Track market-moving stories before they get noisy

On June 02, 2026, AAON Inc (AAON) shares rose 3.4% to $143.50. The stock has experienced significant price fluctuations over the past year, with a 52-week range

Key Takeaways APPS is one of five stocks highlighted for recent price strength after a 117.8% four-week surge.VPG shares jumped 104.4% in four weeks, backed by a 100% expected earnings growth rate. AAON climbed 50.8% in four weeks. It has an expected earnings growth rate of 65.2% for the current year. Last month, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 3%, 5% and 8%, respectively. Currently, all three major stock indexes are trading at their all-time intraday and closing highs.

This rally was primarily driven by a solid first-quarter 2026 earnings season, continuation of artificial intelligence (AI) trade and expectations of a near-term solution to the Middle East geopolitical conflicts. 

As a result, several stocks have shown price strength. We have primarily targeted stocks that have recently been on a bull run. These stocks have a high chance of carrying the momentum forward.

Five such stocks are — Digital Turbine Inc. (APPS - Free Report) , Vishay Precision Group Inc. (VPG - Free Report) , AAON Inc. (AAON - Free Report) , Helios Technologies Inc. (HLIO - Free Report) and ASE Technology Holding Co. Ltd. (ASX - Free Report) .

If a stock is continuously witnessing an uptrend, there must be a solid reason or it would have probably crashed. So, looking at stocks capable of beating the benchmark that they have set for themselves seems rational.

However, recent price strength alone cannot create magic. Therefore, other relevant parameters are needed to create a successful investment strategy.

Here’s how you should create the screen to shortlist the current as well as the potential winners.

Screening Parameters:Percentage Change in Price (4 Weeks) greater than zero: This criterion shows that the stock has moved higher in the last four weeks.

Percentage Change Price (12 Weeks) greater than 10: This indicates that the stock has seen momentum over the last three months. This lowers the risk of choosing stocks that may have drawn attention due to the overwhelming performance of the overall market in a very short period.

Zacks Rank 1: No matter whether market conditions are good or bad, stocks with a Zacks Rank #1 (Strong Buy) have a proven history of outperformance. You can see the complete list of today’s Zacks #1 Rank stocks here.

Average Broker Rating 1: This indicates that brokers are also highly hopeful about the stock’s future performance.

Current Price greater than 5: The stocks must all be trading at a minimum of $5.

Current Price/ 52-Week High-Low Range more than 85%: This criterion filters stocks that are trading near their respective 52-week highs. It indicates that these are strong enough in terms of price.

Just these few criteria narrowed down the search from over 7,700 stocks to 15.

Let’s discuss five out of those 15 stocks here:

Digital Turbine offers products and solutions for mobile operators, device OEMs and third parties. APPS operates primarily in Berlin, Singapore and Sydney. APPS operates through two segments, On Device Solutions and App Growth Platform.

APPS’ products include DT Ignite, a mobile device management solution with targeted app distribution capabilities, DT IQ, a customized user experience and app discovery tool, DT Marketplace, an application and content store and DT Pay, a content management and mobile payment solution. 

The stock price of Digital Turbine has soared 117.8% over the past four weeks. The company has expected earnings growth of 50% for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 9.1% over the last seven days.

Vishay Precision Group is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications. VPG provides vertically integrated products and solutions for multiple growing markets in the areas of stress measurement, industrial weighing, and manufacturing process control. 

VPG’s product portfolio includes: Bulk Metal foil resistors and sensors, strain gages and instruments, load cells, modules and PhotoStress products. VPG also provides systems to control process weighing in food, chemical, and pharmaceutical plants, force measurement systems used to control web tension in paper mills, roller force in steel mills, and cable tension in winch controls, on-board weighing systems installed in logging and waste-handling trucks, and special scale systems used for aircraft weighing and portable truck weighing.

The stock price of Vishay Precision Group has jumped 104.4% over the past four weeks. The company has an expected earnings growth rate of 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 28.9% over the last 30 days.

AAON is a manufacturer of air-conditioning and heating equipment consisting of rooftop units, chillers, air-handling units, condensing units and coils. AAON’s products serve the new construction and replacement markets. 

AAON has successfully gained market share through its semi-custom product lines, which offer the customer value, quality, function, serviceability and efficiency. AAON operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX.

The stock price of AAON has climbed 50.8% over the past four weeks. The company has an expected earnings growth rate of 65.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.5% over the last 30 days.

Helios Technologies is benefiting from sustained order momentum, expanding market reach and improving profitability. HLIO has delivered double-digit order growth for more than a year, with backlog also rising. Growth across both Hydraulics and Electronics segments is driven by infrastructure-related demand, OEM strength and recovery in select end markets. 

New product launches are broadening HLIO’s addressable markets, including newer applications such as data center thermal management. At the same time, margin recovery is gaining traction through volume leverage and operational efficiencies. HLIO’s solid cash generation and lower leverage provide flexibility to invest, pursue selective acquisitions and enhance shareholder returns.

The stock price of Helios Technologies has surged 21.9% over the past four weeks. The company has an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.5% over the last 30 days.

ASE Technology is a provider of semiconductor manufacturing services in assembly and testing. ASX operates through Packaging, Testing, and EMS. ASX operates primarily in Taiwan, China, South Korea, Japan, Singapore, Malaysia, Mexico, the United States and Europe. 

ASX develops and offers complete turnkey solutions covering front-end engineering testing, wafer probing and final testing as well as IC packaging, materials and electronic manufacturing services. 

The stock price of ASE Technology has rallied 16.8% over the past four weeks. It has an expected earnings growth rate of 84.2% for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 36.4% over the last 30 days.

Key Takeaways ACGL net premiums earned may rise 2.3% on rate increases, new business growth and stronger underwriting. Underwriting profitability may improve with better pricing, exposure growth & favorable catastrophe backdrop. Mortgage segment weakness and higher expenses may weigh, while share buybacks could support the bottom line. Arch Capital Group Ltd. (ACGL - Free Report) is expected to register an improvement in both top and bottom lines when it reports first-quarter 2026 results on April 28, after the closing bell.

The Zacks Consensus Estimate for ACGL’s first-quarter revenues is pegged at $4.67 billion, indicating 2.4% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.45 per share. The Zacks Consensus Estimate for ACGL’s first-quarter earnings has moved south 1.2% in the past 30 days. The estimate suggests a year-over-year rise of 59.1%.

What the Zacks Model Unveils for ACGLOur proven model predicts an earnings beat for Arch Capital this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which increases the chances of an earnings beat.

Earnings ESP: Arch Capital has an Earnings ESP of +0.63% at present. This is because the Most Accurate Estimate of $2.46 is pegged higher than the Zacks Consensus Estimate of $2.45. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Arch Capital currently carries a Zacks Rank #3.

Factors Likely to Shape Q1 Results of ACGLRate increases, new business opportunities and growth in existing accounts, product innovation, market expansion and strong underwriting performance, combined with strategic investments, are likely to have favored net premiums earned.

The Zacks Consensus Estimate for net premiums earned is pegged at $4.2 billion. We expect net premiums earned to increase 2.3% to $4.3 billion.

The Mortgage segment is likely to have declined due to the lower gross premiums written and expenses related to tender offers of certain Bellemeade Re mortgage insurance-linked notes.

Net investment income is likely to have benefited from solid net cash flow from operating activities, which is expected to have increased the invested asset base. We expect net investment income to be $378.2 million. The Zacks Consensus Estimate for investment income is pegged at $418 million.

The top line is likely to have gained from improved earned premiums and higher net investment income.

Expenses are expected to have increased in the to-be-reported quarter due to higher losses and loss adjustment expenses, acquisition costs, other operating expenses, amortization of intangible assets, corporate expenses and interest expenses. We expect total expenses to be $3.7 billion.

Prudent underwriting, combined with better pricing and increased exposure, is likely to have improved underwriting profitability. A not-so-active catastrophe environment is expected to have added to the upside, leading to an improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 83, and our estimate is pinned at 83.2.

Share buybacks are likely to have added upside to the bottom line.

Other Stocks to ConsiderHere are three other P&C insurance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Axis Capital Holdings Limited (AXS - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $3.23 per share, indicating a year-over-year increase of 1.8%.

AXS’ earnings beat estimates in each of the last four quarters.

RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +2.97% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $11.07, indicating a year-over-year increase of 842.95%.

RNR’s earnings beat estimates in three of the last four reported quarters and missed in one.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.04% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2026 earnings is pegged at $7.43, indicating a year-over-year increase of 110.4%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Several large-cap stocks across tech and financials recently announced massive buyback authorizations.

The world’s largest name in creative software has seen its stock price tank. Its new $25 billion buyback plan suggests it sees significant value in shares. Meanwhile, large but under-covered financial stocks are poised to continue reducing their share counts, providing a tailwind for per-share metrics.

Get Adobe alerts:

Adobe Buyback Capacity Soars to 24% of Its Market CapitalizationThe market has battered shares of software giant Adobe NASDAQ: ADBE over the past year. Overall, the stock is down more than 40% from its 52-week high and is down more than 30% in 2026. Artificial intelligence (AI) disruption fears have been the primary driver of the stock’s decline, with the market questioning the company’s future growth. Specifically, investors see tools like “Claude Design” as competitive threats to Adobe.

Adobe Today

$218.24 -15.14 (-6.49%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$218.09▼

$416.39P/E Ratio12.71

Price Target$297.69

Still, Adobe’s growth is holding up right now, with the company posting revenue increases of between 10% and 12% over the past several quarters. This is generally in line with growth seen in 2023 and 2024.

