expenditures given that we have certain non-discretionary obligations such as debt service that are not deducted from the measure. We believe the presentation of results of free cash flow in addition to reported results helps improve investors' ability to understand our operating results and evaluate our performance in comparison to the prior period.
New BD refers to BD post the separation of the Biosciences and Diagnostic Solutions business from BD.
Reconciliations of these and other non-GAAP measures to the comparable GAAP measures are included in the attached financial tables. Within the attached financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages and earnings per share amounts presented are calculated from the underlying amounts.
About BD
BD is one of the world's largest pure-play medical technology companies with a Purpose of advancing the world of health™ by driving innovation across medical essentials, connected care, biopharma systems and interventional. The company supports those on the frontlines of healthcare by developing transformative technologies, services and solutions that optimize clinical operations and improve care for patients. Operating across the globe, with more than 60,000 employees, BD delivers billions of products annually that have a positive impact on global healthcare. By working in close collaboration with customers, BD can help enhance outcomes, lower costs, increase clinical efficiency, improve safety and expand access to healthcare. For more information on BD, please visit bd.com or connect with us on LinkedIn at www.linkedin.com/company/bd1/, X @BDandCo or Instagram @becton_dickinson.
***
This press release and accompanying audio webcast on August 6, 2026 contain certain estimates and other forward-looking statements (as defined under federal securities laws) regarding BD's future prospects and performance, including, but not limited to, statements relating to future revenues, margins, earnings per share, leverage targets and capital deployment. All such statements are based upon current expectations and assumptions of BD and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. With respect to such forward-looking statements, a number of factors could cause actual results to vary materially. These factors include, but are not limited to, risks relating to macroeconomic conditions and their impact on our operations and healthcare spending generally, including volatility resulting from the imposition of (and changing policies around) tariffs enacted by the U.S. government (and related countermeasures by non-U.S. governments), or our ability to mitigate the impact of such tariffs, including developments regarding refunds of certain tariffs and/or the collection of remaining refunds of certain tariffs; import or export licensing requirements and other governmental restrictions; reductions in U.S. government funding for healthcare, disruptions in global transportation networks or other aspects of our supply chain on our ability to source raw materials, components and energy sources needed to produce our products; inflationary pressures, currency and interest rate fluctuations, global oil prices and increased borrowing costs; conditions in international markets, including geopolitical developments such as the continuation and/or escalation of evolving situations in Iran and the Middle East region (which could result in continued disruption of transportation lanes and global energy supplies, as well as increases in global oil prices and adversely affect our supply chain costs, ability to source raw materials and components and our ability to deliver product to customers), Ukraine and Asia; competitive factors, including changing customer and patient preferences and requirements, such as decreased demand for our products as a result of changes to U.S. federal and state policies (such as for pharmaceutical products and vaccines), and increased demand for products utilizing evolving technologies (including emerging technologies utilizing artificial intelligence ("AI")), as well as new products or novel medical therapies introduced by competitors; changes in research and development efforts, investment or suspension by pharmaceuticals companies with regard to vaccine development; changes in reimbursement practices and coverage policies and third-party payer cost containment measures and health insurance coverage levels and costs; decreases or delays in purchases of our products due to reduced research and development spending; product efficacy or safety concerns and related regulatory actions, changes to the labeled indications or permitted uses of our products, non-compliance with applicable regulatory requirements regarding our products, including marketing authorization, registration, quality system and manufacturing requirements (including as a result of product modifications), or other factors that could result in product recalls, field actions, lost revenue, restrictions on our ability to continue selling existing products or commercialize new products (including limitations on future product clearances or approvals and the imposition of civil penalties); increased exposure to product liability or other claims and damage to our reputation (including products we acquire through acquisitions); changes to legislation or regulations that may impact U.S. or foreign healthcare systems, changes in medical or clinical practices or in customer and patient preferences, efforts to improve compliance of healthcare practitioners, potential cuts or freezes in healthcare spending and/or governmental or private measures to contain healthcare costs, such as China's volume-based procurement tender process or changes in pricing and reimbursement policies, which could result in reduced demand for our products or downward pricing pressure; policy and regulatory changes that may be implemented by the U.S. government, including the further elimination, downsizing and/or reduced funding of certain government agencies and programs, as well as further changes in the policy positions of such agencies (including those related to pharmaceutical products and vaccines); other new or changing laws and regulations impacting our business, including changes in tax laws, new and changing environmental laws and regulations (such as those related to sustainability, climate change or materials of concern) and new and changing cybersecurity, AI or privacy laws; other changes in laws impacting international trade or anti-corruption and bribery, or changes in reporting requirements or enforcement practices with respect to such laws; the adverse impact on our business or products of past, current or future information and technology system disruptions, breaches or breakdowns, including through cyberattacks, ransom attacks or cyber-intrusion, and any investigations, legal proceedings, liability, expense or reputational damage arising in connection with any such events; any adverse impact related to the development, deployment and use of AI in our products and business operations; labor disruptions; our suppliers' ability to provide products needed for our operations and BD's ability to maintain favorable supplier arrangements and relationships; increases in raw material, component, labor, duties, freight, energy and other production costs and their effect on, among other things, the cost of producing BD's products; adverse changes in regional, national or foreign economic conditions, including any impact on our ability to access credit markets and finance our operations; risks relating to our overall indebtedness; the possible impact of natural disasters and public health crises on our business and the global healthcare system, which could decrease demand for our products, disrupt our operations or the operations of our customers and companies within our supply chain, or increase transportation costs; interruptions in our manufacturing or sterilization processes or those of our third-party providers, including any restrictions placed on the use of ethylene oxide for sterilization; pricing and market pressures; difficulties inherent in product development, delays in product introductions and uncertainty of market acceptance of new products; the overall timing of the replacement or remediation of the BD Alaris™ Infusion System and return to market in the U.S., which may be impacted by, among other things, customer readiness, supply continuity and our continued engagement with the FDA; our ability to achieve our projected level or mix of product sales; our ability to achieve or maintain growth of our portfolio; our ability to successfully integrate any businesses we acquire; uncertainties of litigation, investigations, regulatory actions, subpoenas, settlements, fines, penalties and/or other sanctions (as described in BD's filings with the Securities and Exchange Commission (the "SEC")); the issuance of new or revised accounting standards; our ability to execute our New BD strategy, Excellence Unleashed, as expected; and other factors discussed in BD's filings with the SEC. Tariff commentary is based on tariff policies in effect as of August 5, 2026. International trade policies, trade restrictions and tariffs (and related countermeasures and developments regarding refunds of certain tariffs) are rapidly evolving and there can be no assurance as to how the landscape may change and what the ultimate impact on our guidance and results of operations will be. We do not intend to update any forward-looking statements to reflect events or circumstances after the date hereof except as required by applicable laws or regulations.
Contacts:
Investors: Shawn Bevec, SVP, Investor Relations - [email protected]
Media: Matt Marcus, VP, Public Relations - [email protected]
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Three Months Ended June 30,
2026
2025
% Change
Revenues
$
4,983
$
4,726
5.4
Cost of products sold
2,668
2,491
7.1
Selling and administrative expense
1,261
1,163
8.4
Research and development expense
258
230
12.0
Integration, restructuring and transaction expense
89
96
(6.9)
Other operating expense, net
44
7
544.7
Total Operating Costs and Expenses
4,320
3,986
8.4
Operating Income
663
739
(10.3)
Interest expense
(132)
(152)
(13.4)
Interest income
4
4
(15.8)
Other income (expense), net
19
(22)
183.9
Income from Continuing Operations Before Income Taxes
554
569
(2.7)
Income tax provision
102
118
(13.2)
Net Income from Continuing Operations
451
451
0.1
(Loss) Income from Discontinued Operations, Net of Tax
(74)
123
(159.8)
Net Income
$
377
$
574
(34.3)
Basic Earnings Per Share
Income from Continuing Operations
$
1.64
$
1.57
4.5
(Loss) Income from Discontinued Operations
(0.27)
0.43
(162.8)
Basic Earnings per Share
$
1.37
$
2.00
(31.5)
Diluted Earnings Per Share
Income from Continuing Operations
$
1.64
$
1.57
4.5
(Loss) Income from Discontinued Operations
(0.27)
0.43
(162.8)
Diluted Earnings per Share
$
1.37
$
2.00
(31.5)
Average Shares Outstanding (in thousands)
Basic
274,788
287,170
Diluted
275,158
287,223
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited; Amounts in millions, except share and per share data)
Nine Months Ended June 30,
2026
2025
% Change
Revenues
$
14,183
$
13,539
4.8
Cost of products sold
7,662
7,646
0.2
Selling and administrative expense
3,703
3,435
7.8
Research and development expense
742
706
5.1
Integration, restructuring and transaction expense
729
277
162.9
Other operating expense, net
122
70
74.9
Total Operating Costs and Expenses
12,958
12,134
6.8
Operating Income
1,225
1,405
(12.8)
Interest expense
(434)
(458)
(5.1)
Interest income
16
31
(47.4)
Other income (expense), net
97
(72)
234.4
Income from Continuing Operations Before Income Taxes
904
906
(0.2)
Income tax provision
179
151
18.5
Net Income from Continuing Operations
725
755
(4.0)
(Loss) Income from Discontinued Operations, Net of Tax
(276)
430
(164.3)
Net Income
$
449
$
1,185
(62.1)
Basic Earnings Per Share
Income from Continuing Operations
$
2.59
$
2.62
(1.1)
(Loss) Income from Discontinued Operations
(0.99)
1.49
(166.4)
Basic Earnings per Share
$
1.60
$
4.11
(61.1)
Diluted Earnings Per Share
Income from Continuing Operations
$
2.58
$
2.62
(1.5)
(Loss) Income from Discontinued Operations
(0.98)
1.49
(165.8)
Diluted Earnings per Share
$
1.59
$
4.10
(61.2)
Average Shares Outstanding (in thousands)
Basic
280,332
287,997
Diluted
281,603
288,693
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited; Amounts in millions)
June 30, 2026
September 30, 2025
Assets
Cash and equivalents
$
708
$
567
Restricted cash
155
210
Short-term investments
1
8
Trade receivables, net
2,364
2,396
Inventories
3,316
3,149
Prepaid expenses and other
1,595
1,379
Current assets of discontinued operations
—
1,545
Total Current Assets
8,139
9,255
Property, plant and equipment, net
6,083
6,383
Goodwill and other intangibles, net
33,964
35,190
Other assets
2,546
2,383
Noncurrent assets of discontinued operations
—
2,114
Total Assets
$
50,731
$
55,325
Liabilities and Shareholders' Equity
Current debt obligations
$
3,297
$
1,559
Other current liabilities
6,107
6,106
Current liabilities of discontinued operations
—
648
Long-term debt
13,511
17,620
Long-term employee benefit obligations
1,005
1,027
Deferred income taxes and other liabilities
2,394
2,632
Noncurrent liabilities of discontinued operations
—
342
Shareholders' equity
24,416
25,390
Total Liabilities and Shareholders' Equity
$
50,731
$
55,325
BECTON DICKINSON AND COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; Amounts in millions)
Nine Months Ended June 30,
2026
2025
Operating Activities
Net income
$
449
$
1,185
Less: (Loss) income from discontinued operations, net of tax
(276)
430
Income from continuing operations, net of tax
725
755
Depreciation and amortization
1,697
1,706
Change in operating assets and liabilities and other, net
(319)
(883)
Net Cash Provided by Continuing Operating Activities
2,104
1,578
Investing Activities
Capital expenditures
(376)
(383)
Maturities and sales of investments
27
408
Acquisitions, net of cash acquired and adjustments
(22)
13
Other, net
(192)
(267)
Net Cash Used for Continuing Investing Activities
(563)
(229)
Financing Activities
Change in short-term debt
37
133
Proceeds from long-term debt
704
—
Distribution from spin-off entity, net
3,857
—
Payments of debt
(2,696)
(1,208)
Repurchases of common stock
(2,250)
(750)
Dividends paid
(875)
(899)
Other, net
(70)
(83)
Net Cash Used for Continuing Financing Activities
(1,293)
(2,807)
Discontinued Operations
Net cash (used for) provided by operating activities
(198)
498
Net cash used for investing activities
(40)
(96)
Net cash provided by (used for) financing activities
71
(8)
Net Cash (Used for) Provided by Discontinued Operations
(167)
395
Effect of exchange rate changes on cash and equivalents and restricted cash
5
(2)
Net increase (decrease) in cash and equivalents and restricted cash
86
(1,065)
Opening Cash and Equivalents and Restricted Cash
777
1,792
Closing Cash and Equivalents and Restricted Cash
$
863
$
727
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Three Months Ended June 30,
(Unaudited; Amounts in millions)
United States
International
Total
% Change
% Change
2026
2025
% Change
2026
2025
FX Impact
Reported
FXN
2026
2025
FX Impact
Reported
FXN
Medical Essentials(1)
Medication Delivery Solutions
$
720
$
680
5.9
$
444
$
452
$
13
(1.8)
(4.7)
$
1,164
$
1,132
$
13
2.8
1.6
Specimen Management
274
240
14.0
237
230
8
3.1
(0.2)
511
470
8
8.7
7.0
Total
$
994
$
920
8.0
$
681
$
682
$
21
(0.1)
(3.2)
$
1,675
$
1,602
$
21
4.5
3.2
Connected Care(1)
Medication Management Solutions
$
737
$
709
3.9
$
178
$
179
$
6
(0.4)
(4.0)
$
915
$
888
$
6
3.0
2.3
Advanced Patient Monitoring
189
176
7.4
120
102
(1)
17.1
17.8
309
278
(1)
10.9
11.2
Total
$
926
$
885
4.6
$
297
$
281
$
6
5.9
3.9
$
1,224
$
1,166
$
6
4.9
4.4
BioPharma Systems(1)(2)
$
204
$
178
14.2
$
467
$
451
$
9
3.6
1.6
$
670
$
629
$
9
6.6
5.2
Interventional(1)
Peripheral Intervention
$
294
$
271
8.4
$
258
$
241
$
9
7.2
3.5
$
552
$
512
$
9
7.8
6.1
Urology and Critical Care
357
334
7.1
82
88
—
(6.7)
(6.9)
440
422
—
4.2
4.2
Surgery
306
294
4.3
116
101
3
15.0
11.7
422
395
3
7.0
6.2
Total
$
957
$
898
6.6
$
457
$
430
$
12
6.2
3.3
$
1,414
$
1,328
$
12
6.4
5.5
Total Revenues from Continuing Operations
$
3,081
$
2,882
6.9
$
1,902
$
1,844
$
48
3.2
0.6
$
4,983
$
4,726
$
48
5.4
4.4
(1)
Effective October 1, 2025, the Company reorganized its organizational units into five distinct, separately-managed segments, which were based on the nature of the Company's product and service offerings. Subsequent to the spin-off of the Company's former Biosciences and Diagnostic Solutions business (which was previously the Life Sciences segment) and the combination of the business with Waters on February 9, 2026, the Life Sciences segment was eliminated, leaving the Company with four distinct, separately-managed segments. Prior period amounts have been recast to reflect the reorganization on a continuing operations basis.