With shares down significantly, Adobe just announced a massive $25 billion share buyback program. The company notes this program is a “direct expression of confidence” in its cash flow generation and underscores its long-term optimism ahead. This program is equal to a whopping 24% of Adobe’s market capitalization, which has now fallen to around $103 billion.

In relation to company value, buyback programs of this size are rare, especially for huge names like Adobe.

With this, the company is making a statement, likely seeing the drawdown in its share price as overdone. Still, it's unlikely the market will move to reflect Adobe’s view quickly. The firm will need to prove the resilience of its business over time to change this.

Synchrony’s Huge Buyback Authorization Can Lower Share Count Even FurtherOn the other hand, Synchrony Financial NYSE: SYF has performed admirably. The stock has delivered a total return of about 20% since the start of 2025, essentially in line with the S&P 500 Index. The company has become a significant player in the branded credit card space. This involves working with brands to develop their own credit cards, which provide rewards to consumers.

Synchrony Financial Today

SYF

Synchrony Financial

$72.46 +2.90 (+4.16%)

As of 06/11/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$59.46▼

$88.77Dividend Yield1.66%

P/E Ratio7.49

Price Target$86.05

Notably, Synchrony’s purchase volume hit $43 billion in Q1 2026, a first-quarter record for the company. The credit quality of consumers who use Synchrony’s cards is also improving. Net charge-offs, or the percentage of the company’s loans that it will not recover, fell by nearly 100 basis points to 5.42%. This is the fourth quarter in a row of net charge-off improvement, showing that consumers continue to pay off a greater percentage of their loans.

Synchrony has also returned capital to shareholders at a prolific pace. Overall, the firm has spent $25.2 billion on buybacks and dividends since 2016. This has allowed the firm to lower its outstanding share count by nearly 60%. The company is strongly indicating that this trend will continue, recently announcing a $6.5 billion buyback program. This is equal to just under 25% of its approximately $26 billion market capitalization.

Arch Capital: Unique Insurance Provider Boosts Authorization to $3.1 BillionLast up is Arch Capital NASDAQ: ACGL. Shares have delivered a modest return near 5% since the start of 2025 and are essentially flat in 2026. The firm provides specialty insurance, reinsurance, and mortgage insurance. Specialty insurance focuses on providing coverage outside of common areas, such as life, home, or cars. Examples may include medical malpractice insurance or customized insurance for unique situations.

Arch Capital Group Today

ACGL

Arch Capital Group

$91.13 -0.18 (-0.20%)

As of 06/11/2026 04:00 PM Eastern

52-Week Range$82.44▼

$103.39P/E Ratio7.00

Price Target$106.81

Because fewer insurance companies compete in these markets, Arch can potentially generate higher margins by offering coverage. Their value proposition rests on being able to underwrite these unique risks well, capturing demand in less-competitive areas of the market.

The firm put up some impressive metrics in its latest quarter, with after-tax operating income rising by 26% to $1.1 billion. Its full-year 2025 after-tax operating income of $3.7 billion was a record high.

The company also spent $1.9 billion on buybacks in 2025, a significant figure compared to its market capitalization near $34 billion. Now, the company has added more firepower to its buyback chest, increasing its authorization to $3.1 billion. This is equal to around 9% of the company’s market capitalization. Although not as massive as that of Adobe and Synchrony, this program is still very large compared to most authorizations. It gives the firm substantial ability to continue lowering its outstanding share count, which has fallen approximately 5% over the past year.

Adobe: Analysts Remain Optimistic, But Targets Are Moving in the Wrong DirectionAmong this group, Adobe is the most interesting name going forward and may be one of the more intriguing stocks in the market. The company has long been a dominant force in creative design software. If the firm can prove that AI disruption fears are overblown, there could be significant value in Adobe stock.

Wall Street analysts have a generally positive outlook. The MarketBeat consensus price target near $340 implies more than 40% upside in shares. However, targets fell meaningfully after the company’s last earnings report. Updated targets average approximately $322.

Should You Invest $1,000 in Adobe Right Now?Before you consider Adobe, you'll want to hear this.

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PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL; “Arch,” “our” or “the Company”) announces its 2026 first quarter results. The results included:

Net income available to Arch common shareholders of $1.0 billion, or $2.88 per share, representing a 17.8% annualized net income return on average common equity, compared to net income available to Arch common shareholders of $564 million, or $1.48 per share, for the 2025 first quarter. After-tax operating income available to Arch common shareholders(1) of $901 million, or $2.50 per share, representing a 15.4% annualized operating return on average common equity(1), compared to $587 million, or $1.54 per share, for the 2025 first quarter. Pre-tax current accident year catastrophic losses for the Company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, of $174 million. Favorable development in prior year loss reserves, net of related adjustments, of $200 million. Combined ratio excluding catastrophic activity and prior year development(1) of 82.3%, compared to 81.0% for the 2025 first quarter. Share repurchases of $783 million. Book value per common share of $66.19 at March 31, 2026, a 1.7% increase from December 31, 2025. “We started the year on an excellent note, delivering an annualized operating return on average common equity of 15.4%, which reflects our disciplined approach to underwriting and capital allocation,” said Arch CEO Nicolas Papadopoulo. “Our underwriting and cycle management expertise, supported by a strong balance sheet, continue to differentiate Arch and position us to generate best-in-class returns through the cycle.”

All earnings per share amounts discussed in this release are on a diluted basis. The following table summarizes the Company’s underwriting results:

(U.S. Dollars in millions)

Three Months Ended March 31,

2026

2025

% Change

Gross premiums written

$

6,425

$

6,463

(0.6)

Net premiums written

4,348

4,515

(3.7)

Net premiums earned

3,986

4,188

(4.8)

Underwriting income (1)

728

417

74.6

Underwriting Ratios

% Point Change

Loss ratio

52.4%

61.8%

(9.4)

Underwriting expense ratio (2)

29.3%

28.3%

1.0

Combined ratio

81.7%

90.1%

(8.4)

Combined ratio excluding catastrophic activity and prior year development (1)

82.3%

81.0%

1.3

The following table summarizes the Company’s consolidated financial data, including a reconciliation of net income or loss available to Arch common shareholders to after-tax operating income or loss available to Arch common shareholders and related diluted per share results (see ‘Comments on Non-GAAP Financial Measures’ for further details):

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

2026

2025

Net income available to Arch common shareholders

$

1,037

$

564

Net realized (gains) losses (1)

87

(3)

Equity in net (income) of investments accounted for using the equity method

(160)

(53)

Net foreign exchange (gains) losses

(21)

27

Transaction costs and other

18

10

Income tax expense (benefit) (2)

(60)

42

After-tax operating income available to Arch common shareholders

$

901

$

587

Diluted per common share results:

Net income available to Arch common shareholders

$

2.88

$

1.48

Net realized (gains) losses (1)

0.24

(0.01)

Equity in net (income) of investments accounted for using the equity method

(0.44)

(0.14)

Net foreign exchange (gains) losses

(0.06)

0.07

Transaction costs and other

0.05

0.03

Income tax expense (benefit) (2)

(0.17)

0.11

After-tax operating income available to Arch common shareholders

$

2.50

$

1.54

Weighted average common shares and common share equivalents outstanding — diluted

359.7

381.9

Beginning common shareholders’ equity

$

23,376

$

19,990

Ending common shareholders’ equity

23,358

20,715

Average common shareholders’ equity

$

23,367

$

20,353

Annualized net income return on average common equity

17.8%

11.1%

Annualized operating return on average common equity

15.4%

11.5%

Segment Information

The following section provides analysis on the Company’s 2026 first quarter performance by reportable segments. For additional details regarding the Company’s reportable segments, please refer to the Company’s Financial Supplement dated March 31, 2026. On August 1, 2024, the insurance segment completed the acquisition of the U.S. MidCorp and Entertainment insurance businesses from Allianz (MCE Acquisition). The Company’s segment information includes the use of underwriting income (loss) and a combined ratio excluding catastrophic activity and prior year development (see ‘Comments on Non-GAAP Financial Measures’ for further details).

Insurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

2,697

$

2,645

2.0

Net premiums written

1,906

1,933

(1.4)

Net premiums earned

1,871

1,860

0.6

Other underwriting income

11

3

266.7

Underwriting income

$

66

$

(2)

3,400.0

Underwriting Ratios

% Point Change

Loss ratio

60.2%

66.0%

(5.8)

Underwriting expense ratio

36.3%

34.1%

2.2

Combined ratio

96.5%

100.1%

(3.6)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

4.2%

9.5%

(5.3)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(0.7)%

(0.9)%

0.2

Underwriting expense ratio impact

0.3%

0.4%

(0.1)

Total impact

(0.4)%

(0.5)%

0.1

Combined ratio excluding catastrophic activity and prior year development

92.7%

91.1%

1.6

Gross premiums written by the insurance segment in the 2026 first quarter were 2.0% higher than in the 2025 first quarter, while net premiums written were 1.4% lower than in the 2025 first quarter. Adjusting for the non-renewal of certain programs related to the MCE Acquisition, net premiums written would have increased by 1.1% compared to the same quarter one year ago. Net premiums earned in the 2026 first quarter were 0.6% higher than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 4.2 points of current year catastrophic activity, compared to 9.5 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 0.7 points in the 2026 first quarter, compared to 0.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 36.3% in the 2026 first quarter, compared to 34.1% in the 2025 first quarter. In the 2025 first quarter, the impact of the MCE Acquisition lowered the underwriting expense ratio by approximately 1.9 points, primarily due to the effects of the fair value estimation of the assets acquired at closing, including the non-recognition of deferred acquisition costs. The 2026 first quarter also included higher compensation costs compared to the 2025 first quarter and transitional expenses associated with the MCE Acquisition.