(2)
The BioPharma Systems segment is comprised of the Company's former Pharmaceutical Systems organizational unit.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL REVENUE INFORMATION
REVENUES BY BUSINESS SEGMENTS AND UNITS
Nine Months Ended June 30,
(Unaudited; Amounts in millions)
United States
International
Total
% Change
% Change
2026
2025
% Change
2026
2025
FX Impact
Reported
FXN
2026
2025
FX Impact
Reported
FXN
Medical Essentials(1)
Medication Delivery Solutions
$
2,124
$
2,060
3.1
$
1,331
$
1,313
$
56
1.4
(2.9)
$
3,455
$
3,373
$
56
2.4
0.8
Specimen Management
772
721
7.2
690
667
32
3.5
(1.2)
1,463
1,387
32
5.4
3.1
Total
$
2,897
$
2,781
4.2
$
2,021
$
1,979
$
88
2.1
(2.3)
$
4,918
$
4,760
$
88
3.3
1.5
Connected Care(1)
Medication Management Solutions
$
2,076
$
2,030
2.3
$
502
$
470
$
27
6.8
1.2
$
2,578
$
2,500
$
27
3.1
2.1
Advanced Patient Monitoring
547
490
11.7
350
317
5
10.6
9.1
897
806
5
11.3
10.7
Total
$
2,623
$
2,520
4.1
$
852
$
787
$
31
8.3
4.4
$
3,475
$
3,307
$
31
5.1
4.2
BioPharma Systems(1)(2)
$
532
$
431
23.4
$
1,157
$
1,191
$
41
(2.8)
(6.2)
$
1,689
$
1,622
$
41
4.1
1.6
Interventional(1)
Peripheral Intervention
$
839
$
793
5.8
$
713
$
673
$
29
6.0
1.6
$
1,552
$
1,466
$
29
5.9
3.9
Urology and Critical Care
1,047
962
8.8
250
249
5
0.4
(1.8)
1,297
1,211
5
7.1
6.6
Surgery
919
885
3.8
333
288
13
15.8
11.1
1,252
1,173
13
6.8
5.6
Total
$
2,805
$
2,640
6.2
$
1,296
$
1,209
$
48
7.2
3.2
$
4,101
$
3,849
$
48
6.5
5.3
Total Revenues from Continuing Operations
$
8,857
$
8,372
5.8
$
5,326
$
5,166
$
208
3.1
(0.9)
$
14,183
$
13,539
$
208
4.8
3.2
(1)
Effective October 1, 2025, the Company reorganized its organizational units into five distinct, separately-managed segments, which were based on the nature of the Company's product and service offerings. Subsequent to the spin-off of the Company's former Biosciences and Diagnostic Solutions business (which was previously the Life Sciences segment) and the combination of the business with Waters on February 9, 2026, the Life Sciences segment was eliminated, leaving the Company with four distinct, separately-managed segments. Prior period amounts have been recast to reflect the reorganization on a continuing operations basis.
(2)
The BioPharma Systems segment is comprised of the Company's former Pharmaceutical Systems organizational unit.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
Three Months Ended June 30,
(Unaudited)
Three Months Ended June 30,
2026
2025
Change
Translational FX
FXN
Change
Change %
FXN
Change %
Reported Diluted Earnings per Share from Continuing Operations
$
1.64
$
1.57
$
0.07
$
0.01
$
0.06
4.5
%
3.8
%
Purchase accounting adjustments ($363 million and $376 million pre-tax, respectively) (1)
1.32
1.31
—
Integration costs ($41 million and $37 million pre-tax, respectively) (2)
0.15
0.13
—
Restructuring costs ($48 million and $57 million pre-tax, respectively) (2)
0.18
0.20
0.03
Transaction costs ($1 million pre-tax) (3)
—
0.01
—
Separation-related items ($32 million pre-tax) (4)
0.12
—
—
Product, litigation, and other items ($53 million and $44 million pre-tax, respectively) (5)
0.19
0.15
—
Tax impact of specified items and other tax related (($101) million and $(82) million, respectively)
(0.37)
(0.29)
—
Adjusted Diluted Earnings per Share from Continuing Operations
$
3.23
$
3.08
$
0.15
$
0.03
$
0.12
4.9
%
3.9
%
(1)
Includes amortization and other adjustments related to the purchase accounting for acquisitions.
(2)
Represents costs associated with integration and restructuring activities.
(3)
Represents transaction costs recorded to Integration, restructuring and transaction expense incurred in connection with the Advanced Patient Monitoring acquisition.
(4)
Represents costs recorded to Other operating expense, net, incurred in connection with the separation of our former Biosciences and Diagnostic Solutions business and the combination of the business with Waters.
(5)
Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the three months ended June 30, 2026 reflects charges to adjust the estimate of certain future product remediation costs, various legal matters, and pension settlement costs. The amount for the three months ended June 30, 2025 reflects a charge of $30 million recorded to Other income (expense), net, related to pension settlement costs.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION OF REPORTED DILUTED EPS TO ADJUSTED DILUTED EPS
Nine Months Ended June 30,
(Unaudited)
Nine Months Ended June 30,
2026
2025
Change
Translational FX
FXN
Change
Change %
FXN
Change %
Reported Diluted Earnings per Share from Continuing Operations
Integration costs ($123 million and $87 million pre-tax, respectively) (2)
0.44
0.30
—
Restructuring costs ($605 million and $185 million pre-tax, respectively) (2)
2.15
0.64
0.05
Transaction costs ($5 million pre-tax) (3)
—
0.02
—
Separation-related items ($73 million pre-tax) (4)
0.26
—
—
Product, litigation, and other items ($193 million and $255 million pre-tax, respectively) (5)
0.68
0.88
—
Impacts of debt extinguishment (($122) million pre-tax)
(0.43)
—
—
Tax impact of specified items and other tax related (($292) million and ($273) million, respectively)
(1.04)
(0.95)
—
Adjusted Diluted Earnings per Share from Continuing Operations
$
8.59
$
8.65
$
(0.06)
$
0.11
$
(0.17)
(0.7)
%
(2.0)
%
(1)
Includes amortization and other adjustments related to the purchase accounting for acquisitions.
(2)
Represents costs associated with integration and restructuring activities. Restructuring costs for the nine months ended June 30, 2026 reflect non-cash asset impairment charges of $450 million across all reportable segments based upon the Company's commitment to exit certain operational activities and projects which no longer align with and facilitate its current operational strategy, Excellence Unleashed. These exit actions are aimed at simplifying the Company's operations and aligning resources behind its most value-creating platforms. The impairment charges are primarily reflected as decreases of $238 million within Property, plant and equipment, net, and $134 million within Goodwill and other intangibles, net, on the Company's June 30, 2026 condensed consolidated balance sheet.
(3)
Represents transaction costs recorded to Integration, restructuring and transaction expense incurred in connection with the Advanced Patient Monitoring acquisition.
(4)
Represents costs recorded to Other operating expense, net, incurred in connection with the separation of our former Biosciences and Diagnostic Solutions business and the combination of the business with Waters.
(5)
Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount for the nine months ended June 30, 2026 reflects charges of $57 million recorded to Cost of products sold to adjust the estimate of certain future product remediation costs, charges of $75 million recorded to Other operating expense, net, related to various legal matters, and a charge of $43 million recorded to Other income (expense), net, related to pension settlement costs. The amount for the nine months ended June 30, 2025 reflects charges of $98 million recorded to Cost of products sold to adjust the estimate of certain future product remediation costs, charges of $64 million recorded to Other operating expense, net, related to various legal matters, and a charge of $30 million recorded to Other income (expense), net, related to pension settlement costs.
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
RECONCILIATION FROM NET CASH PROVIDED BY CONTINUING OPERATING ACTIVITIES TO FREE CASH FLOW
Nine Months Ended June 30,
(Unaudited)
A
B
C=A-B
D=C/B
2026
2025
Change
% Change
Net Cash Provided by Continuing Operating Activities
$
2,104
$
1,578
$
526
33.3
%
Capital Expenditures
(376)
(383)
7
(1.7)
%
Free Cash Flow
$
1,728
$
1,195
$
532
44.6
%
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2026 GUIDANCE RECONCILIATION
Full Year FY2025
Full Year FY2026 Guidance
($ in millions)
% Change
BDX Reported Revenues from Continuing Operations
$
18,544
FY2026 Reported Revenue Growth
Low single-digit plus
Illustrative Foreign Currency (FX) Impact
~+100 basis points
FY2026 Revenue Growth (FXN)
Low single-digit
BECTON DICKINSON AND COMPANY
SUPPLEMENTAL INFORMATION
FY 2026 GUIDANCE RECONCILIATION CONTINUED
Full Year FY 2026 Guidance
Full Year FY2025
Total Company
Reported Diluted Earnings per Share from Continuing Operations
Product, litigation, and other items ($506 million pre-tax) (5)
1.75
Tax impact of specified items and other tax related (($443) million)
(1.54)
Adjusted Diluted Earnings per Share from Continuing Operations
$
11.90
$12.62 to $12.72
Reported % Change
+6.1% to +6.9%
(1)
Includes amortization and other adjustments related to the purchase accounting for acquisitions.
(2)
Represents costs associated with integration and restructuring activities.
(3)
Represents transaction costs incurred in connection with the Advanced Patient Monitoring acquisition.
(4)
Represents costs recorded to Other operating expense, net, incurred in connection with the separation of our former Biosciences and Diagnostic Solutions business and the combination of the business with Waters.
(5)
Includes certain (income) expense items which are not part of ordinary operations and affect the comparability of the periods presented. Such items may include certain product remediation costs, certain legal matters, certain investment gains and losses, certain asset impairment charges, and certain pension settlement costs. The amount in 2025 reflects charges of $98 million to Cost of products sold to adjust the estimate of certain future product remediation costs, charges of $297 million to Other operating expense, net, related to product liability and certain other legal matters, and charges of $38 million to Other expense, net, related to pension settlement costs.
Avior Wealth Management ve 2. čtvrtletí snížila podíl ve společnosti Costco o 11,6 % na 6 160 akcií v hodnotě 5,763 milionu USD. Ředitel Kenneth D. Denman prodal 885 akcií a po transakci držel 4 779 akcií, což představuje pokles o 15,62 %.
Avior Wealth Management LLC lowered its holdings in Costco Wholesale Corporation (NASDAQ:COST – Free Report) by 11.6% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 6,160 shares of the retailer’s stock after selling 805 shares during the period. Avior Wealth Management LLC’s holdings in Costco Wholesale were worth $5,763,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also modified their holdings of the company. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in shares of Costco Wholesale during the fourth quarter worth approximately $27,000. Lifetime Wealth Management P.C. acquired a new position in Costco Wholesale in the 4th quarter valued at approximately $28,000. Mcguire Capital Advisors Inc. acquired a new position in Costco Wholesale in the 4th quarter valued at approximately $28,000. Entrust Financial LLC purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $31,000. Finally, Joseph Group Capital Management purchased a new stake in Costco Wholesale in the 4th quarter worth approximately $33,000. Institutional investors and hedge funds own 68.48% of the company’s stock.
Insider Activity at Costco Wholesale In other news, Director Kenneth D. Denman sold 885 shares of the stock in a transaction dated Tuesday, June 23rd. The stock was sold at an average price of $957.45, for a total transaction of $847,343.25. Following the transaction, the director owned 4,779 shares of the company’s stock, valued at approximately $4,575,653.55. This represents a 15.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.10% of the company’s stock.
Costco Wholesale Stock Down 0.6% COST stock opened at $941.99 on Thursday. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.17. Costco Wholesale Corporation has a 1 year low of $844.06 and a 1 year high of $1,096.50. The company has a fifty day simple moving average of $951.60 and a 200 day simple moving average of $982.34. The firm has a market cap of $417.75 billion, a PE ratio of 47.38, a PEG ratio of 4.58 and a beta of 0.87.
Costco Wholesale (NASDAQ:COST – Get Free Report) last issued its quarterly earnings data on Thursday, May 28th. The retailer reported $4.93 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $4.94 by ($0.01). Costco Wholesale had a return on equity of 28.04% and a net margin of 3.01%.The business had revenue of $70.53 billion during the quarter, compared to the consensus estimate of $70.12 billion. During the same quarter in the prior year, the company posted $4.28 earnings per share. Sell-side analysts anticipate that Costco Wholesale Corporation will post 20.42 EPS for the current fiscal year.
Costco Wholesale Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, August 7th. Stockholders of record on Friday, July 24th will be paid a dividend of $1.47 per share. This represents a $5.88 annualized dividend and a dividend yield of 0.6%. The ex-dividend date is Friday, July 24th. Costco Wholesale’s dividend payout ratio is 29.58%.
Key Costco Wholesale News Here are the key news stories impacting Costco Wholesale this week:
Positive Sentiment: Costco reported July net sales of $23.12 billion, up 10.7% year over year. Sales for the first 48 weeks rose 10.1% to $273.55 billion, reinforcing the strength of consumer demand and membership-based traffic. Costco Wholesale Corporation Reports July Sales Results Positive Sentiment: The company continues expanding its store footprint, with construction underway near Meridian, Idaho and the Kuna border. New warehouses can increase membership, merchandise sales and ancillary revenue over time. Costco construction underway near Kuna border Positive Sentiment: Costco’s Kirkland Signature private-label brand remains a competitive advantage, attracting members and supporting customer loyalty. Its strategy is increasingly being viewed as a model by other retailers. Formerly bankrupt department store bets on Costco strategy Neutral Sentiment: Low-priced gasoline primarily supports Costco indirectly by attracting shoppers and encouraging memberships rather than generating substantial fuel profits. The strategy may boost traffic but can constrain direct fuel margins. Costco keeps its gas super cheap Negative Sentiment: Residents are objecting to a reportedly privately negotiated tax-sharing agreement tied to a proposed Costco and gas station project in an Orange County city. Political opposition or permitting delays could slow the development and add execution risk. Residents oppose Costco tax-sharing agreement Analysts Set New Price Targets Several equities analysts have recently commented on COST shares. Mizuho set a $1,100.00 price target on shares of Costco Wholesale in a report on Monday, June 1st. JPMorgan Chase & Co. cut their price objective on Costco Wholesale from $1,110.00 to $1,100.00 and set an “overweight” rating for the company in a report on Thursday, July 9th. Roth Capital lifted their price objective on Costco Wholesale from $769.00 to $781.00 and gave the company a “sell” rating in a research report on Friday, May 29th. Sanford C. Bernstein boosted their target price on Costco Wholesale from $1,192.00 to $1,194.00 and gave the company an “outperform” rating in a research note on Friday, May 29th. Finally, Telsey Advisory Group upped their target price on Costco Wholesale from $1,125.00 to $1,135.00 and gave the stock an “outperform” rating in a research report on Thursday, April 9th. Twenty-two analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,059.07.
View Our Latest Report on COST
Costco Wholesale Company Profile (Free Report)
Costco Wholesale Corporation operates a global chain of membership-only warehouse clubs that sell a wide array of merchandise in bulk at discounted prices. The company’s product mix includes groceries, fresh and frozen food, household goods, electronics, apparel, and seasonal items, augmented by its prominent private-label brand, Kirkland Signature. Costco’s business model centers on annual membership fees and high-volume, low-margin sales, designed to drive repeat purchasing and strong customer loyalty among both consumers and small-business buyers.
Beyond merchandise, Costco provides a range of ancillary services that complement its warehouses, including gasoline stations, pharmacy and optical services, hearing aid centers, photo services, and travel and insurance products.
Featured Articles Five stocks we like better than Costco Wholesale SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding COST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Costco Wholesale Corporation (NASDAQ:COST – Free Report).
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Molson Coors ve 2. čtvrtletí oznámila pokles čistých tržeb o 3,3 % na 3,10 mld. USD a zisk před zdaněním klesl o 49 % na 283,1 mil. USD. Firma potvrdila celoroční výhled.
GOLDEN, Colo. & MONTRÉAL--(BUSINESS WIRE)--Molson Coors Beverage Company ("MCBC," "Molson Coors" or "the Company") (NYSE: TAP, TAP.A; TSX: TPX.A, TPX.B) today reported results for the 2026 second quarter.
2026 SECOND QUARTER FINANCIAL HIGHLIGHTS1
Net sales decreased 3.3% reported and 3.6% in constant currency. U.S. GAAP income before income taxes decreased 49.0% to $283.1 million. Underlying (Non-GAAP) income before income taxes decreased 27.8% in constant currency to $383.2 million. U.S. GAAP net income attributable to MCBC of $231.7 million, $1.23 earnings per share on a diluted basis. Underlying (Non-GAAP) diluted earnings per share of $1.58 decreased 22.9%. CEO AND CFO PERSPECTIVES
Rahul Goyal, President and Chief Executive Officer Statement:
"We made progress on key aspects of the Horizon 2030 strategy in the second quarter as we navigated heightened global macroeconomic headwinds that affected both consumer behavior and key input costs in our business. Coors Banquet and Peroni continue to perform well, and we're focused on improving our overall share performance in this competitive environment through ongoing, disciplined execution. As we lean into emerging consumer tastes in flavor and beyond beer, we’re encouraged by Fever-Tree’s continued momentum after more than a year of partnership, and Monaco Cocktails delivered strong performance in its first quarter as part of Molson Coors. Our approach for the balance of the year includes prudent investments designed to drive scale and efficiency across our global portfolio while executing against our cost savings plan to mitigate the impacts of persistent macroeconomic volatility."
"Our second quarter financial results largely matched our expectations as we managed through both expected and unanticipated headwinds that weighed on our top and bottom lines. Further progress on our cost savings initiatives partially offset ongoing commodity cost inflation and the impact of lower financial volumes. We are reaffirming our full-year guidance. In the second quarter, we deployed capital toward value-added M&A in support of our Horizon 2030 strategy, enhanced financial flexibility through a series of debt refinancing transactions, and returned capital to shareholders through both dividends and share buybacks. These actions reflect our disciplined approach to balancing our capital allocation priorities.”
CONSOLIDATED PERFORMANCE - SECOND QUARTER 2026
For the three months ended
($ in millions, except per share data)
(Unaudited)
June 30, 2026
June 30, 2025
Reported % Change
Foreign Exchange Impact
Constant Currency Increase (Decrease)(1)
Net sales
$
3,096.5
$
3,200.8
(3.3
)%
$
10.4
(3.6
)%
U.S. GAAP income (loss) before income taxes
$
283.1
$
554.9
(49.0
)%
$
(0.4
)
(48.9
)%
Underlying income (loss) before income taxes(1)
$
383.2
$
531.5
(27.9
)%
$
(0.8
)
(27.8
)%
U.S. GAAP net income (loss)(2)
$
231.7
$
428.7
(46.0
)%
Per diluted share
$
1.23
$
2.13
(42.3
)%
Underlying net income (loss)(1)
$
296.6
$
412.3
(28.1
)%
Per diluted share
$
1.58
$
2.05
(22.9
)%
Financial volume(3)
19.734
20.870
(5.4
)%
Brand volume(3)
19.628
20.612
(4.8
)%
For the six months ended
($ in millions, except per share data)
(Unaudited)
June 30, 2026
June 30, 2025
Reported Increase (Decrease)
Foreign Exchange Impact
Constant Currency Increase (Decrease)(1)
Net sales
$
5,447.6
$
5,504.9
(1.0
)%
$
55.6
(2.1
)%
U.S. GAAP income (loss) before income taxes
$
477.8
$
711.2
(32.8
)%
$
(5.0
)
(32.1
)%
Underlying income (loss) before income taxes(1)
$
531.1
$
662.6
(19.8
)%
$
(5.3
)
(19.0
)%
U.S. GAAP net income (loss)(2)
$
383.0
$
549.7
(30.3
)%
Per diluted share
$
2.03
$
2.71
(25.1
)%
Underlying net income (loss)(1)
$
414.1
$
514.0
(19.4
)%
Per diluted share
$
2.20
$
2.54
(13.4
)%
Financial volume(3)
34.698
36.279
(4.4
)%
Brand volume(3)
34.696
36.159
(4.0
)%
(1) Represents income (loss) before income taxes and net income (loss) attributable to MCBC adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
(2) Net income (loss) attributable to MCBC.
(3) See Worldwide and Segment Brand and Financial Volume in the Appendix for definitions of financial volume and brand volume as well as the reconciliation from financial volume to brand volume. Volume presented in millions of hectoliters.
QUARTERLY CONSOLIDATED HIGHLIGHTS (VERSUS SECOND QUARTER 2025 RESULTS)
Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2026, compared to June 30, 2025 (in percentages): Net Sales Drivers (unaudited)
Financial volume
(5.4) %
Price and sales mix
1.8 %
Currency
0.3 %
Total consolidated net sales
(3.3) %
Net sales decreased 3.3%, driven by lower financial volume, partially offset by favorable price and sales mix and favorable foreign currency impacts. Net sales decreased 3.6% in constant currency.
Financial volume decreased 5.4%, due to lower shipments in both the Americas and EMEA&APAC segments. Brand volume decreased 4.8%, including a 5.3% decrease in the Americas segment and 3.4% decrease in the EMEA&APAC segment.
Price and sales mix favorably impacted net sales by 1.8%, primarily due to increased net pricing in the Americas segment and favorable sales mix as a result of premiumization in both the Americas and EMEA&APAC segments. Net sales per hectoliter increased 2.3% reported and 2.0% on a constant currency basis.
Cost of goods sold ("COGS"): increased 6.0% on a reported basis, impacted by higher cost of goods sold per hectoliter and unfavorable foreign currency impacts, partially offset by lower financial volume. COGS per hectoliter: increased 12.1% on a reported basis, primarily due to the unfavorable changes in our unrealized mark-to-market commodity derivative positions of $98.0 million, cost inflation related to materials, logistics and manufacturing expenses including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, unfavorable mix driven by premiumization and volume deleverage, partially offset by cost savings initiatives. Underlying (Non-GAAP) COGS per hectoliter: increased 6.3% in constant currency, primarily due to cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, unfavorable mix driven by premiumization and volume deleverage, partially offset by cost savings initiatives. Marketing, general & administrative ("MG&A"): increased 3.7% on a reported basis, primarily due to higher general and administrative expenses as a result of cycling lower incentive compensation expense in the prior year and costs incurred related to our global modernization enterprise resource planning (“ERP”) system implementation project in the current year. Underlying (Non-GAAP) MG&A: increased 3.2% in constant currency. U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 49.0% on a reported basis, primarily due to unfavorable changes in our unrealized mark-to-market commodity derivative positions of $98.0 million, lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, higher MG&A and lower other non-operating income driven by unfavorable changes in the fair value of our investment in Fevertree Drinks plc of approximately $18 million, partially offset by increased net pricing in the Americas segment and cost savings initiatives. Underlying (Non-GAAP) income (loss) before income taxes: Underlying (Non-GAAP) income before income taxes decreased 27.8% in constant currency, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing and higher MG&A, partially offset by increased net pricing in the Americas segment and cost savings initiatives. Effective Tax Rate and Underlying (Non-GAAP) Effective Tax Rate (Unaudited)
For the three months ended
June 30, 2026
June 30, 2025
U.S. GAAP effective tax rate
22 %
24 %
Underlying (Non-GAAP) effective tax rate(1)
22 %
23 %
(1) See Appendix for definitions of non-GAAP financial measures.
Our U.S. GAAP effective tax rate and Underlying (Non-GAAP) effective tax rates decreased for the three months ended June 30, 2026 compared to the prior year, primarily due to the recognition of a higher discrete tax benefit.
Net income (loss) attributable to MCBC per diluted share: Net income attributable to MCBC per diluted share decreased 42.3%, primarily due to lower U.S. GAAP income before income taxes, partially offset by lower weighted-average diluted shares outstanding driven by share repurchases. Underlying (Non-GAAP) net income (loss) attributable to MCBC per diluted share: Underlying net income attributable to MCBC per diluted share decreased 22.9%, primarily due to lower underlying income before income taxes, partially offset by lower weighted-average shares outstanding driven by share repurchases. QUARTERLY SEGMENT HIGHLIGHTS (VERSUS SECOND QUARTER 2025 RESULTS)
Americas Segment Overview
The following table highlights the Americas segment results for the three and six months ended June 30, 2026 compared to June 30, 2025:
For the three months ended
($ in millions) (Unaudited)
June 30, 2026
June 30, 2025
Reported % Change
FX Impact
Constant Currency % Change (2)
Net sales(1)
$
2,402.4
$
2,504.8
(4.1
)%
$
(0.7
)
(4.1
)%
Income (loss) before income taxes(1)
$
390.1
$
538.2
(27.5
)%
$
(2.1
)
(27.1
)%
Underlying income (loss) before income taxes (1)(2)
$
396.1
$
514.2
(23.0
)%
$
(2.0
)
(22.6
)%
For the six months ended
($ in millions) (Unaudited)
June 30, 2026
June 30, 2025
Reported % Change
FX Impact
Constant Currency % Change (2)
Net sales(1)
$
4,302.9
$
4,386.6
(1.9
)%
$
10.5
(2.1
)%
Income (loss) before income taxes(1)
$
597.5
$
747.5
(20.1
)%
$
(3.7
)
(19.6
)%
Underlying income (loss) before income taxes (1)(2)
$
626.9
$
717.0
(12.6
)%
$
(3.4
)
(12.1
)%
Americas Segment Highlights (Versus Second Quarter 2025 Results)
Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2026 compared to June 30, 2025 (in percentages): Net Sales Drivers (unaudited)
Financial volume
(6.4) %
Price and sales mix
2.3 %
Currency
— %
Total Americas net sales
(4.1) %
Net sales decreased 4.1%, driven by lower financial volume, partially offset by favorable price and sales mix.
Financial and brand volume decreased 6.4% and 5.3%, respectively, primarily due to lower financial volume in the U.S. in our core and value brands as well as the unfavorable timing of shipments.
Price and sales mix favorably impacted net sales by 2.3%, primarily due to increased net pricing and favorable sales mix as a result of positive brand mix. Net sales per hectoliter increased 2.5% on a reported and constant currency basis.
U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 27.5% on a reported basis, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing, higher MG&A, unfavorable changes in the fair value of our investment in Fevertree Drinks plc of approximately $18 million and higher other operating expenses, partially offset by increased net pricing and cost savings initiatives. Higher MG&A was primarily driven by the cycling of lower incentive compensation expense in the prior year and costs incurred related to our global modernization ERP system implementation project in the current year. Higher other operating expenses were primarily driven by restructuring activities and the accelerated amortization of a brand intangible as a result of a decision to exit a brand in our Americas segment. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 22.6% in constant currency, primarily due to lower financial volume, cost inflation related to materials, logistics and manufacturing expenses, including approximately $40 million of an unfavorable impact attributable to Midwest Premium pricing and higher MG&A, partially offset by increased net pricing and cost savings. Higher MG&A was primarily driven by the cycling of lower incentive compensation expense in the prior year and costs incurred related to our global modernization ERP system implementation project in the current year. EMEA&APAC Segment Overview
The following table highlights the EMEA&APAC segment results for the three and six months ended June 30, 2026, compared to June 30, 2025:
For the three months ended
($ in millions) (Unaudited)
June 30, 2026
June 30, 2025
Reported % Change
FX Impact
Constant Currency % Change (2)
Net sales(1)
$
700.8
$
703.9
(0.4
)%
$
11.1
(2.0
)%
Income (loss) before income taxes(1)
$
37.9
$
64.8
(41.5
)%
$
0.7
(42.6
)%
Underlying income (loss) before income taxes (1)(2)
$
41.0
$
72.4
(43.4
)%
$
0.7
(44.3
)%
For the six months ended
($ in millions) (Unaudited)
June 30, 2026
June 30, 2025
Reported % Change
FX Impact
Constant Currency % Change (2)
Net sales(1)
$
1,156.9
$
1,131.2
2.3
%
$
45.1
(1.7
)%
Income (loss) before income taxes(1)
$
(13.8
)
$
45.6
N/M
$
(4.7
)
N/M
Underlying income (loss) before income taxes (1)(2)
$
8.3
$
53.2
(84.4
)%
$
(3.7
)
(77.4
)%
N/M = Not meaningful The reported percent change and the constant currency percent change in the above tables are presented as (unfavorable) favorable. (1)
Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals.
(2)
Represents income (loss) before income taxes adjusted for non-GAAP items. See Appendix for definitions and reconciliations of non-GAAP financial measures including constant currency.
EMEA&APAC Segment Highlights (Versus Second Quarter 2025 Results)
Net sales: The following table highlights the drivers of the change in net sales for the three months ended June 30, 2026, compared to June 30, 2025 (in percentages): Net Sales Drivers (unaudited)
Financial volume
(2.8) %
Price and sales mix
0.8 %
Currency
1.6 %
Total EMEA&APAC net sales
(0.4) %
Net sales decreased 0.4% driven by lower financial volume, partially offset by favorable foreign currency impacts and favorable price and sales mix. Net sales decreased 2.0% in constant currency.
Financial volume and brand volume decreased 2.8% and 3.4%, respectively, primarily due to lower volume in the U.K. driven by soft market demand and a heightened competitive landscape.
Price and sales mix favorably impacted net sales by 0.8%, primarily due to premiumization, partly offset by increased promotional activity. Net sales per hectoliter increased 2.4% on a reported basis and 0.8% on a constant currency basis.
Foreign currency favorably impacted net sales by 1.6%, primarily due to the weakening of the U.S. Dollar ("USD") compared to the Hungarian Forint ("HUF") and Euro ("EUR").
U.S. GAAP income (loss) before income taxes: U.S. GAAP income before income taxes decreased 41.5% on a reported basis, primarily due to unfavorable mix driven by channel mix, lower financial volume and cost inflation related to materials, logistics and manufacturing expenses, partially offset by lower restructuring related charges. Underlying (Non-GAAP) income (loss) before income taxes: Underlying income before income taxes decreased 44.3% in constant currency, primarily due to unfavorable mix, driven by channel mix, lower financial volume and cost inflation related to materials, logistics and manufacturing expenses. CASH FLOW AND LIQUIDITY HIGHLIGHTS
U.S. GAAP cash from operations: Net cash provided by operating activities of $820.4 million for the six months ended June 30, 2026, increased $192.8 million compared to $627.6 million in the prior year. The increase was primarily due to favorable changes in working capital, partially offset by lower net income adjusted for non-cash items. The favorable changes in working capital were primarily driven by the current year cash settlement of our forward starting interest rate swaps of $107.5 million, lower payments for prior year annual incentive compensation, the timing of payables and the cycling of a $60.6 million prior year payment as final resolution of the Keystone litigation case, partially offset by the timing of receivables. Underlying (Non-GAAP) free cash flow: Cash provided of $513.8 million for the six months ended June 30, 2026, represented an increase of $220.3 million from the prior year, primarily due to an increase in net cash provided by operating activities and lower capital expenditures. Debt: Total debt as of June 30, 2026 was $7,709.6 million and cash and cash equivalents totaled $2,128.1 million, resulting in net debt of $5,581.5 million and a net debt to underlying EBITDA ratio of 2.53x. As of June 30, 2025, our net debt to underlying EBITDA ratio was 2.41x. Subsequent to June 30, 2026, we repaid our $2.0 billion 3.0% senior notes using cash proceeds from the May 27, 2026 issuance of our $500 million senior notes due July 2031 and $1.0 billion senior notes due July 2036, as well as cash on hand. Dividends: We paid cash dividends of $183.7 million and $192.7 million for the six months ended June 30, 2026 and June 30, 2025, respectively. Share Repurchase Program: We paid $211.0 million and $306.8 million, including brokerage commissions, for share repurchases for the six months ended June 30, 2026 and June 30, 2025, respectively. 2026 OUTLOOK
We continue to expect to achieve the following targets for full year 2026 despite the inherent uncertainties that exist with inflationary commodity and logistics cost pressures and uncertainty in the global macroeconomic environment.