Reinsurance Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

3,414

$

3,494

(2.3)

Net premiums written

2,176

2,316

(6.0)

Net premiums earned

1,831

2,028

(9.7)

Other underwriting income

37

39

(5.1)

Underwriting income

$

441

$

167

164.1

Underwriting Ratios

% Point Change

Loss ratio

51.7%

66.9%

(15.2)

Underwriting expense ratio

24.2%

24.9%

(0.7)

Combined ratio

75.9%

91.8%

(15.9)

Catastrophic activity and prior year development:

Current accident year catastrophic events, net of reinsurance and reinstatement premiums

5.2%

18.3%

(13.1)

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(8.3)%

(5.9)%

(2.4)

Underwriting expense ratio impact

0.9%

1.4%

(0.5)

Total impact

(7.4)%

(4.5)%

(2.9)

Combined ratio excluding catastrophic activity and prior year development

78.1%

78.0%

0.1

Gross premiums written by the reinsurance segment in the 2026 first quarter were 2.3% lower than in the 2025 first quarter, while net premiums written were 6.0% lower than in the 2025 first quarter. The lower level of net premiums written this quarter was primarily due to a reduction in property catastrophe business written at January 1, amplified by a lower level of reinstatement premiums relative to the 2025 first quarter, which included reinstatement premiums related to the California wildfires. Net premiums earned in the 2026 first quarter were 9.7% lower than in the 2025 first quarter and reflect changes in net premiums written over the previous five quarters.

The 2026 first quarter loss ratio reflected 5.4 points of current year catastrophic activity, compared to 21.7 points in the 2025 first quarter, primarily related to California wildfires. Estimated net favorable development of prior year loss reserves, before related adjustments, reduced the loss ratio by 8.3 points in the 2026 first quarter, compared to 5.9 points in the 2025 first quarter. The balance of the change in the loss ratio resulted, in part, from changes in the mix of business.

The underwriting expense ratio was 24.2% in the 2026 first quarter, compared to 24.9% in the 2025 first quarter. The 2025 first quarter amount included a lower level of contingent commissions on ceded business, primarily due to the impact of the California wildfires.

Mortgage Segment

Three Months Ended March 31,

(U.S. Dollars in millions)

2026

2025

% Change

Gross premiums written

$

316

$

326

(3.1)

Net premiums written

266

266

—

Net premiums earned

284

300

(5.3)

Other underwriting income

11

11

—

Underwriting income

$

221

$

252

(12.3)

Underwriting Ratios

% Point Change

Loss ratio

5.3%

1.1%

4.2

Underwriting expense ratio

17.0%

15.0%

2.0

Combined ratio

22.3%

16.1%

6.2

Prior year development:

Net (favorable) adverse development in prior year loss reserves, net of related adjustments

Loss ratio impact

(19.2)%

(20.4)%

1.2

Underwriting expense ratio impact

(0.7)%

(1.4)%

0.7

Total impact

(19.9)%

(21.8)%

1.9

Combined ratio excluding prior year development

42.2%

37.9%

4.3

Gross premiums written by the mortgage segment in the 2026 first quarter were 3.1% lower than in the 2025 first quarter, driven by lower U.S. monthly premium business. Net premiums written were flat compared to the 2025 first quarter, reflecting lower cessions on U.S. primary business.

Estimated net favorable development of prior year loss reserves, before related adjustments, decreased the loss ratio by 19.2 points, compared to 20.4 points in the 2025 first quarter. Such amounts were primarily related to better than expected cure rates. The 2026 first quarter loss ratio reflected a modestly higher level of delinquencies than in the 2025 first quarter.

The underwriting expense ratio was 17.0% in the 2026 first quarter, compared to 15.0% in the 2025 first quarter. The increase was primarily due to higher gross acquisition expenses and lower ceding and profit commissions on U.S. primary business. The 2026 first quarter ratio also reflected the impact of a lower level of net premiums earned.

Corporate

The Company’s results include net investment income, net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, other income (loss), corporate benefit (expenses), transaction costs and other, amortization of intangible assets, interest expense, net foreign exchange gains or losses, income tax items, income or loss from operating affiliates and items related to the Company’s non-cumulative preferred shares.

Investment returns were as follows:

(U.S. Dollars in millions, except per share data)

Three Months Ended

March 31,

December 31,

March 31,

2026

2025

2025

Pre-tax net investment income

$

408

$

434

$

378

Per share

$

1.13

$

1.18

$

0.99

Equity in net income of investments accounted for using the equity method

$

160

$

155

$

53

Per share

$

0.44

$

0.42

$

0.14

Pre-tax investment income yield, at amortized cost (1)

3.99%

4.22%

4.16%

Total return on investments (2)

0.10%

1.36%

2.02%

Net investment income for the 2026 first quarter, compared to the 2025 first quarter, primarily reflected growth in average invested assets, due in part to strong operating cash flows. Net realized losses were $87 million for the 2026 first quarter, compared to net realized gains of $3 million in the 2025 first quarter, and were primarily the result of financial market movements on the Company’s derivatives, equity securities and investments accounted for under the fair value option method.

Corporate expenses for the 2026 first quarter were $31 million, compared to $50 million for the 2025 first quarter. Such expenses primarily represent certain holding company costs necessary to support our worldwide operations and costs associated with operating as a publicly traded company. The decline in the 2026 first quarter primarily reflected the benefit of Bermuda qualified refundable tax credits.

Amortization of intangible assets was $30 million for the 2026 first quarter, compared to $49 million for the 2025 first quarter. Both periods reflected the amortization of intangible assets related to the MCE Acquisition.

On a pre-tax basis, net foreign exchange gains were $21 million for the 2026 first quarter, compared to net foreign exchange losses of $27 million for the 2025 first quarter. For both periods, such amounts were primarily unrealized and resulted from the effects of revaluing the Company’s net insurance liabilities required to be settled in foreign currencies at each balance sheet date. Changes in the value of available-for-sale investments held in foreign currencies due to foreign currency rate movements are reflected as a direct increase or decrease to shareholders’ equity and are not included in the consolidated statements of income.

The Company’s effective tax rate on income before income taxes (based on the Company’s annual effective tax rate) was 8.6% for the 2026 first quarter, compared to 17.4% for the 2025 first quarter. The decrease in the effective tax rate was primarily driven by tax law changes in Bermuda and the United Kingdom. The Company’s effective tax rate on pre-tax operating income available to Arch common shareholders was 14.8% for the 2026 first quarter, compared to 11.7% for the 2025 first quarter. The effective tax rate may fluctuate from period to period based upon the relative mix of income or loss reported by jurisdiction, the level of catastrophic loss activity incurred, and the varying tax rates in each jurisdiction.

Income from operating affiliates for the 2026 first quarter was $36 million, or $0.10 per share, compared to $17 million, or $0.04 per share, for the 2025 first quarter, and primarily reflects amounts related to the Company’s investment in Somers Group Holdings Ltd. and Coface SA.

Conference Call

The Company will hold a conference call for investors and analysts at 10 a.m. Eastern Time on April 29, 2026. A live webcast of this call will be available via the Investors section of the Company’s website at http://www.archgroup.com/investors. A recording of the webcast will be available in the Investors section of the Company’s website approximately two hours after the event concludes. A transcript of the webcast will also be available in the Investors section of the Company’s website approximately 24 hours after the posting of the recording. Both the recording and the transcript will be archived on the site for one year.

Please refer to the Company’s Financial Supplement dated March 31, 2026, which is available via the Investors section of the Company’s website at http://www.archgroup.com/investors. The Financial Supplement provides additional detail regarding the financial performance of the Company. From time to time, the Company posts additional financial information and presentations to its website, including information with respect to its subsidiaries. Investors and other recipients of this information are encouraged to check the Company’s website regularly for additional information regarding the Company.

Arch Capital Group Ltd., is a publicly listed Bermuda exempted company with approximately $26.9 billion in capital at March 31, 2026. Arch, which is part of the S&P 500 index, provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Comments on Non-GAAP Financial Measures

Throughout this release, the Company presents its operations in the way it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use the Company’s financial information in evaluating the performance of the Company and that investors and such other persons benefit from having a consistent basis for comparison between quarters and for comparison with other companies within the industry. These measures may not, however, be comparable to similarly titled measures used by companies outside of the insurance industry. Investors are cautioned not to place undue reliance on these non-GAAP financial measures in assessing the Company’s overall financial performance.

This presentation includes the use of “after-tax operating income or loss available to Arch common shareholders,” which is defined as net income available to Arch common shareholders, excluding net realized gains or losses (which include, but are not limited to, realized and unrealized changes in the fair value of equity securities and assets accounted for using the fair value option, realized and unrealized gains and losses on derivative instruments, changes in the allowance for credit losses on financial assets and gains and losses realized from the acquisition or disposition of subsidiaries), equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses, transaction costs and other, net of income taxes and the use of annualized operating return on average common equity. The presentation of after-tax operating income available to Arch common shareholders and annualized operating return on average common equity are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to net income available to Arch common shareholders and annualized net income return on average common equity (the most directly comparable GAAP financial measures) in accordance with Regulation G is included on page 2 of this release.

The Company believes that net realized gains or losses, equity in net income or loss of investments accounted for using the equity method, net foreign exchange gains or losses and transaction costs and other, in any particular period are not indicative of the performance of, or trends in, the Company’s business performance. Although net realized gains or losses, equity in net income or loss of investments accounted for using the equity method and net foreign exchange gains or losses are an integral part of the Company’s operations, the decision to realize these items are independent of the insurance underwriting process and result, in large part, from general economic and financial market conditions. Furthermore, certain users of the Company’s financial information believe that, for many companies, the timing of the realization of investment gains or losses is largely opportunistic. In addition, changes in the allowance for credit losses and net impairment losses recognized in earnings on the Company’s investments represent other-than-temporary declines in expected recovery values on securities without actual realization.