Net sales: flat, plus or minus 1% versus 2025 on a constant currency basis. Underlying income (loss) before income taxes: decline in the range of 15% to 18% versus 2025 on a constant currency basis. Underlying earnings per share: decline in the range of 11% to 15% versus 2025. Capital expenditures: $650 million incurred, plus or minus 5%. Underlying free cash flow: $1.1 billion, plus or minus 10%. Underlying depreciation and amortization: $720 million, plus or minus 5%. Consolidated net interest expense: $260 million, plus or minus 5%. Underlying effective tax rate: in the range of 22% to 24%. The Company's outlook includes the following considerations:
U.S. financial volumes are expected to slightly outpace brand volumes in the second half of the year. In COGS, commodity and logistics costs are expected to remain elevated compared to the prior year, with the impact of Midwest Premium expected to exceed approximately $130 million for the full year. We expect a reduction in MG&A expenses in the second half of the year compared to the prior year as we carefully manage expenses with a targeted focus on investments that are expected to improve performance and generate the highest returns. SUBSEQUENT EVENT
On July 16, 2026, our Board declared a dividend of $0.48 per share, to be paid on September 18, 2026, to shareholders of Class A and Class B common stock of record on August 28, 2026. Shareholders of exchangeable shares will receive the CAD equivalent of dividends declared on Class A and Class B common stock, equal to CAD 0.67 per share.
NOTES
Unless otherwise indicated in this release, all $ amounts are in USD, and all comparative results are for the Company’s second quarter ended June 30, 2026, compared to the second quarter ended June 30, 2025. Some numbers may not sum due to rounding.
2026 SECOND QUARTER INVESTOR CONFERENCE CALL
Molson Coors Beverage Company will conduct an earnings conference call with financial analysts and investors at 8:30 a.m. Eastern Time today to discuss the Company’s 2026 second quarter results. The live webcast will be accessible via our website, ir.molsoncoors.com. An online replay of the webcast is expected to be posted within two hours following the live webcast. The Company will post this release and related financial statements on its website today.
OVERVIEW OF MOLSON COORS BEVERAGE COMPANY
For more than two centuries, we have brewed beverages that unite people to celebrate all life’s moments. From our core power brands, Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko, to our above premium brands, including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel’s Summer Shandy, to our value brands, like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While our history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer and Monaco, spirits and non-alcoholic beverages. We also have partner brands, such as Simply Spiked, ZOA Energy, Fever-Tree, among others, through license, distribution, partnership and joint venture agreements. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions.
To learn more about Molson Coors Beverage Company, visit molsoncoors.com.
ABOUT MOLSON COORS CANADA INC.
Molson Coors Canada Inc. ("MCCI") is a subsidiary of Molson Coors Beverage Company. MCCI Class A and Class B exchangeable shares offer substantially the same economic and voting rights as the respective classes of common shares of MCBC, as described in MCBC’s annual proxy statement and Form 10-K filings with the U.S. Securities and Exchange Commission. The trustee holder of the special Class A voting stock and the special Class B voting stock has the right to cast a number of votes equal to the number of then outstanding Class A exchangeable shares and Class B exchangeable shares, respectively.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words "expects," "intends," "goals," "plans," "believes," "confidence," "views," "continues," "may," "anticipate," "seek," "estimate," "outlook," "trends," "future benefits," "potential," "projects," "strategies," and variations of such words and similar expressions are intended to identify forward-looking statements. Statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements, and include, but are not limited to, statements under the headings "CEO and CFO Perspectives" and "2026 Outlook," with respect to, among others, expectations and impacts of macroeconomic forces, beverage industry trends, cost inflation and tariffs, commodity prices, consumer preferences and limited consumer disposable income, overall volume and market share trends, our competitive position, execution of our strategic priorities, anticipated results, pricing trends, cost reduction strategies, including the Americas Restructuring Plan announced in October of 2025 as well as other restructuring projects and the expected charges and benefits of the restructuring, shipment levels and profitability, the sufficiency of capital resources, expectations for funding future capital expenditures and operations, debt service capabilities, timing and amounts of debt and leverage levels, Preserving the Planet and related environmental initiatives, effective tax rate, and expectations regarding future dividends and share repurchases. In addition, statements that we make in this press release that are not statements of historical fact may also be forward-looking statements.
Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s historical experience, and present projections and expectations are disclosed in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the risks discussed in our filings with the SEC, including our most recent Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We do not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
MARKET AND INDUSTRY DATA
The market and industry data used, if any, in this press release are based on independent industry publications, customer specific data, trade or business organizations, reports by market research firms and other published statistical information from third parties, including Circana (formerly Information Resources, Inc.) for U.S. market data and Beer Canada for Canadian market data (collectively, the “Third-Party Information”), as well as information based on management’s good faith estimates, which we derive from our review of internal information and independent sources. Such Third-Party Information generally states that the information contained therein or provided by such sources has been obtained from sources believed to be reliable.
APPENDIX
STATEMENTS OF OPERATIONS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions, except per share data) (Unaudited)
For the three months ended
For the six months ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Sales
$
3,604.4
$
3,740.0
$
6,322.3
$
6,430.2
Excise taxes
(507.9
)
(539.2
)
(874.7
)
(925.3
)
Net sales
3,096.5
3,200.8
5,447.6
5,504.9
Cost of goods sold
(2,033.2
)
(1,918.9
)
(3,487.1
)
(3,372.1
)
Gross profit
1,063.3
1,281.9
1,960.5
2,132.8
Marketing, general and administrative expenses
(718.5
)
(693.1
)
(1,328.5
)
(1,346.3
)
Other operating income (expense), net
(16.6
)
(9.2
)
(48.7
)
(25.1
)
Equity income (loss)
3.7
4.0
6.9
8.5
Operating income (loss)
331.9
583.6
590.2
769.9
Interest income (expense), net
(60.5
)
(58.5
)
(118.1
)
(115.1
)
Other pension and postretirement benefit (cost), net
5.0
3.5
9.9
7.3
Other non-operating income (expense), net
6.7
26.3
(4.2
)
49.1
Income (loss) before income taxes
283.1
554.9
477.8
711.2
Income tax benefit (expense)
(61.5
)
(130.6
)
(106.1
)
(163.8
)
Net income (loss)
221.6
424.3
371.7
547.4
Net (income) loss attributable to noncontrolling interests
10.1
4.4
11.3
2.3
Net income (loss) attributable to MCBC
$
231.7
$
428.7
$
383.0
$
549.7
Basic net income (loss) attributable to MCBC per share
$
1.24
$
2.14
$
2.04
$
2.73
Diluted net income (loss) attributable to MCBC per share
$
1.23
$
2.13
$
2.03
$
2.71
Weighted-average shares - basic
187.5
200.5
188.2
201.7
Weighted-average shares - diluted
187.7
201.2
188.6
202.6
Dividends per share
$
0.48
$
0.47
$
0.96
$
0.94
BALANCE SHEETS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions, except par value) (Unaudited)
As of
June 30, 2026
December 31, 2025
Assets
Current assets
Cash and cash equivalents
$
2,128.1
$
896.5
Trade receivables, net
1,004.1
703.0
Other receivables, net
173.7
187.3
Inventories, net
849.1
715.9
Other current assets, net
428.5
432.8
Total current assets
4,583.5
2,935.5
Property, plant and equipment, net
4,677.7
4,768.7
Goodwill
2,144.8
1,944.7
Other intangibles, net
11,839.6
11,991.1
Other assets
1,113.4
1,098.4
Total assets
$
24,359.0
$
22,738.4
Liabilities and equity
Current liabilities
Accounts payable and other current liabilities
$
3,175.0
$
2,876.7
Current portion of long-term debt and short-term borrowings
2,037.1
2,434.1
Total current liabilities
5,212.1
5,310.8
Long-term debt
5,672.5
3,865.4
Pension and postretirement benefits
411.2
427.1
Deferred tax liabilities
2,358.5
2,284.7
Other liabilities
296.0
307.7
Total liabilities
13,950.3
12,195.7
Redeemable noncontrolling interest
102.0
115.6
Molson Coors Beverage Company stockholders' equity
Capital stock
Preferred stock, $0.01 par value (authorized: 25.0 shares; none issued)
—
—
Class A common stock, $0.01 par value (authorized: 500.0 shares; issued and outstanding: 2.6 shares and 2.6 shares, respectively)
—
—
Class B common stock, $0.01 par value (authorized: 500.0 shares; issued: 216.6 shares and 216.1 shares, respectively)
2.2
2.2
Class A exchangeable shares, no par value (issued and outstanding: 2.7 shares and 2.7 shares, respectively)
100.8
100.8
Class B exchangeable shares, no par value (issued and outstanding: 7.1 shares and 7.1 shares, respectively)
266.9
266.9
Paid-in capital
7,252.8
7,247.2
Retained earnings
5,925.4
5,723.7
Accumulated other comprehensive income (loss)
(1,181.1
)
(1,071.6
)
Class B common stock held in treasury at cost (42.1 shares and 37.7 shares, respectively)
(2,247.5
)
(2,038.9
)
Total Molson Coors Beverage Company stockholders' equity
10,119.5
10,230.3
Noncontrolling interests
187.2
196.8
Total equity
10,306.7
10,427.1
Total liabilities and equity
$
24,359.0
$
22,738.4
CASH FLOW STATEMENTS - MOLSON COORS BEVERAGE COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions) (Unaudited)
For the six months ended
June 30, 2026
June 30, 2025
Cash flows from operating activities
Net income (loss) including noncontrolling interests
$
371.7
$
547.4
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Depreciation and amortization
377.7
350.4
Amortization of cloud computing arrangements
7.6
7.0
Amortization of debt issuance costs and discounts
3.8
2.6
Share-based compensation
17.0
18.9
(Gain) loss on sale or impairment of property, plant, equipment and other assets, net
2.3
(6.1
)
Unrealized (gain) loss on foreign currency fluctuations, fair value investments and derivative instruments, net
6.2
(77.4
)
Equity (income) loss
(6.9
)
(8.5
)
Income tax (benefit) expense
106.1
163.8
Income tax (paid) received
(41.7
)
(58.0
)
Interest expense, excluding amortization of debt issuance costs and discounts
125.2
120.3
Interest paid
(141.5
)
(137.2
)
Other non-cash items, net
1.5
(2.1
)
Change in current assets and liabilities (net of impact of business combinations) and other
(8.6
)
(293.5
)
Net cash provided by (used in) operating activities
820.4
627.6
Cash flows from investing activities
Additions to property, plant and equipment
(335.2
)
(400.6
)
Proceeds from sales of property, plant, equipment and other assets
7.4
4.4
Acquisition of business, net of cash acquired
(271.0
)
(20.8
)
Other
(0.6
)
(82.7
)
Net cash provided by (used in) investing activities
(599.4
)
(499.7
)
Cash flows from financing activities
Dividends paid
(183.7
)
(192.7
)
Payments for purchases of treasury stock
(211.0
)
(306.8
)
Payments on debt and borrowings
(382.7
)
(5.8
)
Proceeds on debt and borrowings
1,848.6
—
Other
(44.3
)
(0.9
)
Net cash provided by (used in) financing activities
1,026.9
(506.2
)
Effect of foreign exchange rate changes on cash and cash equivalents
(16.3
)
22.8
Net increase (decrease) in cash and cash equivalents
1,231.6
(355.5
)
Balance at beginning of year
896.5
969.3
Balance at end of period
$
2,128.1
$
613.8
SUMMARIZED SEGMENT RESULTS ($ in millions and volume in millions of hectoliters) (Unaudited)
Americas
Q2 2026
Q2 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
YTD 2026
YTD 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
Net sales(1)
$
2,402.4
$
2,504.8
(4.1
)
$
(0.7
)
(4.1
)
$
4,302.9
$
4,386.6
(1.9
)
$
10.5
(2.1
)
COGS(1)(2)
$
(1,461.3
)
$
(1,468.4
)
0.5
$
0.5
0.4
$
(2,668.5
)
$
(2,638.3
)
(1.1
)
$
(6.9
)
(0.9
)
MG&A
$
(546.2
)
$
(526.4
)
(3.8
)
$
0.2
(3.8
)
$
(1,009.9
)
$
(1,040.7
)
3.0
$
(3.6
)
3.3
Income (loss) before income taxes
$
390.1
$
538.2
(27.5
)
$
(2.1
)
(27.1
)
$
597.5
$
747.5
(20.1
)
$
(3.7
)
(19.6
)
Underlying income (loss) before income taxes(3)
$
396.1
$
514.2
(23.0
)
$
(2.0
)
(22.6
)
$
626.9
$
717.0
(12.6
)
$
(3.4
)
(12.1
)
Financial volume(1)(4)
14.326
15.307
(6.4
)
25.753
27.049
(4.8
)
Brand volume
14.246
15.038
(5.3
)
25.821
26.969
(4.3
)
EMEA&APAC
Q2 2026
Q2 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
YTD 2026
YTD 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
Net sales(1)
$
700.8
$
703.9
(0.4
)
$
11.1
(2.0
)
$
1,156.9
$
1,131.2
2.3
$
45.1
(1.7
)
COGS(1)(2)
$
(487.6
)
$
(465.4
)
(4.8
)
$
(7.8
)
(3.1
)
$
(829.0
)
$
(772.4
)
(7.3
)
$
(33.4
)
(3.0
)
MG&A
$
(172.3
)
$
(166.7
)
(3.4
)
$
(3.1
)
(1.5
)
$
(318.6
)
$
(305.6
)
(4.3
)
$
(15.4
)
0.8
Income (loss) before income taxes
$
37.9
$
64.8
(41.5
)
$
0.7
(42.6
)
$
(13.8
)
$
45.6
N/M
$
(4.7
)
N/M
Underlying income (loss) before income taxes(3)
$
41.0
$
72.4
(43.4
)
$
0.7
(44.3
)
$
8.3
$
53.2
(84.4
)
$
(3.7
)
(77.4
)
Financial volume(1)(4)
5.409
5.564
(2.8
)
8.949
9.233
(3.1
)
Brand volume
5.382
5.574
(3.4
)
8.875
9.190
(3.4
)
Unallocated & Eliminations
Q2 2026
Q2 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
YTD 2026
YTD 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
Net sales
$
(6.7
)
$
(7.9
)
15.2
$
—
15.2
$
(12.2
)
$
(12.9
)
5.4
$
—
5.4
COGS(2)
$
(84.3
)
$
14.9
N/M
$
0.5
N/M
$
10.4
$
38.6
(73.1
)
$
1.6
(77.2
)
Income (loss) before income taxes
$
(144.9
)
$
(48.1
)
(201.2
)
$
1.0
(203.3
)
$
(105.9
)
$
(81.9
)
(29.3
)
$
3.4
(33.5
)
Underlying income (loss) before income taxes(3)
$
(53.9
)
$
(55.1
)
2.2
$
0.5
1.3
$
(104.1
)
$
(107.6
)
3.3
$
1.8
1.6
Financial volume
(0.001
)
(0.001
)
—
(0.004
)
(0.003
)
N/M
Consolidated
Q2 2026
Q2 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
YTD 2026
YTD 2025
Reported % Change
FX Impact
Constant Currency % Change(3)
Net sales
$
3,096.5
$
3,200.8
(3.3
)
$
10.4
(3.6
)
$
5,447.6
$
5,504.9
(1.0
)
$
55.6
(2.1
)
COGS
$
(2,033.2
)
$
(1,918.9
)
(6.0
)
$
(6.8
)
(5.6
)
$
(3,487.1
)
$
(3,372.1
)
(3.4
)
$
(38.7
)
(2.3
)
MG&A
$
(718.5
)
$
(693.1
)
(3.7
)
$
(2.9
)
(3.2
)
$
(1,328.5
)
$
(1,346.3
)
1.3
$
(19.0
)
2.7
Income (loss) before income taxes
$
283.1
$
554.9
(49.0
)
$
(0.4
)
(48.9
)
$
477.8
$
711.2
(32.8
)
$
(5.0
)
(32.1
)
Underlying income (loss) before income taxes(3)
$
383.2
$
531.5
(27.9
)
$
(0.8
)
(27.8
)
$
531.1
$
662.6
(19.8
)
$
(5.3
)
(19.0
)
Financial volume(4)
19.734
20.870
(5.4
)
34.698
36.279
(4.4
)
Brand volume
19.628
20.612
(4.8
)
34.696
36.159
(4.0
)
N/M = Not meaningful The reported percent change and the constant currency percent change in the above table are presented as (unfavorable) favorable. (1) Includes gross inter-segment volumes, sales and purchases, which are eliminated in the consolidated totals.
(2) The unrealized changes in fair value on our commodity instruments, which are economic hedges, are recorded as COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivative without the resulting unrealized mark-to-market volatility.
(3) Represents income (loss) before income taxes adjusted for non-GAAP items. See the Non-GAAP Measures and Reconciliations section for definitions and reconciliations of non-GAAP financial measures including constant currency.
(4) Financial volume in hectoliters for the Americas and EMEA&APAC segments excludes royalty volume of 0.719 million hectoliters and 0.353 million hectoliters, respectively, for the three months ended June 30, 2026 and excludes royalty volume of 0.693 million hectoliters and 0.336 million, respectively, for the three months ended June 30, 2025.
Financial volume in hectoliters for the Americas and EMEA&APAC segments excludes royalty volume of 1.441 million hectoliters and 0.576 million hectoliters, respectively, for the six months ended June 30, 2026 and excludes royalty volume of 1.366 million hectoliters and 0.556 million hectoliters, respectively, for the six months ended June 30, 2025. WORLDWIDE AND SEGMENT BRAND AND FINANCIAL VOLUME
(In millions of hectoliters) (Unaudited)
For the three months ended
Americas
June 30, 2026
June 30, 2025
Change
Financial Volume
14.326
15.307
(6.4
)%
Contract brewing and wholesale/factored volume
(0.442
)
(0.415
)
(6.5
)%
Royalty volume
0.719
0.693
3.8
%
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1)
(0.357
)
(0.547
)
(34.7
)%
Total Americas Brand Volume
14.246
15.038
(5.3
)%
EMEA&APAC
June 30, 2026
June 30, 2025
Change
Financial Volume
5.409
5.564
(2.8
)%
Contract brewing and wholesale/factored volume
(0.380
)
(0.326
)
(16.6
)%
Royalty volume
0.353
0.336
5.1
%
Total EMEA&APAC Brand Volume
5.382
5.574
(3.4
)%
Consolidated
June 30, 2026
June 30, 2025
Change
Financial Volume
19.734
20.870
(5.4
)%
Contract brewing and wholesale/factored volume
(0.822
)
(0.741
)
(10.9
)%
Royalty volume
1.072
1.029
4.2
%
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1)
(0.356
)
(0.546
)
(34.8
)%
Total Worldwide Brand Volume
19.628
20.612
(4.8
)%
(In millions of hectoliters) (Unaudited)
For the six months ended
Americas
June 30, 2026
June 30, 2025
Change
Financial Volume
25.753
27.049
(4.8
)%
Contract brewing and wholesale/factored volume
(0.803
)
(0.800
)
(0.4
)%
Royalty volume
1.441
1.366
5.5
%
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1)
(0.570
)
(0.646
)
(11.8
)%
Total Americas Brand Volume
25.821
26.969
(4.3
)%
EMEA&APAC
June 30, 2026
June 30, 2025
Change
Financial Volume
8.949
9.233
(3.1
)%
Contract brewing and wholesale/factored volume
(0.650
)
(0.599
)
(8.5
)%
Royalty volume
0.576
0.556
3.6
%
Total EMEA&APAC Brand Volume
8.875
9.190
(3.4
)%
Consolidated
June 30, 2026
June 30, 2025
Change
Financial Volume
34.698
36.279
(4.4
)%
Contract brewing and wholesale/factored volume
(1.453
)
(1.399
)
(3.9
)%
Royalty volume
2.017
1.922
4.9
%
Sales-To-Wholesaler to Sales-To-Retail adjustment and other(1)
(0.566
)
(0.643
)
(12.0
)%
Total Worldwide Brand Volume
34.696
36.159
(4.0
)%
Worldwide brand volume (or "brand volume" when discussed by segment) reflects owned or actively managed brands sold to unrelated external customers within our geographic markets (net of returns and allowances), royalty volume and our proportionate share of equity investment worldwide brand volume calculated consistently with MCBC owned volume. Financial volume represents owned or actively managed brands sold to unrelated external customers within our geographic markets, net of returns and allowances as well as contract brewing, wholesale non-owned brand volume and company-owned distribution volume. Contract brewing and wholesale/factored volume is included within financial volume, but is removed from worldwide brand volume, as this is non-owned volume for which we do not directly control performance. Factored volume in our EMEA&APAC segment represents the distribution of beer, wine, spirits and other products owned and produced by other companies to the on-premise channel such as bars and restaurants, which is a common arrangement in the U.K. Royalty volume consists of our brands produced and sold by third parties under various license and contract brewing agreements and, because this is owned volume, it is included in worldwide brand volume. Our worldwide brand volume definition also includes an adjustment from Sales-to-Wholesaler ("STW") volume to Sales-to-Retailer ("STR") volume. We believe the brand volume metric is important because, unlike financial volume and STWs, it provides the closest indication of the performance of our brands in relation to market and competitor sales trends.
We also utilize net sales per hectoliter and COGS per hectoliter, as well as the year over year changes in this metric, as a key metric for analyzing our results. These metrics are calculated as net sales and COGS per our consolidated statements of operations divided by financial volume for the respective period. We believe these metrics are important and useful for investors and management because it provides an indication of the trends of price and sales mix on our net sales and the trends of mix and other cost impacts on our COGS.
NON-GAAP MEASURES AND RECONCILIATIONS
Use of Non-GAAP Measures
In addition to financial measures presented on the basis of accounting principles generally accepted in the U.S. (“U.S. GAAP”), we also use non-GAAP financial measures, as listed and defined below, for operational and financial decision making and to assess Company and segment business performance. These non-GAAP measures should be viewed as supplements to (not substitutes for) our results of operations presented under U.S. GAAP. We have provided reconciliations of all historical non-GAAP measures to their nearest U.S. GAAP measure and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure.
Our management uses these metrics to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the Board of Directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe these measures are used by, and are useful to, investors and other users of our financial statements in evaluating our operating performance.
Underlying Income (Loss) before Income Taxes (Closest GAAP Metric: Income (Loss) Before Income Taxes) –Measure of the Company’s or segment's income (loss) before income taxes excluding the impact of certain non-GAAP adjustment items from our U.S. GAAP financial statements. Non-GAAP adjustment items include goodwill and other intangible and tangible asset impairments, certain restructuring and integration related costs, unrealized mark-to-market gains and losses, adjustments to the redemption value of mandatorily redeemable noncontrolling interests, potential or incurred losses related to certain litigation accruals and settlements, impacts of settlement charges related to annuity purchases and gains and losses on sales of non-operating assets, among other items included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results (collectively, "Non-GAAP adjustment items"). We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective, involve significant management judgment and can vary substantially from company to company. Underlying COGS (Closest GAAP Metric: COGS) – Measure of the Company’s COGS adjusted to exclude non-GAAP adjustment items (as defined above). Non-GAAP adjustment items include, among other items, unrealized mark-to-market gains and losses on our commodity derivative instruments, which are economic hedges, and are recorded through COGS within Unallocated. As the exposure we are managing is realized, we reclassify the gain or loss to the segment in which the underlying exposure resides, allowing our segments to realize the economic effects of the derivatives without the resulting unrealized mark-to-market volatility. We also use underlying COGS per hectoliter, as well as the year over year change in such metric, as a key metric for analyzing our results. This metric is calculated as underlying COGS divided by financial volume for the respective period.
Underlying MG&A (Closest GAAP Metric: MG&A) – Measure of the Company’s MG&A expense excluding the impact of certain non-GAAP adjustment items (as defined above). Underlying net income (loss) attributable to MCBC (Closest GAAP Metric: Net income (loss) attributable to MCBC) – Measure of net income (loss) attributable to MCBC excluding the impact of income (loss) before income tax non-GAAP adjustment items (as defined above), adjustments to the carrying value of redeemable noncontrolling interests resulting from subsequent changes in the redemption value of such interests, the related tax effects of non-GAAP adjustment items and certain other discrete tax items. Underlying net income (loss) attributable to MCBC per diluted share (also referred to as Underlying Diluted Earnings per Share) (Closest GAAP Metric: Net income (loss) attributable to MCBC per diluted share) – Measure of underlying net income (loss) attributable to MCBC (as defined above) per diluted share. If applicable, a reported net loss attributable to MCBC per diluted share is calculated using the basic share count due to dilutive shares being antidilutive. If underlying net income (loss) attributable to MCBC becomes income excluding the impact of our non-GAAP adjustment items, we include the incremental dilutive shares, using the treasury stock method, into the dilutive shares outstanding. Underlying effective tax rate (Closest GAAP Metric: Effective Tax Rate) – Measure of the Company’s effective tax rate excluding the related tax impact of pre-tax non-GAAP adjustment items (as defined above) and certain other discrete tax items. Discrete tax items include certain significant tax audit and prior year reserve adjustments, impact of significant tax legislation and tax rate changes and significant non-recurring and period specific tax items. Underlying free cash flow (Closest GAAP Metric: Net Cash Provided by (Used in) Operating Activities) – Measure of the Company’s operating cash flow calculated as Net Cash Provided by (Used In) Operating Activities less Additions to property, plant and equipment and excluding the pre-tax cash flow impact of certain non-GAAP adjustment items (as defined above). We consider underlying free cash flow an important measure of our ability to generate cash, grow our business and enhance shareholder value, driven by core operations and after adjusting for non-GAAP adjustment items, which can vary substantially from company to company depending upon accounting methods, book value of assets and capital structure. Underlying depreciation and amortization (Closest GAAP Metric: Depreciation & Amortization) – Measure of the Company’s depreciation and amortization excluding the impact of non-GAAP adjustment items (as defined above). These adjustments primarily consist of accelerated depreciation or amortization taken related to the Company’s strategic exit or restructuring activities. Net debt and net debt to underlying earnings before interest, taxes, depreciation, and amortization ("underlying EBITDA") (Closest GAAP Metrics: Cash, Debt, & Net Income (Loss)) – Measure of the Company’s leverage calculated as net debt (defined as current portion of long-term debt and short-term borrowings plus long-term debt less cash and cash equivalents) divided by the trailing twelve month underlying EBITDA. Underlying EBITDA is calculated as Net income (loss) excluding Interest expense (income), net, Income tax expense (benefit), depreciation and amortization and the impact of non-GAAP adjustment items (as defined above). Effective January 1, 2025, on a prospective basis, Underlying EBITDA excludes amortization of cloud-based software implementation costs. This measure is not the same as the Company’s maximum leverage ratio as defined under its revolving credit facility, which allows for other adjustments in the calculation of net debt to EBITDA. Constant currency - Constant currency is a non-GAAP measure utilized to measure performance, excluding the impact of translational and certain transactional foreign currency movements, and is intended to be indicative of results in local currency. As we operate in various foreign countries where the local currency may strengthen or weaken significantly versus the U.S. dollar or other currencies used in operations, we utilize a constant currency measure as an additional metric to evaluate the underlying performance of each business without consideration of foreign currency movements. We present all percentage changes for net sales, underlying COGS, underlying MG&A and underlying income (loss) before income taxes in constant currency and calculate the impact of foreign exchange by translating our current period local currency results (that also include the impact of the comparable prior period currency hedging activities) at the average exchange rates during the respective period throughout the year used to translate the financial statements in the comparable prior year period. The result is the current period results in U.S. dollars, as if foreign exchange rates had not changed from the prior year period. Additionally, we exclude any transactional foreign currency impacts, reported within the other non-operating income (expense), net line item, from our current period results. Our guidance or long-term targets for any of the measures noted above are also non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we provide guidance or long-term targets for any of the various non-GAAP metrics described above, we do not provide reconciliations of the U.S. GAAP measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our Company and its financial results. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts.
RECONCILIATION TO NEAREST U.S. GAAP MEASURES
Reconciliation by Line Item
(In millions, except per share data) (Unaudited)
For the three months ended June 30, 2026
Cost of goods sold
Marketing, general and administrative expenses
Income (loss) before income taxes
Net income (loss) attributable to MCBC
Diluted earnings per share
Reported (U.S. GAAP)
$
(2,033.2
)
$
(718.5
)
$
283.1
$
231.7
$
1.23
Non-GAAP adjustments (pre-tax)
Restructuring(1)
—
—
7.3
7.2
0.04
(Gains) and losses on disposals and other operating expense (income)(2)
—
—
9.3
9.3
0.05
Unrealized mark-to-market (gains) losses
91.0
—
91.0
91.0
0.48
Other items(3)
—
—
(7.5
)
(7.5
)
(0.04
)
Tax effect of non-GAAP adjustments and other discrete tax items
—
—
—
(24.3
)
(0.13
)
Redeemable noncontrolling interest adjustments
—
—
—
(10.8
)
(0.06
)
Underlying (Non-GAAP)
$
(1,942.2
)
$
(718.5
)
$
383.2
$
296.6
1.58
(1) During the fourth quarter of 2025, we announced the Americas Restructuring Plan designed to create a leaner, more agile Americas segment while advancing our ability to reinvest in the business and position us for future growth. The plan resulted in $0.7 million of employee-related charges recorded during the three months ended June 30, 2026. These actions are substantially complete and any remaining future charges are expected to be immaterial.
During the first quarter of 2026, we committed to various cost savings actions designed to optimize our supply chain within the Americas segment, which resulted in restructuring charges including accelerated depreciation in excess of normal depreciation charges of $3.5 million for the three months ended June 30, 2026. We anticipate additional charges related to these committed actions to be approximately $10 million to $15 million, with the majority of these charges to be recorded during the remainder of 2026 as well as in 2027.
Also during the first quarter of 2026, we committed to various restructuring actions in the EMEA&APAC segment, including the closure of a small brewery in the U.K. by the end of 2026, alongside other operational changes designed to unlock efficiencies as well as modernize and simplify the EMEA&APAC segment to fund growth. During the three months ended June 30, 2026, we recorded employee-related charges of $0.3 million as well as accelerated depreciation in excess of normal depreciation charges of $2.5 million related to these actions. We anticipate additional charges related to these committed actions to be approximately $3 million to $8 million, with the majority of these charges to be recorded during the remainder of 2026.
(2) During the second quarter of 2026, we made the decision to exit a brand in our Americas segment and, as a result, recorded $8.1 million of accelerated amortization of the brand intangible.
(3) During the first quarter of 2025, our Americas segment made an investment in Fevertree Drinks plc and holds a minority interest. During the three months ended June 30, 2026, we recorded an unrealized gain of $7.5 million resulting from the change in the fair value of the investment.
(In millions, except per share data) (Unaudited)
For the three months ended June 30, 2025
Cost of goods sold
Marketing, general and administrative expenses
Income (loss) before income taxes
Net income (loss) attributable to MCBC
Diluted earnings per share
Reported (U.S. GAAP)
$
(1,918.9
)
$
(693.1
)
$
554.9
$
428.7
$
2.13
Non-GAAP adjustments (pre-tax)
Restructuring
—
—
8.6
8.6
0.04
(Gains) and losses on disposals and other operating expense (income)
—
—
0.6
0.6
—
Unrealized mark-to-market (gains) losses
(7.0
)
—
(7.0
)
(7.0
)
(0.03
)
Other items(1)
—
(0.1
)
(25.6
)
(25.6
)
(0.13
)
Tax effect of non-GAAP adjustments and other discrete tax items
—
—
—
6.0
0.03
Redeemable noncontrolling interest adjustments
—
—
—
1.0
—
Underlying (Non-GAAP)
$
(1,925.9
)
$
(693.2
)
$
531.5
$
412.3
$
2.05
(In millions, except per share data) (Unaudited)
For the six months ended June 30, 2026
Cost of goods sold
Marketing, general and administrative expenses
Income (loss) before income taxes
Net income (loss) attributable to MCBC
Net income (loss) attributable to MCBC per diluted share(5)
Reported (U.S. GAAP)
$
(3,487.1
)
$
(1,328.5
)
$
477.8
$
383.0
$
2.03
Non-GAAP adjustments (pre-tax)
Restructuring(1)
—
—
38.4
38.3
0.20
(Gains) and losses on disposals and other operating expense (income)(2)
—
—
10.3
10.3
0.05
Unrealized mark-to-market (gains) losses
1.8
—
1.8
1.8
0.01
Other items(3)
—
—
2.8
2.8
0.01
Tax effect of non-GAAP adjustments and other discrete tax items
—
—
—
(13.1
)
(0.07
)
Redeemable noncontrolling interest adjustments
—
—
—
(9.0
)
(0.05
)
Underlying (Non-GAAP)
$
(3,485.3
)
$
(1,328.5
)
$
531.1
$
414.1
2.20
(1) During the fourth quarter of 2025, we announced the Americas Restructuring Plan designed to create a leaner, more agile Americas segment while advancing our ability to reinvest in the business and position us for future growth. The plan resulted in $5.1 million of employee-related charges recorded during the six months ended June 30, 2026. The cumulative restructuring charges recorded through June 30, 2026 related to the Americas Restructuring Plan were $33.8 million. These actions are substantially complete and any remaining future charges are expected to be immaterial.