The use of the equity method on certain of the Company’s investments in certain funds that invest in fixed maturity securities is driven by the ownership structure of such funds (either limited partnerships or limited liability companies). In applying the equity method, these investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of the net income or loss of the funds (which include changes in the fair value of the underlying securities in the funds). This method of accounting is different from the way the Company accounts for its other fixed maturity securities and the timing of the recognition of equity in net income or loss of investments accounted for using the equity method may differ from gains or losses in the future upon sale or maturity of such investments.

Transaction costs and other include integration, advisory, financing, legal, severance, incentive compensation and all other costs directly related to acquisitions. The Company believes that transaction costs and other, due to their non-recurring nature, are not indicative of the performance of, or trends in, the Company’s business performance.

The Company believes that showing net income available to Arch common shareholders exclusive of the items referred to above reflects the underlying fundamentals of the Company’s business since the Company evaluates the performance of and manages its business to produce an underwriting profit. In addition to presenting net income available to Arch common shareholders, the Company believes that this presentation enables investors and other users of the Company’s financial information to analyze the Company’s performance in a manner similar to how the Company’s management analyzes performance. The Company also believes that this measure follows industry practice and, therefore, allows the users of the Company’s financial information to compare the Company’s performance with its industry peer group. The Company believes that the equity analysts and certain rating agencies that follow the Company and the insurance industry as a whole generally exclude these items from their analyses for the same reasons.

The Company’s segment information includes the presentation of consolidated underwriting income or loss and a subtotal of underwriting income or loss. Such measures represent the pre-tax profitability of its underwriting operations and include net premiums earned plus other underwriting income, less losses and loss adjustment expenses, acquisition expenses and other operating expenses. Other operating expenses include those operating expenses that are incremental and/or directly attributable to the Company’s individual underwriting operations. Underwriting income or loss does not include certain income and expense items which are included in corporate. While these measures are presented in the Segment Information footnote to the Company’s Consolidated Financial Statements, they are considered non-GAAP financial measures when presented elsewhere on a consolidated basis. The reconciliations of underwriting income or loss to income before income taxes (the most directly comparable GAAP financial measure) on a consolidated basis, in accordance with Regulation G, is shown on the following pages.

Management measures segment performance for its three underwriting segments based on underwriting income or loss. The Company does not manage its assets by underwriting segment and, accordingly, investment income, income from operating affiliates and other items are not allocated to each underwriting segment.

In addition, the Company’s segment information includes the use of a combined ratio excluding catastrophic activity and prior year development, for the insurance and reinsurance segments, and a combined ratio excluding prior year development, for the mortgage segment. These ratios are non-GAAP financial measures as defined in Regulation G. The reconciliation of such measures to the combined ratio (the most directly comparable GAAP financial measure) in accordance with Regulation G are shown on the individual segment pages. The Company’s management utilizes the adjusted combined ratios excluding current accident year catastrophic events and favorable or adverse development in prior year loss reserves in its analysis of the underwriting performance of each of its underwriting segments. Effective in the 2025 first quarter, the ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Total return on investments includes investment income, equity in net income or loss of investments accounted for using the equity method, net realized gains and losses (excluding changes in the allowance for credit losses on non-investment related financial assets) and the change in unrealized gains and losses generated by Arch’s investment portfolio. Total return is calculated on a pre-tax basis and before investment expenses and reflects the effect of financial market conditions along with foreign currency fluctuations. Management uses total return on investments as a key measure of the return generated to Arch common shareholders, and compares the return generated by the Company’s investment portfolio against benchmark returns during the periods presented.

The following tables summarize the Company’s results by segment for the 2026 first quarter and 2025 first quarter and a reconciliation of underwriting income or loss to income or loss before income taxes and net income or loss available to Arch common shareholders:

(U.S. Dollars in millions)

Three Months Ended

March 31, 2026

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,697

$

3,414

$

316

$

6,425

Premiums ceded (1)

(791)

(1,238)

(50)

(2,077)

Net premiums written

1,906

2,176

266

4,348

Change in unearned premiums

(35)

(345)

18

(362)

Net premiums earned

1,871

1,831

284

3,986

Other underwriting income (2)

11

37

11

59

Losses and loss adjustment expenses

(1,126)

(948)

(15)

(2,089)

Acquisition expenses

(375)

(347)

(8)

(730)

Other operating expenses

(315)

(132)

(51)

(498)

Underwriting income (loss)

$

66

$

441

$

221

728

Net investment income

408

Net realized gains (losses)

(87)

Equity in net income of investments accounted for using the equity method

160

Other income (loss)

(5)

Corporate benefit (expenses) (3)

(31)

Transaction costs and other (3)

(18)

Amortization of intangible assets

(30)

Interest expense

(37)

Net foreign exchange gains (losses)

21

Income (loss) before income taxes and income (loss) from operating affiliates

1,109

Income tax benefit (expense)

(98)

Income (loss) from operating affiliates

36

Net income (loss) available to Arch

1,047

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

1,037

Underwriting Ratios

Loss ratio

60.2%

51.7%

5.3%

52.4%

Acquisition expense ratio

20.0%

19.0%

2.9%

18.3%

Other operating expense ratio (4)

16.3%

5.2%

14.1%

11.0%

Combined ratio

96.5%

75.9%

22.3%

81.7%

Net premiums written to gross premiums written

70.7%

63.7%

84.2%

67.7%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

(U.S. Dollars in millions)

Three Months Ended

March 31, 2025

Insurance

Reinsurance

Mortgage

Total

Gross premiums written (1)

$

2,645

$

3,494

$

326

$

6,463

Premiums ceded (1)

(712)

(1,178)

(60)

(1,948)

Net premiums written

1,933

2,316

266

4,515

Change in unearned premiums

(73)

(288)

34

(327)

Net premiums earned

1,860

2,028

300

4,188

Other underwriting income (2)

3

39

11

53

Losses and loss adjustment expenses

(1,228)

(1,356)

(3)

(2,587)

Acquisition expenses

(343)

(417)

(4)

(764)

Other operating expenses

(294)

(127)

(52)

(473)

Underwriting income (loss)

$

(2)

$

167

$

252

417

Net investment income

378

Net realized gains (losses)

3

Equity in net income of investments accounted for using the equity method

53

Other income (loss)

(2)

Corporate benefit (expenses) (3)

(50)

Transaction costs and other (3)

(10)

Amortization of intangible assets

(49)

Interest expense

(35)

Net foreign exchange gains (losses)

(27)

Income (loss) before income taxes and income (loss) from operating affiliates

678

Income tax benefit (expense)

(121)

Income (loss) from operating affiliates

17

Net income (loss) available to Arch

574

Preferred dividends

(10)

Net income (loss) available to Arch common shareholders

$

564

Underwriting Ratios

Loss ratio

66.0%

66.9%

1.1%

61.8%

Acquisition expense ratio

18.5%

20.6%

1.3%

18.3%

Other operating expense ratio (4)

15.6%

4.3%

13.7%

10.0%

Combined ratio

100.1%

91.8%

16.1%

90.1%

Net premiums written to gross premiums written

73.1%

66.3%

81.6%

69.9%

(1)

Certain assumed and ceded amounts related to intersegment transactions are included in individual segment results. Accordingly, the sum of such transactions for each segment does not agree to the total due to eliminations.

(2)

‘Other underwriting income’ includes revenue earned from underwriting-related activities covered under existing service contracts.

(3)

Certain expenses have been excluded from ‘Corporate benefit (expenses)’ and reflected in ‘Transaction costs and other.’ See ‘Comments on Non-GAAP Financial Measures’ for a further discussion of such items.

(4)

The ‘Other operating expense ratio’ includes ‘Other underwriting income.’

Cautionary Note Regarding Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (“PSLRA”) provides a “safe harbor” for forward-looking statements. This release or any other written or oral statements made by or on behalf of the Company may include forward-looking statements, which reflect the Company’s current views with respect to future events and financial performance. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements. Forward-looking statements, for purposes of the PSLRA or otherwise, can generally be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” and similar statements of a future or forward-looking nature or their negative or variations or similar terminology.