During the first quarter of 2026, we committed to various cost savings actions designed to optimize our supply chain within the Americas segment, which resulted in restructuring charges including accelerated depreciation in excess of normal depreciation charges of $10.1 million for the six months ended June 30, 2026. We anticipate additional charges related to these committed actions to be approximately $10 million to $15 million, with the majority of these charges to be recorded during the remainder of 2026 as well as in 2027.
Also during the first quarter of 2026, we committed to various restructuring actions in the EMEA&APAC segment, including the closure of a small brewery in the U.K. by the end of 2026, alongside other operational changes designed to unlock efficiencies as well as modernize and simplify the EMEA&APAC segment to fund growth. During the six months ended June 30, 2026, we recorded employee-related charges of $15.3 million as well as accelerated depreciation in excess of normal depreciation charges of $5.0 million. We anticipate additional charges related to these committed actions to be approximately $3 million to $8 million, with the majority of these charges to be recorded during the remainder of 2026.
(2) During the second quarter of 2026, we made the decision to exit a brand in our Americas segment and, as a result, recorded $8.1 million of accelerated amortization of the brand intangible.
(3) During the first quarter of 2025, our Americas segment made an investment in Fevertree Drinks plc and holds a minority interest. During the six months ended June 30, 2026, we recorded an unrealized loss of $2.9 million resulting from the change in the fair value of the investment.
(In millions, except per share data) (Unaudited)
For the six months ended June 30, 2025
Cost of goods sold
Marketing, general and administrative expenses
Income (loss) before income taxes
Net income (loss) attributable to MCBC
Net income (loss) attributable to MCBC per diluted share
Reported (U.S. GAAP)
$
(3,372.1
)
$
(1,346.3
)
$
711.2
$
549.7
$
2.71
Non-GAAP adjustments (pre-tax)
Restructuring(1)
—
—
28.0
28.0
0.14
(Gains) and losses on disposals and other operating expense (income)
—
—
0.6
0.6
—
Unrealized mark-to-market (gains) losses
(25.7
)
—
(25.7
)
(25.7
)
(0.13
)
Other items(2)
—
(0.2
)
(51.5
)
(51.5
)
(0.25
)
Tax effect of non-GAAP adjustments and other discrete tax items
—
—
—
11.9
0.06
Redeemable noncontrolling interest adjustments
—
—
—
1.0
—
Underlying (Non-GAAP)
$
(3,397.8
)
$
(1,346.5
)
$
662.6
$
514.0
$
2.54
Reconciliation to Underlying (Non-GAAP) Income (Loss) Before Income Taxes by Segment
(In millions) (Unaudited)
For the three months ended June 30, 2026
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income taxes
$
390.1
$
37.9
$
(144.9
)
$
283.1
Cost of goods sold(1)
—
—
91.0
91.0
Other non-GAAP adjustment items(2)
6.0
3.1
—
9.1
Total non-GAAP adjustment items
$
6.0
$
3.1
$
91.0
$
100.1
Underlying (Non-GAAP) income (loss) before income taxes
$
396.1
$
41.0
$
(53.9
)
$
383.2
(In millions) (Unaudited)
For the three months ended June 30, 2025
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income taxes
$
538.2
$
64.8
$
(48.1
)
$
554.9
Cost of goods sold(1)
—
—
(7.0
)
(7.0
)
Marketing, general & administrative
(0.1
)
—
—
(0.1
)
Other non-GAAP adjustment items(2)
(23.9
)
7.6
—
(16.3
)
Total non-GAAP adjustment items
$
(24.0
)
$
7.6
$
(7.0
)
$
(23.4
)
Underlying (Non-GAAP) income (loss) before income taxes
$
514.2
$
72.4
$
(55.1
)
$
531.5
(In millions) (Unaudited)
For the six months ended June 30, 2026
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income taxes
$
597.5
$
(13.8
)
$
(105.9
)
$
477.8
Cost of goods sold(1)
—
—
1.8
1.8
Other non-GAAP adjustment items(2)
29.4
$
22.1
$
—
51.5
Total non-GAAP adjustment items
$
29.4
$
22.1
$
1.8
$
53.3
Underlying (Non-GAAP) income (loss) before income taxes
$
626.9
$
8.3
$
(104.1
)
$
531.1
(In millions) (Unaudited)
For the six months ended June 30, 2025
Americas
EMEA&APAC
Unallocated
Consolidated
U.S. GAAP Income (loss) before income taxes
$
747.5
$
45.6
$
(81.9
)
$
711.2
Cost of goods sold(1)
—
—
(25.7
)
(25.7
)
Marketing, general & administrative
(0.2
)
—
—
(0.2
)
Other non-GAAP adjustment items(2)
(30.3
)
7.6
—
(22.7
)
Total non-GAAP adjustment items
$
(30.5
)
$
7.6
$
(25.7
)
$
(48.6
)
Underlying (Non-GAAP) income (loss) before income taxes
$
717.0
$
53.2
$
(107.6
)
$
662.6
Effective Tax Rate Reconciliation
(Unaudited)
For the three months ended
June 30, 2026
June 30, 2025
U.S. GAAP Effective Tax Rate
22 %
24 %
Tax effect of non-GAAP adjustment items and discrete tax items(1)
— %
(1) %
Underlying (Non-GAAP) Effective Tax Rate
22 %
23 %
Underlying (Non-GAAP) Depreciation and Amortization Reconciliation
(In millions) (Unaudited)
For the three months ended
For the six months ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
U.S. GAAP depreciation and amortization
$
192.0
$
170.1
$
377.7
$
350.4
Accelerated depreciation(1)
(6.0
)
—
(15.1
)
(17.9
)
Accelerated amortization(2)
(8.8
)
—
(8.8
)
—
Underlying (Non-GAAP) depreciation and amortization
$
177.2
$
170.1
$
353.8
$
332.5
(1) During the first quarter of 2026, we committed to various restructuring actions in the EMEA&APAC segment, including the closure of a small brewery in the U.K. by the end of 2026, alongside other operational changes designed to unlock efficiencies as well as modernize and simplify the EMEA&APAC segment to fund growth. During the three and six months ended June 30, 2026, we recorded accelerated depreciation in excess of normal depreciation charges of $2.5 million and $5.0 million, respectively, related to these actions.
During the first quarter of 2026, we committed to various cost savings actions designed to optimize our supply chain within the Americas segment. During the three and six months ended June 30, 2026, we recorded accelerated depreciation in excess of normal depreciation charges of $3.5 million and $10.1 million, respectively, related to these actions.
During the third quarter of 2024, we made the decision to wind down or sell certain U.S. craft businesses and related facilities within the Americas segment. As a result, we recorded employee-related and asset abandonment charges, including accelerated depreciation in excess of normal depreciation of $17.9 million for the six months ended June 30, 2025.
(2) During the second quarter of 2026, we made the decision to exit a brand in our Americas segment and, as a result, recorded $8.1 million of accelerated amortization of the brand intangible.
Underlying (Non-GAAP) Free Cash Flow
(In millions) (Unaudited)
For the six months ended
June 30, 2026
June 30, 2025
U.S. GAAP Net Cash Provided by (Used In) Operating Activities
$
820.4
$
627.6
Additions to property, plant and equipment, net(1)
(335.2
)
(400.6
)
Cash impact of non-GAAP adjustment items(2)
28.6
66.5
Underlying (Non-GAAP) Free Cash Flow
$
513.8
$
293.5
Net Debt (Non-GAAP) and Net Debt (Non-GAAP) to Underlying (Non-GAAP) EBITDA Ratio
(In millions except net debt (Non-GAAP) to underlying (Non-GAAP) EBITDA ratio) (Unaudited)
As of
June 30, 2026
June 30, 2025
U.S. GAAP Current portion of long-term debt and short-term borrowings
$
2,037.1
$
62.3
Add: Long-term debt
5,672.5
6,257.0
Less: Cash and cash equivalents
2,128.1
613.8
Net debt (Non-GAAP)
5,581.5
5,705.5
Q2 Underlying EBITDA
624.6
763.9
Q1 Underlying EBITDA
386.0
353.3
Q4 Underlying EBITDA
532.7
558.5
Q3 Underlying EBITDA
665.4
692.3
Underlying (Non-GAAP) EBITDA(1)
$
2,208.7
$
2,368.0
Net debt (Non-GAAP) to underlying (Non-GAAP) EBITDA ratio
2.53
2.41
Underlying (Non-GAAP) EBITDA Reconciliation
($ in millions) (Unaudited)
For the three months ended
June 30, 2026
June 30, 2025
U.S. GAAP Net income (loss)
$
221.6
$
424.3
Interest expense (income), net
60.5
58.5
Income tax expense (benefit)
61.5
130.6
Depreciation and amortization
192.0
170.1
Amortization of cloud computing arrangements
3.8
3.8
Non-GAAP adjustments to arrive at underlying (non-GAAP) EBITDA(1)
Amazon zvýšil odhad kapitálových výdajů na 220 miliard USD kvůli vyšším nákladům na paměti, ale Micron po výsledcích klesl o 5,9 % mezi 30. a 31. červencem.
In Amazon's 2026 second-quarter earnings call on July 30, CEO Andy Jassy forecast that capital expenditures would likely reach $220 billion for the year. That's up from a previously expected $200 billion, which was attributed to higher memory costs.
Still, Jassy said that increasing spending on artificial intelligence (AI) infrastructure may not be enough to keep up with demand:
Even at that amount, we will still not have enough capacity to meet all the demand we have in 2026, and I believe this dynamic will also be true in 2027, too. In fact, the demand we already have for 2028 is striking.
Seemingly, that would be good news for Micron Technology (MU +0.06%), as its high bandwidth memory offerings play a key role in AI infrastructure, showing that even at higher prices, demand is likely to remain strong.
The Micron stock price, however, didn't benefit after Amazon reported earnings, dipping 5.9% from $874.66 on July 30 to $823.03 on July 31.
Image source: The Motley Fool.
Why the Amazon news didn't move the needle The most likely reason Amazon's increase in capital expenditures didn't help Micron's stock price was that the stock had already rallied, climbing 18.3% from the July 29 closing price of $739 to the July 30 closing price of $874.66. What helped was Samsung Electronics' announcement that strong earnings and forecasted memory chip shortages would persist through 2028.
Broadly, that was bullish news for Micron, which had been suffering a sell-off alongside the rest of the memory chip sector before Samsung's earnings announcement.
In the background, what could also have been weighing on sentiment around Micron is interest rate hikes. The Federal Open Market Committee decided to leave interest rates unchanged on July 29, but three members dissented and favored a quarter-point rate hike. Some investors may have started selling their tech stocks in anticipation of future rate hikes.
Finally, when Micron's shares shot up more than 18% on July 30 and regained some ground, there may have been some profit-taking on July 31. As of this writing, over the last 12 months, the Micron stock price is up more than 660%.
Today's Change
(
0.06
%) $
0.52
Current Price
$
893.19
Micron's business model is shifting Despite the boon AI has been for Micron, there are still fears that, when supply catches up with demand, Micron and other memory stocks will return to a cyclical boom-or-bust pattern.
In that regard, supply is still not expected to catch up to demand until at least 2028. But if that milestone arrives earlier than anticipated, Micron is preparing itself. The company is locking in long-term deals, which may impact margins but offer more predictable cash flow. In Micron's fiscal 2026 Q3 earnings call, it announced that it had signed 16 strategic customer agreements and had $22 billion in cash deposits and related financial commitments.
Micron may still have a few more years with higher margins for its memory and storage offerings, as supply isn't expected to catch up with demand any time soon. Despite the recent sell-off, Micron is likely to continue to do well over the next two years. After that, however, there may be an adjustment period as it shifts to more reliable revenue with lower margins through long-term contracts.
Ultimately, an investment in Micron depends more on the deals it's locking in for long-term revenue, on whether it executes on becoming less known for cyclical results, and on whether the market appreciates its business model shift.
Amundi decreased its holdings in shares of HDFC Bank Limited (NYSE:HDB – Free Report) by 41.3% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 212,792 shares of the bank’s stock after selling 149,728 shares during the period. Amundi’s holdings in HDFC Bank were worth $5,294,000 as of its most recent SEC filing.
A number of other large investors have also recently made changes to their positions in the business. Larson Financial Group LLC increased its holdings in HDFC Bank by 90.4% during the 3rd quarter. Larson Financial Group LLC now owns 849 shares of the bank’s stock worth $29,000 after purchasing an additional 403 shares in the last quarter. Bell Investment Advisors Inc boosted its position in shares of HDFC Bank by 260.9% during the first quarter. Bell Investment Advisors Inc now owns 1,386 shares of the bank’s stock valued at $34,000 after buying an additional 1,002 shares during the last quarter. Pin Oak Investment Advisors Inc. boosted its position in shares of HDFC Bank by 100.0% during the third quarter. Pin Oak Investment Advisors Inc. now owns 996 shares of the bank’s stock valued at $34,000 after buying an additional 498 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in HDFC Bank during the third quarter worth $43,000. Finally, BOCHK Asset Management Ltd grew its holdings in HDFC Bank by 125.0% during the fourth quarter. BOCHK Asset Management Ltd now owns 1,800 shares of the bank’s stock worth $66,000 after buying an additional 1,000 shares in the last quarter. 17.61% of the stock is owned by institutional investors.
HDFC Bank Stock Down 0.0% HDFC Bank stock opened at $23.88 on Thursday. The firm has a 50 day moving average price of $24.73 and a 200-day moving average price of $27.13. HDFC Bank Limited has a twelve month low of $22.66 and a twelve month high of $38.29. The company has a market capitalization of $121.82 billion, a P/E ratio of 14.05, a P/E/G ratio of 1.13 and a beta of 0.65.
HDFC Bank (NYSE:HDB – Get Free Report) last posted its quarterly earnings results on Saturday, July 18th. The bank reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.02. HDFC Bank had a net margin of 15.96% and a return on equity of 11.84%. The company had revenue of $9.01 billion for the quarter, compared to analysts’ expectations of $5 billion. Equities analysts expect that HDFC Bank Limited will post 1.67 EPS for the current fiscal year.
Wall Street Analysts Forecast Growth Several equities analysts have weighed in on HDB shares. Zacks Research upgraded HDFC Bank from a “strong sell” rating to a “hold” rating in a research note on Friday, July 17th. Wall Street Zen lowered shares of HDFC Bank from a “hold” rating to a “sell” rating in a research note on Saturday, July 18th. Finally, Weiss Ratings upgraded shares of HDFC Bank from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, July 20th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock has a consensus rating of “Hold”.
Get Our Latest Report on HDB
HDFC Bank Company Profile (Free Report)
HDFC Bank Limited is one of India’s leading private sector banks, headquartered in Mumbai. Incorporated in 1994 and promoted by Housing Development Finance Corporation (HDFC), the bank provides a full range of banking and financial services to retail, small and medium-sized enterprises, and corporate customers. It is publicly listed and also accessible to international investors through American Depositary Receipts (ADRs) trading on the New York Stock Exchange under the symbol HDB.
The bank’s core activities include retail banking (deposit accounts, personal loans, home loans, auto loans, and credit cards), commercial and corporate banking (working capital finance, term lending, trade finance and treasury services), and transaction banking (cash management and payment solutions).
Further Reading Five stocks we like better than HDFC Bank SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth
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ETF MSTU, zaměřený na 2× denní pohyb MSTR, za rok klesl z 74,90 USD na 1,91 USD. Za stejné období MSTR klesl o 74,91 %, zatímco MSTU o 97,45 % kvůli dennímu přepočtu a volatilitě.
A year ago, T-Rex 2x Long MSTR Daily Target ETF (CBOE:MSTU) traded at $74.90. On Tuesday it closed at $1.91. A $10,000 stake put in the 2x MicroStrategy ETF on August 4, 2025 is worth roughly $255 today, a 97.45% wipeout.
The stock it tracks, Strategy (NASDAQ:MSTR | MSTR Price Prediction), formerly MicroStrategy, fell 74.91% over the same stretch. That gap between the underlying and the fund is the whole story of leveraged ETFs, and MSTU is now a case study.
What MSTU Actually Is MSTU is a Tuttle Capital product designed to deliver two times the daily price move of Strategy (MSTR), the Bitcoin treasury company run by CEO Phong Le that owns 846,000 BTC as of the Q2 2026 report. The fund uses swaps rather than owning shares directly, which is why its holdings file shows a stack of long and short STRATEGY INC derivative positions rather than plain equity. Net assets sit at $525.4 million as of the May 31, 2026 NPORT filing, with total gross exposure of roughly $1.62 billion against $1.09 billion in liabilities, the fingerprint of a leveraged wrapper.
MSTR itself is a beast to model. Its beta is 3.555, its 52-week range runs from $81.81 to $414.36, and its TTM EPS is negative $102.07. Doubling that daily is not for the faint of heart.
The Decay Math, in Dollars A clean 2x fund, held for a year against a stock that fell 74.91%, would in theory be capped near a 100% loss. MSTU got most of the way there. But look at the year-to-date print: MSTR is down 35.74% in 2026, while MSTU is down 77.02%. That is meaningfully worse than a straight 2x, and the reason is volatility decay.
Because MSTU resets its exposure every single day, a down 5% day followed by an up 5% day leaves the underlying at 99.75, but leaves a 2x fund at roughly 99.00. Repeat that pattern through a stock with a 3.555 beta and a Bitcoin-driven price engine, and the drag compounds hard. Direxion’s own prospectus math on a comparable 2x product shows the effect concretely: at 40% annualized volatility, a 2x fund would be expected to lose approximately 15% over a year even if the underlying finished flat. MSTR’s realized volatility this year has run well above that.
The Bitcoin Wildcard Strategy’s Q2 2026 report, filed July 30, 2026, showed an $8.22 billion net loss driven almost entirely by an $8.32 billion unrealized loss on digital assets. Revenue was $122.37 million, up 6.9% year over year, but the software business is now a rounding error against a Bitcoin balance sheet with a cost basis of $63.9 billion. CEO Phong Le told investors, “In the second quarter of 2026, Strategy strengthened its balance sheet while navigating a meaningful bitcoin price decline.”
That is a polite description of what a MSTU holder just lived through. When Bitcoin moves, MSTR moves harder, and MSTU moves harder still. The March 2026 VIX spike to 31.05 maps cleanly to the ugliest stretch of MSTU’s chart.
Where MSTU Actually Fits MSTU is a specific tool built for a specific job. Leveraged ETFs are designed to reset daily and to be used as short-term trading vehicles; holding one for months, particularly through a choppy market, can produce returns far away from the headline 2x multiple. Traders use MSTU to press a directional MSTR view over a session or two without touching options, and on a good day the fund does exactly what it says: MSTU is up 1.60% this past week against MSTR’s 1.55%. Clean daily 2x.
The problem is the calendar. Stretch that same week into a year and the arithmetic of daily resets, combined with MSTR’s Bitcoin-linked whipsaws, quietly eats the position alive.
What to Watch Next Bitcoin sentiment is the whole ballgame. With MSTR at $97.38, well below its $156.81 200-day moving average, and analyst consensus still at a $257.50 target price, the setup is loaded in both directions. Watch the VIX (currently 16.50), Bitcoin’s next move, and whether MSTU’s board pursues a reverse split now that shares trade under $2. For a fund built for one day at a time, the next day is the only one that has ever mattered.
Contact [email protected] for any questions or corrections.
Xperi Inc. (XPER) Q2 2026 Earnings Call August 5, 2026 5:00 PM EDT
Company Participants
Jon Kirchner - President, CEO & Director
Robert Andersen - Chief Financial Officer
Conference Call Participants
Samuel Levenson - Arbor Advisory Group, LLC
Jason Kreyer - Craig-Hallum Capital Group LLC, Research Division
Matthew Galinko - Maxim Group LLC, Research Division
David Storms - Stonegate Capital Partners, Inc., Research Division
Hamed Khorsand - BWS Financial Inc.
Presentation
Operator
Good day, everyone, and thank you for standing by. Welcome to the Xperi Second Quarter 2026 Earnings Conference Call. [Operator Instructions]
I would now like to turn the call over to Sam Levenson from Arbor Advisory Group. Sam, please go ahead.
Samuel Levenson
Arbor Advisory Group, LLC
Good afternoon, and thank you for joining us as Xperi reports its second quarter 2026 financial results. With me on today's call are Jon Kirchner, Chief Executive Officer; and Robert Andersen, Chief Financial Officer. In addition to today's earnings release, there is an earnings presentation on our Investor Relations website at investor.xperi.com. We encourage you to download the presentation and follow along with today's commentary.
Before we begin, I would like to provide a few reminders. First, I would like to note that unless otherwise stated, all comparisons are to the same period in the prior year. Second, today's discussion contains forward-looking statements about our anticipated business and financial performance as well as market and industry dynamics that are predictions, projections or other statements about future events, which are based on management's current expectations and beliefs and therefore, subject to risks, uncertainties and changes in circumstances.
For more information on the risks and uncertainties that could cause our actual results to differ materially from what we discuss today, please refer to the Risk Factors and MD&A sections in our SEC filings, including our Form 10-K for
Odvětví těžby neželezných kovů zůstává pod tlakem vysokých nákladů, nedostatku pracovníků a problémů v dodavatelském řetězci. Poptávku ale dál podporuje energetická transformace.
The prospects of the Zacks Mining - Non Ferrous industry remain challenged amid inflated costs, labor shortages and supply-chain issues. However, the demand for non-ferrous metals is expected to be supported by the energy-transition trend, which should buoy the industry.
Against this backdrop, we suggest keeping an eye on companies like Southern Copper Corp., Freeport-McMoRan Inc., Lundin Mining Corp., Energy Fuels and Ero Copper. These companies are poised to gain from their endeavors to build reserves and control costs while investing in technology and improving production efficiency.
About the IndustryThe Zacks Mining - Non Ferrous industry comprises companies that produce non-ferrous metals, including copper, gold, silver, cobalt, molybdenum, zinc, aluminum and uranium. These metals are used by various industries, including aerospace, automotive, packaging, construction, machinery, electronics, transportation, jewelry, chemical and nuclear energy. Mining is a long, complex and capital-intensive process.
The actual mining operations are preceded by significant exploration and development to evaluate the size of the deposit. The process is followed by the assessment of ways to extract and process the ores efficiently, safely and responsibly. Miners seek opportunities to grow their reserves and resources through targeted near-mine exploration and business development. They strive to upgrade and improve the quality of their existing assets internally and through acquisitions.
What's Shaping the Future of the Mining - Non Ferrous Industry?Favorable Metal Price Trends Drive Growth: Copper futures are currently above $6.60 per pound, near record highs and up 50.7% in a year, supported by tight global supply and strong demand. Imports to the United States have surged, ahead of an expected decision by the Trump administration on copper import tariffs. Global copper inventories have declined as shipments to China have risen to ease a domestic supply shortage.
Copper also remained supported by its strong long-term demand outlook, driven by the global transition to clean energy and the rapid expansion of Artificial Intelligence data centers. Gold prices are gaining and approaching $4,200 per ounce as prospects of cooling U.S-Iran tensions have eased inflation concerns and lowered expectations of interest rate hikes. Gold prices are up 23.4% in a year. This has also led to recent gains in silver, with prices at around $61 an ounce, up 61.7% in a year. Uranium futures are around $85 per pound, up 20.8% in a year, backed by long-term nuclear power demand.
Labor Shortage, High Costs Remain Worrisome: The industry has been facing a shortage of skilled workforce lately, which has hiked wages. Labor-related disputes can be damaging to production and revenues. Industry players are grappling with escalating production costs, including electricity, water and materials, as well as higher freight expenses and supply-chain issues.
Since the industry cannot control the prices of its products, it focuses on improving the sales volume, increasing the operating cash flow and lowering unit net cash costs. Industry participants are opting for alternate energy sources to minimize fuel-price volatility and secure supply. Miners are now committed to cost-reduction strategies and digital innovation to drive operating efficiencies.
Long-Term Demand Trends Support Growth: Demand for non-ferrous metals is expected to remain robust, driven by their critical role in transportation, infrastructure, renewable energy, telecommunications and technology. Growth in electric vehicles, clean energy projects and infrastructure upgrades is expected to support demand for metals such as copper and nickel. Uranium demand is gaining momentum as countries prioritize carbon reduction, electrification and rising power needs from AI and data centers.
Rare earth elements are becoming increasingly important due to their use in EVs, wind turbines, robotics, electronics and defense applications. Silver demand is also benefiting from industrial uses, particularly solar energy, while digitalization and AI are creating additional growth opportunities. Gold continues to benefit from its safe-haven appeal, rising central bank purchases and increasing demand from technology, healthcare and energy applications.
Zacks Industry Rank Indicates Bleak ProspectsThe group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull prospects for the near term. The Zacks Mining - Non Ferrous industry, a nine-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #185, which places it in the bottom 24% of 245 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock-market performance and its valuation picture.
Industry Versus S&P 500 & SectorThe Zacks Mining- Non Ferrous Industry has outperformed its sector and the Zacks S&P 500 composite over the past 12 months. The stocks in this industry have collectively gained 63.4% in the past year compared with the Zacks Basic Materials sector’s growth of 23.2%. The S&P 500 has risen 23.8% in the said time frame.
Industry's Current ValuationBased on the trailing 12-month EV/EBITDA ratio, a commonly used multiple for valuing Mining- Non Ferrous stocks, we see that the industry is currently trading at 13.73X compared with the S&P 500’s 17.59X. The Basic Materials sector’s trailing 12-month EV/EBITDA is 12.91X.
Over the past three years, the industry has traded as high as 17.84X and as low as 3.95X, the median being 9.34X.
5 Mining - Non Ferrous Stocks to Keep an Eye OnEnergy Fuels: The company is expanding its uranium operations while building a presence in the rare earth element (REE) market, backed by its solid balance sheet. The company is pursuing strategic acquisitions to broaden its resource base, strengthen its position across the rare earth value chain and diversify revenue streams.
The planned acquisition of Australian Strategic Materials is expected to enhance its capabilities in REE metals and alloys, while that of Germany-based VAC Group will make it a fully integrated rare earths and magnetics company. Its uranium growth strategy is supported by projects such as Nichols Ranch ISR and Whirlwind, which could collectively add up to 500,000 pounds of annual uranium production. Additionally, the Roca Honda, Bullfrog and Sheep Mountain projects hold nearly 70 million pounds of uranium resources, providing long-term growth potential.
Construction is underway on an expansion of its White Mesa Mill in Utah, which currently has the capacity to produce up to 1,000 tonnes per annum (tpa) of separated NdPr oxide. The expansion will enable production of key heavy rare earth oxides, including terbium, dysprosium, samarium, europium and gadolinium, catering to demand from the automotive, robotics, data center, energy and defense sectors. By 2029, the company plans to further expand capacity to 6,294 tpa of NdPr oxide, 80 tpa of terbium oxide and 288 tpa of dysprosium oxide.
The Zacks Consensus Estimate for UUUU’s earnings for fiscal 2026 has remained unchanged over the past 60 days and is currently pegged at a loss of 14 cents per share. It suggests an improvement from the loss of 38 cents reported a year ago. The Lakewood, CO-based company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lundin Mining: The company’s strategic vision is to become a top-ten global copper producer. It has set a long-term target to reach annual production of more than 500,000 tonnes of copper and 550,000 ounces of gold. This will be aided by successful execution of expansion opportunities at Candelaria, Caserones and Chapada as well as development for the Vicuña district. Lundin Mining holds a 50% interest in the Vicuña Project, comprised of the Filo del Sol and Josemaria deposits.
The recently published integrated technical report outlines it as a Tier 1 asset that has the potential to rank among the top five copper, gold, and silver mines globally once in production. The company continues to advance the project in preparation for a sanctioning decision by the end of the year.
The Zacks Consensus Estimate for Vancouver, Canada-based LUNMF’s fiscal 2026 earnings indicates a year-over-year improvement of 67.5%. The estimate has moved up 13.6% over the past 60 days. It has a long-term estimated earnings growth rate of 18.4%. The company currently carries a Zacks Rank of 2.
Southern Copper: The company has the largest copper reserve in the industry and operates world-class assets in investment-grade countries, such as Mexico and Peru. SCCO expects to produce 917,000 tons of copper in 2026. Southern Copper expects to take this up to roughly 1.6 million tons by 2035, implying a compound annual growth rate (CAGR) of approximately 5.3% from 2025 levels.
To support this growth plan, the company intends to invest more than $20.5 billion over the next decade, with the bulk of the capital allocated to projects in Peru. Key growth catalysts include the Tía María, Los Chancas and Michiquillay projects in Peru, along with El Pilar and El Arco in Mexico, all of which underpin SCCO’s long-term expansion pipeline. Given its constant commitment to increasing low-cost production and growth investments, SCCO is well-poised to continue delivering an enhanced performance.
The Zacks Consensus Estimate for the Phoenix, AZ-based company’s fiscal 2026 earnings indicates year-over-year growth of 45.6%. The estimate has moved up 5.2% over the past 60 days. The company has a trailing four-quarter earnings surprise of 6.3%, on average. SCCO has a long-term estimated earnings growth rate of 15.2% and currently carries a Zacks Rank #3 (Hold).
Freeport-McMoRan: The company remains well-positioned for growth, supported by its high-quality copper assets, large reserve base and strong organic expansion opportunities in the United States. Its organic project pipeline contains the Bagdad expansion, Safford/Lone Star Expansions and the Kucing Liar project. FCX is also deploying the latest technologies and data analytics in its leaching processes across its North America and South America operations.
Incremental copper production from these initiatives totaled 214 million pounds in 2025. The company is targeting an annual run rate of 300 million pounds by this year-end and subsequently 800 million pounds annually by 2030. In addition, FCX is leveraging automation, new technologies and analytics to enhance operating efficiencies while lowering costs and capital intensity across existing operations and future projects.
The Zacks Consensus Estimate for FCX’s earnings for fiscal 2026 indicates year-over-year growth of 55.4%. The estimate has moved up 8% over the past 60 days. FCX has a trailing four-quarter earnings surprise of 32.6%, on average. It has a long-term estimated earnings growth rate of 36.2%. The Phoenix, AZ-based company currently carries a Zacks Rank of 3.
Ero Copper: The company is unlocking value through organic brownfield projects and optimizations across its operations. At Caraiba, the external shaft project expected in 2027 will provide access to the high-grade “Deep” zone at the Pilar mine, allowing for increased ore production, multiple working areas and reduced ore haulage requirements and costs. At Xavantina, the transition to fully mechanized mining allows for faster underground development rates, enabling increased operational flexibility and ore production while enhancing health and safety initiatives. At Tucumã, continued ramp-up is unlocking production growth.