Forward-looking statements involve the Company’s current assessment of risks and uncertainties. Actual events and results may differ materially from those expressed or implied in these statements. Important factors that could cause actual events or results to differ materially from those indicated in such statements are discussed below and elsewhere in this release and in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”), and include:

the Company’s ability to successfully implement its business strategy during “soft” as well as “hard” markets; acceptance of the Company’s business strategy, security and financial condition by rating agencies and regulators, as well as by brokers and its insureds and reinsureds; the Company’s ability to consummate acquisitions and integrate any businesses it has acquired or may acquire into its existing operations; the Company’s ability to maintain or improve its ratings, which may be affected by its ability to raise additional equity or debt financings, by ratings agencies’ existing or new policies and practices, as well as other factors described herein; general economic and market conditions (including inflation, interest rates, unemployment, housing prices, foreign currency exchange rates, prevailing credit terms, tariffs, geopolitical instability and conflict and the depth and duration of a recession) and conditions specific to the reinsurance and insurance markets in which the Company operates; competition, including increased competition, on the basis of pricing, capacity (including alternative sources of capital), coverage terms or other factors; developments in the world’s financial and capital markets and the Company’s access to such markets; the Company’s ability to successfully enhance, integrate and maintain operating procedures (including information technology) to effectively support its current and new business; the loss and addition of key personnel; material differences between actual and expected assessments for guaranty funds and mandatory pooling arrangements; accuracy of those estimates and judgments utilized in the preparation of the Company’s financial statements, including those related to revenue recognition, insurance and other reserves, reinsurance recoverables, investment valuations, intangible assets, bad debts, income taxes, deferred tax assets, contingencies and litigation, and any determination to use the deposit method of accounting; greater than expected loss ratios on business written by the Company and adverse development on claim and/or claim expense liabilities related to business written by its insurance and reinsurance subsidiaries; the adequacy of the Company’s loss reserves; severity and/or frequency of losses; greater frequency or severity of unpredictable natural and man-made catastrophic events; claims for natural catastrophic events or severe economic events in the Company’s insurance, reinsurance and mortgage businesses could cause large losses and substantial volatility in the Company’s results of operations; availability to the Company of reinsurance to manage our net exposures and the cost of such reinsurance; the failure of reinsurers, managing general agents, third party administrators or others to meet their obligations to the Company; the timing of loss payments being faster or the receipt of reinsurance recoverables being slower than anticipated by the Company; the Company’s investment performance, including legislative or regulatory developments that may adversely affect the fair value of the Company’s investments; changes in general economic conditions, resulting in downgrades of U.S. securities or sovereign debt by credit rating agencies, which could affect the Company’s business, financial condition and results of operations; an incident, disruption in operations or other cyber event caused by cyber attacks, the use of artificial intelligence technologies or other technology on the Company’s systems or those of the Company’s business partners and service providers, which could negatively impact the Company’s business and/or expose the Company to litigation; the effect of climate change on the Company’s business; the effect of contagious diseases or a pandemic on the Company’s business; acts of terrorism, political unrest and other hostilities or other unforecasted and unpredictable events caused by humans; the volatility of the Company’s shareholders’ equity from foreign currency fluctuations, which could increase due to us not matching portions of the Company’s projected liabilities in foreign currencies with investments in the same currencies; changes in accounting principles or policies or in the Company’s application of such accounting principles or policies; changes in the political environment of certain countries in which the Company operate or underwrite business; statutory or regulatory developments, including as to tax matters and insurance and other regulatory matters such as the adoption of legislation that affects Bermuda-headquartered companies and/or Bermuda-based insurers or reinsurers and/or changes in regulations or tax laws applicable to the Company, its subsidiaries, brokers or customers, including the implementation of the Organization for Economic Cooperation and Development (“OECD”) Pillar I and Pillar II initiative and the enactment of the Bermuda corporate income tax; and the other matters set forth under Item 1A “Risk Factors”, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and other sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 26, 2026 and of the Company’s latest Quarterly Reports on Form 10-Q, as well as the other factors set forth in the Company’s other documents on file with the SEC, and management’s response to any of the aforementioned factors. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included herein or elsewhere. The Company's forward-looking statements speak only as of the date of this press release or as of the date they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Source: Arch Capital Group Ltd.
arch-corporate

More News From Arch Capital Group Ltd.

Arch Capital Group (ACGL - Free Report) reported $4.39 billion in revenue for the quarter ended March 2026, representing a year-over-year decline of 3.8%. EPS of $2.50 for the same period compares to $1.54 a year ago.

The reported revenue represents a surprise of -6.11% over the Zacks Consensus Estimate of $4.67 billion. With the consensus EPS estimate being $2.45, the EPS surprise was +2.16%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Combined Ratio - Total: 81.7% versus 83.1% estimated by four analysts on average.Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment: 14.1% versus the four-analyst average estimate of 16.2%.Loss Ratio - Total: 52.4% compared to the 54.5% average estimate based on four analysts.Expense Ratio - Total Acquisition Expense Ratio: 18.3% compared to the 18.4% average estimate based on four analysts.Revenues- Other income (loss): $-5 million compared to the $9 million average estimate based on four analysts. The reported number represents a change of +150% year over year.Revenues- Net investment income: $408 million versus the four-analyst average estimate of $417.66 million. The reported number represents a year-over-year change of +7.9%.Revenues- Net premiums earned- Reinsurance Segment: $1.83 billion compared to the $1.98 billion average estimate based on four analysts. The reported number represents a change of -9.7% year over year.Revenues- Net premiums earned- Insurance Segment: $1.87 billion compared to the $1.97 billion average estimate based on four analysts. The reported number represents a change of +0.6% year over year.Revenues- Net premiums earned: $3.99 billion versus the four-analyst average estimate of $4.24 billion. The reported number represents a year-over-year change of -4.8%.Revenues- Other underwriting income (loss): $59 million versus $39.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Revenues- Net premiums earned- Mortgage Segment: $284 million versus the four-analyst average estimate of $288.77 million. The reported number represents a year-over-year change of -5.3%.Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $160 million versus $92.39 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +201.9% change.View all Key Company Metrics for Arch Capital here>>>

Shares of Arch Capital have returned +0.8% over the past month versus the Zacks S&P 500 composite's +12.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways ACGL's Q1 EPS of $2.50 beat estimates, rising 15.4% YoY on strong underwriting gains. Arch Capital Group's underwriting income surged 74.6% with the combined ratio improving to 81.7. ACGL's revenues fell 3.8% due to lower premiums, while net investment income increased 7.9%. Arch Capital Group Ltd. (ACGL - Free Report) reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.

ACGL’s quarterly results benefited from improved net investment income, stronger underwriting performance and lower catastrophe losses. These positives were partially offset by declining premium volumes and weakness in the mortgage segment.

Behind the HeadlinesOperating revenues of $4.4 billion decreased 3.8% year over year, primarily due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%.

Gross premiums written decreased 0.6% year over year to $6.4 billion.

Net premiums earned declined 4.8% year over year to $3.9 billion, mainly due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.

Pre-tax net investment income increased 7.9% year over year to $408 million, missing the Zacks Consensus Estimate of $417 million. The figure was higher than our estimate of $378.2 million.

Pre-tax current accident year catastrophic losses for the company’s insurance and reinsurance segments, net of reinsurance and reinstatement premiums, totaled $174 million.

Arch Capital Group’s underwriting income increased 74.6% year over year to $728 million. The combined ratio, representing the percentage of premiums paid out as claims and expenses, improved 440 basis points to 81.7 year over year, beating the Zacks Consensus Estimate of 83.1 and our model estimate of 83.2.

Q1 Segmental ResultsInsurance: Gross premiums written increased 2% year over year to $2.7 billion. Net premiums written declined 1.4% year over year to $1.9 billion, primarily due to the non-renewal of select MCE-related programs. Net premiums written also came in below our estimate of $2.1 billion.

Underwriting income was $66 million, rebounding from a year-ago loss of $2 million, though it fell short of our estimate of $155.4 million. The combined ratio improved 360 basis points year over year to 96.5, marginally above the Zacks Consensus Estimate of 94.4.

Reinsurance: Gross premiums written decreased 2.3% year over year to $3.4 billion. Net premiums written declined 6% year over year to $2.1 billion, primarily reflecting a reduction in property catastrophe business. The figure was on par with our estimate.

Underwriting income totaled $441 million, up 164% year over year. The combined ratio improved 1590 basis points year over year to 75.9, significantly better than the Zacks Consensus Estimate of 80.7.

Mortgage: Gross premiums written declined 3.1% year over year to $316 million, primarily due to lower U.S. monthly premium business. Net premiums written remained flat year over year to $266 million. Net premiums written exceeded our estimate of $254.7 million.

Underwriting income declined 12.3% year over year to $221 million. The combined ratio deteriorated 620 basis points year over year to 22.3, and it remained well below the Zacks Consensus Estimate of 22.8.

Financial UpdateArch Capital Group exited the first quarter with cash and cash equivalents of $914 million, down 8% from the 2025-end level.

Total debt was $2.7 billion as of March 31, 2026, and remained flat from the 2025-end level.

Book value per share was $66.19 as of March 31, 2026, reflecting an increase of 1.7% from the 2025-end level.

Annualized operating return on average commonequity expanded 240 basis points year over year to 15.4%.

Net cash provided by operating activities was $1.2 billion, down 18.5% year over year.

During the first quarter of 2026, ACGL repurchased common shares worth of $783 million.

Zacks RankACGL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other InsurersCincinnati Financial Corporation (CINF - Free Report) reported first-quarter 2026 operating income of $2.10 per share, which surpassed the Zacks Consensus Estimate by 8.8%. The bottom line improved significantly, from a loss of 24 cents to $2.10 per share year over year.

Total operating revenues for the quarter were $2.9 billion, reflecting a 12% year-over-year increase, though the figure missed the Zacks Consensus Estimate by 0.7%.

The Progressive Corporation’s (PGR - Free Report) first-quarter 2026 earnings per share of $4.96 beat the Zacks Consensus Estimate by 2.5%. The bottom line increased 6.7% year over year.

Operating revenues grew 8.2% year over year to $22.3 billion driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenues. The top line missed the Zacks Consensus Estimate by 1.2%. Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.

Selective Insurance Group (SIGI - Free Report) reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.

Operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. The top line, however, missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure was on par with our estimate.

Arch Capital Group Ltd. (ACGL) Q1 2026 Earnings Call Transcript

Jessica Inskip (@jessicainskip) walks us through today's Big 3 trades. She likes Arch Capital (ACGL) as a top tier stock in its sector, Comfort Systems (FIX) as they're becoming increasingly tied to AI infrastructure demand, and MSCI (MSCI) as it highlights record reoccurring subscriptions.

Investors in Arch Capital Group Ltd. (ACGL - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $70 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Arch Capital Group shares, but what is the fundamental picture for the company? Currently, Arch Capital Group is a Zacks Rank #3 (Hold) in the Insurance - Property and Casualty industry that ranks in the Top 34% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while four analysts have revised their estimates downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from $2.46 per share to $2.44 in that period.

Given the way analysts feel about Arch Capital Group right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) today announced that its wholly-owned subsidiaries, Arch Capital Group (U.S.) Inc. (the “2043 Notes Offeror”) and Arch Capital Finance LLC (the “2046 Notes Offeror” and, together with the 2043 Notes Offeror, the “Offerors”), commenced cash tender offers (the “Tender Offers”) to purchase the outstanding debt securities listed in the table below (collectively, the “Notes” and each a “Series” of No.

PEMBROKE, Bermuda--(BUSINESS WIRE)--Arch Capital Group Ltd. (NASDAQ: ACGL) (“Arch” or the “Company”) announced today the pricing of its offering of $600,000,000 aggregate principal amount of 5.250% senior notes due 2036 (the “2036 Notes”) and $1,400,000,000 aggregate principal amount of 5.950% senior notes due 2056 (the “2056 Notes” and, together with the 2036 Notes, the “Notes”). The Company intends to use the net proceeds of this offering (i) to redeem, repurchase, repay or otherwise retire t.

Algert Global LLC lessened its position in shares of Dorman Products, Inc. (NASDAQ: DORM) by 10.1% in the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 144,732 shares of the auto parts company's stock after selling 16,247 shares during

COLMAR, Pa., April 13, 2026 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM) today announced the Company will report its financial results for the first quarter ended March 28, 2026, after the closing of the Nasdaq Stock Market on May 4, 2026.

The Company also announced that it is scheduled to conduct a conference call and webcast to discuss its first quarter 2026 financial results on May 5, 2026, at 8:00 a.m. ET. The conference call can be accessed by dialing (888) 440-4182 within the U.S. or +1 (646) 960-0653 outside the U.S. When prompted, enter the conference ID number 1698878. A live audio webcast, along with the accompanying presentation materials, can be accessed on the Company’s website at Dorman Products, Inc. - Events. A replay of the webcast will be available on the Investor section of the Company’s website after the call.

About Dorman Products

Dorman gives professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money, and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products covering cars, trucks, and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties, and other factors (many of which are outside of our control), which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning factors that could cause actual results to differ materially from the information contained in this press release, please see Dorman’s prior press releases and filings with the U.S. Securities and Exchange Commission (“SEC”), including Dorman’s most recent annual report on Form 10-K and its other SEC filings. Dorman is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Investor Relations Contact

Alex Whitelam, VP, Investor Relations
[email protected]
(445) 448-9522

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Dorman is undervalued after a 10% YTD decline, with strong long-term aftermarket demand and robust earnings growth potential. DORM's Q1 earnings are set for a sizable beat, driven by margin expansion, heavy-duty segment strength, and favorable mix. Despite a premium valuation to peers, DORM's superior margins and double-digit growth justify further multiple expansion.

Highlights (All comparisons are to the prior year period unless otherwise noted):

Net sales of $528.8 million for the quarter, up 4.2%Diluted earnings per share (“EPS”) of $1.43, down 24%Adjusted diluted EPS* of $1.57, down 22%Generated $43.8 million of cash from operating activities; repurchased $51 million of its shares COLMAR, Pa., May 04, 2026 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, today announced its financial results for the first quarter ended March 28, 2026.

Kevin Olsen, Dorman’s Chairman, President, and Chief Executive Officer, stated, “We started the year with solid financial performance that was in line with our expectations. Despite ongoing uncertainty in the broader economy and geopolitical environment, we delivered first quarter net sales growth of 4.2% year over year. Diluted EPS was $1.43, and adjusted diluted EPS* was $1.57, down 24% and 22%, respectively, compared to the same period in 2025, driven largely by the anticipated impact of higher costs associated with tariffs implemented in 2025. In addition, we generated cash from operations of $44 million and returned capital to stockholders through $51 million of share repurchases at an average price of $118 per share.

“Based on our first-quarter performance and our positive outlook across all three of our segments, we are reaffirming our net sales and earnings guidance for 2026.

“As we continue to navigate through recent market dynamics, we remain confident in our strategy and position as the innovation leader in the aftermarket, and we will continue to manage and execute on the factors within our control to support long-term growth.”

First Quarter Financial Results
The Company reported first quarter 2026 net sales of $528.8 million, up 4.2% compared to net sales of $507.7 million in the first quarter of 2025.

Gross profit was $190.2 million in the first quarter of 2026, or 36.0% of net sales, compared to $207.7 million, or 40.9% of net sales, in the same quarter last year.

Selling, general, and administrative (“SG&A”) expenses were $131.4 million, or 24.8% of net sales, in the first quarter of 2026, compared to $127.6 million, or 25.1% of net sales, in the same quarter last year. Adjusted SG&A expenses* were $126.0 million, or 23.8% of net sales, in the first quarter of 2026, compared to $121.6 million, or 23.9% of net sales, in the same quarter last year.

Diluted EPS was $1.43 in the first quarter of 2026, down 24% compared to diluted EPS of $1.87 in the same quarter last year. Adjusted diluted EPS* was $1.57 in the first quarter of 2026, down 22% compared to adjusted diluted EPS* of $2.02 in the same quarter last year.

Segment results were as follows:

 Net Sales Segment Profit Margin($ in millions)Q1 2026 Q1 2025 Change Q1 2026 Q1 2025 ChangeLight Duty$423.8 $408.8 4% 14.1% 19.9% -580 bpsHeavy Duty$57.8 $51.7 12% 0.8% -0.3% 110 bpsSpecialty Vehicle$47.2 $47.2 0% 8.7% 10.2% -150 bps                  2026 Guidance
The Company reaffirms its full-year 2026 guidance as detailed in the table below. The Company's guidance includes the expected impact of tariffs enacted as of May 4, 2026. The Company’s guidance excludes impacts from potential IEEPA tariff refunds, potential tariff changes after May 4, 2026, future acquisitions and divestitures, and additional share repurchases.

 2026 GuidanceNet Sales Change vs. 20257% – 9%Diluted EPS$7.57 – $7.97Change vs. 202514% – 20%Adjusted Diluted EPS*$8.10 – $8.50Change vs. 2025(9)% – (4)%Tax Rate Estimate23.5%   Conference Call and Webcast
The Company will hold a conference call and webcast for investors on Tuesday, May 5, 2026, beginning at 8:00 a.m. Eastern time. The conference call can be accessed by telephone at (888) 440-4182 within the U.S. or +1 (646) 960-0653 outside the U.S. When prompted, enter the conference ID number 1698878. A live audio webcast and accompanying presentation materials can be accessed on the Company’s website at Dorman Products, Inc. - Events. After the call, a replay of the session will be available on the Investor section of the Company’s website.

About Dorman Products
Dorman gives professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products covering cars, trucks, and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.

*Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains Non-GAAP financial measures. The reasons why we believe these measures provide useful information to investors and a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these Non-GAAP measures are included in the supplemental schedules attached.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “probably,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “views,” “estimates,” and similar expressions are used to identify these forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date such statements were made. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties, and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: competition in and the evolution of the motor vehicle aftermarket industry; changes in our relationships with, or the loss of, any customers or suppliers; our ability to develop, market and sell new and existing products; our ability to anticipate and meet customer demand; our ability to purchase necessary materials from our suppliers and the impacts of any related logistics constraints; widespread public health pandemics; political and regulatory matters, such as changes in trade policy, the imposition of tariffs and climate regulation; our ability to protect our information security systems and defend against cyberattacks; our ability to protect our intellectual property and defend against any claims of infringement; and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. 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 Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Investor Relations Contact
Alex Whitelam, VP, Investor Relations
[email protected] 
(445) 448-9522

Visit our website at dormanproducts.com. The Investor Relations section of the website contains important Company information, including financial data and investor materials. Dorman encourages investors to visit its website periodically to view new and updated information.

DORMAN PRODUCTS, INC.
Consolidated Statements of Operations
(in thousands, except per-share amounts)
     Three Months Ended Three Months Ended(unaudited)3/28/26 Pct.* 3/29/25 Pct. *Net sales$528,770  100.0  $507,692  100.0 Cost of goods sold 338,615  64.0   299,984  59.1 Gross profit 190,155  36.0   207,708  40.9 Selling, general, and administrative expenses 131,372  24.8   127,634  25.1 Income from operations 58,783  11.1   80,074  15.8 Interest expense, net 5,807  1.1   7,358  1.4 Other income, net (3,246) (0.6)  (1,361) (0.3)Income before income taxes 56,222  10.6   74,077  14.6 Provision for income taxes 12,671  2.4   16,572  3.3 Net income$43,551  8.2  $57,505  11.3         Diluted earnings per share$1.43    $1.87           Weighted average diluted shares outstanding 30,423     30,810    * Percentage of sales. Data may not add due to rounding.