The company is developing the Furnas Copper-Gold Project in the world-class Carajás mineral province of Pará State, Brazil. Under a five-year earn-in agreement, Ero Copper is responsible for drilling and delivering a scoping study, pre-feasibility study and feasibility study, leading to a potential investment decision. The project benefits from its location in an established mining area with access to paved roads, railways and existing power infrastructure.
The Zacks Consensus Estimate for the Vancouver, Canada-based company’s fiscal 2026 earnings indicates year-over-year growth of 90.6%. The estimate has moved up 2% in the past 60 days. The company has a trailing four-quarter earnings surprise of 8.9%, on average. ERO currently carries a Zacks Rank of 3.
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Second quarter revenues of $1.415 billion, up 4.5% year-over-year Second quarter GAAP income from operations increased to 10.8% of revenues from 9.3%, and non-GAAP income from operations increased to 16.4% of revenues from 15.0%, on a year-over-year basis Second quarter GAAP diluted EPS of $1.97, an increase of $0.41, or 26.3%, and non-GAAP diluted EPS of $3.38, an increase of $0.61, or 22.0%, on a year-over-year basis Continued to return capital to shareholders, spending $85 million in the second quarter on share repurchases and $409 million since the beginning of the year For the full year, EPAM now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0% For the full year, EPAM now expects its GAAP diluted EPS to be in the range of $8.22 to $8.38, and non-GAAP diluted EPS to be in the range of $13.08 to $13.24 , /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital and AI transformation company, today announced results for its second quarter ended June 30, 2026.
EPAM reports results for second quarter 2026 "Our second quarter results came in better than expected with continued AI-native momentum and ongoing profitability improvement, reflecting solid execution against our multi-year strategy," said Balazs Fejes, CEO & President, EPAM. "As we continue to expand our strategic partnerships and leverage our 30+ years of engineering DNA to build the next generation forward-deployed engineering organization, our conviction in the strategy, the team and our commercial transformation is high."
Second Quarter 2026 Highlights
Revenues increased to $1.415 billion, a year-over-year increase of $61.3 million, or 4.5%. On an organic constant currency basis, revenues were up 3.4% compared to the second quarter of 2025; GAAP income from operations was $152.2 million, an increase of $25.7 million, or 20.4%, compared to $126.5 million in the second quarter of 2025; Non-GAAP income from operations was $232.7 million, an increase of $29.8 million, or 14.7%, compared to $202.9 million in the second quarter of 2025; Diluted earnings per share ("EPS") on a GAAP basis was $1.97, an increase of $0.41, or 26.3%, compared to $1.56 in the second quarter of 2025; and Non-GAAP diluted EPS was $3.38, an increase of $0.61, or 22.0%, compared to $2.77 in the second quarter of 2025. Cash Flow and Other Metrics
Cash used in operating activities was $38.8 million for the first six months of 2026, compared to cash provided by operating activities of $77.4 million for the first six months of 2025; Cash, cash equivalents and restricted cash totaled $794.3 million as of June 30, 2026, a decrease of $507.1 million, or 39.0%, from $1.301 billion as of December 31, 2025; The Company spent $409.0 million on share repurchases during the first six months of 2026 under its share repurchase program, which included $85.0 million during the second quarter; and Total headcount was approximately 62,850 as of June 30, 2026. Included in this number were approximately 56,650 delivery professionals, an increase of 0.3% from March 31, 2026. 2026 Outlook - Full Year and Third Quarter
Full Year
EPAM expects the following for the full year:
The Company now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% for 2026 and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0%; For the full year, EPAM now expects GAAP income from operations to be in the range of 10.5% to 11.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.0% of revenues; The Company continues to expect its GAAP effective tax rate to be approximately 27% and its non-GAAP effective tax rate to be approximately 24%; and EPAM now expects GAAP diluted EPS to be in the range of $8.22 to $8.38 and non-GAAP diluted EPS to be in the range of $13.08 to $13.24. The Company now expects weighted average diluted shares outstanding for the year to be 52.2 million. Third Quarter
EPAM expects the following for the third quarter:
The Company expects revenues will be in the range of $1.410 billion to $1.425 billion for the third quarter, reflecting year-over-year growth of 1.7% at the midpoint of the range. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be 1.8% at the midpoint of the range; For the third quarter, EPAM expects GAAP income from operations to be in the range of 11.0% to 12.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues; The Company expects its GAAP effective tax rate to be approximately 25% and its non-GAAP effective tax rate to be approximately 24%; and EPAM expects GAAP diluted EPS will be in the range of $2.33 to $2.41 for the quarter, and non-GAAP diluted EPS will be in the range of $3.38 to $3.46 for the quarter. The Company expects weighted average diluted shares outstanding for the quarter to be 51.4 million. Conference Call Information
EPAM will host a conference call to discuss the results on Thursday, August 6, 2026, at 8:00 a.m. ET. The conference call will be available live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes prior to the call to register for the event. For those who cannot access the live webcast, a replay will be available in the Investor Relations section of the website.
About EPAM Systems
EPAM (NYSE:EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-Native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners, and employees.
We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world.
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Non-GAAP Financial Measures
EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM's business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM's business and evaluating its performance. Management also believes these measures help investors compare EPAM's operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of acquired intangible assets, impairment of assets, expenses associated with EPAM's humanitarian commitment to its professionals in Ukraine, employee separation costs incurred in connection with restructuring programs, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits and tax shortfalls related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares revenues on an "organic constant currency basis," which is a non-GAAP financial measure. This measure excludes the effect of acquisitions by removing revenues from an acquired company in the twelve months after completing an acquisition and foreign currency exchange rate fluctuations by translating current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison. Because EPAM's reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM's industry. Consequently, EPAM's non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM's consolidated financial statements, which are prepared in accordance with GAAP.
Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate"or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors"and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
$ 1,414,767
$ 1,353,443
$ 2,814,828
$ 2,655,135
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization)
985,199
964,012
1,997,251
1,916,020
Selling, general and administrative expenses
245,245
231,681
484,947
450,598
Depreciation and amortization expense
32,101
31,274
63,640
62,711
Income from operations
152,222
126,476
268,990
225,806
Interest and other income (loss), net
(1,821)
3,519
(239)
9,333
Foreign exchange loss
(9,850)
(6,227)
(7,552)
(16,954)
Income before provision for income taxes
140,551
123,768
261,199
218,185
Provision for income taxes
37,572
35,742
75,699
56,677
Net income
$ 102,979
$ 88,026
$ 185,500
$ 161,508
Net income per share:
Basic
$ 1.97
$ 1.56
$ 3.50
$ 2.86
Diluted
$ 1.97
$ 1.56
$ 3.49
$ 2.84
Shares used in calculation of net income per share:
Basic
52,197
56,319
52,991
56,548
Diluted
52,267
56,536
53,220
56,898
EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except par value)
As of
June 30,
2026
As of
December 31,
2025
Assets
Current assets
Cash and cash equivalents
$ 789,397
$ 1,296,077
Trade receivables and contract assets, net of allowance of $3,939 and $6,350, respectively
1,268,036
1,108,201
Prepaid and other current assets
158,556
129,610
Total current assets
2,215,989
2,533,888
Property and equipment, net
204,967
202,387
Operating lease right-of-use assets, net
124,999
114,875
Intangible assets, net
372,969
406,586
Goodwill
1,203,048
1,210,564
Deferred tax assets
295,947
295,115
Other noncurrent assets
156,167
138,721
Total assets
$ 4,574,086
$ 4,902,136
Liabilities
Current liabilities
Accounts payable
$ 41,551
$ 55,329
Accrued compensation and benefits expenses
495,961
608,232
Accrued expenses and other current liabilities
208,531
250,688
Income taxes payable, current
19,093
25,520
Operating lease liabilities, current
39,301
37,173
Total current liabilities
804,437
976,942
Long-term debt
25,000
25,034
Operating lease liabilities, noncurrent
87,942
81,497
Deferred tax liabilities, noncurrent
74,505
76,969
Other noncurrent liabilities
62,901
63,886
Total liabilities
1,054,785
1,224,328
Commitments and contingencies
Equity
Stockholders' equity
Common stock, $0.001 par value; 160,000 shares authorized; 51,585 shares issued
and outstanding at June 30, 2026, and 54,274 shares issued and outstanding at
December 31, 2025
52
54
Additional paid-in capital
1,487,973
1,390,423
Retained earnings
2,035,664
2,268,204
Accumulated other comprehensive income (loss)
(4,970)
18,545
Total EPAM Systems, Inc. stockholders' equity
3,518,719
3,677,226
Noncontrolling interest in consolidated subsidiaries
582
582
Total equity
3,519,301
3,677,808
Total liabilities and equity
$ 4,574,086
$ 4,902,136
EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
(In thousands, except percentages and per share amounts)
Reconciliation of year-over-year revenue growth as reported on a GAAP basis to revenue growth on an organic constant currency
basis is presented in the table below:
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
Revenue growth as reported
4.5 %
6.0 %
Inorganic revenue
— %
— %
Foreign exchange rates
(1.1) %
(2.5) %
Revenue growth on an organic constant currency basis
3.4 %
3.5 %
Reconciliation of various income statement amounts from GAAP to non-GAAP for the three and six months ended June 30, 2026 and 2025:
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Cost of revenues (exclusive of depreciation and amortization)(1)
$ 985,199
$ (23,361)
$ 961,838
$ 1,997,251
$ (46,771)
$ 1,950,480
Selling, general and administrative expenses(2)
$ 245,245
$ (39,474)
$ 205,771
$ 484,947
$ (82,314)
$ 402,633
Income from operations(3)
$ 152,222
$ 80,444
$ 232,666
$ 268,990
$ 164,412
$ 433,402
Operating margin
10.8 %
5.6 %
16.4 %
9.6 %
5.8 %
15.4 %
Net income(4)
$ 102,979
$ 73,831
$ 176,810
$ 185,500
$ 146,535
$ 332,035
Diluted earnings per share
$ 1.97
$ 3.38
$ 3.49
$ 6.24
Three Months Ended
June 30, 2025
Six Months Ended
June 30, 2025
GAAP
Adjustments
Non-GAAP
GAAP
Adjustments
Non-GAAP
Cost of revenues (exclusive of depreciation and amortization)(1)
$ 964,012
$ (18,232)
$ 945,780
$ 1,916,020
$ (42,773)
$ 1,873,247
Selling, general and administrative expenses(2)
$ 231,681
$ (40,349)
$ 191,332
$ 450,598
$ (74,572)
$ 376,026
Income from operations(3)
$ 126,476
$ 76,417
$ 202,893
$ 225,806
$ 152,837
$ 378,643
Operating margin
9.3 %
5.7 %
15.0 %
8.5 %
5.8 %
14.3 %
Net income(4)
$ 88,026
$ 68,765
$ 156,791
$ 161,508
$ 133,298
$ 294,806
Diluted earnings per share
$ 1.56
$ 2.77
$ 2.84
$ 5.18
Items (1) through (4) above are detailed in the table below with the specific cross-reference noted in the appropriate item.
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Stock-based compensation expenses
$ 22,833
$ 18,161
$ 45,686
$ 42,084
Humanitarian support in Ukraine(a)
528
576
1,085
1,194
Poland R&D incentives (b)
—
(505)
—
(505)
Total adjustments to GAAP cost of revenues(1)
23,361
18,232
46,771
42,773
Stock-based compensation expenses
23,568
20,397
50,634
44,930
Cost Optimization charges(c)
13,940
16,275
27,336
21,586
Humanitarian support in Ukraine(a)
1,961
3,282
4,370
7,014
Other acquisition-related expenses
1
292
7
862
One-time charges (benefits)
4
103
(33)
180
Total adjustments to GAAP selling, general and administrative expenses(2)
39,474
40,349
82,314
74,572
Amortization of acquired intangible assets
17,609
17,836
35,327
35,492
Total adjustments to GAAP income from operations(3)
80,444
76,417
164,412
152,837
Foreign exchange loss
9,850
6,227
7,552
16,954
Change in fair value of contingent consideration included in Interest and other income, net
1,435
(232)
2,420
(1,969)
Impairment of financial assets
356
—
356
—
Gain on financial instrument
—
—
—
(350)
Provision for income taxes:
Tax effect on non-GAAP adjustments
(19,997)
(18,291)
(39,128)
(38,201)
Tax shortfall related to stock-based compensation
1,743
1,106
11,592
563
Net discrete charge (benefit) from tax planning(d)
—
3,538
(669)
3,464
Total adjustments to GAAP net income(4)
$ 73,831
$ 68,765
$ 146,535
$ 133,298
(a)
Humanitarian support in Ukraine includes expenses related to EPAM's $100 million humanitarian commitment in response to Russia's invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.
(b)
We have excluded from non-GAAP results the portion of the benefit from Poland R&D incentives related to qualifying activities performed in 2023 as it represents a nonrecurring one-time benefit.
(c)
Cost Optimization charges include employee separation costs incurred in connection with the programs initiated in the second quarter of 2024 and second quarter of 2025. Consistent with the Company's historical non-GAAP policy, costs incurred in connection with formal restructuring initiatives have been excluded from non-GAAP results as these are attributable to targeted restructuring efforts and not expected to recur once the respective Cost Optimization program is completed.
(d)
Net discrete charge (benefit) related to the implementation of tax planning to disregard certain foreign subsidiaries as separate entities for U.S. income tax purposes. Consistent with the Company's historical non-GAAP policy, the charge (benefit) related to the implementation of tax planning has been excluded from non-GAAP results as it is one-time and unusual in nature.
EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is
based on a number of assumptions that are subject to change and many of which are outside the control of the
Company. Actual results may differ materially from the Company's expectations depending on factors discussed in
the Company's filings with the Securities and Exchange Commission.
Reconciliation of expected year-over-year revenue growth on a GAAP basis to expected revenue growth on an organic
constant currency basis is presented in the table below:
Third Quarter 2026
Full Year 2026
(at midpoint of range)
Revenue growth
1.7 %
3.2% to 4.2%
Foreign exchange rates impact
0.1 %
(1.2) %
Inorganic revenue growth
— %
— %
Revenue growth on an organic constant currency basis
1.8 %
2.0% to 3.0%
Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below:
Third Quarter 2026
Full Year 2026
GAAP income from operations as a percentage of revenues
11.0% to 12.0%
10.5% to 11.0%
Stock-based compensation expenses
3.1 %
3.2 %
Included in cost of revenues (exclusive of depreciation and amortization)
1.5 %
1.5 %
Included in selling, general and administrative expenses
1.6 %
1.7 %
Humanitarian support in Ukraine(a)
0.2 %
0.2 %
Cost Optimization charges(c)
— %
0.4 %
Amortization of acquired intangible assets
1.2 %
1.2 %
Non-GAAP income from operations as a percentage of revenues(e)
15.5% to 16.5%
15.5% to 16.0%
(e)
EPAM has not included the impact of potential future one-time charges including asset impairments, unusual gains and losses, expenses incurred in connection with future cost optimization actions, and other acquisition-related expenses because the Company is unable to predict these amounts with reasonable certainty.
Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below:
Third Quarter 2026
Full Year 2026
GAAP effective tax rate (approximately)
25.0 %
27.0 %
Tax effect on non-GAAP adjustments
(0.8) %
(0.8) %
Tax shortfall related to stock-based compensation
(0.2) %
(2.3) %
Net discrete benefit from tax planning(d)
— %
0.1 %
Non-GAAP effective tax rate (approximately)
24.0 %
24.0 %
Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below:
Third Quarter 2026
Full Year 2026
GAAP diluted earnings per share
$2.33 to $2.41
$8.22 to $8.38
Stock-based compensation expenses
0.85
3.55
Included in cost of revenues (exclusive of depreciation and amortization)
0.39
1.66
Included in selling, general and administrative expenses