DORMAN PRODUCTS, INC.
Consolidated Balance Sheets
(in thousands, except share data)
    (unaudited)3/28/26 12/31/25Assets   Current assets:   Cash and cash equivalents$43,056  $49,436 Accounts receivable, less allowance for doubtful accounts of $1,879 and $1,948 503,026   479,252 Inventories 902,422   959,019 Prepaids and other current assets 26,896   33,819 Total current assets 1,475,400   1,521,526 Property, plant, and equipment, net 166,621   168,777 Operating lease right-of-use assets 110,155   112,805 Goodwill 387,334   387,334 Intangible assets, net 251,785   257,079 Other assets 43,836   45,557 Total assets$2,435,131  $2,493,078 Liabilities and shareholders’ equity   Current liabilities:   Accounts payable$133,549  $185,125 Accrued compensation 17,577   30,756 Accrued customer rebates and returns 184,966   197,398 Revolving credit facility 15,000   — Current portion of long-term debt 37,500   37,500 Other accrued liabilities 59,533   42,048 Total current liabilities 448,125   492,827 Long-term debt 402,512   402,413 Long-term operating lease liabilities 93,226   96,568 Deferred tax liabilities 3,868   3,977 Other long-term liabilities 20,697   20,218 Commitments and contingencies   Shareholders’ equity:   Common stock, $0.01 par value; 50,000,000 shares authorized; 30,031,601 and 30,391,955 shares issued and outstanding in 2026 and 2025, respectively 300   304 Additional paid-in capital 134,230   137,109 Retained earnings 1,337,092   1,344,183 Accumulated other comprehensive loss (4,919)  (4,521)Total shareholders’ equity 1,466,703   1,477,075 Total liabilities and shareholders' equity$2,435,131  $2,493,078          Selected Cash Flow Information (unaudited):

 Three Months Ended (in thousands)3/28/26 3/29/25Cash provided by operating activities$43,759 $51,237Depreciation and amortization$13,998 $13,843Capital expenditures$8,449 $10,985       DORMAN PRODUCTS, INC.
Non-GAAP Financial Measures
(in thousands, except per-share amounts)

Our financial results include certain financial measures not derived in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should not be used as a substitute for GAAP measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. Additionally, these non-GAAP measures may not be comparable to similarly titled measures reported by other companies. However, we have presented these non-GAAP financial measures because we believe this presentation, when reconciled to the corresponding GAAP measure, provides useful information to investors by offering additional ways of viewing our results, profitability trends, and underlying growth relative to prior and future periods and to our peers. Management uses these non-GAAP financial measures in making financial, operating, and planning decisions and in evaluating our performance. Non-GAAP financial measures may reflect adjustments for charges such as fair value adjustments, amortization, transaction costs, severance, accelerated depreciation, and other similar expenses related to acquisitions as well as other items that we believe are not related to our ongoing performance.

Adjusted Net Income:

 Three Months Ended (unaudited)3/28/26* 3/29/25*Net income (GAAP)$43,551  $57,505 Pretax acquisition-related intangible assets amortization [1] 5,174   5,471 Pretax acquisition-related transaction and other costs [2] 242   492 Pretax reduction in workforce costs [3] —   114 Tax adjustment (related to above items) [4] (1,284)  (1,474)Adjusted net income (Non-GAAP)$47,683  $62,108     Diluted earnings per share (GAAP)$1.43  $1.87 Pretax acquisition-related intangible assets amortization [1] 0.17   0.18 Pretax acquisition-related transaction and other costs [2] 0.01   0.02 Pretax reduction in workforce costs [3] —   0.00 Tax adjustment (related to above items) [4] (0.04)  (0.05)Adjusted diluted earnings per share (Non-GAAP)$1.57  $2.02     Weighted average diluted shares outstanding 30,423   30,810  * Amounts may not add due to rounding.
See accompanying notes at the end of this supplemental schedule.

Adjusted SG&A Expenses:

 Three Months Ended  Three Months Ended (unaudited)3/28/26 Pct.** 3/29/25 Pct.**SG&A expenses (GAAP)$131,372  24.8  $127,634  25.1 Pretax acquisition-related intangible assets amortization [1] (5,174) (1.0)  (5,471) (1.1)Pretax acquisition-related transaction and other costs [2] (242) (0.0)  (492) (0.1)Pretax reduction in workforce costs [3] —  —   (114) (0.0)Adjusted SG&A expenses (Non-GAAP)$125,956  23.8  $121,557  23.9         Net sales$528,770    $507,692    * *Percentage of sales. Data may not add due to rounding.

[1] – Pretax acquisition-related intangible asset amortization results from allocating the purchase price of an acquisition to the acquired tangible and intangible assets of the acquired business and recognizing the cost of the intangible asset over the period of benefit. Such costs were $5.2 million pretax (or $3.9 million after tax) during the three months ended March 28, 2026. Such costs were $5.5 million pretax (or $4.1 million after tax) during the three months ended March 29, 2025.

[2] – Pretax acquisition-related transaction and other costs include costs incurred to complete and integrate acquisitions. During the three months ended March 28, 2026, and March 29, 2025, we incurred charges included in selling, general, and administrative expenses to complete and integrate acquisitions of $0.2 million pretax (or $0.2 million after tax) and $0.5 million pretax (or $0.4 million after tax), respectively.

[3] – Pretax reduction in workforce costs represents costs incurred in connection with our planned workforce reduction, including insurance continuation costs. During the three months ended March 29, 2025, the expenses were $0.1 million pretax (or $0.1 million after tax).

[4] – Tax adjustments represent the aggregate tax effect of all non-GAAP adjustments reflected in the table above and totaled $(1.3) million during the three months ended March 28, 2026, and $(1.5) million during the three months ended March 29, 2025. Such items are estimated by applying our statutory tax rate to the pretax amount, or an actual tax amount for discrete items.

2026 Guidance:

The Company reaffirms the following guidance ranges related to its full year 2026 outlook:

 Year Ending 12/31/2026(unaudited)Low End High EndDiluted earnings per share (GAAP)$7.57  $7.97 Pretax acquisition-related intangible assets amortization 0.66   0.66 Pretax acquisition transaction and other costs 0.03   0.03 Tax adjustment (related to above items) (0.16)  (0.16)Adjusted diluted earnings per share (Non-GAAP)$8.10  $8.50     Weighted average diluted shares outstanding 30,500   30,500 

Dorman Products, Inc. (DORM) Q1 2026 Earnings Call Transcript

June 02, 2026 08:25 ET  | Source: Dorman Products, Inc.

COLMAR, Pa., June 02, 2026 (GLOBE NEWSWIRE) -- Dorman Products, Inc. (the “Company” or “Dorman”) (NASDAQ: DORM), a leading supplier in the motor vehicle aftermarket industry, announced today the commencement of a private offering of $450.0 million aggregate principal amount of senior notes due 2034 (the “Notes”), subject to market and other conditions. The interest rate and other terms of the Notes will be determined at pricing.

The Notes will be guaranteed by each of Dorman’s existing and future wholly-owned domestic subsidiaries that is a guarantor or other obligor under its credit agreement and certain other indebtedness, subject to certain exceptions.

Dorman intends to use the net proceeds from the offering to repay indebtedness under existing credit facilities and, to the extent of any remainder, for general corporate purposes.

The offering of the Notes will be made in a private transaction in reliance upon an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), only to investors who are reasonably believed to be “qualified institutional buyers,” as that term is defined in Rule 144A under the Securities Act, or to certain non-U.S. persons in transactions outside the United States pursuant to Regulation S under the Securities Act. The Notes and the related guarantees have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Dorman Products

Dorman gives professionals, enthusiasts, and owners greater freedom to fix motor vehicles. For over 100 years, we have been driving new solutions, releasing tens of thousands of aftermarket replacement products engineered to save time and money, and increase convenience and reliability.

Founded and headquartered in the United States, we are a pioneering global organization offering an always-evolving catalog of products covering cars, trucks, and specialty vehicles, from chassis to body, from underhood to undercarriage, and from hardware to complex electronics.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will,” “intends,” and similar expressions are used to identify these forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date such statements were made. Such forward-looking statements are based on current expectations that involve known and unknown risks, uncertainties, and other factors (many of which are outside of our control). Such risks, uncertainties and other factors relate to, among other things: the terms of and completion of the offering of the Notes, the anticipated use of the net proceeds from the offering, competition in and the evolution of the motor vehicle aftermarket industry and financial and economic factors, such as our level of indebtedness, fluctuations in interest rates and inflation. 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 Company’s filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company is under no obligation to, and expressly disclaims any such obligation to, update any of the information in this document, including but not limited to any situation where any forward-looking statement later turns out to be inaccurate, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Investor Relations Contact

Alex Whitelam, VP, Investor Relations
[email protected]
(445) 448-9522

Dorman is undervalued, with earnings power projected at $10/share in 2027 and a price target of $160. Q1 results were impacted by peak tariff costs under FIFO accounting, but margin normalization and growth are expected through year-end. Management reaffirmed full-year guidance, anticipating 7-9% sales growth and operating margins exiting 2024 in the high teens.

Jacobs Solutions (J - Free Report) came out with quarterly earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.64 per share. This compares to earnings of $1.43 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +6.55%. A quarter ago, it was expected that this construction and technical services company would post earnings of $1.52 per share when it actually produced earnings of $1.53, delivering a surprise of +0.66%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Jacobs Solutions, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $3.69 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 13.79%. This compares to year-ago revenues of $2.91 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Jacobs Solutions shares have lost about 1.3% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for Jacobs Solutions?While Jacobs Solutions has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Jacobs Solutions was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.95 on $3.36 billion in revenues for the coming quarter and $7.13 on $13.17 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Advanced Drainage Systems (WMS - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 21.

This maker of water drainage systems and pipes is expected to post quarterly earnings of $1.00 per share in its upcoming report, which represents a year-over-year change of -2.9%. The consensus EPS estimate for the quarter has been revised 1.8% lower over the last 30 days to the current level.

Advanced Drainage Systems' revenues are expected to be $650.15 million, up 5.6% from the year-ago quarter.

Key Takeaways Jacobs posted Q2 EPS of $1.75 ( 22% y/y) and gross revenues of $3.7B ( 27%), both above estimates.Jacobs' backlog hit a record $27B ( 22%), fueled by data center, semiconductor, water, power and transit wins.Jacobs raised FY26 net revenue growth, EBITDA margin and EPS outlook; repurchased $220M shares. Jacobs Solutions Inc. (J - Free Report) delivered strong second-quarter fiscal 2026 (ended March 27, 2026) results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and improving year over year.

Jacobs delivered strong top-line growth as healthy demand persisted across priority markets, led by data center and semiconductor activity, with additional support from water, power and transportation. Growth within Infrastructure & Advanced Facilities remained broad-based, highlighted by notable wins including a major wastewater treatment program in San Francisco, a water regulation contract in the United Kingdom, and multiple hyperscaler-related data center awards.

Inside Jacobs’ Q2 ResultsThe company reported adjusted earnings per share (EPS) of $1.75, up 22.4% from the year-ago level, and beat the consensus mark of $1.64 by 6.7%.

Gross revenues rose 27% year over year to $3.7 billion and surpassed the consensus estimate of $3.25 billion by 13.8%. Adjusted net revenues of $2.3 billion were also up 8.8% year over year.

Backlog increased 21.7% year over year to a record $27 billion, underscoring healthy award activity and visibility.

Jacobs Expands Margins on Solid ExecutionProfitability improved year over year as Jacobs benefited from operating discipline and a favorable mix. Adjusted EBITDA rose 14.2% from a year ago to $327.2 million, while adjusted EBITDA margin expanded 70 basis points to 14.1% on adjusted net revenues.

At the segment level, Infrastructure & Advanced Facilities operating profit improved, with margin expanding modestly as project execution held up. PA Consulting also remained a margin-accretive contributor, with operating profit rising and margin staying above 22%, helping lift consolidated profitability despite integration-related items tied to the PA transaction.

Jacobs’ Q2 Segment DetailsInfrastructure & Advanced Facilities (I&AF): Segment revenues totaled $3.34 billion, up 28.2% year over year from $2.60 billion. Excluding $1.37 billion of pass-through revenues, adjusted net revenues were $1.97 billion.

I&AF segment operating profit increased 11.4% year over year to $225.2 million from $203.3 million. Operating profit as a percentage of adjusted net revenues improved to 11.4% from 11.1% a year ago, reflecting modest margin expansion. Backlog in the segment rose 21.9% year over year to $26.54 billion as of March 27, 2026.

PA Consulting: Segment revenues were $358.6 million, up 16.5% year over year from $307.7 million, driven primarily by growth in PA’s public services businesses, including public services and defense and security.

Operating profit rose 18.6% year over year to $79.9 million from $67.3 million, and operating profit as a percentage of revenues improved to 22.3% from 21.9% in the prior-year quarter. PA Consulting backlog increased to $427 million from $392 million a year ago, supported by organic growth.

Jacobs’ Cash Flow and Balance Sheet Reflect PA TimingCash generation was mixed in the quarter, influenced by acquisition-related timing items. Management noted an adjusted free cash outflow of $272 million in the second quarter, partly tied to a favorable first-quarter timing item that reversed, bringing first-half adjusted free cash flow to $93 million.

The balance sheet expanded following the PA transaction and related financing. Jacobs ended the quarter with cash and cash equivalents of $1.37 billion, up from $1.24 billion at the fiscal 2025 end (Sept. 26, 2025). While long-term debt rose to $4.08 billion from $2.24 billion at the fiscal 2025-end. Management also highlighted a net leverage ratio of 2.1x and reiterated its intent to move back below 2.0x by fiscal year-end and toward its longer-term leverage target thereafter.

Net cash used for operating activities was $103.4 million in the first six months of fiscal 2026, compared with net cash provided by operating activities of $11 million in the year-ago period.

J Raises FY26 Outlook AgainEncouraged by first-half momentum, Jacobs raised its fiscal 2026 targets again. The company now expects adjusted net revenues to grow 8.0-10.5% year over year (previously projected to grow between 6.5% and 10%). Adjusted EBITDA margin projected at 14.6-14.9% (versus prior forecast of 14.4% to 14.7%). Adjusted earnings are now expected in the $7.10-$7.35 range, up from the previous expectation of 6.95 to $7.3, while adjusted free cash flow margin is still projected at 7.0-8.5%.

Capital returns remained active, with the company repurchasing $220 million of shares during the quarter and declaring a quarterly dividend of $0.36 per share. Management also discussed leverage and cash generation dynamics following the PA transaction, including near-term cash flow noise tied to acquisition-related payments and a plan to bring leverage back down as earnings and cash flow ramp through fiscal 2027.

Jacobs’ Zacks Rank & Recent Construction ReleasesJacobs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vulcan Materials Company (VMC - Free Report) posted exceptional first-quarter 2026 results with adjusted earnings and total revenues beating the Zacks Consensus Estimate and increasing year over year. The quarter’s results reflect benefits realized from the aggregates-led business and consistent focus on its strategic disciplines. Besides, efforts to incorporate top-tier innovation and technology advancements also aided the quarter’s financial performance.

Vulcan reiterated its full-year adjusted EBITDA outlook of $2.4-$2.6 billion and cited a healthy backlog supported by large projects and public construction activity.

EMCOR Group, Inc. (EME - Free Report) reported impressive first-quarter 2026 results, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year on strong demand across its core markets.

EMCOR’s quarterly results reflect continued momentum across key end markets and customers’ confidence in the company’s ability to execute complex and mission-critical projects. Strong activity in sectors like Network and Communications, Institutional, Healthcare, and Water and Wastewater supported growth and drove higher remaining performance obligations. EMCOR now expects revenues between $18.50 billion and $19.25 billion, and diluted earnings per share are projected in the range of $28.25 to $29.75.

Comfort Systems USA, Inc. (FIX - Free Report) delivered a sharp first quarter of 2026, with earnings and revenues topping the Zacks Consensus Estimate and increasing year over year. The quarter reflected strong market conditions, led by heavier technology-sector activity, particularly for data centers.

Comfort Systems also highlighted that recent bookings and underlying persistent demand supported a higher backlog even with increased project burn rates, an important indicator that volume remains strong across key end markets. The backlog as of March 31, 2026, totaled $12.45 billion, increasing 4.3% from $11.94 billion on Dec. 31, 2025, and jumping 80.8% from $6.89 billion reported a year ago.

2 hours ago

Church & Dwight (NYSE:CHD) Director Robert Shearer Sells 8,600 SharesChurch & Dwight Co., Inc. (NYSE:CHD - Get Free Report) Director Robert Shearer sold 8,600 shares of the business's stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $97.97, for a total transaction of $842,542.00. Following the completion of the sale, the director directly owned 30,678 shares in the company, valued at $3,005,523.66. This trade represents a 21.90% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website.

NYSE:CHD

On May 13, 2026, Jacobs Solutions Inc J shares fell 3.6% to a current price of $114.15. The stock has experienced significant price fluctuations, with a 52-week range of $114.14 to $168.44, reflecting a volatile market sentiment towards the company.

GF Value™ verdict: The current price is $114.15, while GF Value™ estimates fair value at $143.41, indicating a 20.4% undervaluation.GF Score™ of 81/100 suggests a strong overall performance based on multiple factors.Insider activity shows a net sale of $0.2M in the last three months, indicating cautious sentiment among insiders. Is J Overvalued or Undervalued? Jacobs Solutions Inc J is currently trading at $114.15, which is significantly below the GF Value™ of $143.41. This presents a margin of safety of 20.4%, indicating that the stock may be undervalued relative to its intrinsic worth. The GF Valuation label classifies the stock as "Modestly Undervalued," suggesting that there may be potential upside for investors. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation presents an opportunity, it is essential to approach this with caution, considering the recent price drops and the overall market conditions. Such fluctuations can indicate underlying risks that may affect future performance.

How Does J's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 35.1x 26.3x Forward P/E 15.9x N/A Jacobs Solutions Inc's current P/E (TTM) of 35.1x is 34% above its 5-year median P/E of 26.3x, suggesting that the stock is trading above its historical valuation. This analysis appears to disagree with the GF Value™ verdict, which indicates undervaluation. Investors should consider this discrepancy when evaluating the stock's potential.

What Does J's GF Score™ Tell Us? Metric Rating GF Score™ 81 Financial Strength 6/10 Profitability 6/10 Growth 7/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 81/100 indicates a strong overall performance, with particularly high ratings in Valuation (8/10) and Growth (7/10). However, the Momentum rank of 5/10 and Financial Strength and Profitability ranks of 6/10 suggest areas for improvement. This mixed performance indicates a balance between solid growth potential and the need for better financial stability.

What Are Insiders Doing with J Stock? In the past three months, insider activity at Jacobs Solutions Inc has shown that insiders sold $0.2M worth of stock while no purchases were made. This net selling could indicate a lack of confidence among insiders regarding the company's near-term prospects or possibly a strategy to capitalize on recent price peaks. This trend should be monitored closely, as insider sentiment can often reflect expectations for the company's future performance.

What This Means for Investors Based on the analysis of GF Value™, Jacobs Solutions Inc J is currently undervalued. However, investors should be cautious due to recent price declines and mixed signals from both valuation metrics and insider activity.

For the complete analysis, visit the Jacobs Solutions Inc J stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is J's GF Score™?

J's GF Score™ is 81/100, indicating a strong overall performance based on key financial metrics.

Is J overvalued or undervalued?

Jacobs Solutions Inc is currently undervalued, with a GF Value™ of $143.41 compared to its current price of $114.15.

What is J's P/E ratio?

Jacobs Solutions Inc has a P/E (TTM) ratio of 35.1x, which is above its 5-year median P/E of 26.3x, indicating the stock is trading at a premium relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

DALLAS--(BUSINESS WIRE)-- #OurJacobs--Jacobs selected to provide environmental baseline for Oldbury, UK.